Canadian Pacific Kansas City Limited (CPKC) reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $14,546 million, a 16% rise from $12,555 million in 2023. This growth was primarily driven by the acquisition of Kansas City Southern (KCS), which contributed $1,375 million to freight revenues, alongside higher volumes and increased freight revenue per revenue ton-mile (RTM). However, diluted earnings per share (EPS) decreased by 5% to $3.98, down from $4.21 in the previous year, while core adjusted combined diluted EPS rose by 11% to $4.25.
The acquisition of KCS on April 14, 2023, marked a pivotal strategic development for CPKC, allowing it to consolidate KCS's operations and expand its reach across North America. The integration of KCS has been a focus for the company, with management emphasizing the importance of realizing anticipated synergies and cost savings. In addition to the KCS acquisition, CPKC completed the construction of a new international railway bridge over the Rio Grande, enhancing its capacity to move freight between the U.S. and Mexico.
Operationally, CPKC's freight revenues totaled $14,223 million, with bulk commodities, merchandise, and intermodal traffic contributing significantly. The company reported a total employee count of 19,797, a slight decrease from 19,927 in 2023, reflecting ongoing adjustments following the KCS acquisition. The operating ratio improved to 64.4%, a 60 basis point enhancement from 65.0% in 2023, indicating better cost management and operational efficiency.
Looking ahead, CPKC anticipates continued growth driven by the integration of KCS and the expansion of its service offerings. The company plans to invest approximately $2.9 billion in capital programs for 2025, focusing on track and roadway improvements, rolling stock, and infrastructure enhancements. CPKC's management remains optimistic about achieving its long-term financial targets, despite potential challenges related to market conditions and regulatory environments across its operational regions.
About CANADIAN PACIFIC KANSAS CITY LTD/CN
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.