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Canadian Pacific Reports Fourth-Quarter Results; Ready to Unite a Continent in 2023

General News
Canadian Pacific Railway - Lumber Transportation

Canadian Pacific Railway Limited (“CP”) announced its fourth-quarter results, including revenues of $2.46 billion, operating ratio (“OR”) of 59.8 percent, adjusted OR1 of 59.1 percent, diluted earnings per share (“EPS”) of $1.36 and core adjusted diluted EPS1 of $1.14.

Fourth Quarter 2022 Highlights

  • Revenues increased 21 percent to $2.46 billion, from $2.04 billion in Q4 2021
  • Volumes, as measured in revenue ton-miles, increased 8 percent
  • Reported OR increased by 60 basis points to 59.8 percent from 59.2 percent
  • Adjusted OR1, increased 160 basis points to 59.1 percent
  • Reported diluted EPS increased to $1.36, from $0.74 in Q4 2021
  • Core adjusted diluted EPS1 increased to $1.14, from $0.96 in Q4 2021

“We finished the year with the people, capacity and resources in place to meet the needs of our customers today and are well-positioned to make history in 2023,” said Keith Creel, CP President and CEO. “In a year of changing conditions and challenges, in order to support the broader economy and prepare for our proposed combination, we executed one of the largest hiring plans and capital investment programs in our company’s history.”

Full-Year 2022 Highlights

  • Federal Railroad Administration (“FRA”)-reportable train accident frequency declined 15 percent to 0.93 from 1.10 in 2021
  • Revenues increased 10 percent to $8.81 billion from $8.0 billion in 2021
  • Generated $2.7 billion in free cash1, an increase of 52 percent
  • OR increased 230 basis points to 62.2 percent
  • Adjusted OR1 increased 380 basis points to 61.4 percent
  • Reported diluted EPS decreased to $3.77 from $4.18
  • Core adjusted diluted EPS1 was flat compared to 2021 at $3.77

“We remain focused on our precision scheduled railroading model and fundamentals of efficiency and strong service to our customers as we await a decision by the U.S. Surface Transportation Board on our proposed combination with Kansas City Southern, which we anticipate occurring later this quarter,” said Creel.

CP again led the industry in safety, achieving the lowest FRA-reportable train accident frequency among Class 1 railroads for the 17th consecutive year. 

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. 

For the full fourth quarter results, 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 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