Canadian Pacific Kansas City Limited

Strong Revenue Growth: CPKC reported a revenue of $3.8 billion for Q1 2025, representing an 8% increase year-over-year, driven by a 4% growth in volume. Earnings per share (EPS) was $1.06, reflecting a 14% YOY growth, indicating robust operational performance despite adverse macroeconomic conditions.

Operating Ratio and Efficiency: The company achieved an operating ratio of 62.5%, a 150-basis-point improvement compared to the previous year, showcasing enhanced efficiency in operations. Mark Redd, COO, highlighted strong operational performance and adaptability, with improved metrics in train weight, length, and productivity.

Trade Policy Uncertainty: The management acknowledged the impact of macro uncertainties and trade policy fluctuations, particularly affecting steel and automotive volumes. However, they remain optimistic about creating opportunities from changing trade flows, including new markets for Canadian goods into Mexico. The company's unique three-nation network positions it well to capitalize on such opportunities.