Canadian Pacific Kansas City (CP) Investor presentation summary

Strategic network and growth foundations

• 20,000 route miles across Canada, the U.S., and Mexico provide unmatched rail connectivity and market reach, supporting a diversified customer base and robust growth opportunities.

• Precision railroading and disciplined planning drive industry-leading service, operational efficiency, and cost control.

• Strategic land holdings and surplus acreage in key markets like Kansas City, Dallas, Vancouver, and Toronto enable low-cost capacity expansion and future growth projects.

• Investments in infrastructure, such as the Laredo International Bridge expansion, enhance cross-border capacity and support increased trade flows.

• The network supports a balanced portfolio across bulk, merchandise, automotive, and intermodal segments, with strong cross-border and domestic flows.

Financial performance and outlook

• 2024 total revenues reached $14.5B CAD, up 16% year-over-year, with core adjusted combined operating income up 6% and diluted EPS up 11%.

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

• 2025 guidance targets 12–18% core adjusted diluted EPS growth, mid-single digit RTM growth, and $2.9B in capital expenditures.

• Long-term outlook (2024–2028) projects 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 net debt to EBITDA and new share repurchase program for ~4% of shares outstanding.

Operational excellence and innovation

• Precision railroading model delivers faster train speeds (+7%), improved terminal dwell (-5%), and higher locomotive productivity (+6%).

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

• 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, reinforcing operational reliability.