Canadian Pacific Kansas Metropolis reported a 16% improve in third-quarter core adjusted earnings per share Wednesday, as increased freight volumes and development in grain and intermodal income helped offset rising gas prices.
Income rose to C$4.22 billion ($3.01 billion) within the three months ended Sept. 30 from $2.61 billion a yr earlier, the Calgary-based firm (NYSE: CP) mentioned in earnings launched after the shut of markets. Core adjusted diluted earnings elevated to 91 cents per share from 78 cents, whereas reported diluted earnings rose 3% to 74 cents from 72 cents. Freight volumes, measured in income ton-miles, elevated 6%.
“CPKC delivered strong outcomes, powered by momentum throughout our unequalled North American community, countering macroeconomic headwinds through the quarter,” President and Chief Govt Keith Creel mentioned within the launch. “The railroad is operating very properly, our service stays sturdy, and we proceed to ship development throughout key markets, together with grain, intermodal and merchandise.”
Grain income climbed to $644 million from $500 million within the third quarter of 2025, whereas intermodal income elevated to $581 million from $476 million. Income from power, chemical substances and plastics rose to $544 million from $499 million, and automotive income reached $266 million, up from $244 million. Coal income was practically unchanged at $181 million.
The features lifted working revenue to $1.06 billion from $955 million, though bills elevated quicker than income. Gas expense rose to $475 million from $296 million, whereas compensation and advantages elevated to $507 million from $441 million.
CPKC’s working ratio —working bills as a share of income and a key effectivity indicator— worsened to 64.8% from 63.5%. Its core adjusted working ratio elevated to 61.9% from 60.7%. The corporate mentioned increased gas costs added 1.7 share factors to the reported ratio and 1.9 share factors to the core adjusted determine.
Regardless of increased working revenue, internet revenue attributable to controlling shareholders edged all the way down to $653 million from $655 million. Reported earnings per share however elevated because the weighted-average diluted share rely fell to 877.6 million from 911.4 million.
Earnings tax expense elevated to $319 million from $211 million. The quarter included a $67 million tax cost associated to Canadian tax reassessments related to the Kansas Metropolis Southern acquisition in 2023, together with a $12 million expense from a Mexican tax settlement.
The corporate additionally disclosed $12 million in advisory prices associated to its evaluation and advocacy regarding the U.S. Floor Transportation Board’s assessment of the proposed Union Pacific (NYSE: UNP)–Norfolk Southern (NYSE: NSC) merger.
Money generated by working actions elevated to $1.10 billion from $905 million a yr earlier. Spending on additions to properties declined to $437 million from $613 million, whereas money used to buy widespread shares totaled $1.02 billion.
Creel mentioned disciplined execution and a “sturdy industrial pipeline” supported the corporate’s confidence in assembly its annual commitments.
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