Company Reports

Following the appointment of railroading legend Hunter Harrison as CEO in 2012, Canadian Pacific embarked on a successful profitability turnaround. Harrison and his successor—operations expert Keith Creel, who worked alongside Harrison for decades—took the rail from ranking as one of the worst Class I margin performers to among the best. We like that Creel has infused the firm's culture with precision-scheduled railroading principles, which stand behind much of the rail's progress. Profitability caught up with PSR pioneer and historical margin leader Canadian National in 2018 and surpassed it in 2019 with a 60% operating ratio.

Canadian Pacific Kansas City's second-quarter revenue jumped 13% year over year on slightly higher carloads and strong all-in yield gains (surging fuel surcharges, positive core pricing). Adjusted consolidated margin fell, mostly due to fuel noise.

Following the appointment of railroading legend Hunter Harrison as CEO in 2012, Canadian Pacific embarked on a successful profitability turnaround. Harrison and his successor—operations expert Keith Creel, who worked alongside Harrison for decades—took the rail from ranking as one of the worst Class I margin performers to among the best. We like that Creel has infused the firm's culture with precision-scheduled railroading principles, which stand behind much of the rail's progress. Profitability caught up with PSR pioneer and historical margin leader Canadian National in 2018 and surpassed it in 2019 with a 60% operating ratio.

Canadian Pacific Kansas City's first-quarter top line came in flat year over year—excluding foreign exchange—as slightly higher yield (revenue per carload), which includes healthy core pricing gains, offset lower consolidated carload and intermodal volume.

Following the appointment of railroading legend Hunter Harrison as CEO in 2012, Canadian Pacific embarked on a successful profitability turnaround. Harrison and his successor—operations expert Keith Creel, who worked alongside Harrison for decades—took the rail from ranking as one of the worst Class I margin performers to among the best. We like that Creel has infused the firm's culture with precision-scheduled railroading principles, which stand behind much of the rail's progress. Profitability caught up with PSR pioneer and historical margin leader Canadian National in 2018 and surpassed it in 2019 with a 60% operating ratio.

Following the appointment of railroading legend Hunter Harrison as CEO in 2012, Canadian Pacific embarked on a successful profitability turnaround. Harrison and his successor—operations expert Keith Creel (who worked alongside Harrison for decades)—took CP from ranking as one of the worst Class I margin performers to among the best. We like that Creel has infused the firm's culture with precision-scheduled railroading principles, which stand behind much of the rail's progress. In 2018, profitability caught up with PSR pioneer and historical margin leader Canadian National and surpassed CN in 2019 with a 60% operating ratio.

Canadian Pacific Kansas City's fourth-quarter top line grew 1% year over year, driven by slight volume growth (including merger synergies) and healthy core pricing on carload business, as yield (revenue per carload) was flat on mix. Consolidated adjusted margin improved from a year ago.

Following the appointment of railroading legend Hunter Harrison as CEO in 2012, Canadian Pacific embarked on a successful profitability turnaround. Upon taking the helm, Harrison closed numerous intermodal terminals and hump yards to rightsize the network.

Canadian Pacific Kansas City's third-quarter top line grew 3% year over year on continued healthy volume growth and strong core carload pricing, as yield (revenue per carload) was roughly flat due to mix. Consolidated adjusted margin improved again relative to a year ago.

Following the appointment of railroading legend Hunter Harrison as CEO in 2012, Canadian Pacific embarked on a successful profitability turnaround. Upon taking the helm, Harrison closed numerous intermodal terminals and hump yards to rightsize the network.

Canadian Pacific Kansas City's second-quarter top line increased by 3% year over year on higher volumes (including Kansas City Southern merger synergies) and positive core carload pricing, partly offset by mix-related yield pressure. Profitability also improved relative to a year ago.

Following the appointment of railroading legend Hunter Harrison as CEO in 2012, Canadian Pacific embarked on a successful profitability turnaround. Upon taking the helm, Harrison closed numerous intermodal terminals and hump yards to rightsize the network.

Canadian Pacific Kansas City's first-quarter top line grew a solid 8% year over year, on mix-related yield gains (longer lengths of haul), solid core carload pricing, and Kansas City Southern merger-related synergies (especially intermodal volume). Profitability also improved relative to a year ago.

US President Donald Trump announced sweeping tariffs on all US imports. For the North American Class-I railroads, the key threat is tariffs' impact on macroeconomic growth in terms of US real goods spending (for intermodal volumes) and industrial production (for carload volumes).

Following the appointment of railroading legend Hunter Harrison as CEO in 2012, Canadian Pacific embarked on a successful profitability turnaround. Upon taking the helm, Harrison closed numerous intermodal terminals and hump yards to rightsize the network.

Canadian Pacific Kansas City's fourth-quarter top line grew by 3% year over year, on yield gains (longer lengths of haul) and Kansas City Southern merger-related synergies, partly offset by labor-related port disruption for coal and intermodal. Profitability also improved relative to a year ago.

Following the appointment of railroading legend Hunter Harrison as CEO in 2012, Canadian Pacific embarked on a successful profitability turnaround. Initially upon taking the helm, Harrison closed numerous intermodal terminals and hump yards to rightsize the network.

Following the appointment of railroading legend Hunter Harrison as CEO in 2012, Canadian Pacific embarked on a successful profitability turnaround. Initially upon taking the helm, Harrison closed numerous intermodal terminals and hump yards to rightsize the network.

Wide-moat Canadian Pacific Kansas City's third-quarter revenue grew 6% year over year despite the Canadian railroad work stoppage in August. Revenue met our forecast, which is impressive considering that we were not baking in much labor disruption. The stoppage did drive profitability below our expected run rate, but we expect a solid rebound in the fourth quarter.

As anticipated, the International Longshoremen’s Association has implemented a work stoppage across US East Coast and Gulf Coast ports. As we understand it, the dockworkers union initially wanted a more than 70% increase in wages over a six-year period in order to return to the negotiating table. Before the strike, it sounded to us as if the Biden administration was signaling hesitancy to intervene via the Taft-Hartley Act. Thus, the potential duration of the strike remains uncertain.