Canadian Pacific Kansas City (NYSE:CP) Issues Earnings Results

Key Points

• Canadian Pacific Kansas City reported Q earnings of $0.76 EPS, missing analysts' consensus of $0.84, while maintaining a strong 27.5% net margin and 8.9% return on equity.
• The company boosted shareholder returns by raising the quarterly dividend to $0.268 (annualized $1.07, yield ~1.3%) and announcing a new share buyback program.
• Management emphasized network expansion and sustainability investments — doubling Laredo border capacity with the Patrick J. Ottensmeyer International Railway Bridge, expanding Mexico services and partnering with CSX, while adding 100 Tier 4 locomotives in 2025 (and another 100 in 2026) plus a hydrogen locomotive pilot.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP issued its quarterly earnings data on Wednesday. The transportation company reported $0.76 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.84 by ($0.08), Zacks reports. Canadian Pacific Kansas City had a net margin of 27.49% and a return on equity of 8.91%.

Here are the key takeaways from Canadian Pacific Kansas City's conference call:

• CPKC reported robust earnings growth, a fortified balance sheet, an increased dividend and a new share buyback program, signaling a stronger focus on returning capital to shareholders.
• Management highlighted network expansion and new services—doubling Laredo border capacity with the Patrick J. Ottensmeyer International Railway Bridge, growth of the Mexico Midwest Express, and a new Class I connection with CSX for a Southwest Mexico Express.
• The company emphasized operational strength and safety, citing best-in-class earnings and volume growth and industry leadership with the lowest FRA reportable train accident frequency among Class I railroads for the third consecutive year.
• CPKC is investing in fleet modernization and decarbonization, adding 100 Tier 4 locomotives in 2025 (and another 100 in 2026) while advancing a pilot hydrogen locomotive program and alternative fuels.
• Governance received strong shareholder support—auditor reappointment 99.88%, Say on Pay 87.48%, Say on Climate 88.72%, and election of 14 directors (>95.84%)—and the board moved the Say on Climate vote to once every three years while keeping annual disclosures.

Canadian Pacific Kansas City Stock Performance

NYSE:CP traded down $2.60 during mid-day trading on Wednesday, reaching $84.15. The company's stock had a trading volume of 5,281,171 shares, compared to its average volume of 2,780,125. The company has a current ratio of 0.49, a quick ratio of 0.41 and a debt-to-equity ratio of 0.43. The stock has a market cap of $75.08 billion, a P/E ratio of 26.05, a PEG ratio of 1.88 and a beta of 1.07. The firm's fifty day moving average price is $82.42 and its two-hundred day moving average price is $77.01. Canadian Pacific Kansas City has a 12-month low of $68.42 and a 12-month high of $89.42.

Canadian Pacific Kansas City Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, July 27th. Investors of record on Friday, June 26th will be issued a $0.268 dividend. This represents a $1.07 annualized dividend and a yield of 1.3%. The ex-dividend date is Friday, June 26th. This is a positive change from Canadian Pacific Kansas City's previous quarterly dividend of $0.23. Canadian Pacific Kansas City's dividend payout ratio is 20.43%.

Institutional Trading of Canadian Pacific Kansas City

A number of large investors have recently made changes to their positions in the stock. Intech Investment Management LLC grew its position in Canadian Pacific Kansas City by 16.0% in the 1st quarter. Intech Investment Management LLC now owns 21,276 shares of the transportation company's stock worth $1,493,000 after purchasing an additional 2,940 shares during the period. Acadian Asset Management LLC bought a new position in shares of Canadian Pacific Kansas City during the 1st quarter valued at $35,000. Sivia Capital Partners LLC purchased a new position in shares of Canadian Pacific Kansas City in the 2nd quarter worth $206,000. Prudential Financial Inc. boosted its stake in shares of Canadian Pacific Kansas City by 8.7% in the 2nd quarter. Prudential Financial Inc. now owns 5,183 shares of the transportation company's stock worth $411,000 after buying an additional 415 shares during the last quarter. Finally, EverSource Wealth Advisors LLC grew its holdings in shares of Canadian Pacific Kansas City by 39.3% in the second quarter. EverSource Wealth Advisors LLC now owns 1,307 shares of the transportation company's stock worth $104,000 after acquiring an additional 369 shares during the period. 72.20% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on CP. Sanford C. Bernstein raised their price target on Canadian Pacific Kansas City from $85.41 to $90.00 and gave the company a "market perform" rating in a report on Tuesday, March 31st. Wall Street Zen downgraded shares of Canadian Pacific Kansas City from a "hold" rating to a "sell" rating in a research report on Tuesday, March 3rd. Citigroup lifted their target price on shares of Canadian Pacific Kansas City from $86.00 to $93.00 and gave the stock a "buy" rating in a report on Tuesday, April 7th. National Bank Financial upgraded shares of Canadian Pacific Kansas City from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, April 15th. Finally, ATB Cormark Capital Markets cut shares of Canadian Pacific Kansas City from a "strong-buy" rating to a "moderate buy" rating in a report on Friday, April 17th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Canadian Pacific Kansas City has an average rating of "Moderate Buy" and an average price target of $93.80.

About Canadian Pacific Kansas City

Canadian Pacific Kansas City (CPKC) is a North American Class I freight railroad formed through the combination of Canadian Pacific Railway and Kansas City Southern. The merged company operates an integrated rail network that spans Canada, the United States and Mexico, providing a single-line rail connection across all three countries. This transborder footprint is intended to streamline cross-border freight flows and provide shippers with direct rail access from Canadian and U.S. production centers to Mexican markets and ports.

CPKC's core business is freight transportation and related logistics services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.