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.

• Unique land holdings in key markets enable low-cost capacity 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.

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 capital expenditures of ~$2.65B.

• 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 target leverage of 2.75x net debt to EBITDA and investment-grade credit ratings.

Business mix and market opportunities

• Diversified revenue base: 35% bulk, 47% merchandise, 18% intermodal; strong cross-border and global exposure.

• Leading grain, potash, coal, and automotive franchises, with seamless single-line hauls and expanded market reach.

• Strategic partnerships and alliances, such as with Maersk and Americold, drive growth in transload, cold storage, and intermodal services.

• Mexico nearshoring and trade growth present significant opportunities, supported by robust infrastructure and policy tailwinds.

• Innovation in renewable fuels, hydrogen locomotives, and sustainability practices positions the network for future growth.