Canadian Pacific Kansas City reported fourth-quarter adjusted earnings of $0.95 per share, falling short of the Zacks Consensus Estimate of $0.99. While this marks an improvement from $0.92 per share in the year-ago quarter, the miss reflects softer pricing in intermodal and merchandise carloads. The railroad’s return on invested capital declined to 12.4% from 13.1% a year earlier, underscoring pressure on profit margins during the December period.

Total revenue for the quarter rose 3.0% year-over-year, driven by a 4.5% increase in merchandise revenue and a 2.1% gain in intermodal revenue. However, this growth lagged Street forecasts by approximately 1.2 percentage points. At the same time, the operating ratio improved to 60.5%, compared with 61.2% a year ago, reflecting disciplined expense management despite lower-than-expected volume gains.

Chief Executive Keith Creel highlighted the railroad’s ability to contain operating expenses, which grew only 1.8% versus a 3.0% rise in revenue. Fuel expense decreased by 5% sequentially thanks to hedging strategies and efficiency initiatives, while headcount productivity improved by 2.3% as measured by tons per employee. These efforts helped offset macroeconomic headwinds and trade-policy uncertainty affecting cross-border traffic.

As part of its ongoing board succession plan, Canadian Pacific Kansas City appointed veteran railroad executive Gordon Trafton as vice-chair, effective January 28, 2026. At the same time, aerospace industry leader Marc Parent joined the board and financial services director Kate Stevenson was nominated for election in April. The additions boost board expertise in operations integration, global training and corporate governance, supporting the company’s long-term growth strategy.