Canadian Pacific Kansas City — Income Statement, Cash Flows & Balance Sheet
Is CPKC profitable?
CPKC delivered solid, growing profits in 2025, with revenue and operating income both rising meaningfully year over year.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Total revenues (C$M) | $14,546 | $15,078 | +3.7% |
| Total operating expenses (C$M) | $9,367 | $9,469 | +1.1% |
| Operating income (C$M) | $5,179 | $5,609 | +8.3% |
| Operating ratio (expenses ÷ revenue) | 64.4% | 62.8% | −1.6 pts |
Revenue grew faster than costs, pushing the operating ratio — a key efficiency metric for railways, where lower is better — to its best level in the three-year period shown. This means CPKC is getting more out of every dollar of revenue.
Net income rose strongly, helped in part by a one-time gain from selling an investment.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Net income attributable to shareholders (C$M) | $3,718 | $4,141 | +11.4% |
| Gain on sale of equity investment (C$M) | $— | $333 | — |
| Diluted EPS | $3.98 | $4.51 | +13.3% |
CPKC sold its 50% stake in the Panama Canal Railway for a pre-tax gain of $333 million. Stripping that out, underlying profit growth was still healthy, driven by the improved operating performance above.
Where does CPKC's revenue come from?
CPKC's freight revenue is well diversified across commodities, with grain, energy, and intermodal as the three largest contributors — all growing in 2025.
| Freight category | 2024 (C$M) | 2025 (C$M) | Change |
|---|---|---|---|
| Grain | $3,012 | $3,217 | +6.8% |
| Energy, chemicals & plastics | $2,851 | $2,898 | +1.6% |
| Intermodal | $2,524 | $2,679 | +6.1% |
| Coal | $943 | $1,025 | +8.7% |
| Forest products | $816 | $792 | −2.9% |
Nearly every major commodity group posted gains, with coal and grain leading the way. Forest products was the only notable decline. No single customer accounted for more than 10% of total revenues, which speaks to the breadth of CPKC's customer base.
Does CPKC generate cash?
CPKC is a strong cash generator, and its free cash flow (operating cash minus capital spending) remained robust despite a large share buyback program.
| Metric | 2024 (C$M) | 2025 (C$M) | Change |
|---|---|---|---|
| Operating cash flow | $5,269 | $5,309 | +0.8% |
| Capital expenditures (properties) | $(2,825) | $(3,102) | +9.8% |
| Free cash flow (est.) | $2,444 | $2,207 | −9.7% |
| Share repurchases | $— | $(3,942) | — |
| Dividends paid | $(709) | $(796) | +12.3% |
Operating cash flow held steady at over $5 billion, but the company deployed significant capital — both in infrastructure investment and a $3.9 billion share buyback that retired about 4% of shares outstanding. Free cash flow dipped modestly as a result of higher capex, not weakening operations.
How strong is CPKC's balance sheet?
CPKC carries substantial long-term debt, though it is well-structured with long maturities and a strong pension asset acts as an offset.
| Metric | 2024 (C$M) | 2025 (C$M) | Change |
|---|---|---|---|
| Total long-term debt (incl. current portion) | $22,623 | $23,188 | +2.5% |
| Cash & equivalents | $739 | $184 | −75% |
| Net pension asset (surplus) | $4,586 | $5,129 | +11.8% |
| Total equity | $48,890 | $46,825 | −4.2% |
Debt is largely fixed-rate and spread across maturities extending to 2115, reducing near-term refinancing risk. Cash fell sharply after the share buyback, but CPKC also has a US$2.2 billion revolving credit facility that was fully undrawn at year-end. The pension plan is in a healthy surplus of over $4.5 billion, an unusual balance sheet strength for a company of this type.