CPKC Core Adjusted EPS Rises 16% as Grain and Intermodal Drive 15% Revenue Gain

Canadian Pacific Kansas City posted a 16% jump in core adjusted earnings per share for the third quarter on Wednesday, as revenue climbed 15% on strong grain and intermodal shipments, though higher fuel prices pushed its operating ratio up.

The railroad, which reports in Canadian dollars, earned core adjusted diluted EPS of C$1.28, up from C$1.10 a year earlier, according to its earnings release filed with an 8-K on Wednesday. Reported diluted EPS rose 3% to C$1.04 from C$1.01.

Grain and intermodal lead

Revenue rose to C$4.219 billion from C$3.661 billion, and volumes measured in revenue ton-miles increased 6%.

Grain led the way. Grain freight revenue jumped 29% to C$904 million, and intermodal revenue rose 22% to C$815 million. Metals, minerals and consumer products grew 16% to C$532 million, while coal was roughly flat at C$254 million. Automotive revenue rose 9% to C$373 million, and potash increased 9% to C$182 million.

"CPKC delivered solid results, powered by momentum across our unrivalled North American network, countering macroeconomic headwinds during the quarter," President and CEO Keith Creel said in the release. "We remain on track to meet our commitments for the year."

Fuel weighs on efficiency

Costs rose faster than revenue, largely because of fuel. Fuel expense climbed to C$667 million from C$415 million, and total operating expenses rose to C$2.732 billion from C$2.325 billion.

The reported operating ratio, which measures operating expenses as a share of revenue, worsened 130 basis points to 64.8%. The core adjusted operating ratio rose 120 basis points to 61.9%. CPKC said higher fuel prices hurt the reported and core adjusted ratios by 170 and 190 basis points, respectively.

Net income was essentially unchanged at C$916 million, compared with C$917 million, as income tax expense rose to C$448 million from C$296 million.

Buybacks and dividend

CPKC repurchased 11,542,470 common shares in the quarter and spent C$1.425 billion on share purchases, according to its cash flow statement. Through nine months, it has bought back 28,134,076 shares.

The company declared dividends of C$0.268 a share in the quarter, up from C$0.228 a year earlier, and diluted weighted average shares outstanding fell to 877.6 million from 911.4 million.

The bigger picture

"We are still in the early chapters of the CPKC story, and the long-term opportunity in front of us remains undeniable," Creel said.

For the first nine months, revenue rose to C$12.084 billion from C$11.155 billion, while net income fell to C$2.785 billion from C$3.060 billion. The 2025 period included a C$333 million gain on the sale of CPKC's stake in the Panama Canal Railway Company.

The company held a conference call with analysts at 4:30 p.m. ET on Wednesday to discuss the quarterly results.

Sources

1. CPKC Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0000016875-26-000031)

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