Canadian Pacific Kansas City Reports Q2 2026 Results as Earnings Decline 14.6% Year-Over-Year
The Calgary-based railway operator posted net income of $931 million for the second quarter, down from $1.09 billion in the prior-year period, according to its latest quarterly filing.
Financial Performance Pressures Mount
Canadian Pacific Kansas City Limited reported declining profitability for the second quarter of 2026, with net income falling to $931 million compared to $1.09 billion in the same period last year, according to the company's Form 10-Q filing submitted to the U.S. Securities and Exchange Commission (FIN SUPP filing, 2026-07-31).
The railway operator, which trades under the symbol CP on both the New York Stock Exchange and Toronto Stock Exchange, saw quarterly revenues decline 1.8% to $3.857 billion from $3.928 billion year-over-year. For the six-month period ending June 30, 2026, net income totaled $1.730 billion, down from $1.897 billion in the first half of 2025 (FIN SUPP filing, 2026-07-31).
Operating Metrics Show Mixed Results
Diluted earnings per share for the second quarter came in at $1.06, representing a decline from $1.24 per share in the prior-year quarter. On a six-month basis, diluted EPS reached $1.97 compared to $2.15 for the same period in 2025 (FIN SUPP filing, 2026-07-31).
The company's operating income before income taxes decreased to $1.359 billion in Q2 2026 from $1.591 billion in Q2 2025. For the half-year period, this metric stood at $2.479 billion versus $2.792 billion in the comparable 2025 period (FIN SUPP filing, 2026-07-31).
Balance Sheet and Capital Allocation
As of June 30, 2026, CPKC reported total assets of $93.938 billion, up slightly from $93.609 billion at year-end 2025. Total equity attributable to shareholders stood at $47.436 billion, compared to $47.066 billion at December 31, 2025 (FIN SUPP filing, 2026-07-31).
The company had 879,079,224 common shares outstanding as of July 28, 2026 (FIN SUPP filing, 2026-07-31). During the second quarter, CPKC declared dividends of $0.268 per share, up from $0.228 per share in the prior-year quarter. For the six-month period, dividends totaled $0.496 per share versus $0.418 per share in 2025 (FIN SUPP filing, 2026-07-31).
Cash Flow and Capital Expenditures
Cash provided by operating activities for the six months ended June 30, 2026, totaled $2.794 billion, compared to $2.989 billion in the same period of 2025. Capital expenditures on property, plant and equipment reached $1.501 billion for the half-year period (FIN SUPP filing, 2026-07-31).
Insider Activity and Upcoming Events
According to MarginX data, recent insider transactions included Chief Executive Officer Keith Edward Creel disposing of 271,010 shares in the public market, while Cassandra P. Quach exercised options for 4,135 shares and subsequently sold the same number of shares.
The filing was signed by Nadeem Velani, Executive Vice President and Chief Financial Officer, on July 29, 2026 (FIN SUPP filing, 2026-07-31). The company is expected to announce its third-quarter 2026 results on October 27, 2026, with another quarterly dividend of $0.268 per share scheduled for payment on September 25, 2026, according to MarginX data.
This article was generated by MarginX from the FIN SUPP filing on 2026-07-31. It is not investment advice.