Canadian Pacific Kansas City 8-K
Earnings
Grain and intermodal growth lifted revenue, but higher fuel prices squeezed margins.
Filed 2026-10-28 16:20 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results, with revenue of C$4.22B and diluted EPS of C$1.04. CPKC said it remains on track to meet its 2026 commitments, with 6% higher revenue ton-miles and growth in grain, intermodal and merchandise offsetting macroeconomic headwinds. All amounts below are in Canadian dollars.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Revenue | $4.22B, +15% Y/Y | $12.1B, +8% Y/Y |
| Operating ratio | 64.8%, vs 63.5% | 65.1%, vs 64.2% |
| Core adjusted operating ratio (non-GAAP) | 61.9%, vs 60.7% | 62.1%, vs 61.3% |
| Operating income | $1.49B, +11% Y/Y | $4.22B, +6% Y/Y |
| Net income attributable to controlling shareholders | $917M, vs $920M | $2.79B, -9% Y/Y |
| Diluted EPS | $1.04, +3% Y/Y | $3.14, -5% Y/Y |
| Core adjusted diluted EPS (non-GAAP) | $1.28, +16% Y/Y | $3.57, +9% Y/Y |
| Operating cash flow | $1.55B, +22% Y/Y | $4.25B, +12% Y/Y |
| Free cash flow | $970M, vs $392M | $2.24B, +19% Y/Y |
- Grain freight revenue rose 29% and intermodal revenue 22%; revenue ton-miles increased 6%. Metals, minerals and consumer products revenue also grew 16%. Higher fuel prices pressured margins: fuel expense increased 61% and reduced reported and core adjusted operating ratios by 170 and 190 basis points, respectively.
- Net income attributable to controlling shareholders was nearly flat in Q3 despite higher operating income, with the company citing discrete tax items. Weighted-average diluted shares fell 4% Y/Y. CPKC repurchased 11.5M shares for $1.49B in Q3 and 28.1M shares for $3.43B in 9M; cash was $399M at 9/30/2026, and total debt was $25.8B.
- Adjusted free cash, a non-GAAP measure, was $1.02B in Q3 vs $415M and $2.36B in 9M vs $1.49B. GAAP free cash flow above is operating cash flow less net cash used in investing activities.
Guidance
No guidance in this filing.
Investor Takeaways
- 2026 results against management’s stated commitments will test its “on track” assessment.
- Grain and intermodal revenue and volume trends are key measures of whether growth across CPKC’s markets continues.
- Fuel prices and the operating ratio will show whether operating performance can absorb continued fuel-cost pressure.
The summary is written by an AI model reading the filing.
Model 005 · prompt v111 · 2026-10-28 22:33:35Z