Canadian Pacific Kansas City Limited (CPKC) reported its financial results for the first quarter of 2026, revealing total revenues of $3,701 million, a decrease of 2% from $3,795 million in the same period of 2025. The decline in revenue was primarily attributed to a 3% drop in freight revenues, which fell to $3,628 million from $3,727 million. Net income attributable to controlling shareholders also decreased to $846 million, down from $910 million, resulting in basic and diluted earnings per share of $0.94, compared to $0.98 in the prior year.
Operating expenses for the quarter were $2,443 million, a slight reduction from $2,478 million in the previous year. This led to an operating income of $1,258 million, down from $1,317 million. The operating ratio increased to 66.0%, reflecting a 70 basis point rise from 65.3% in 2025. The company noted that the increase in operating ratio was influenced by various factors, including wage inflation and stock-based compensation costs, which were partially offset by efficiencies gained from a reduction in headcount and improved train weights.
In terms of operational metrics, CPKC reported a 2% increase in gross ton-miles (GTMs) to 100,625 million, while train miles decreased by 2% to 11,523 thousand. The average number of employees also saw a decline, averaging 19,539 compared to 19,749 in the previous year, attributed to the completion of systems integration in 2025. The company continues to focus on enhancing productivity and efficiency across its operations.
Strategically, CPKC announced a quarterly dividend increase of 17.5% to $0.268 per share, payable on July 27, 2026. The company also initiated a normal course issuer bid to repurchase up to 44.9 million common shares, reflecting its commitment to returning value to shareholders. Looking ahead, CPKC anticipates continued challenges in the freight market, particularly due to fluctuations in fuel prices and foreign exchange rates, which may impact future revenues and operating performance. The company remains focused on integrating its operations following the acquisition of Kansas City Southern and expects to realize synergies from this strategic move over time.
About CANADIAN PACIFIC KANSAS CITY LTD/CN
Canadian Pacific Kansas City Limited (CPKC) operates the only freight railway network spanning Canada, the U.S., and Mexico, providing rail and intermodal transportation services across approximately 20,000 miles. It transports bulk commodities, merchandise freight, and intermodal traffic to diverse industries and markets. CPKC’s integrated rail network emphasizes efficient, reliable service, cost control, asset optimization, and safety, serving customers through a single operating segment focused on freight logistics across North America.
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