Canadian Pacific Kansas City (CPKC) reported a second-quarter revenue record, with revenue growing 13% to $3 billion. Operating income rose 10% to $1.06 billion, while adjusted earnings per share increased 13% to $0.91.
The company attributed the rise in operating income to grain, automotive, and energy-related shipments. Chief Executive Keith Creel said the performance reflects the strength of the CPKC franchise, business mix resilience, and the benefits of connecting Canada, the U.S., and Mexico.
Revenue growth to $3 billion in Q2 2026
Operational metrics
Volume increased 4% based on revenue ton-miles but was flat when measured by carloads and containers. Average train speed increased 7%, and terminal dwell was down 16%. Chief Operating Officer Mark Redd said the railway set second-quarter records for average train speed, dwell, locomotive productivity, and fuel efficiency.
Segment highlights
Canadian grain volume was up 24% due to a record harvest and growth in shipments to Mexico, according to Chief Marketing Officer John Brooks. U.S. grain volumes were up 14%, driven by demand in Mexico and exports via the Pacific Northwest.
Coal volume declined 29% due to production challenges at southern British Columbia mines, reducing overall revenue growth by 3% during the quarter. Despite high interest rates and lower housing starts in the U.S., lumber shipments set a June record.
Domestic intermodal volumes increased 3%, and the cross-border SMX interline intermodal service linking Mexico and Texas with CSX terminals was up 30% compared to the first quarter.
CPKC has received all 70 Wabtec ET44AC locomotives scheduled for delivery this year and will soon receive the first units of its order for 65 EMD SD70ACe-T4s from Progress Rail.
The operating ratio was 64.6%, a 0.9-point increase over a year ago. Operating expenses increased 14%, with fuel costs up 53% for the quarter. The employee injury rate increased 32%, and the train accident rate rose 3%.