Canadian Pacific Kansas City reported second-quarter revenue of C$3.7 billion, up 3% from a year ago, as network volumes climbed and operating efficiency improved. The railroad, which trades as CP on both the NYSE and TSX, said diluted EPS was C$1.33 and core adjusted diluted EPS was C$1.12.
The reported operating ratio improved by 110 basis points to 63.7%, while core adjusted OR fell to 60.7%. Volumes measured in revenue ton-miles rose 7%. The company added that it sees momentum carrying into the second half of 2025.
Chief executive Keith Creel framed the quarter as proof that service is firming after post-merger system integration work, particularly in the southern United States. Keith Creel, CPKC’s president and CEO, said in a press release: “Our exceptional team of railroaders again delivered strong operating and financial results… as we carry growing momentum into the second half of 2025.” He said management remains confident in meeting full-year guidance.
Intermodal was a bright spot. Revenue in that franchise increased about 9% year over year, helped by improved train service and resilient cross-border demand.
Automotive trended softer, with revenue down roughly 8%, reflecting a more mixed production backdrop and inventory normalization. Metals, minerals and consumer products also eased modestly. Total freight revenue rose 3% to C$3.63 billion.
The company’s message to investors is that the network is starting to unlock the benefits of the three-nation footprint that came with the CP-KCS combination.
CPKC again pointed to opportunities tied to its single-line routes linking Canada, the United States and Mexico, including corridors touching West Coast ports, the Gulf Coast and Lázaro Cárdenas. Management’s confidence rests on both service metrics and commercial wins that are expected to build through peak season.
Costs stayed in check relative to revenue growth, which supported the operating-ratio gains. While fuel and labor remain the two largest inputs, the company signaled continued focus on train length, crew productivity and asset turns to protect margins if pricing or mix gets choppier later this year.
Investors often regard OR as the cleanest read on a railroad’s efficiency; the 110-basis-point improvement in both reported and core adjusted OR suggests that incremental volume is flowing with better conversion.
Safety trends were mixed. CPKC reported a lower personal-injury frequency compared with last year, but a higher train-accident frequency.
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The company said those metrics were restated for the comparable 2024 period based on newly available information under FRA timelines, and emphasized its continuing focus on safety programs as volumes grow.
The balance-sheet story was active as well. CPKC repurchased about 12.9 million common shares in the quarter for roughly C$1.4 billion at a weighted-average price near C$108.
The company also issued several tranches of unsecured notes and exited the quarter with its revolving credit facility undrawn. Management said the capital structure gives it room to keep investing in key corridors while returning cash to shareholders.
Intermodal service consistency during peak season, grain shipments as harvest gets underway, and pricing discipline across bulk commodities, including coal and potash. The company’s cross-border franchise exposes it to shifting trade flows and policy developments, but it also offers diversified growth levers if consumer demand and North American manufacturing hold up. With volumes trending higher and efficiency improving, CPKC heads into the back half on stronger footing than a year ago.
