CALGARY, ALBERTA, CANADA — Canadian Pacific Kansas City (CPKC) hauled in C$3.3 billion in revenue during the third quarter ended Sept. 30, up 44% from C$2.3 billion during the same period in 2022, the newly merged company reported Oct. 25. 

Third-quarter grain revenue accounted for C$600 million, which compared with $391 million a year ago. The company's net income was C$780 million in the third quarter, down from C$891 million year-over-year. Diluted earnings per share (EPS) were C$0.84 with core adjusted combined diluted EPS of C$0.92.

“We are now more than six months into the CPKC story, and I am pleased with the progress we continue to make in unlocking the value of this unrivaled truly North American network,” said Keith Creel, president and chief executive officer of CPKC. “While we encountered challenges this quarter due to a softer macro-economic environment and external labor disruptions, we remain focused on safely delivering for our customers across this powerful franchise.”

The results of Kansas City Southern (KCS) railroad are included on a consolidated basis from April 14, 2023, the date Canadian Pacific (CP) acquired control of KCS. From Dec. 14, 2021, to April 13, 2023, CP recorded its interest in KCS under the equity method of accounting.

For the first nine months of 2023, CPCK’s revenue reached C$8.7 billion, which compared with C$6.2 billion in 2022, with net income of C$2.9 billion versus C$2.2 billion a year ago. Grain revenues were C$1.6 billion during this period, up from C$1.1 billion in 2022.

In its 2023 guidance update, CPKC now expects core adjusted combined diluted EPS to be flat to slightly positive versus 2022 core adjusted combined diluted EPS of C$3.77.

“Economic headwinds and other near-term challenges, including the Port of Vancouver strike, have weighed on volumes more than we anticipated; therefore, we are adjusting our near-term guidance accordingly,” Creel said. “Our enthusiasm for this combination and the long-term value it will produce remains unchanged as we stay focused on executing CPKC's unique and undeniable growth opportunities.”