Research Feed
Canadian Pacific Kansas City - Operating Leverage Inflection with Quantified Growth Drivers
CP is emerging as the cleanest Class I rail story with idiosyncratic growth drivers and an operating leverage inflection. The company has broken below 60% operating ratio for the first time while guiding to 100 basis points of annual improvement, creating a margin expansion story at a reasonable 17×
Canadian Pacific Q4 2025 - Operating Ratio Breaks Below 60% as Mexico Intermodal Launches
Canadian Pacific Kansas City reported Q4 2025 operating ratio of 55.9%, driving full-year OR to 59.9%—the first time the company has operated below 60%. Management guided to 100 basis points of annual OR improvement going forward. The earnings call disclosed three specific volume drivers for 2026: