Get the Scoop on CP's Q1 Performance and Trade Uncertainty
Uncertainty persists over Canadian Pacific's tariff conditions, with potential for swift alterations.
No ifs, ands, or buts about it—it's time for a deep dive into Canadian Pacific Kansas City Limited (CPKC, ticker symbol CP)'s Q1 figures! Let's take a glance at these numbers while chatting about the current trade tariff drama.
Teasing Out the Highlights from Q1 2025
- Income: A whopping 8% year-over-year (YoY) uptick pushed revenue to a staggering $3.8 billion.
- Profits: Diluted earnings per share (EPS) shot up 17% to a gleaming $0.97, while core adjusted EPS inched up 14% to an impressive $1.06.
- Efficiency: The operating ratio plummeted by an impressive 210 basis points, landing at a nifty 65.3% (with core adjusted OR at a snazzy 62.5%).
- Peek Ahead: The forecasted core adjusted diluted EPS growth for 2025 has been dialed back from previous estimates, now settling in the 10-14% range. External economic factors and that blasted trade policy uncertainty demand some blame.
Tariff and Trade Policy Whispers
Though no specific tariff particulars are revealed in the reports, CPKC's CEO, Keith Creel, highlighted the looming "trade policy uncertainty" as a major player in the adjusted 2025 outlook. This not-so-subtle hint reflects concerns about the impact of border trade turbulences on the business.
However, the report also gleans CPKC's reliance on resilience in its North American network amid challenging market fins. Specific tariff-tinged fiscal implications aren't quantified, though. It's 2022? That's a different story—no data on Q1 '22 comes up in the search. Now that the CPKC-Kansas City Southern merger bit the dust in 2023, historical comparisons might be a bit tricky.
Pro Tip: The report stumbles on mentions of Q1 2025 and other 2025 events (like the Panama Canal Railway sale), but Q1 '22 takes a backseat with no numbers available[1][5].
- Canadian Pacific Kansas City Limited (CPKC, CP) reported a significant increase in revenue for Q1 2025, reaching $3.8 billion, a 8% year-over-year (YoY) uptick.
- The company's diluted earnings per share (EPS) surged 17% to $0.97 in Q1 2025, while core adjusted EPS rose 14% to $1.06.
- The operating ratio of Canadian Pacific Kansas City Limited decreased by 210 basis points in Q1 2025, landing at 65.3%, with core adjusted OR at 62.5%.
- The trade policy uncertainty, as mentioned by CEO Keith Creel, is considered a major factor affecting the forecasted core adjusted diluted EPS growth for 2025, now predicted to be within the 10-14% range.
