Canada's CPKC Q4 revenue up 1% but misses estimates

Overview

• Canadaian rail operator's Q4 revenue rose 1% but missed analysts' expectations

• Core adjusted diluted EPS increased 3% yr/yr

• Company achieved record low operating ratio of 58.9%

Outlook

• Company expects low double-digit core adjusted diluted EPS growth in 2026

• CPKC anticipates mid-single digit volume growth measured in Revenue Ton Miles

• Company plans capital expenditures of C$2.65 bln, a 15% reduction from 2025

Result Drivers

• PRECISION SCHEDULED RAILROADING - CPKC credited its Precision Scheduled Railroading model for controlling costs and improving operating efficiency, leading to a record core adjusted operating ratio

• RECORD OPERATING METRICS - Company reported record Q4 operating metrics in train weights, network speed, locomotive productivity, and car miles per car day

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the ground freight & logistics peer group is "buy"

• Wall Street's median 12-month price target for Canadian Pacific Kansas City Ltd is C$124.00, about 25.5% above its January 27 closing price of C$98.81

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nCNW9vTH6a

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