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Canadian Pacific Delivers Solid Fourth-Quarter Results

General News
Canadian Pacific Railway - Lumber Transportation

Canadian Pacific Railway Limited (“CP”) announced its fourth-quarter results, including revenues of $2.04 billion, operating ratio (“OR”) of 59.2 percent, adjusted OR1 of 57.5 percent, diluted earnings per share (“EPS”) of $0.74 and adjusted diluted EPS1 of $0.95.

Fourth-Quarter 2021 Highlights

• Revenues increased 1 percent to $2.04 billion, from $2.01 billion in Q4 2020
• Reported OR increased by 530 basis points to 59.2 percent from 53.9 percent. The OR in the fourth quarter of 2021 includes $36 million in costs related to the Kansas City Southern acquisition
• Adjusted OR, which excludes the acquisition-related costs, increased 360 basis points to 57.5 percent
• Diluted EPS decreased to $0.74, from $1.19 in Q4 2020, while adjusted diluted EPS decreased to $0.95, from $1.01 in Q4 2020

“I am tremendously proud of the resilience the CP team demonstrated to deliver these results. CP’s world-class railroaders relied on our strong operating model and commitment to controlling what we can control to safely deliver for customers and shareholders despite the unique challenges faced in the quarter,” said Keith Creel, CP President and CEO.

“This quarter we also reached a crucial milestone in our journey to create the first single-line rail network linking the U.S., Mexico and Canada by combining with Kansas City Southern, which closed into voting trust Dec. 14,” said Creel.

Full-Year 2021 Highlights

• Federal Railroad Administration (“FRA”)-reportable personal injuries declined 17 percent to a record-low 0.92 from the previous record-low of 1.11 in 2020
• Revenues increased 4 percent to $8.0 billion, from $7.71 billion in 2020
• OR increased 280 basis points to 59.9 percent
• Adjusted OR increased 50 basis points to 57.6 percent
• Diluted EPS increased to $4.18 from $3.59, while adjusted diluted EPS increased to $3.76, from $3.53 in 2020

“During a historic year for CP, our dedicated team confronted the adversity we faced throughout 2021 head-on with grit and tenacity,” said Creel. “I am excited for what lies ahead with this franchise as we move past the uncertainty and extensive supply chain disruptions created by the COVID-19 pandemic. The demand environment and overall economic strength, combined with CP’s unique initiatives and service excellence, have us well-positioned to drive profitable growth for our customers, employees and shareholders. These factors, coupled with the progression of our proposed combination with Kansas City Southern, position CP for another history-making year.”

For the full fourth quarter results, click here.

1 These measures have no standardized meanings prescribed by accounting principles generally accepted in the United States of America (“GAAP”) and, therefore, may not be comparable to similar measures presented by other companies. For information regarding non-GAAP measures, including reconciliations to the most comparable GAAP measures, see the attached supplementary schedule Non-GAAP Measures.

About Canadian Pacific

Canadian Pacific is a transcontinental railway in Canada and the United States with direct links to major ports on the west and east coasts. CP provides North American customers a competitive rail service with access to key markets in every corner of the globe. CP is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit to see the rail advantages of CP.

Source: Canadian Pacific Railway Limited