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2mo ago

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.

Train cars are seen in an aerial view as workers repair tracks at Canadian National Rail's Thornton Yard, in Surrey, B.C., on Thursday, August 22, 2024. THE CANADIAN PRESS/Darryl Dyck
Railcars and locomotives are shown at the CPKC railyard in Calgary, Thursday, Aug. 22, 2024.
Signage is pictured at a Canadian Pacific Kansas City (CPKC) rail yard in Smiths Falls, Ont., on Thursday, Aug. 22, 2024. THE CANADIAN PRESS/Sean Kilpatrick
A CN locomotive sits idle at the CN Stuart Yard in Hamilton, Ont., Thursday, Aug. 22, 2024. THE CANADIAN PRESS/Peter Power

Overview

  • 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.