Overview

* CPKC Q3 revenue rose 3% yr/yr to $3.7 bln, but missed analysts' expectations

* Adjusted EPS for Q3 was $1.10, missing consensus estimates

* Company's operating ratio improved by 260 basis points to 63.5%

Outlook

* Company expects to deliver on full-year 2025 guidance

* Company confident in long-term value proposition despite macroeconomic challenges

Result Drivers

* VOLUME INCREASE - CPKC reported a 5% increase in volumes measured in Revenue Ton-Miles, contributing to revenue growth

* OPERATIONAL EFFICIENCY - Operating ratio improved by 260 basis points, reflecting enhanced efficiency

* SAFETY IMPROVEMENTS - Decrease in FRA-reportable personal injury and train accident frequencies indicates improved safety

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss C$3.66 C$3.74

Revenue bln bln (19

Analysts

)

Q3 Miss C$1.10 C$1.17

Adjusted (23

EPS Analysts

)

Q3 EPS C$1.01

Q3 Net C$917

Income mln

Q3 C$1.34

Operatin bln

g Income

Q3 C$1.21

Pretax bln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 23 "strong buy" or "buy", 4 "hold" and 1 "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 ( CP ) is C$124.23, about 16.5% above its October 28 closing price of C$103.71

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)