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Investing.com -- Canadian Pacific Kansas City (NYSE:CP) (TSX:CP) reported second-quarter earnings that were largely in line with analyst expectations, with revenue slightly missing forecasts while the company improved its operating efficiency.
The North American railroad operator posted adjusted earnings per share of C$1.12, just C$0.01 below analyst estimates of C$1.13. Revenue came in at C$3.7 billion, slightly below the consensus forecast of C$3.8 billion but representing a 3% increase from the same quarter last year. The company’s stock remained flat following the announcement.
CPKC saw a 7% increase in volumes as measured by Revenue Ton-Miles during the quarter. The company’s operating ratio, a key efficiency metric where lower is better, improved by 110 basis points to 63.7% from 64.8% in the second quarter of 2024. Core adjusted operating ratio showed similar improvement, decreasing to 60.7% from 61.8% a year earlier.
"Our exceptional team of railroaders again delivered strong operating and financial results in the second quarter as we realize more of the value created by this unrivalled North American network," said Keith Creel, CPKC President and CEO. "Across our network, we are focused on delivering the service that our customers expect as we carry growing momentum into the second half of 2025."
The company faced some operational challenges during the quarter but maintained its safety performance, with FRA-reportable personal injury frequency decreasing to 0.77 from 0.84 in Q2 2024, though train accident frequency increased to 0.97 from 0.70.
CPKC reaffirmed confidence in meeting its full-year guidance as it continues to capitalize on its three-nation network spanning Canada, the United States, and Mexico.
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