Canadian Pacific Kansas City (CP) Investor presentation summary

Strategic network and operational highlights

• Only single-line rail network connecting Canada, the U.S., and Mexico, spanning 20,000 route miles and employing 20,000 people.

• Precision railroading model drives industry-leading service, faster train speeds, and reduced dwell times.

• Extensive land holdings in key markets provide capacity for growth and new customer solutions.

• Advanced technology and predictive analytics enhance safety, reliability, and operational efficiency.

• Strong focus on sustainability, including hydrogen locomotive program 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; operating ratio improved by 160bps to 62.8%.

• 2026 outlook targets low double-digit core adjusted diluted EPS growth and mid-single digit RTM growth.

• Long-term guidance through 2028 includes high single-digit revenue growth, double-digit core adjusted EPS growth, and annual capital expenditures of $2.6–$2.8B.

• Strong balance sheet with investment-grade credit ratings and significant liquidity.

Business mix and market opportunities

• Diversified revenue base: bulk (35%), merchandise (47%), intermodal (18%), with strong cross-border and international exposure.

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

• Unique Mexico advantage leverages nearshoring trends, robust manufacturing, and trade growth.

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

• Ongoing capital investments in safety, capacity, and technology support future growth and operational excellence.