Canadian Pacific Kansas City Limited Stock Price, News & Analysis

Canadian Pacific Railway Limited (TSX: CP) has announced a tentative three-year agreement with the Teamsters Canada Rail Conference Rail Canada Traffic Controllers (TCRC-RCTC), representing around 300 rail traffic controllers in Canada. President and CEO Keith Creel expressed that this agreement is beneficial for the team members, emphasizing their importance in CP’s operations. The company highlights that the agreement is expected to support operational efficiency and sustainable growth, pending successful ratification by TCRC-RCTC members.

Canadian Pacific Railway Limited announced its fourth-quarter results with revenues of $2.01 billion, a 3% decrease from Q4 2019. Despite this, the operating ratio improved to a record-low 53.9%. Diluted earnings per share (EPS) rose 23% to $5.95, with record adjusted diluted EPS of $5.06. For the full year 2020, revenues slightly declined to $7.71 billion, but diluted EPS increased by 3% to $17.97. Looking ahead, CP expects double-digit adjusted diluted EPS growth and high single-digit volume growth for 2021, along with capital expenditures of $1.55 billion.

Canadian Pacific Railway announced a proposed five-for-one share split, pending shareholder approval at the Annual Meeting on April 21, 2021. The company has seen a 150% increase in share price over five years, which they believe will enhance liquidity and attract a broader investor base. Additionally, CP plans to buy back up to 3,331,921 shares (2.5% of outstanding shares) through a normal course issuer bid starting January 29, 2021. This program underscores CP's strong cash flow and commitment to returning value to shareholders.

The Board of Directors of Canadian Pacific Railway Limited declared a quarterly dividend of $0.95 per share on January 26, 2021. This dividend will be payable on April 26, 2021, to shareholders on record as of March 26, 2021. Classified as an "eligible" dividend under the Income Tax Act in Canada, this announcement reflects the company's ongoing commitment to returning value to its shareholders. Canadian Pacific is a transcontinental railway connecting major ports across North America.

In 2020, Canadian Pacific (NYSE: CP) transported a record 31.32 million metric tonnes (MMT) of Canadian grain, marking its highest annual total to date. The fourth quarter also demonstrated strong performance, with 8.84 MMT moved, a 5.1% increase over Q2. December alone saw 2.84 MMT, surpassing the previous year's record by 13.6%. CP continues enhancing its fleet, adding over 3,700 new hopper cars that increase capacity by 15% in volume and 10% in weight. The company publishes a weekly grain supply chain scorecard to improve transparency.

Canadian Pacific (CP) is set to release its fourth-quarter 2020 financial results on January 27, 2021, after market close. The company will hold a conference call to discuss these results at 4:30 p.m. ET on the same day. Interested parties can access the call by dialing 1-647-427-7450 for Toronto participants or 1-888-231-8191 for toll-free access. A replay will be available until February 3, 2021. CP operates a transcontinental railway in Canada and the U.S., providing competitive freight services and logistics solutions.

Canadian Pacific (TSX: CP) announced the completion of its acquisition of an 83.5% stake in the Detroit River Rail Tunnel from OMERS affiliates for approximately US$312 million. Previously, CP held a 16.5% stake in the tunnel. This strategic purchase increases CP's ownership and control over this critical infrastructure, enhancing its competitive rail service capabilities across North America.

On December 18, 2020, Canadian Pacific (TSX: CP) announced plans to develop North America's first hydrogen-powered locomotive. This innovative initiative aims to retrofit a line-haul locomotive using hydrogen fuel cells and battery technology, targeting the decarbonization of the freight-rail sector. President Keith Creel emphasized the project's global significance for sustainability in transportation. CP has a history of enhancing fuel efficiency and reducing emissions, with efforts dating back to 1990, achieving over a 40% improvement in fuel economy.

Canadian Pacific Railway Limited (TSX: CP) announced a tentative five-year collective agreement with the International Brotherhood of Electrical Workers (IBEW) Canadian Signals and Communications System Council No. 11. This agreement, which represents 360 Signal Maintainers in Canada, is expected to support continued growth and opportunities within the company. The ratification of the agreement is pending union membership approval. CP's President, Keith Creel, emphasized the importance of good faith negotiations in reaching this agreement, which is crucial for the company’s operations and employee relations.