Canadian Pacific Kansas City (CP) Investor presentation summary

Strategic transformation and network expansion

• Combined network now spans 20,000 route miles across Canada, the U.S., and Mexico, offering unique three-country connectivity and access to over 30 ports and 30+ auto facilities.

• The merger with KCS has created the only North American rail network connecting all three countries, enabling new market opportunities and powerful synergies.

• Strategic land holdings in key markets and ongoing infrastructure investments support scalable, low-cost growth and capacity expansion.

• Precision railroading and disciplined planning drive operational excellence, with improvements in train speed, terminal dwell, and locomotive productivity.

Financial performance and outlook

• 2024 total revenues reached $14.5B CAD, up 16% year-over-year, with operating income up 18% and core adjusted combined income up 11%.

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

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

• Strong balance sheet with a target leverage ratio of 2.75x and a new share repurchase program for ~4% of shares outstanding.

Diversified business mix and market leadership

• Freight revenue is well-diversified: bulk (35%), merchandise (47%), and intermodal (18%), with significant cross-border and international flows.

• Leading positions in grain, potash, coal, automotive, energy, chemicals, and intermodal, with tailored solutions for each segment.

• Strategic partnerships and innovations, such as the Americold cold storage ecosystem and Gemini Alliance, enhance service offerings and network value.