Canadian Pacific Kansas City (CP) Investor presentation summary

Strategic network and growth initiatives

• Operates a 20,000-mile rail network spanning Canada, the U.S., and Mexico, providing unique single-line service across North America.

• Strategic land holdings in key markets enable low-cost capacity expansion and new customer solutions.

• Recent investments include new terminals, transload facilities, and cold storage partnerships to support franchise growth.

• Precision railroading model drives operational efficiency, with improvements in train speed, terminal dwell, and fuel efficiency.

• Advanced technology and predictive analytics enhance safety, reliability, and asset utilization.

Financial performance and outlook

• 2025 total revenues reached $15.1B, up 4% year-over-year, with operating income of $5.6B and a core adjusted operating ratio of 59.9%.

• Net income attributable to controlling shareholders was $4.1B, with diluted EPS of $4.51 and core adjusted diluted EPS of $4.61.

• 2026 outlook targets low double-digit core adjusted diluted EPS growth and mid-single digit RTM growth, with capital expenditures of ~$2.65B.

• Long-term guidance (2024–2028) includes high single-digit revenue growth, double-digit core adjusted EPS growth, and annual capex of $2.6–$2.8B.

• Strong balance sheet with target leverage of 2.75x net debt/EBITDA and investment-grade credit ratings.

Market positioning and business mix

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

• Leading positions in grain, potash, coal, energy, chemicals, automotive, and intermodal markets.

• Cross-border and international business is a key growth driver, with 41% of 2025 freight revenue from cross-border traffic.

• Strategic alliances and new services, such as the Gemini Alliance and Mexico Midwest Express, enhance intermodal growth.

• Nearshoring trends and trade agreements support increased U.S.-Mexico-Canada trade flows.