Canadian Railways Report Growth Despite Tariff Threats and Economic Challenges

CPKC and CN Rail express optimism for 2025 as they navigate trade uncertainties and evolving freight demands.

Canadian Pacific Kansas City Ltd. (CPKC) reported an 18% rise in quarterly profits, driven by increased grain and automotive shipments, despite a decline in container cargo revenue.
Canadian National Railway (CN) saw a 46% drop in quarterly profits but remains optimistic for 2025, projecting up to 15% growth in adjusted earnings per share.
Both rail companies are preparing for potential U.S. tariffs on Canadian and Mexican imports, emphasizing the resilience of integrated North American supply chains.
CPKC attributes its growth to efficiencies gained from its 2023 merger with Kansas City Southern, creating a continent-wide rail network spanning Canada, the U.S., and Mexico.
CN and CPKC executives highlighted plans to adapt quickly to trade disruptions, with CPKC forecasting freight volume growth of up to 6% in 2025.