FINWIRES · TerminalLIVE
FINWIRES

CPKC Q1 Profit Falls 6.4%, Misses Estimates As Revenue Declines

By

Canadian Pacific Kansas City (CP.TO, CP) after the close Wednesday reported a 6.4% year-over-year decline in first-quarter adjusted net income as lower revenue led the company to miss analysts' estimates.

Core adjusted net income, excluding most one-time items, for the three months ended March 31 ,was C$929 million, or C$1.04 per share, down from C$992 million, or C$1.06 per share, a year earlier. The result missed FactSet's consensus analysts estimate of C$1.07 per share.

Revenue for the quarter fell 2.5% year over year to C$3.70 billion from C$3.78 billion, also below FactSet's estimate of C$3.75 billion.

The railway's core operating ratio, an efficiency measure where lower is better, rose 50 basis points to 63% from 62.5%.

Volumes, measured by revenue ton-miles, rose 2%, while the core adjusted operating ratio increased 50 basis points to 63.0% from 62.5%.

"Our talented team of world-class railroaders executed our precision scheduled railroading plan with discipline, driving meaningful improvements in network fluidity, terminal performance and other key operating metrics, while delivering solid first-quarter results," said chief executive Keith Creel.

"Despite ongoing market and macroeconomic headwinds, we delivered volume growth demonstrating the resiliency and competitive advantage of our unrivalled North American network," he added.

Additionally, on Tuesday, the company said its board approved a 17.5% increase in its quarterly dividend to 26.8 Canadian cents per share from 22.8 cents per share.

Company's shares dropped US$1.18 to US$83.10 in after-hours trade on Nasdaq after closing down C$3.34 at C$115.30 on Toronto Stock Exchange.

Related Articles

Mining & Metals

First Quantum Minerals Swings to a Loss in the First Quarter

First Quantum Minerals (FM.TO) reported a first-quarter loss despite higher revenue, as the company continues to face operational challenges linked to the Middle East conflict and its impact on supply chains.The company posted an adjusted loss, excluding most one-time items, of US$147 million, or US$0.18 per share, compared with an adjusted profit of US$5 million, or US$0.01, in the prior-year period. It missed FactSet analysts estimates of US$0.03 in earnings per share.Revenue for the three months ended March 31, rose 18% year over year to US$1.40 billion from US$1.19 billion a year earlier.. It exceeded FactSet estimates of US$1.36 billion.For 2026, the company raised its copper production guidance to 405,000-475,000 tonnes. Gold production guidance was lowered to 150,000-175,000 ounces from 175,000-200,000 ounces, reflecting a delay in the transition of Guelb Moghrein to a gold operation to 2027, partially offset by expected gold output from processing stockpiled ore at Cobre Panama."Our long standing investments in innovation and electrification, including trolley-assist, continue to structurally reduce fuel intensity and our sites are advancing additional initiatives to further improve efficiency. We expect the increases in fuel prices to impact our cost base in the second quarter," said chief executive Tristan Pascall. Quantum.The company said it expects to produce between 405,000 - 475,000 tonnes of copper this year, up from in January estimate of 375,000 - 435,000 tonnes, including 30,000 to 40,000 tonnes from Cobre Panama as it readies to resume processing stockpiled ores. It lowered its gold production guidance to 150,000 - 175,000 ounces from its prior 175,000 - 200,000 ounce estimate. Its nickel production guidance was unchanged.The company's shares closed down $1.63 at $34.29 on Toronto Stock Exchange.

$FM.TO
Mining & Metals

Western Energy Services Posts Lower Profit, Revenue for First Quarter

Western Energy Services (WRG.TO) after trade Tuesday reported lower profit and revenue for the first quarter.The company said it earned $1.8 million, or $0.05 per share, compared with $2.4 million, or $0.07, a year ago "as lower adjusted EBITDA and higher stock-based compensation expense was partially offset by decreases in depreciation expense, finance costs, income tax expense, and other expenses due to a gain on the sale of assets in the first quarter of 2026". FactSet expected loss per share of $0.01.Revenue fell 20% to $55.3 million from $69 million a year prior "as drilling and well servicing activity decreased due to market uncertainty and continued low gas prices," the company said. FactSet projected $56 million.Regarding ongoing geopolitical tensions and continued shifts in energy policy, the company said "the extent and duration of the impact of these conditions on Western's customers and operations remain uncertain"."Over the medium term, Western expects its fleet to benefit from increased drilling activity associated with major Canadian infrastructure projects, including LNG Canada and the Trans Mountain expansion, and from broader initiatives supporting domestic energy security and economic independence," the company said.The company's shares closed down $0.01 to $3.11 on the Toronto Stock Exchange.

$WRG.TO
Mining & Metals

Thomson Reuters Shareholders Approve of Return of Capital and Share Consolidation Transactions

Thomson Reuters (TRI.TO, TRI), was last seen down 3% in after-hours Nasdaq trading, said Tuesday that shareholders approved a plan of arrangement to implement the company's proposed return of capital and share consolidation transactions.The company said a final report on voting results will be filed with Canadian securities regulators and furnished to the U.S. Securities and Exchange Commission.The return of capital and share consolidation transactions consist of a special cash distribution of US$605 million, or approximately US$1.36 per share.The plan of arrangement for the return of capital and share consolidation transactions is subject to final approval by the Ontario Superior Court of Justice as well as the Toronto Stock Exchange and the Nasdaq. The court hearing for a final order to approve the plan of arrangement is scheduled on April 29.The company's shares were down US$2.66 to US$87.23 in after-hours after closing up C$1.56 at C$123.04 on TSX.

$TRI$TRI.TO