CANADA: CPKC Q2 revenue rose 13% year over year to CA$4.2 billion as freight volumes increased, while higher operating costs pushed its reported operating ratio up 90 basis points.

A CPKC ES44AC locomotive in red livery at Kansas City Union Station.
A CPKC ES44AC locomotive in the railway’s red livery at Kansas City Union Station; illustrative image, cropped to 16:9. Photo: ConrailFan76, CC BY 4.0.

The official CPKC results show revenue reached CA$4.164 billion in the three months ended June 30, 2026, compared with CA$3.699 billion a year earlier. Freight revenue accounted for CA$4.088 billion of the total.

Traffic measured in revenue ton-miles increased 4% to 57.6 billion from 55.5 billion. Revenue therefore grew faster than the railroad’s freight-volume measure during the quarter.

CPKC Q2 Revenue Growth Meets Higher Costs

Operating income increased 10% to CA$1.472 billion from CA$1.343 billion. However, operating expenses climbed 14% to CA$2.692 billion, including fuel costs of CA$618 million versus CA$405 million in Q2 2025.

The reported operating ratio, which measures operating expenses as a share of revenue, rose to 64.6% from 63.7%. The core adjusted operating ratio also increased by 90 basis points, reaching 61.6% compared with 60.7% a year earlier.

Reported diluted earnings per share fell 14% to CA$1.15 from CA$1.33. According to the company’s official figures, core adjusted diluted EPS rose 13% to CA$1.27 from CA$1.12; these adjusted measures are non-GAAP and are not standardized. Net income declined to CA$1.024 billion from CA$1.234 billion.

President and CEO Keith Creel said CPKC expects volume and earnings growth to accelerate in the second half of 2026, citing its North American strategy, freight fundamentals and cost controls. The statement is management guidance rather than a completed result.

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Gordon Trafton Takes Over as CPKC Board Chair

Alongside the earnings release, CPKC announced an immediate board leadership change. Isabelle Courville retired as chair, and Gordon Trafton, a long-serving director and vice-chair, succeeded her under the board’s succession plan.

Courville joined the Canadian Pacific board in May 2013 and had served as chair since May 2019, when she became the first woman to chair a Class I railroad board. Her tenure included Canadian Pacific’s acquisition of Kansas City Southern and the creation of CPKC.

The board announcement says Trafton joined the board in January 2017 and became vice-chair on January 28, 2026. He retired from Canadian National in 2010 after a 33-year railway career that also included Illinois Central and Burlington Northern Railroad.

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