Canadian Pacific Kansas City (CP) Investor presentation summary

Strategic network and growth initiatives

• Operates a 20,000-mile rail network connecting Canada, the U.S., and Mexico, offering unmatched single-line service across North America.

• Strategic land holdings in key markets provide capacity for expansion and new customer solutions.

• Ongoing investments in major terminals and facilities in Vancouver, Toronto, Chicago, Dallas, and Kansas City support scalable growth.

• Leverages advanced technology and predictive analytics to enhance safety, efficiency, and asset utilization.

• Focus on sustainability with initiatives like hydrogen locomotive programs and significant GHG emission reductions.

Financial performance and outlook

• 2025 total revenues reached $15.1B, with operating income of $5.6B and net income of $4.1B.

• Core adjusted diluted EPS grew 8% to $4.61 in 2025; double-digit growth targeted for 2026.

• Operating ratio improved to 62.8%, with a core adjusted operating ratio of 59.9%.

• Capital expenditures projected at ~$2.65B for 2026, with annual investments of $2.6–$2.8B through 2028.

• Long-term outlook targets high single-digit revenue growth and double-digit core adjusted EPS growth through 2028.

Business mix and market opportunities

• Diversified revenue base: bulk (36%), merchandise (46%), and intermodal (18%) in 2025.

• Grain, coal, potash, and fertilizers are key bulk segments, with expanded reach into U.S. and Mexico markets.

• Merchandise includes metals, minerals, consumer products, forest products, energy, chemicals, plastics, and automotive.

• Intermodal growth driven by cross-border and international services, leveraging alliances and port access.

• Nearshoring trends in Mexico and robust trade flows with the U.S. create new growth avenues.