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CPKC Posts Record Revenue on Intermodal, Grain Surge

Canadian Pacific Kansas City reported third-quarter operating income climbed 11% to reach record revenue of $3 billion, a 15% increase year-over-year. Volume throughput expanded 6% measured by revenue ton-miles, the railroad's preferred metric, while carloads and containers rose 5%. Grain shipments surged 20%, and intermodal traffic set company records. Domestic intermodal volumes rose 7% and international volumes climbed 11%. The Southeast-Mexico interline service with CSX grew 30% sequentially. Despite strong performance, the operating ratio deteriorated 3 points as fuel expenses climbed 18%. CEO Keith Creel highlighted the Canada-Mexico land bridge business, now projected to generate $427 million this year versus $71 million at the 2023 merger close. Coal volumes faced headwinds from mine production issues, while potash shipments declined due to port facility maintenance.