Canadian railroad operator CPKC misses Q3 revenue estimates

Canadian Pacific Kansas City

29/10/2025 20:53

Overview

CPKC Q3 revenue rose 3% yr/yr to $3.7 bln, but missed analysts' expectations

Adjusted EPS for Q3 was $1.10, missing consensus estimates

Company's operating ratio improved by 260 basis points to 63.5%

Outlook

Company expects to deliver on full-year 2025 guidance

Company confident in long-term value proposition despite macroeconomic challenges

Result Drivers

VOLUME INCREASE - CPKC reported a 5% increase in volumes measured in Revenue Ton-Miles, contributing to revenue growth

OPERATIONAL EFFICIENCY - Operating ratio improved by 260 basis points, reflecting enhanced efficiency

SAFETY IMPROVEMENTS - Decrease in FRA-reportable personal injury and train accident frequencies indicates improved safety

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
C$3.66 bln
C$3.74 bln (19 Analysts)
Q3 Adjusted EPS
Miss
C$1.10
C$1.17 (23 Analysts)
Q3 EPS
C$1.01
Q3 Net Income
C$917 mln
Q3 Operating Income
C$1.34 bln
Q3 Pretax Profit
C$1.21 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 23 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the ground freight & logistics peer group is "buy"

Wall Street's median 12-month price target for Canadian Pacific Kansas City Ltd is C$124.23, about 16.5% above its October 28 closing price of C$103.71

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nCNW7s7tZa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)