CPKC Q3 Revenue Up 15% to C$4.2B; Core EPS Up 16%, Fuel Costs Weigh on Operating Ratio

summarizeSummary

CPKC reported Q3 2026 revenue of C$4.2 billion, up 15%, with core adjusted EPS up 16% to C$1.28, but higher fuel costs and C$111 million of tax items pushed the reported operating ratio up 130 basis points to 64.8%.

check_boxKey Events · Earnings and Guidance · CP

• Q3 Revenue Rises 15% to C$4.2B

  Total revenues were C$4.219 billion versus C$3.661 billion a year earlier, with grain up 29% to C$904 million and intermodal up 22% to C$815 million.

• Core EPS Up 16%, Reported EPS Up 3%

  Core adjusted diluted EPS rose to C$1.28 from C$1.10, while reported diluted EPS was C$1.04 versus C$1.01, held back by tax items.

• Fuel Costs Lift Operating Ratio

  Fuel expense jumped 61% to C$667 million on an average price of US$4.49 per gallon versus US$2.94; reported OR rose 130 bps to 64.8% and core adjusted OR rose 120 bps to 61.9%.

• C$111M of Tax Charges Hit Quarter

  A C$94 million CRA reassessment related to the KCS acquisition and a C$17 million Mexican SAT settlement reduced reported EPS by about 13 cents combined.

auto_awesomeAnalysis · CP · Energy & Transportation

The franchise is still compounding volume and pricing despite soft macro conditions, with revenue up 15% to C$4.2 billion and core adjusted EPS up 16% to C$1.28. Cost is the offset: fuel expense rose 61% to C$667 million as the average fuel price climbed to US$4.49 a gallon from US$2.94, pushing the reported operating ratio up 130 basis points to 64.8% and the core adjusted ratio up 120 basis points to 61.9%. Reported EPS of C$1.04 was also clipped by C$94 million of CRA reassessments tied to the KCS acquisition and a C$17 million Mexican tax settlement. Management says it remains on track for full-year commitments, so the debate is whether fuel and tax noise mask an intact earnings trajectory or whether cost pressure is starting to bite.