Canadian Pacific Kansas City Limited (CP)

CPKC reported second-quarter 2026 revenue of C$4.2 billion on 29 July 2026, up 13 percent from C$3.7 billion a year earlier 3.

Grain led the rise: the company moved 168,000 carloads of grain in the quarter, against 142,000 a year earlier, IndexBox reported 10.

Reported earnings per share, profit for each share, fell 14 percent to C$1.15, while core adjusted earnings per share, which sets aside one-off items, rose 13 percent to C$1.27 10.

The second quarter of 2025 had included a gain of C$333 million from selling a 50 percent stake in the Panama Canal Railway Company 2.

The Surface Transportation Board adopted a schedule in August for reviewing the Union Pacific and Norfolk Southern merger, with final briefs due 28 May 2027, FreightWaves reported 7.

Chief executive Keith Creel said on 11 May 2026 that a combined Union Pacific and Norfolk Southern could place nearly 50 percent of U.S. freight rail traffic in the hands of a single company 11.

Canadian Pacific Railway Company was incorporated in 1881 by an Act of the Parliament of Canada, and the present parent company was incorporated on 22 June 2001 1.

On 14 April 2023 the company took control of Kansas City Southern, whose Mexican line gave it a rail route from Canada through the United States to Mexico City 1.

Before that date its interest in Kansas City Southern was reported as an equity-method investment, meaning only its share of that company's earnings appeared in the accounts 1.

Revenue was C$15,078 million in 2025, up 4 percent from C$14,546 million in 2024, mainly because the railway moved more freight measured in revenue ton-miles 1.

The operating ratio, the share of revenue spent on running the railway, improved to 62.8 percent in 2025 from 64.4 percent in 2024 1.

Diluted earnings per share were C$4.51 in 2025, up 13 percent from C$3.98 in 2024, and core adjusted operating ratio was 59.9 percent against 61.3 percent 1.

On 30 May 2025 the company signed new four-year agreements with the Teamsters Canada Rail Conference after binding arbitration, with annual wage increases of 3 percent 1.

On 1 April 2025 it sold its 50 percent stake in the Panama Canal Railway Company to APM Terminals Panama Rail LP for gross proceeds of U.S. $350 million 1.

Capital spending rose 10 percent to C$3,102 million in 2025, and share repurchases of C$3,942 million were the main reason cash used in financing rose 1.

What the railway is

CPKC says it owns and operates the only freight railway spanning Canada, the United States and Mexico, on a network of about 20,000 miles 1.

It reports one operating segment, rail transportation, and splits freight into bulk goods, merchandise and intermodal containers 1.

Bulk: grain, coal, potash and fertilizer

Bulk made up about 36 percent of 2025 freight revenue, and grain alone was about 22 percent 1.

Grain moves in 8,500-foot trains that can carry about 40 percent more grain than the previous generation of grain trains 1.

Railway Supply reported that CPKC moved a record 30.66 million tonnes of Canadian grain and grain products in the 2025-2026 crop year, about 72,500 tonnes above the previous high 9.

Coal revenue fell in the second quarter of 2026 because less Canadian coal moved to Vancouver, Kamloops and Thunder Bay, which the company tied to lower production and maintenance at mines and ports 2.

Potash was about 4 percent of 2025 freight revenue and moves mainly from Saskatchewan to the ports of Vancouver, Portland and Thunder Bay 1.

Merchandise: fuels, chemicals, metals and vehicles

Merchandise was about 46 percent of 2025 freight revenue, led by energy, chemicals and plastics at 20 percent and metals, minerals and consumer products at 12 percent 1.

Automotive was about 9 percent of 2025 freight revenue, and the company says it serves the majority of automotive plants in Mexico 1.

Most of its crude oil now moves as DRUbit, a heavy crude made for rail transport, from Hardisty, Alberta, to Port Arthur, Texas 1.

Intermodal and cross-border routes

Intermodal, largely retail goods in containers moved by train, ship and truck, was about 18 percent of 2025 freight revenue 1.

In 2024 the company and CSX created the Southeast Mexico Express, a route connecting shippers in Mexico, Texas and the U.S. Southeast 1.

Network and workforce

The network covers about 8,400 miles in Canada, 8,800 miles in the United States and 3,100 miles in Mexico 1.

The company had 19,479 employees on 31 December 2025, 318 fewer than a year earlier 1.

People in charge

Keith Creel has been president and chief executive since 14 April 2023, and earlier led Canadian Pacific as chief executive from 31 January 2017 1.

Nadeem Velani is chief financial officer, John Brooks is chief marketing officer and Mark Redd is chief operating officer 1.

On 29 July 2026 board chair Isabelle Courville retired and Gordon Trafton, a director since 1 January 2017, became chair 5.

Rivals and open problems

The annual report names competing railways, motor carriers, ship and barge operators and pipelines, and compares itself with Canadian National, Union Pacific, Norfolk Southern and CSX 1.

Since September 2020 the U.S. Environmental Protection Agency has been inquiring into the company's compliance with the Clean Air Act for locomotives, and the company says any civil penalty is not anticipated to be material 2.

Its Mexican subsidiary runs on a government concession until June 2047 and pays annual duties of 1.25 percent of its gross revenues 1.

The umbrella, in words

The annual report says the network reaches U.S. markets through five wholly-owned subsidiaries 1.

They are Soo Line Railroad Company, the Dakota, Minnesota & Eastern Railroad, Delaware & Hudson Railway Company, Central Maine & Quebec Railway U.S. Inc. and the Kansas City Southern Railway Company 1.

Kansas City Southern indirectly owns the Mexican railway CPKCM, which operates in northeastern and central Mexico 1.

Exhibit 21.1 of the annual report lists significant subsidiaries including Canadian Pacific Railway Company, Soo Line Corporation, Kansas City Southern and Kansas City Southern de Mexico 4.

The company owned half of the Panama Canal Railway Company until it sold that stake to APM Terminals on 1 April 2025 1.

Its global headquarters is a multi-building campus in Calgary, with a U.S. headquarters in Kansas City and Mexican headquarters in Monterrey and Mexico City 1.

For 2026 the company expects to invest about C$2.65 billion in its capital programs, financed with cash generated from operations 1.

Of that, it expects 55 to 60 percent to go to track and roadway and 30 to 35 percent to rolling stock such as railcars and locomotives 1.

On 28 January 2026 the company announced a share repurchase plan starting 2 February 2026 for up to 44.9 million common shares, to be cancelled on or before 1 February 2027 2.

On 28 September 2026 it announced C$1.8 billion of notes from its subsidiary Canadian Pacific Railway Company, expected to close on 6 October 2026 and to refinance existing debt 6.

In the second-quarter release Creel said, "We are well-positioned to accelerate volume and earnings growth in the second half of 2026" 3.

IndexBox reported that Creel said the company still expects double-digit earnings growth in 2026 10.

On the Union Pacific and Norfolk Southern case, the board set 3 December for preliminary comments from the federal departments of Justice and Transportation, with responses due 16 February, WOWT reported 8.

FreightWaves reported that a final decision is due within 90 days after the record closes, if the final environmental review is complete by then 7.