Today, CEO Keith Creel and CFO Nadeem Velani spoke about the near future of $CP (+2,43 %) and answered questions.
Among other things, they talked about:
- Strong Cost Control
- Double digit Earnings
- Industry leading growth through snyergies (Merger with KS)
- CAPEX decrease
- Shareholder return increase
Driven by a strong Q3/25, Keith Creel expects your efforts to develop positively into year 26.
- Mexican Midwest Express up +48% YoY
- Next, through partnership with $CSX (+1,65 %) the Southeast Mexican Express, 52 miles of track near Alabama were acquired at Investor Day, which will help CSX transport over this route.
Volumes in Q4/25 continue to look solid:
- October slight decrease
- November up about +5%
- December also mid/single (will not decrease)
Guidance for 2026 was only briefly mentioned, as the quarterly report with full guidance will be published in January
- Growth about mid single digits
- About 1.0 to 1.5 Margin improvements
- EPS growth at least 10% (without present economy pressure) expected 15%
- CAPEX amounts to approx. 2.6 - 2.8B
Shareholders were thanked for their patience and it was also announced that the company is at a point where CAPEX can be reduced somewhat in order to increase the dividend (payout ratio) and share buybacks are being considered. Further details will be provided in the Q4/25 report.
Keith Creel was also asked about his relationship with the company, whether he would like to/could quit or could imagine working somewhere else.
Keith responded freely in bullet points:
- It was his dream to enter into the merger with Kansas City
- He wants to stay with the team (10+ years) and finish the job
- Currently there is no firm exit
- If he wanted to work somewhere else, he would have done it already
Summary:
Guidance remains strong for the Railroad sector and especially growth, which seems to be even stronger in the next quarter. In addition, the management team, including the CEO, is very committed and wants to continue to work on the strongest growth.
Source:
CPKC Webcast @ 2025 UBS Global Industrials and Transportation Conference