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 has created the only North American rail network connecting all three countries, enabling new market opportunities and competitive advantages.

• Strategic land holdings in key markets provide significant optionality for low-cost capacity expansion and future growth.

• Investments in infrastructure, such as the Laredo International Bridge expansion, have doubled border capacity and support cross-border trade growth.

• The network supports a diversified book of business, with balanced exposure across bulk, merchandise, and intermodal segments.

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%.

• Core adjusted diluted EPS grew 11% to $4.25, with a reported operating ratio improvement of 60bps.

• 2025 outlook targets 10–14% core adjusted diluted EPS growth, 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.

• A new share repurchase program for ~4% of shares outstanding was announced, with a target leverage ratio of 2.75x adjusted net debt to EBITDA.

Operational excellence and innovation

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

• Predictive analytics and patented technology enhance safety, efficiency, and asset utilization, including remote train inspection and advanced track monitoring.

• Strategic partnerships, such as with Americold and Maersk, expand cold storage and transload capabilities, supporting supply chain innovation.

• The Mexico Midwest Express (MMX) service offers the fastest single-line rail connection between Mexico and the U.S. Midwest.

• The Gemini Alliance with Hapag-Lloyd and Maersk optimizes international intermodal growth and port utilization.