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 competitive advantages.

• Strategic land holdings and ongoing infrastructure investments provide significant optionality for future growth, including new terminals and expanded intermodal facilities.

• Precision railroading and disciplined planning drive operational excellence, with a focus on safety, reliability, and sustainability.

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 EPS up 11%.

• 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.

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

Operational excellence and innovation

• Precision railroading model has improved train speed by 7%, terminal dwell by 5%, and locomotive productivity by 6% year-over-year.

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

• Industry-leading safety record, with the lowest FRA-reportable train accident frequency among Class 1 railroads for two consecutive years.