Canadian Pacific Kansas City (CP) Investor presentation summary

Strategic network and operational highlights

• Only North American rail network connecting Canada, the U.S., and Mexico, spanning 20,000 route miles and serving key markets with 20,000 employees.

• Precision railroading model drives industry-leading service, faster train speeds, and improved asset utilization.

• Unique cross-border advantage with the most border crossings in Western Canada and direct access to 30+ ports and 200+ transload facilities.

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

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

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; operating ratio improved to 62.8%.

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

• Long-term guidance (2024–2028) 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 target leverage of 2.75x net debt/EBITDA and renewed share repurchase programs.

Business mix and market opportunities

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

• Leading grain franchise in both Canada and the U.S., with expanded reach into Mexico and export markets.

• Significant presence in potash, fertilizer, coal, energy, chemicals, automotive, and forest products.

• Intermodal growth driven by flagship Mexico Midwest Express and international alliances like Gemini.

• Nearshoring trends and trade agreements support growth in Mexico-U.S. trade and supply chain integration.