CALGARY, ALBERTA, CANADA — Led by a robust grain business, Canadian Pacific Kansas City (CPKC) railroad in its first-quarter earnings report said revenue was C$2.27 billion, up 23% from C$1.84 billion year-over-year for the three months ended March 31.
It was the last earnings report for the company’s operations before the merger of Canadian Pacific Railway and Kansas City Southern Railway became official on April 14.
The Calgary-based railway said net income was C$800 million, up more than 35% from C$590 million in 2022, while diluted earnings per share were C$0.86, compared to C$0.63.
A record-breaking January in which the railroad hauled 2.3 million tonnes of Canadian grain pushed grain revenues to C$515 million in the first quarter, up 43% from C$360 million in 2022.
“In our final quarter before our historic combination, the CP team delivered solid results driven by our investment in capacity, service and continued focus on safety,” said Keith Creel, president and chief executive officer of CPKC. “Our strong bulk franchise, fueled by a robust Canadian grain harvest, plus competitive service offerings in intermodal helped produce these results providing momentum as we begin our journey as CPKC.”
CP’s purchase of KCS, the continent’s first major railway merger in more than two decades, created the only railway stretching from Canada through to the United States and Mexico with about 20,5000 miles of rail and nearly 20,000 employees. The US Surface Transportation Board approved the US$31 billion deal combining the two Class I railroads in March.
“Since we first announced our intention to combine CP and KCS more than two years ago, we never lost our conviction that a CP-KCS combination is right for our railroaders, our customers, our stakeholders and the North American economy,” Creel said. “We are excited to have united the talented railroaders at CP and KCS to form our new CPKC family and are working to deliver on the synergies and countless benefits the combined company will produce.”