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 serving 30+ ports and 200+ transload facilities.

• Precision railroading model drives industry-leading service, with improvements in train speed, length, and terminal dwell.

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

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

• Environmental initiatives include hydrogen locomotive program and significant GHG emission reductions compared to trucking.

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 to 62.8%.

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

• 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 investment-grade credit ratings and resumed share repurchases post-merger.

Market and business mix

• Diversified freight revenue base: bulk (35%), merchandise (47%), and intermodal (18%).

• Grain is the largest segment, with seamless single-line hauls from Canada and the U.S. to Mexico and export ports.

• Leading carrier of export potash and coal, with new export terminal development underway.

• Automotive and intermodal segments benefit from unique cross-border reach and closed-loop supply chain solutions.

• International intermodal growth driven by strategic alliances and access to key North American ports.