CALGARY, ALBERTA, CANADA — With the newly merged Canadian Pacific Kansas City (CPKC) railroad gaining steam, the company reported second-quarter revenue of C$3.2 billion ($2.4 billion) for the three months ended June 30. For the first half of 2023, CPKC revenue reached C$5.44 billion, up from C$4 billion for the same period in 2022.

Grain freight revenue played a leading role, securing C$537 million for the second quarter and C$1.05 billion in the first six months of the year. CPKC also published its 2023-24 Grain Service Outlook Report, outlining its plans for transporting Canadian grain through its expanded North American network for export.

“This quarter we made history by completing our transformational combination to create the first single-line transnational railroad linking Canada, the United States and Mexico,” said Keith Creel, president and chief executive officer of CPKC. “By uniting the outstanding railroaders at Canadian Pacific and Kansas City Southern to form our new CPKC family, we already are changing the freight rail industry, redrawing the map and delivering on the many benefits of our combined network.”

Net income was C$1.32 billion in the second quarter and C$2.12 billion in the first half. The results of Kansas City Southern are included on a consolidated basis from April 14, 2023, the date Canadian Pacific acquired control. From Dec. 14, 2021, to April 13, 2023, CP recorded its interest in KCS under the equity method of accounting.

Reported diluted earnings per share (EPS) increased to C$1.42 from C$0.82 in second-quarter 2022 due to the net impact of the derecognition of the investment in KCS upon consolidation. Core adjusted combined diluted EPS decreased to $0.83 from $0.95 in second-quarter 2022.

Looking ahead for 2023, CPKC expects core adjusted combined diluted EPS to grow mid-single digits versus 2022 core adjusted combined diluted EPS of C$3.77. CPKC’s reported diluted EPS was also C$3.77 in 2022.

“Despite the challenging results, we still expect to deliver mid-single-digit core adjusted combined diluted EPS growth in 2023,” Creel said. “The long-term growth opportunities for this franchise are unique and undeniable. With our CPKC advantage, we are extending our reach for our customers, introducing new service offerings to the marketplace and creating new competition in North American supply chains.”

CPKC’s 2023-24 Grain Service Outlook Report outlines the company’s plan to safely and reliably transport Canada’s grain crop for export to international markets. With 221,800 carloads moved, grain was the top commodity for the CPKC network in the first half of the year.

The report highlights CPKC’s commitment to grain customers and the unique position of the company to supply rail transportation to Canada’s agricultural sector as the first transnational railway that provides a single-line connection between Canada, the United States and Mexico. 

The new rail network provides Canada’s grain shippers with access to markets across North America, including many new markets in Mexico, and enhanced routing options for shipping Canadian grain and grain products overseas. Additionally, CPKC has completed its more than $500 million investment to purchase 5,900 new higher-capacity grain hopper cars.

To read the full report, visit cpkcr.com.