Canadian Pacific Kansas City (CP) Investor presentation summary

Strategic transformation and network expansion

• The combination created a unique, continent-spanning rail network with 20,000 route miles across Canada, the U.S., and Mexico, offering unmatched reach and service to key markets.

• Precision railroading and disciplined execution have driven industry-leading service, operational efficiency, and margin improvement.

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

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

• Integration of advanced technology, such as predictive analytics and hydrogen locomotives, enhances safety, efficiency, 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%.

• Operating ratio improved to 64.4% as reported, and 61.3% on a core adjusted basis.

• 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.

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

Operational excellence and innovation

• Precision railroading model delivered a 7% improvement in average train speed, 5% better terminal dwell, and 6% higher locomotive productivity in 2024.

• Predictive analytics and big data are leveraged for real-time monitoring, defect detection, and regulatory exemptions, driving safety and efficiency gains.

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

• Over half of capital investments are allocated to safety and replacement initiatives, supporting network reliability and growth.