Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Q1 2026 Earnings Presentation
20 slides from Canadian Pacific Kansas City's earnings presentation, Apr 29, 2026
Slide 1: Q1 2026 Earnings Review
Q1 2026 EARNINGS REVIEW April 29, 2026
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This investor presentation contains forward-looking information and forward-looking statements within the meaning of applicable securities laws in both the United States (“U.S.”) and Canada (collectively, "forward-looking statements"). Forward- looking statements include,
Slide 3: Basis of Presentation & Non-GAAP Measures
BASIS OF PRESENTATION & NON-GAAP MEASURES BASIS OF PRESENTATION Except where noted, all amounts are in millions of Canadian dollars. Financial information is prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), unless otherwise noted. NON-GAA
Slide 4: Keith Creel, President & Chief Executive Officer
KEITH CREEL PRESIDENT & CHIEF EXECUTIVE OFFICER
Slide 5: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS VS. Q1 2025 ▪ Strong underlying performance in a dynamic macroenvironment ▪ Sustained momentum with record operating performance, supported by differentiated growth drivers ▪ Confidence in outlook driven by core performance, improving comparisons and continued disciplined ex
Slide 6: Mark Redd, Chief Operating Officer
MARK REDD CHIEF OPERATING OFFICER
Slide 7: Operating Performance
OPERATING PERFORMANCE ▪ Record CPKC Q1 operating performance Average train weight Average train length driven by sustained post-merger (tons) (feet) improvements 9,378 7,858 9,034 7,628 7,324 8,639 ▪ Network productivity and velocity gains translating into stronger service outcomes 9% Increase 7% In
Slide 8: John Brooks, Chief Marketing Officer
JOHN BROOKS CHIEF MARKETING OFFICER
Slide 9: Revenue Highlights
REVENUE HIGHLIGHTS VS. Q1 2025 TOTAL REVENUES FX-ADJUSTED REVENUE VARIANCE(1) -2% Grain Coal -11% 14% Potash -2% Fertilizers & sulphur 2% RTMs: 2% Forest products -14% $/RTM: -4% Energy, chemicals & plastics -5% Metals, minerals & consumer -1% Carloads: -2% Automotive -6% $/Carload: -1% Intermodal -
Slide 10: Revenue Update
REVENUE UPDATE VS. Q1 2025 BULK MERCHANDISE INTERMODAL FX-Adj Revenue(1) +6% | RTMs +5% FX-Adj Revenue(1) -5% | RTMs -3% FX-Adj Revenue(1) -1% | RTMs +3% ▪ Growth in Canadian Grain driven by a record ▪ ECP impacted by lower refined fuels to Mexico, ▪ Continued solid performance in Intermodal harvest
Slide 11: Nadeem Velani, Chief Financial Officer
NADEEM VELANI CHIEF FINANCIAL OFFICER
Slide 12: Financial Performance
FINANCIAL PERFORMANCE First Quarter FX Adjusted (in millions, except percentages and per share data) 2026 2025 Change Change(1) Total revenues $ 3,701 $ 3,795 (2%) -% Total operating expenses 2,443 2,478 (1%) -% Operating income as reported $ 1,258 $ 1,317 (4%) Core adjusted operating income(1) 1,36
Slide 13: Operating Expenses
OPERATING EXPENSES First Quarter FX Adjusted (in millions, except percentages) 2026 2025 Change Change(1) $2,478 $13 $22 $4 $2,443 $- Compensation and benefits(2) $ 691 $ 682 1% 2% $(35) $(19) $(20) Fuel 458 481 (5%) (4%) Materials(3) 127 124 2% 3% Equipment rents 95 99 (4%) -% Depreciation and amor
Slide 14: Below the Line
BELOW THE LINE First Quarter (in millions, except percentages) 2026 2025 Change Other expense(1) $ 20 $ 7 186% Other components of net periodic benefit recovery (110) (107) 3% Net interest expense(2) 228 216 6% Income tax expense(3) 275 292 (6%) (1) Other expense includes purchase accounting of $nil
Slide 15: Cash Flow Generation
CASH FLOW GENERATION VS. Q1 2025 Net cash used in investing activities Additions to Properties Shareholder returns Share Repurchases Dividends $884 $711 $664 $204 $715 $672 $524 $177 $680 $347 6% Reduction 7% Reduction 69% Increase 2025 2026 2025 2026 2025 2026 ▪ Effective capital deployment: ▪ Bala
Slide 16: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS CHRIS DE BRUYN Vice President Capital Markets, Tax and Treasurer ASHLEY THORNE Assistant Vice President Investor Relations 403-319-3591 investor@cpkcr.com investor.cpkcr.com
Slide 17: 2026 Outlook
2026 OUTLOOK LOW DOUBLE-DIGIT CORE ADJUSTED (1) DILUTED EPS GROWTH vs. 2025 Core adjusted diluted EPS(1) of $4.61 MID-SINGLE DIGIT RTM GROWTH CAPITAL EXPENDITURES ~$2.65B Assumptions ▪ Other components of net periodic benefit recovery will be $441M in 2026 (1) ▪ Core adjusted effective tax rate of a
Slide 18: Outlook for Long-Term Growth: 2024 – 2028
OUTLOOK FOR LONG-TERM GROWTH: 2024 – 2028 (1) High single-digit revenue growth Double-digit Core adjusted EPS(2) growth Key Assumptions Capital expenditures of $2.6 to $2.8 billion per year ▪ Exchange rate of $1.35 CAD/USD ▪ On-Highway Diesel price of Adjusted free cash(2) conversion of $4.15 USD/U.
Slide 19: CPKC's Sustainability Leadership
CPKC ’S SUSTAINABILITY LEADERSHIP Advancing our commitment to sustainable, long-term growth ▪ Sustainability Disclosures and Publications ▪ Published Climate Insights report in March 2026, providing an overview of CPKC’s climate governance and strategic approach to climate change, including the proc
Slide 20: Operating Performance
OPERATING PERFORMANCE VS. Q1 2025 Average train speed Average train length Average train weight (miles per hour) (feet) (tons) 9,034 9,378 7,628 7,858 19.1 19.9 4% Improvement 3% Improvement 4% Improvement Q1'25 Q1'26 Q1'25 Q1'26 Q1'25 Q1'26 Fuel efficiency FRA personal injuries(1) FRA train acciden
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