The year 2025 was a straight-up chaotic year for trade, marked by extreme volatility. Even though the US economy resisted overall, the manufacturing sector was stuck in a record-breaking 28-month slump through early 2025 according to the Institute for Supply Management (ISM). This made things pretty brutal for railroads trying to move heavy industrial gear.

Most of the action actually shifted south, as Mexico officially beat out Canada to become the top US export market, moving a massive $337.9bn (USD unless specified) in goods.

It wasn't exactly easy money, though. A 25% tariff on cross-border imports hit the big rail players with a $200m revenue gut-punch, basically forcing them to either get smart or go broke. In the middle of all that chaos, CPKC, connecting Canada, the US, and Mexico, which gave them a huge leg up throughout the year.

CPKC’s 2025 numbers show they’ve been busy. It leaned hard into grain and coal, which boosted their Revenue Ton-Miles by 4% to a massive 219.4 billion (up from 211.0 billion RTMs in 2024). They also handled 4.5 million carloads—a 3% bump—proving they can stay busy even when things get tricky.

The best part? The merger between Canadian Pacific (CP) and Kansas City Southern (KCS) has officially made them faster. Network speeds are up 13% since the two joined forces, and with a 3% uptick in Gross Ton-Miles, the whole three-country system is just running way smoother.

Rolling in green

FY 25 was a record-breaking year for CPKC, proving that single-line railroad connecting Canada, the US, and Mexico. was well worth the effort. Total revenue for FY 25 climbed 4% to CAD 15.1bn, up from the CAD 14.5bn they banked in FY 24. Even better, reported net income rose 11% to CAD 4.14bn, while operating cash flow held strong at CAD 5.3bn.

CPKC set a new company record by spending just 60 cents for every dollar earned, an efficiency boost of about 1.4% in FY 25, proving they’re getting much leaner and meaner at moving freight across the continent.

While the Coal segment’s revenue exploded 85% in Q2 25 thanks to high mine output and inventory drawdowns. On the flip side, Metals and Minerals also caught a double whammy of steel and aluminum duties, proving that even a rail giant can't completely outrun a trade war.

Ticket to ride

Right now, CPKC stock is sitting at a share price of CAD 108 which is up about 8.7% over the last 12 months. It’s still a bit under its 52-week high of
CAD 122.25, but with a massive CAD 98.9bn (USD 69.6bn) market cap, it’s definitely a heavyweight.

Valuation-wise, it's looking pretty attractive as well, with a 2026 P/E of 21.5x, which is a nice discount compared to its 3-year historical average of 24.5x.

Analysts are largely buyers of the stock—out of the 30 covering it, 25 are buyers, with an average target price of CAD 121.75, suggesting 12.6% upside potential from the current share price, i.e. there’s significant potential.

Off the rails

The biggest headache is usually regulatory oversight. Since they’re the only rail line linking Canada, the US, and Mexico, they will constantly deal with competition and pricing scrutiny.

Then there’s the economy. If consumer spending or manufacturing dips, those freight volumes drop fast. Finally, operational risks like harsh winter weather or potential labor strikes can still paralyze the network.