Canadian Pacific Kansas City Limited (NYSE:CP) reported first-quarter 2024 revenue growth of 55.3% year-over-year to CA$3.52 billion, missing the consensus of CA$3.54 billion.

CP reported an operating ratio increase of 400 bps to 67.4% from 63.4% a year ago. Adjusted operating ratio increased 50 bps to 64%.

“One year into our historic combination, I am proud of what our dedicated family of railroaders has accomplished as we deliver on the benefits of our unrivalled network – spurring competition, increasing safety and connecting more markets for our customers. Today’s results show the success of our efforts to drive growth as the only railway connecting Canada, the United States and Mexico,” commented Keith Creel, CPKC President and Chief Executive Officer.

Adjusted combined EPS stood at CA$0.93, up from CA$0.90 YoY, missing the consensus of CA$0.94.

Operating income rose 38.6% YoY to CA$1.15 billion, and the margin contracted by 394 bps to 32.6%.

CP’s net cash provided by operating activities for the quarter reached CA$1.015 billion, up from CA$881 million a year ago.

Total Freight Revenue per RTM increased by 12% Y/Y to 6.61, and Total Freight Revenue per Carload declined 2% Y/Y to CA$3,195.

Adjusted combined free cash was CA$555 million, up from CA$481 million in the same quarter last year.

Volumes, as measured in Revenue Ton-Miles (RTMs), increased by 1% on a combined basis.

Federal Railroad Administration (FRA)-reportable train accident frequency increased to 0.89 from 0.71 YoY, and FRA-reportable personal injury frequency increased to 1.15 from 1.12 YoY on a combined basis.

Price Action: CP shares are trading lower by 5.75% at $82.68 at the last check Wednesday.

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