CALGARY, ALBERTA, CANADA — Canadian Pacific Kansas City (CPKC), a major North American grain shipper, on Jan. 29 reported revenue of $39 million in the fourth quarter of 2024, a 3% year-on-year increase.

The company’s diluted earnings per share (EPS) increased to $1.28 from $1.10 in the same quarter in 2023, while its operating ratio decreased by 210 basis points to 59.7% from 61.8%. in last year’s fourth quarter.

“Our team finished our first full year as a combined company strong, with volume growth, improved safety performance, and solid operational execution that allowed CPKC to deliver industry-leading earnings growth in 2024,” Keith Creel, president and chief executive officer of CPKC, said during a conference call with industry analysts. “Thanks to our remarkable team of railroaders and their dedication to safety, service and efficiency, we delivered on our commitments to customers and shareholders as we continue to drive sustainable long-term success on this unrivaled North American network.”

John Brooks, executive vice president and chief marketing officer at CPKC, noted that the company posted a fourth-quarter record in terms of revenue ton miles related to grain shipments.

“Canadian grain volumes were up 18% with increased grain to Vancouver and Thunder Bay driven by the improved Canadian grain crop,” Brooks said. “We also saw higher volumes of Canadian grain moving to Mexico as our network continues to deliver on these new synergies.”

US grain volumes grew 5% over the prior year, Brooks said.

“Our US grain franchise continues to benefit from a solid harvest, steady demand and growth in new lanes as we expand our market reach,” he said. “In 2024, as an example, we moved over 130 trains from legacy CP’s green franchise to market south of Kansas City, most of which are completely new markets for these customers.”

For calendar year 2024, CPKC reported that diluted EPS decreased to $3.98 from $4.21 in 2023, while core adjusted combined diluted EPS1 increased 11% to $4.25 from $3.84. Reported operating ratio (OR) decreased by 60 basis points to 64.4% from 65% in 2023, while core adjusted combined OR1 decreased by 70 basis points to 61.3% from 62% in 2023.

“Looking forward to 2025, we expect another year of strong earnings growth consistent with CPKC’s multi-year guidance provided at our 2023 Investor Day,” Creel said. “We continue to do what we said we would do, staying focused on safety and growth. The opportunities ahead of us are unique as we have the team, the network and the capacity to deliver strong results for all stakeholders.”

CPKC said it expects core adjusted diluted EPS to increase between 12% and 18% in 2025, as well as mid-single digit volume growth as measured in revenue ton miles.

With its global headquarters in Calgary, Alberta, Canada, CPKC is the only single-line transnational railway linking Canada, the United States and Mexico, stretching approximately 20,000 route miles.