Canadian Pacific Kansas City reported fourth-quarter earnings of $0.95 per share, below the Zacks Consensus Estimate of $0.99. This result compares with $0.92 per share in the same quarter a year earlier, driven by a mix of softer volume growth and higher fuel surcharges that weighed on operating leverage. Investors had anticipated a stronger margin expansion, but freight demand in certain corridors softened more sharply than expected in December.

Total revenues increased by 4% year over year, reflecting modest pricing gains and a 2% rise in average carloads handled. However, cross-border intermodal volumes declined by 3% as manufacturers adjusted inventory levels in response to slower economic activity. Management cited tough comparisons to the prior quarter’s higher import volumes at Gulf Coast ports and shifting trade flows that limited upside during the period.

Despite the top-line challenges, the railroad maintained tight cost control, achieving a fourth-quarter operating ratio of 59.8%, nearly flat with the year-ago mark. Wage and benefits expense rose 2.5% due to contractual annual increases, while fuel costs, accounting for roughly 12% of operating expenses, fell 6%. Excluding fuel, operating expenses per revenue unit declined by 1.8%, evidencing efficient crew utilization and network rationalization initiatives.

On January 28, 2026, CP named industry veteran Gordon Trafton as vice-chair of its board. Mr. Trafton has served since 2017 and chairs the Risk and Sustainability Committee. The board also appointed Marc Parent, former CEO of a major aerospace firm, and nominated Kate Stevenson, current CIBC board chair, for election at the April annual meeting. These moves expand the board to 11 members and reinforce expertise in operations integration, financial oversight and strategic growth planning.