Canadian Pacific Kansas City Reports 4% Revenue Growth to C$15.1B and 55.9% Q4 Operating Ratio
Canadian Pacific Kansas City reported C$15.1B revenue in 2025, up 4% year-over-year, with adjusted EPS of C$4.61 (up 8%) and record Q4 operating ratio of 55.9%. Merger synergies yielded C$1.2B and are projected to reach C$1.4B in 2026, while CPKC generated C$5.3B cash flow and approved a 5% share buyback.
1. Operational and Financial Performance
In 2025, CPKC generated C$15.1 billion in revenue, a 4% increase over 2024, underpinned by a matching rise in revenue ton-miles. Adjusted EPS rose 8% to C$4.61 and the company achieved a record Q4 operating ratio of 55.9%, highlighting disciplined cost control and efficiency gains.
2. Merger Synergies and Cash Flow
Post-merger synergies delivered C$1.2 billion in cost savings in 2025, with projections of C$1.4 billion in 2026 as network integration advances. The railway produced C$5.3 billion in operating cash flow, achieving a 75% profit-to-cash conversion and setting a 90% target by 2028.
3. Capital Allocation and Risk Profile
Management authorized a 5% share buyback to bolster shareholder returns while maintaining investment discipline. Key risks include potential trade tariffs, sector consolidation pressures, agricultural volume volatility and execution challenges in new intermodal services.