Canadian Pacific Kansas City (CP) Investor presentation summary

Strategic overview and network expansion

• The combination has created the only rail network connecting Canada, the U.S., and Mexico, spanning 20,000 route miles and serving 30+ ports and 200+ transload facilities.

• The network enables direct access to key markets, supporting diversified growth across bulk, merchandise, automotive, and intermodal segments.

• Strategic land holdings in major hubs like Kansas City, Dallas, Vancouver, and Toronto provide significant room for low-cost expansion and operational flexibility.

• Investments in infrastructure, such as the Laredo International Bridge expansion, are designed to double border capacity and accelerate cross-border growth.

Financial performance and outlook

• 2024 total revenues reached $14.5B CAD, up 16% year-over-year, with operating income rising 18% to $5.2B CAD.

• Core adjusted combined diluted EPS grew 11% to $4.25, with a core adjusted operating ratio improvement of 70bps to 61.3%.

• 2025 guidance targets 10–14% core adjusted diluted EPS growth, mid-single digit RTM growth, and $2.9B in capital expenditures.

• Long-term (2024–2028) outlook calls for high single-digit revenue growth, double-digit core adjusted EPS growth, and annual capital expenditures of $2.6–$2.8B.

Operational excellence and innovation

• Precision railroading model drives industry-leading performance, with 7% improvement in train speed and 6% in locomotive productivity in 2024.

• Predictive analytics and advanced technology, including remote inspection portals and big data, enhance safety, efficiency, and asset utilization.

• Strategic use of non-GAAP measures provides a clearer view of underlying earnings and liquidity trends.