CPKC Boosts Profit and Freight Revenue in 2025 Amid Trade Volatility
In 2025, Canadian Pacific Kansas City Limited (CPKC) demonstrated resilience in the face of economic uncertainty and trade volatility. The railway reported significant increases in profit and freight revenue, indicating its ability to navigate challenges posed by U.S. tariffs.
Financial Highlights for 2025
CPKC posted a full-year profit of $4.1 billion, marking a rise of over 10% compared to $3.7 billion in 2024. Revenue also saw an increase of 4%, climbing to $15 billion from $14.5 billion the previous year.
Freight Impact and Tariff Challenges
In 2025, CPKC’s freight volume benefited from record grain crops in Canada and the United States. The railway transported more grain, potash, and coal. However, goods impacted by tariffs from the U.S., such as autos and consumer products, experienced declining volumes.
Efficiency Gains Post-Merger
Following the merger with Kansas City Southern in 2023, CPKC has enhanced its operational efficiency. The combined railway is now 13% faster and trains within the Kansas City network have become 25% faster.
Operational Metrics
- Train speed improvements lead to better cycle times.
- Increased locomotive productivity boosts network capacity.
- Enhanced car velocity offers more reliable service to customers.
Fourth Quarter Performance
For the last quarter of 2025, CPKC reported a profit of $1.1 billion, a decrease of 10% from the previous year. However, revenue increased by 1% to reach $3.9 billion compared to Q4 of 2024.
Future Outlook Amid Tariff Uncertainty
During an analyst call, Keith Creel, CEO of CPKC, noted that the company absorbed about $200 million in costs due to trade uncertainties. He expressed confidence in the railway’s ability to adapt and thrive despite challenges.
Market Position and Stock Performance
Despite the positive financial results, CPKC’s stock price has fallen by 14% on the Toronto Stock Exchange in the past year. Creel emphasized the ongoing trading relationship among Canada, the U.S., and Mexico, expressing optimism about overcoming potential obstacles linked to the U.S.-Mexico-Canada trade agreement review.
