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CP Reports Solid Third-Quarter Results; Well-Positioned for Strong Finish to 2022

General News
Canadian Pacific Railway - Lumber Transportation

Canadian Pacific Railway Limited announced its third-quarter 2022 results, including revenues of $2.31 billion, reported operating ratio (“OR”) of 59.5 percent, adjusted ORof 58.7 percent, reported diluted earnings per share (“EPS”) of $0.96 and core adjusted diluted EPSof $1.01.

“Throughout the year, we have said 2022 would be a tale of two halves and that is exactly how it is unfolding,” said Keith Creel, CP President and Chief Executive Officer. “The third quarter saw strong demand in potash and intermodal that we anticipated, and CP was well-resourced to handle the volume increases we have seen. I’m proud of the results the team delivered this quarter and excited about the opportunities in front of us.”

Third-quarter highlights

  • Revenues increased by 19 percent to $2.31 billion from $1.94 billion last year
  • Reported OR improved by 70 basis points to 59.5 percent from 60.2 percent last year
  • Adjusted OR1 improved by 70 basis points to 58.7 percent from 59.4 percent last year
  • Reported diluted EPS was $0.96, a 37 percent increase from last year
  • Core adjusted diluted EPS1, excluding significant items and Kansas City Southern (“KCS”) purchase accounting, was $1.01, a 15 percent increase from last year
  • Federal Railroad Administration (“FRA”) – reportable train accident frequency decreased 76 percent to a record-low 0.37 from 1.54 in Q3 2021. FRA-reportable personal injury frequency declined 12 percent to 0.86 from 0.982 in Q3 2021.

“CP’s unique growth initiatives coupled with a robust Canadian grain harvest provide a strong volume backdrop as we finish the year,” said Creel. “We are well-positioned to carry the momentum we gained in the third quarter through the rest of the year and beyond.”

CP is continuing to progress towards creating the first single-line rail network linking the U.S., Mexico and Canada by combining with KCS, subject to U.S. Surface Transportation Board approval.

“We’ve successfully demonstrated how our proposed combination with KCS will connect customers to new markets, enhance competition in the U.S. rail network, take trucks off the roads and drive economic growth across North America,” Creel said. “Our excitement grows each day we progress toward this transformative combination.”

1These 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.
2FRA personal injuries per 200,000 employee-hours for the three months ended September 30, 2021 was previously reported as 0.97, restated to 0.98 in this Earnings Release.

For the complete press release, click here.

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 with 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