Canadian Pacific Kansas City Limited Stock Price, News & Analysis

Canadian Pacific Kansas City (TSX: CP, NYSE: CP) reported strong first-quarter results on April 26, 2023. Revenues rose by 23% to $2.27 billion from $1.84 billion in Q1 2022, fueled by a robust Canadian grain harvest and intermodal services. The operating ratio (OR) improved significantly, reporting at 63.4%, down from 70.9% in Q1 2022. Diluted earnings per share (EPS) increased to $0.86, compared to $0.63 a year earlier, while core adjusted diluted EPS reached $0.90, up from $0.67. President and CEO, Keith Creel, emphasized the positive momentum ahead of the company's historic combination, highlighting the focus on capacity, service, and safety.

The Board of Directors of Canadian Pacific Kansas City Limited (TSX: CP, NYSE: CP) has declared a quarterly dividend of $0.19 per share, payable on July 31, 2023. Shareholders on record as of June 30, 2023 will receive this dividend, which qualifies as an "eligible" dividend under the Income Tax Act of Canada. CPKC is positioned as the first and only single-line transnational railway linking Canada, the United States, and Mexico, with approximately 20,000 route miles and access to major ports. The company aims to grow with its customers by offering freight transportation services and logistics solutions.

Canadian Pacific Kansas City (TSX: CP) and Knight-Swift Transportation Holdings (NYSE: KNX) have entered a multi-year agreement to enhance truckload intermodal services along CPKC's new corridor linking Mexico, the U.S., and Canada. The partnership aims to improve supply chain options for customers, leveraging Knight-Swift's established Mexico customer base and CPKC's rail network. Notably, a new railroad bridge over the Rio Grande is under construction, expected to bolster service efficiency by late 2024. Anticipated environmental benefits include a reduction of around 1.9 million tons of greenhouse gas emissions over five years and significant savings in highway maintenance, exceeding US$750 million. However, the release contains forward-looking statements regarding future operations and potential risks associated with the partnership.

Schneider National (NYSE: SNDR) has announced a partnership with Canadian Pacific Kansas City (NYSE: CP) to provide intermodal services connecting the upper Midwest U.S. with Mexico. The collaboration aims to enhance intermodal offerings, leveraging Schneider's extensive experience in Mexico and its large intermodal fleet of over 28,000 containers. Schneider plans to double its intermodal size by 2030, and this partnership is expected to deliver efficient, sustainable transportation solutions. The new service will commence in mid-May and is anticipated to improve reliability and capacity for customers' supply chains.

Canadian Pacific Kansas City (TSX: CP) announced a multi-year agreement with Schneider National Inc. to launch a new single-line intermodal transportation service connecting the U.S. and Mexico. This service aims to enhance reliability and capacity for Schneider’s customers, starting mid-May 2023, with Schneider acting as an anchor domestic intermodal customer on CPKC’s north–south corridor. CPKC plans to leverage its extensive rail network to provide truck-competitive intermodal options, backed by Schneider’s logistics expertise. The initiative includes the construction of a second span on the International Railroad Bridge to improve efficiency, expected to complete by the end of 2024. Both companies share sustainability goals focused on reducing greenhouse gas emissions through transitioning freight from trucks to rail.

On April 14, 2023, Canadian Pacific Kansas City Limited (CPKC) announced the immediate appointment of four new directors to the board of its wholly-owned subsidiary, Canadian Pacific Railway Company. The appointees—David Garza-Santos, Ambassador Antonio Garza, Henry Maier, and Janet Kennedy—bring extensive experience in transportation, logistics, and international business, particularly from their tenure at Kansas City Southern (KCS). This move aligns with the merger agreement between CP and KCS, which took effect with the creation of CPKC, the first single-line railway linking Canada, the U.S., and Mexico. CPKC operates approximately 20,000 miles of rail and employs nearly 20,000 people. The newly appointed directors will also be nominated for election at CPKC's Annual General Meeting on June 15, 2023.

Canadian Pacific (CP) and Kansas City Southern (KCS) have officially merged to form Canadian Pacific Kansas City (CPKC), marking a significant milestone as the first single-line railway uniting Canada, the U.S., and Mexico, as sanctioned by the U.S. Surface Transportation Board on March 15, 2023. This combination, celebrated with a ceremonial Final Spike in Kansas City, aims to enhance market competition and operational efficiency. CPKC will operate a network of approximately 20,000 miles, creating extensive market access for customers and promising environmental benefits, including a reduction in greenhouse gas emissions. With a capital investment plan of over $275 million over the next three years, CPKC is set to implement advanced safety measures and improve rail infrastructure.

Canadian Pacific (TSX: CP) announced that by the Early Participation Date of March 31, 2023, a significant amount of seven series of Kansas City Southern (KCS) notes, termed 'Old Notes', have been validly tendered. The exchange offers commenced on March 20, 2023, and will expire on April 17, 2023. A total of $224.2 million of 3.125% Senior Notes due 2026 and $541.3 million of 3.500% Senior Notes due 2050 were among the notable amounts tendered. The CPRC Notes will be guaranteed and are expected to be issued shortly after the expiration. This press release does not constitute an offer to sell securities, and holders are encouraged to review the related exchange offer materials.