Canadian Pacific Kansas City (CP.TO, CP) edged down in after-hours New York trading even after the railway on Wednesday reported higher than expected earnings for the fourth quarter on improved revenue and efficiency.

The company said its adjusted earnings per share, excluding most one-time items, rose 9% to $1.29 from $1.18 in the year-prior quarter. FactSet's consensus forecast expected adjusted EPS of $1.20.

Revenue rose 3% to $3.87 billion from $3.78 billion, while the company's adjusted operating ratio, a closely watched efficiency measure where lower is better, fell to 59.7% from 61.8%.

"Our team finished our first full year as a combined company strong, with volume growth, improved safety performance, and solid operational execution that allowed CPKC to deliver industry-leading earnings growth in 2024," chief executive Keith Creel said in a release.

On 2025 guidance, CPKC expects core adjusted diluted EPS to increase between 12-18% versus 2024 core adjusted combined diluted EPS of $4.25. It also sees mid-single digit volume growth, as measured in Revenue Ton Miles; capital expenditures of $2.9 billion, with the increase compared to 2024 driven by a higher expected USD/CAD FX rate; and said other components of net periodic benefit recovery will increase by $76 million from $352 million in 2024

However the railway did not say if its outlook accounted for the threat of U.S. tariffs. BNN TV pointed out more than 40% of the company's business is cross border between Canada and the United States and that may take a hit if tariffs are imposed by the Trump Administration.

The company's board earlier on Wednesday declared a quarterly dividend of $0.19 per share, payable on April 28 to holders of record at the close of business on March 28.

Canadian Pacific shares were last seen down US$0.99 to US$77.85 after hours. They closed down $0.38 to $113.64 on the Toronto Stock Exchange.