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Canadian Pacific Q4 Earnings & Revenues Miss Estimates, Improve Y/Y
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Key Takeaways
CP's Q4 EPS of 95 cents and revenues of $2.81B missed the Zacks Consensus Estimate.
CP expects 2026 core adjusted earnings per share to grow in the low double digits from the 2025 actuals.
Canadian Pacific expects 2026 RTMs to increase in the mid-single digits from the 2025 actuals.
Canadian Pacific Kansas City (CP - Free Report) ) reported unimpressive fourth-quarter 2025 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
Quarterly earnings (excluding 9 cents from non-recurring items) of 95 cents per share missed the Zacks Consensus Estimate of 99 cents. The bottom line improved 3.3% on a year-over-year basis. Operating revenues of $2.81 billion lagged the Zacks Consensus Estimate of $2.86 billion. However, the top line improved 1.6% on a year-over-year basis.
In the reported quarter, total Freight revenues per revenue ton miles grew 1% year over year. Total Freight revenues per carload declined marginally by 0.1% year over year.
On a reported basis, operating income increased 3% year over year. Total operating expenses fell 0.2% year over year. The reported operating ratio (operating expenses as a percentage of revenues) fell 80 basis points to 58.9% from the year-ago quarter.
Canadian Pacific Kansas City Limited Price, Consensus and EPS Surprise
Freight revenues, accounting for 98% of the top line, increased 1%. CP’s Freight segment contains Grain (up 4%), Coal (up 3%), Potash (down 2%), Fertilizers and Sulphur (up 1%), Metals, minerals and consumer products (up 3%), Automotive (down 1%) and Intermodal (up 3%). Meanwhile, Energy, chemicals and plastics and Forest products fell 2% and 12%, respectively.
Other revenues increased 26% year over year in the fourth quarter of 2025.
CP’s Liquidity
CP exited the fourth quarter with cash and cash equivalents of C$184 million compared with C$411 million at the prior-quarter end. Long-term debt amounted to C$19.94 billion compared with C$21.59 billion at the prior-quarter end.
CP’s Outlook
Canadian Pacific expects 2026 core adjusted earnings per share to grow in the low double-digits from the 2025 actuals to C$4.61 per share.
The company expects 2026 RTMs to increase in the mid-single digits from the 2025 actuals.
Management expects capital expenditures to be C$2.65 billion for the full year. The core adjusted effective tax rate for 2026 is expected to be 24.75%.
Delta Air Lines (DAL - Free Report) reported fourth-quarter 2025 earnings (excluding 31 cents from non-recurring items) of $1.55 per share, which beat the Zacks Consensus Estimate of $1.53. Earnings decreased 16.22% on a year-over-year basis due to high labor costs.
Revenues in the December-end quarter were $16 billion, beating the Zacks Consensus Estimate of $15.63 billion and increasing 2.9% on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1.2% year over year to $14.6 billion. Revenue growth was impacted by about 2 points due to the government shutdown, mainly in the domestic segment, consistent with the company's disclosure last month.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported fourth-quarter 2025 earnings of $1.90 per share, which surpassed the Zacks Consensus Estimate of $1.81 and improved 24.2% year over year.
Total operating revenues of $3.09 billion lagged the Zacks Consensus Estimate of $3.12 billion and were down 1.6% year over year. JBHT’s fourth-quarter revenue performance was hurt by a 2% and 4% decline in revenue per load excluding fuel surcharge revenue in Intermodal (JBI) and Truckload (JBT), respectively, a 1% decrease in average trucks in Dedicated Contract Services (DCS), and a 7% and 2% decline in load volume in Integrated Capacity Solutions (ICS) and JBI, respectively. The decrease in revenue, excluding fuel surcharge revenue, was partially offset by a 15% increase in volume in JBT, a 1% uptick in productivity, excluding fuel surcharge revenue, in DCS, and an increase in revenue per load in ICS. Total operating revenue, excluding fuel surcharge revenue, decreased 2% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported solid fourth-quarter 2025 results wherein the company’s earnings and revenues beat the Zacks Consensus Estimate.
UAL's fourth-quarter 2025 adjusted earnings per share (excluding 9 cents from non-recurring items) of $3.10 surpassed the Zacks Consensus Estimate of $2.98 but declined 4.9% on a year-over-year basis. The reported figure lies within the guided range of $3.00-$3.50.
Operating revenues of $15.4 billion outpaced the Zacks Consensus Estimate marginally by 0.1% and increased 4.8% year over year. Passenger revenues (which accounted for 90.4% of the top line) increased 4.9% year over year to $13.9 billion. UAL flights transported 45,679 passengers in the fourth quarter, up 3% year over year.
