What were the primary drivers for the decrease in total revenues?

The decrease in total revenues was primarily driven by lower freight revenue per revenue ton-mile, which fell by 4%, partly due to the unfavorable impact of foreign exchange rates and lower fuel surcharge revenue. This was partially offset by an increase in revenue ton-miles (RTMs) by 2%, driven by higher volumes in Grain and Intermodal segments.

How is the company managing its debt and liquidity?

CPKC's liquidity remains strong, with cash and cash equivalents increasing to $409 million. The company repaid $339 million of notes at maturity and issued new notes totaling $1.642 billion (net of issuance costs). The company also has an undrawn revolving credit facility of $2.2 billion and an expanded commercial paper program up to $2.2 billion, indicating sufficient access to funds.

What is the outlook for dividends and share repurchases?

The company has demonstrated a commitment to shareholder returns by increasing its quarterly dividend by 17.5% to $0.268 per share. Additionally, a new normal course issuer bid was announced to purchase up to approximately 44.9 million common shares over the next year, and approximately $646 million was spent on share repurchases in Q1 2026.

What impact did foreign exchange rates and fuel prices have on the results?

The strengthening Canadian dollar unfavorably impacted total revenues by $82 million, operating expenses by $35 million, and net interest expense by $9 million. Lower fuel prices, partly due to the elimination of the Canadian federal carbon tax, resulted in a $23 million decrease in fuel expenses but also contributed to a $40 million decrease in fuel surcharge revenue.

CP 10-Q Quarterly Report Q1 FY2026 — Revenue, Net Income, EPS

01—Abstract

Summary

Summary of the 10-Q filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.

Canadian Pacific Kansas City Ltd. (CP) reported its first-quarter results for 2026, showing a slight decrease in total revenues to $3.701 billion^a from $3.795 billion in the prior year, driven primarily by lower freight revenues per revenue ton-mile, despite an increase in overall revenue ton-miles.

Diluted earnings per share (EPS) also saw a modest decline to $0.94^b from $0.97 year-over-year. The company's operating ratio, a key measure of efficiency, slightly worsened to 66.0% from 65.3%, indicating higher operating expenses relative to revenues. Despite the revenue and EPS dip, CPKC highlighted a significant increase in its quarterly dividend declaration to $0.268 per share, a 17.5% rise from the previous quarter, signaling confidence in future performance and a commitment to returning capital to shareholders.

The company also announced a new normal course issuer bid to repurchase up to approximately 44.9 million common shares. The financial results were impacted by a strengthening Canadian dollar and lower fuel prices, with notable increases in grain and intermodal volumes being partially offset by declines in coal and energy-related shipments.

02—Key points

Key Highlights

Total revenues decreased by 2% to $3.701 billion for Q1 2026 compared to $3.795 billion in Q1 2025.
Diluted EPS decreased by 3% to $0.94 in Q1 2026 from $0.98 in Q1 2025.
Operating ratio increased to 66.0% in Q1 2026 from 65.3% in Q1 2025, indicating a slight decrease in operational efficiency.
The company declared a quarterly dividend of $0.268 per share, an increase of 17.5% from the prior quarter, demonstrating a commitment to shareholder returns.
Gross ton-miles (GTMs) increased by 2%, driven by higher volumes in Grain and Intermodal segments.
The company's cash and cash equivalents increased significantly to $409 million as of March 31, 2026, from $184 million at December 31, 2025.
Share repurchases continued under a normal course issuer bid, with 5.7 million shares repurchased in Q1 2026.

03—Questions

Frequently Asked Questions

What were the primary drivers for the decrease in total revenues?
The decrease in total revenues was primarily driven by lower freight revenue per revenue ton-mile, which fell by 4%, partly due to the unfavorable impact of foreign exchange rates and lower fuel surcharge revenue. This was partially offset by an increase in revenue ton-miles (RTMs) by 2%, driven by higher volumes in Grain and Intermodal segments.
How is the company managing its debt and liquidity?
CPKC's liquidity remains strong, with cash and cash equivalents increasing to $409 million. The company repaid $339 million of notes at maturity and issued new notes totaling $1.642 billion (net of issuance costs). The company also has an undrawn revolving credit facility of $2.2 billion and an expanded commercial paper program up to $2.2 billion, indicating sufficient access to funds.
What is the outlook for dividends and share repurchases?
The company has demonstrated a commitment to shareholder returns by increasing its quarterly dividend by 17.5% to $0.268 per share. Additionally, a new normal course issuer bid was announced to purchase up to approximately 44.9 million common shares over the next year, and approximately $646 million was spent on share repurchases in Q1 2026.
What impact did foreign exchange rates and fuel prices have on the results?
The strengthening Canadian dollar unfavorably impacted total revenues by $82 million, operating expenses by $35 million, and net interest expense by $9 million. Lower fuel prices, partly due to the elimination of the Canadian federal carbon tax, resulted in a $23 million decrease in fuel expenses but also contributed to a $40 million decrease in fuel surcharge revenue.

04—Continue

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