By Paul Ziobro

Canadian Pacific Kansas City posted a drop in fourth-quarter profit on slightly higher revenue in what the railroad operator described as a challenging market.

The Calgary, Alberta-based company Wednesday reported a profit of C$1.08 billion, or the equivalent of $795.6 million, compared with nearly C$1.2 billion a year earlier. On a per-share basis, profit came in at $1.20, down from $1.28 a year earlier.

Adjusted earnings were C$1.33 a share. Analysts polled by FactSet expected C$1.35 a share.

Revenue rose 1.3% to C$3.92 billion, short of analyst estimates for C$3.93 billion

The company's operating ratio, a closely watched figure that measures the percentage of revenue consumed by expenses, fell to 58.9% from 59.7%.

Chief Executive Keith Creel said that the company was able to control costs during a challenging market where it contended with macroeconomic and trade policy headwinds.

For the current year, CPKC expects adjusted per-share earnings to grow at a low-single-digit rate, while railroad volume to grow at a mid-single-digit rate.

It forecast $2.65 billion in capital expenditures for the year, down about 15% from 2025.

Write to Paul Ziobro at paul.ziobro@wsj.com

(END) Dow Jones Newswires

January 28, 2026 16:28 ET (21:28 GMT)

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