Cargo revenues fell 6% year over year to $490 million. Revenues from other sources rose 9.1% year over year to $981 million.
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Canadian Pacific Q4 Earnings & Revenues Miss Estimates, Improve Y/Y
Key Takeaways
Canadian Pacific Kansas City (CP - Free Report) ) reported unimpressive fourth-quarter 2025 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
Quarterly earnings (excluding 9 cents from non-recurring items) of 95 cents per share missed the Zacks Consensus Estimate of 99 cents. The bottom line improved 3.3% on a year-over-year basis. Operating revenues of $2.81 billion lagged the Zacks Consensus Estimate of $2.86 billion. However, the top line improved 1.6% on a year-over-year basis.
In the reported quarter, total Freight revenues per revenue ton miles grew 1% year over year. Total Freight revenues per carload declined marginally by 0.1% year over year.
On a reported basis, operating income increased 3% year over year. Total operating expenses fell 0.2% year over year. The reported operating ratio (operating expenses as a percentage of revenues) fell 80 basis points to 58.9% from the year-ago quarter.
Canadian Pacific Kansas City Limited Price, Consensus and EPS Surprise
Canadian Pacific Kansas City Limited price-consensus-eps-surprise-chart | Canadian Pacific Kansas City Limited Quote
CP’s Segmental Highlights
Freight revenues, accounting for 98% of the top line, increased 1%. CP’s Freight segment contains Grain (up 4%), Coal (up 3%), Potash (down 2%), Fertilizers and Sulphur (up 1%), Metals, minerals and consumer products (up 3%), Automotive (down 1%) and Intermodal (up 3%). Meanwhile, Energy, chemicals and plastics and Forest products fell 2% and 12%, respectively.
Other revenues increased 26% year over year in the fourth quarter of 2025.
CP’s Liquidity
CP exited the fourth quarter with cash and cash equivalents of C$184 million compared with C$411 million at the prior-quarter end. Long-term debt amounted to C$19.94 billion compared with C$21.59 billion at the prior-quarter end.
CP’s Outlook
Canadian Pacific expects 2026 core adjusted earnings per share to grow in the low double-digits from the 2025 actuals to C$4.61 per share.
The company expects 2026 RTMs to increase in the mid-single digits from the 2025 actuals.
Management expects capital expenditures to be C$2.65 billion for the full year. The core adjusted effective tax rate for 2026 is expected to be 24.75%.
Currently, Canadian Pacific carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q4 Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported fourth-quarter 2025 earnings (excluding 31 cents from non-recurring items) of $1.55 per share, which beat the Zacks Consensus Estimate of $1.53. Earnings decreased 16.22% on a year-over-year basis due to high labor costs.
Revenues in the December-end quarter were $16 billion, beating the Zacks Consensus Estimate of $15.63 billion and increasing 2.9% on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1.2% year over year to $14.6 billion. Revenue growth was impacted by about 2 points due to the government shutdown, mainly in the domestic segment, consistent with the company's disclosure last month.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported fourth-quarter 2025 earnings of $1.90 per share, which surpassed the Zacks Consensus Estimate of $1.81 and improved 24.2% year over year.
Total operating revenues of $3.09 billion lagged the Zacks Consensus Estimate of $3.12 billion and were down 1.6% year over year. JBHT’s fourth-quarter revenue performance was hurt by a 2% and 4% decline in revenue per load excluding fuel surcharge revenue in Intermodal (JBI) and Truckload (JBT), respectively, a 1% decrease in average trucks in Dedicated Contract Services (DCS), and a 7% and 2% decline in load volume in Integrated Capacity Solutions (ICS) and JBI, respectively. The decrease in revenue, excluding fuel surcharge revenue, was partially offset by a 15% increase in volume in JBT, a 1% uptick in productivity, excluding fuel surcharge revenue, in DCS, and an increase in revenue per load in ICS. Total operating revenue, excluding fuel surcharge revenue, decreased 2% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported solid fourth-quarter 2025 results wherein the company’s earnings and revenues beat the Zacks Consensus Estimate.
UAL's fourth-quarter 2025 adjusted earnings per share (excluding 9 cents from non-recurring items) of $3.10 surpassed the Zacks Consensus Estimate of $2.98 but declined 4.9% on a year-over-year basis. The reported figure lies within the guided range of $3.00-$3.50.
Operating revenues of $15.4 billion outpaced the Zacks Consensus Estimate marginally by 0.1% and increased 4.8% year over year. Passenger revenues (which accounted for 90.4% of the top line) increased 4.9% year over year to $13.9 billion. UAL flights transported 45,679 passengers in the fourth quarter, up 3% year over year.
Cargo revenues fell 6% year over year to $490 million. Revenues from other sources rose 9.1% year over year to $981 million.