Canadian Pacific Q3 Earnings & Revenues Miss Estimates, Improve Y/Y

Canadian Pacific Kansas City CP reported unimpressive third-quarter 2025 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.

The quarterly earnings (excluding 7 cents from non-recurring items) of 80 cents per share missed the Zacks Consensus Estimate by a penny. The bottom line improved 9.5% on a year-over-year basis. Operating revenues of $2.65 billion lagged the Zacks Consensus Estimate of $2.67 billion. However, the top line improved 2.2% on a year-over-year basis.

In the reported quarter, total Freight revenues per revenue ton miles decreased 1% year over year. Total Freight revenues per carload declined marginally year over year.

On a reported basis, operating income increased 11%. Total operating expenses fell 1% year over year. The reported operating ratio (operating expenses as a percentage of revenues) fell 260 basis points to 63.5% from the year-ago quarter.

CP’s Segmental Highlights

Freight revenues, which accounted for 98% of the top line, increased 4% year over year. CP’s Freight segment contains Grain (up 4%), Coal (up 3%), Potash (up 15%), Fertilizers and Sulphur (up 11%), Metals, minerals and consumer products (up 2%), Automotive (up 2%) and Intermodal (up 7%). Meanwhile, Energy, chemicals and plastics, and Forest products fell 2% and 3%, respectively.

Other revenues decreased 18% year over year in the third quarter of 2025.

CP’s Liquidity

CP exited the third quarter with cash and cash equivalents of C$411 million compared with C$799 million at the end of the prior quarter. Long-term debt amounted to C$21.59 billion compared with C$21.22 billion at the end of the prior quarter.

CP’s Outlook

Despite the ongoing tariff and trade policy uncertainty, Canadian Pacific expects 2025 core adjusted earnings per share to grow in the 10%-14% range from the 2024 actuals to C$4.25 per share.

The company continues to expect 2025 RTMs to increase in the mid-single digits from the 2024 actuals.

Management expects capital expenditures to be C$2.9 billion for the full year. The core adjusted effective tax rate for 2025 is expected to be 24.5%.

Currently, Canadian Pacific carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q3 Performances of Other Transportation Companies

Delta Air Lines DAL reported third-quarter 2025 earnings (excluding 46 cents from non-recurring items) of $1.71 per share, which beat the Zacks Consensus Estimate of $1.52. Earnings increased 14% on a year-over-year basis due to low fuel costs.

Revenues in the September-end quarter were $16.67 billion, beating the Zacks Consensus Estimate of $15.79 billion and increasing 6.4% on a year-over-year basis. Due to improving air-travel demand, adjusted operating revenues (excluding third-party refinery sales) increased 4.1% year over year to $15.2 billion. 

J.B. Hunt Transport Services, Inc. (JBHT) reported third-quarter 2025 earnings of $1.76 per share, which surpassed the Zacks Consensus Estimate of $1.47 and improved 18.1% year over year.

Total operating revenues of $3.05 billion surpassed the Zacks Consensus Estimate of $3.02 billion and were down 0.5% year over year. JBHT’s third-quarter revenue performance was hurt by a 1% and 4% decline in gross revenue per load in Intermodal (JBI) and Truckload (JBT), respectively, a decrease in load volume of 8% and 1% in Integrated Capacity Solutions (ICS) and Dedicated Contract Services (DCS), and 8% fewer stops in Final Mile Services (FMS). These items were partially offset by a 3 % improvement in DCS productivity, a 9% increase in revenue per load in ICS and 14% load growth in JBT. Total operating revenue, excluding fuel surcharge revenue, fell less than 1% year over year.

United Airlines Holdings, Inc. (UAL) reported mixed third-quarter 2025 results wherein the company’s earnings beat the Zacks Consensus Estimate, but revenues missed the same.

UAL's third-quarter 2025 adjusted earnings per share (EPS) (excluding 12 cents from non-recurring items) of $2.78 surpassed the Zacks Consensus Estimate of $2.64 but declined 16.5% on a year-over-year basis. The reported figure lies above the guided range of $2.25 and $2.75.

Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.3 billion but increased 2.6% year over year. Passenger revenues (which accounted for 90.7% of the top line) increased 1.9% year over year to $13.8 billion. UAL flights transported 48,382 passengers in the third quarter, up 6.2% year over year.

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