CPKC Reports Strong Profit Growth Amid U.S. Merger Concerns
30.10.2025
CPKC recorded excellent earnings in the current quarter, with an increase in net income of 10% to $917 million, even while the U.S. trade disruption and mergers affecting the railways continue to impact the industry.
This is reported by the railway transport news portal Railway Supply.
CPKC Expands Profit Despite Trade Headwinds
CPKC said it saw an increase of 10% in earnings year-over-year, which reached $917 million in the quarter ended on September 30, while revenue rose 3% to $3.66 billion on the back of stronger grain, potash, and intermodal container volumes.
The impact of tariffs on forest products, chemicals, and freight was reduced by the growth in domestic originating revenue and Canada-Mexico trade, with CPKC more than compensating for lost revenue. The company’s president and CEO, Keith Creel, praised CPKC management and diversified businesses for continuing to deliver strong performance.
“In spite of the macro and trade pressures, our teams continue to execute with agility and focus,” Creel said in the call with analysts. The company’s Chief Marketing Officer, John Brooks, further explained that “Flexible network routing has allowed us to somewhat counter the reduction in U.S.-destined steel exports related to the imposition of the 50% import tariff.”
CPKC Monitors U.S. Rail Merger and Market Shifts
The proposed $85 billion Union Pacific-Norfolk Southern merger may form America’s first railroad connection from coast to coast. “A combination of this nature may potentially control nearly 40% of the nation’s freight railroad market, resulting in reduced competition and higher prices,” warned Union Pacific CEO Creel.
He pointed out that CPKC’s north-south network, connecting Canada, the U.S., and Mexico, gives it protection against consolidation on the east-west routes. However, analysts were not sure if U.S. regulators would treat CPKC concerns equally because of CPKC’s roots in Canada.
Creel emphasized that “about 40% of CPKC’s revenue comes from the U.S., with one-third of our employees residing and contributing taxes in the U.S.” Nevertheless, Union Pacific and Norfolk Southern claim that the merger would improve delivery routes and correct network delays.
The regulatory process is ongoing, with the U.S. Surface Transportation Board, whose leadership is presently composed of a business-friendly majority, facing political and economic forces in scrutinizing the proposed transaction. For CPKC, the evolving environment brings about opportunities and challenges in the North American rail market.
Source: halifax.citynews.ca
News on railway transport, industry, and railway technologies from Railway Supply that you might have missed:
How did CPKC perform financially this quarter?
CPKC’s net income increased by 10% to $917 million, while revenues rose 3% to $3.66 billion, driven by grain, potash, and intermodal growth.
How could the Union Pacific–Norfolk Southern merger affect CPKC?
If approved, the $85 billion merger could reshape U.S. freight markets, but CPKC’s north-south routes across Canada, the U.S., and Mexico provide competitive stability.
What makes CPKC unique in North America?
CPKC remains the only Class I railway connecting all three North American countries, ensuring strong cross-border trade resilience.
Place your ads on webportal and in Railway Supply magazine. Detailed information is in Railway Supply media kit
