In This Article:
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Quarterly Revenue: $3.9 billion, up 3%.
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Quarterly Volume Growth: 2% increase.
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Quarterly Operating Ratio: 57.1%, a 160 basis point improvement.
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Quarterly Core EPS: $1.29, up 9% year-over-year.
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Full Year Revenue: $14.5 billion, up 5%.
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Full Year Volume Growth: 3% increase.
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Full Year Operating Ratio: 61.3%, a 70 basis point improvement.
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Full Year Core EPS: $4.25, up 11% year-over-year.
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Grain Revenue Growth: 11% increase, record Q4 performance.
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Automotive Revenue Growth: 16% increase, with a 23% volume growth.
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Intermodal Revenue Decline: 6% decrease, with 1% volume growth.
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Fuel Expense: $459 million, down 13% year-over-year.
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Cash Flow from Operations: $5.3 billion in 2024.
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Capital Expenditures: $2.8 billion in 2024, with a 2025 outlook of $2.9 billion.
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Free Cash Flow: $2.7 billion adjusted combined for the year.
Release Date: January 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Canadian Pacific Kansas City Ltd (NYSE:CP) reported a 3% increase in quarterly revenues to $3.9 billion and a 5% increase in full-year revenues to $14.5 billion.
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The company achieved a 160 basis point improvement in its operating ratio for the quarter, reaching 57.1%, and a 70 basis point improvement for the full year.
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CPKC was named GM Supplier of the Year for finished vehicles in 2024, highlighting its strong performance in the automotive sector.
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The company completed the construction of the second span of the Laredo Bridge, enhancing capacity and efficiency at the U.S.-Mexico border.
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CPKC achieved a 26% year-over-year improvement in personal injury frequency and led the industry with the lowest train accident frequency among Class 1 railroads.
Negative Points
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The company faced challenges such as work stoppages at the Port of Vancouver and adverse winter weather conditions, impacting operations.
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Potash revenues declined by 4% due to a 7% volume decline, affected by strikes and weather conditions.
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Coal revenue decreased by 3% with an 8% decline in volume, driven by a customer outage and weather impacts.
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International Intermodal volumes were down 1%, primarily due to labor disruptions at the Port of Vancouver.
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The company anticipates uncertainties in macroeconomic conditions and trade policies, which could impact future growth.
Q & A Highlights
Q: Can you provide more details on the RTM outlook and how it might be affected by new opportunities or core customer business? A: John Brooks, Executive Vice President and Chief Marketing Officer, explained that they expect 2% to 3% growth from synergies and another 2% to 3% from organic business initiatives. The growth is expected to be more weighted towards the back half of the year, but they are off to a strong start. The bulk franchise, particularly grain, potash, and coal, is expected to perform well. Additionally, new services and partnerships, such as the CSX route, are anticipated to drive growth.