Canadian Pacific Kansas City Ltd. saw profits drop in its latest quarter even as revenues shot up on the back of a bumper grain crop.

The Calgary-based railway reported Wednesday that net income fell 17 per cent to $1.02 billion in the three months ended June 30 compared with the same period a year earlier.

Second-quarter revenues rose 13 per cent year-over-year to $4.16 billion.

Core adjusted diluted earnings rose to $1.27 per share from $1.12 per share a year earlier, beating analysts’ expectations of $1.24 per share, according to financial markets firm Refinit.

Revenues from grain — the railway’s largest segment — rose by nearly a quarter from the year before while container revenues jumped 11 per cent.

Chief executive Keith Creel said that leveraging the company’s status as the only freight railway to span all three countries in North America is paying off.

He also addressed a deal that rival Canadian National Railway Co. struck last week with Union Pacific Corp. that would end the Montreal-based company’s opposition to UP’s proposal for a massive merger south of the border.

“I hope that CN doesn’t have buyer’s remorse in the future — what they gave up versus what they got — because I don’t think they got a lot, in all honesty,” he told analysts on a conference call Wednesday.

The agreement would hand CN more network access in the U.S. Midwest in exchange for its tacit support of Union Pacific’s proposed US$85-billion acquisition of Norfolk Southern Corp. The settlement is contingent on the merger’s approval by American regulators.

In a separate release, CPKC announced the retirement of board chair Isabelle Courville, who took the helm in May 2019 to become the first woman to chair a major North American freight railway, effective today.

Long-time board member Gordon Trafton has stepped into the top spot to replace her.

This report by The Canadian Press was first published July 29, 2026.

Companies in this story: (TSX:CP)

Christopher Reynolds, The Canadian Press