CPKC revenue climbs 15% in Q3 as grain and intermodal surge, but fuel bill jumps 61%
The Calgary railway hauled more grain and containers than a year ago. Diesel at US$4.49 a gallon pushed its operating ratio up 130 basis points to 64.8%.
Canadian Pacific Kansas City (CPKC) took in $4.2 billion in the third quarter of 2026, up 15% from $3.7 billion a year earlier. The Calgary-based railway reported its results on Oct. 28.
Volume, measured in revenue ton-miles, rose 6%. But fuel ate into margins.
The quarter in numbers
| Q3 (C$) | 2026 | 2025 | |---|---|---| | Revenue | $4.22B | $3.66B | | Reported operating ratio | 64.8% | 63.5% | | Core adjusted operating ratio | 61.9% | 60.7% | | Diluted EPS | $1.04 | $1.01 | | Core adjusted diluted EPS | $1.28 | $1.10 |
The operating ratio is expenses as a share of revenue. Lower is better. CPKC said higher fuel prices added 170 basis points to its reported ratio and 190 basis points to the core adjusted figure.
Fuel: US$4.49 a gallon
CPKC paid an average of US$4.49 per U.S. gallon for fuel in the quarter, up from US$2.94 a year earlier, a 53% jump. Its fuel expense rose 61% to $667 million.
Trucking fleets have been living with the same diesel spike. The railway's numbers show how wide it runs.
Grain and containers lead
Freight revenue by line, Q3 2026 vs. Q3 2025:
- Grain: $904 million, up 29% from $702 million
- Intermodal: $815 million, up 22% from $668 million
- Automotive: $373 million, up from $343 million
- Potash: $182 million, up from $167 million
- Coal: $254 million, flat
Intermodal is where rail competes most directly with long-haul trucks. A 22% gain there means more containers moving by train across CPKC's Canada-U.S.-Mexico network.
Faster trains
CPKC said average train speed rose 8% to 20.5 mph and terminal dwell fell 7% to 9.4 hours. FRA-reportable train accidents dropped to 0.46 per million train-miles from 1.15.
What the CEO said
"CPKC delivered solid results, powered by momentum across our unrivalled North American network, countering macroeconomic headwinds during the quarter," said president and CEO Keith Creel. He said the railway remains "on track to meet our commitments for the year."
Tax items
The quarter included a $94 million income tax expense tied to a Canada Revenue Agency reassessment of prior years, and $17 million in advisory costs related to rail consolidation matters. Both are excluded from the core adjusted figures.