CALGARY, Alberta – Canadian Pacific Kansas City bucked the industry trend by posting fourth-quarter gains in volume, operating income, and revenue.
“I am proud of how our team of incredible railroaders finished this transformational year with a strong fourth quarter, allowing CPKC to deliver volume growth and best-in-class earnings growth in 2023,” CEO Keith Creel said today. “Since our historic combination in April 2023, our united CPKC team has steadily built momentum, bringing new competition to supply chains and creating more value for our customers, while remaining focused on service and safety.”
For the quarter, CPKC’s operating income was up 10%, to $1.5 billion, as revenue on the combined railroad increased 4%, to $3.8 billion. Adjusted earnings per share grew 4% to $1.18. The operating ratio improved 2.2 points to 58.7%.
Quarterly volume grew 4% when measured by revenue ton-miles, or 2% on the basis of carloads and intermodal containers.
CPKC’s key operating metrics improved for the quarter, with average train speed up 6% and average terminal dwell down 11%. The railway recorded its 17th straight year with the industry’s lowest train accident rate and a 15% improvement in the quarterly personal injury rate.
CPKC will spend $2.75 on capital projects this year, including five new passing sidings on its key north-south corridor in the U.S. The second bridge over the Rio Grande at Laredo, Texas, is 45% complete and is on schedule to open by the end of the year.
This year CPKC expects double-digit earnings growth. For the 2024-2028 period, CPKC’s outlook includes high single-digit revenue growth, double-digit earnings growth, capital spending of between $2.6 billion and $2.8 billion annually, and a return to double-digit return on invested capital.
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