Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Q4 2024 Earnings Presentation
23 slides from Canadian Pacific Kansas City's earnings presentation, Jan 29, 2025
Slide 1: Q4 2024 Earnings Review
Q4 2024 EARNINGS REVIEW January 29, 2025
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This investor presentation may contain certain forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws in both the U.S. and Canada. Forward-looking information includes, but i
Slide 3: Basis of Presentation & Non-GAAP Measures
BASIS OF PRESENTATION & NON-GAAP MEASURES BASIS OF PRESENTATION Except where noted, all figures 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 & CEO
KEITH CREEL PRESIDENT & CHIEF EXECUTIVE OFFICER
Slide 5: Highlights
HIGHLIGHTS Q4 2024 • Strong Q4 results to cap historic year Total Revenues Total Revenues • New customer solutions driving increased $3.9 billion | +3% $14.5 billion | +16% synergies • Network performing well Combined Total Revenues(2) $3.9 billion | +3% Combined Total Revenues(2) $14.5 billion | +5
Slide 6: Mark Redd, Chief Operating Officer
MARK REDD CHIEF OPERATING OFFICER
Slide 7: Operating Performance – Q4
OPERATING PERFORMANCE – Q4 VS. Q4 2023 Average train weight Average train length (tons) (feet) • Strong operational performance, demonstrating efficiency and 9,083 8,732 7,606 7,345 resiliency of the network 4% Improvement 4% Improvement • Industry-leading safety record Q4'24 Q4'23 Q4'24 Q4'23 • Con
Slide 8: John Brooks, Chief Marketing Officer
JOHN BROOKS CHIEF MARKETING OFFICER
Slide 9: Revenue Highlights – Q4
REVENUE HIGHLIGHTS – Q4 VS. Q4 2023 TOTAL REVENUE FX-ADJUSTED REVENUE VARIANCE(1) +3% VS Q4 2023 Grain Coal -3% 11% Potash -4% Fertilizers & Sulphur -4% RTMs: +2% Forest Products 1% Energy, chemicals, & plastics 2% $/RTM: +1% Metals, minerals & consumer -4% Carloads: -4% Automotive 16% Intermodal -6
Slide 10: Revenue Update
REVENUE UPDATE VS. Q4 2023 BULK MERCHANDISE INTERMODAL FX-Adj Revenue +6% | RTMs +3% FX-Adj Revenue +3% | RTMs +1% FX-Adj Revenue -6% | RTMs +1% • Growth in U.S. and Canadian • Diversified growth in ECP from • Domestic Intermodal Grain from shipments for the synergies, self-help initiatives growth d
Slide 11: Nadeem Velani, Chief Financial Officer
NADEEM VELANI CHIEF FINANCIAL OFFICER
Slide 12: Financial Performance – Q4
FINANCIAL PERFORMANCE – Q4 FX Adjusted (in millions, except percentages and per share data) 2024 2023 Change Change(1) Total revenues $ 3,874 $ 3,776 3% 2% Total operating expenses 2,314 2,334 (1)% (1)% Operating income, as reported $ 1,560 $ 1,442 8% Core adjusted combined operating income(1) 1,663
Slide 13: Financial Performance – Full Year
FINANCIAL PERFORMANCE – FULL YEAR FX Adjusted (in millions, except percentages and per share data) 2024 2023 Change Change(2) Total revenues, as reported $ 14,546 $ 12,555 16% Combined total revenues(1) 14,546 13,909 5% 4% Total operating expenses, as reported $ 9,367 $ 8,167 15% Combined total oper
Slide 14: Operating Expenses – Q4
OPERATING EXPENSES – Q4 $2,334 $10 $26 $2,314 Fourth Quarter $17 $(17) $30 FX Adjusted $(16) (in millions, except percentages) 2024 2023 Change Change(1) $(70) Compensation and benefits(2) $ 619 $ 637 (3%) (3%) Fuel 459 528 (13%) (13%) Materials(3) 116 86 35% 35% Equipment rents 94 76 24% 22% Deprec
Slide 15: Below the Line
BELOW THE LINE Fourth Quarter Full Year (in millions) 2024 2023 2024 2023 Operating Income $ 1,560 $ 1,442 $ 5,179 $ 4,388 Less: Equity earnings of Kansas City Southern — — — (230) Other (income) expense (1) 16 (42) 52 Other components of net periodic benefit recovery (87) (73) (352) (327) Net inter
Slide 16: Adjusted Combined Free Cash
ADJUSTED COMBINED FREE CASH Full Year (in millions) 2024 2023 • Strong cash flow generation CPKC Cash provided by operating activities as reported $ 5,269 $ 4,137 CPKC Cash used in investing activities (2,796) (2,162) for the year Effect of foreign currency fluctuations on foreign currency-denominat
Slide 17: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS CHRIS DE BRUYN Vice-President Capital Markets ASHLEY THORNE Assistant Vice-President Investor Relations 403-319-3591 investor@cpkcr.com investor.cpkcr.com
Slide 18: 2025 Outlook
2025 OUTLOOK (1) 12-18% CORE ADJUSTED DILUTED EPS(1) GROWTH vs. 2024 Core adjusted combined diluted EPS(1) of $4.25 MID-SINGLE DIGIT RTM GROWTH CAPITAL EXPENDITURES $2.9B Assumptions Other components of net periodic benefit recovery will increase by $76 million, from $352 million in 2024 Core ad
Slide 19: 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 combined free cash(3) conversion of cor
Slide 20: CPKC's Sustainability Leadership
CPKC’S SUSTAINABILITY LEADERSHIP Advancing our commitment to sustainable, long-term growth Published our Commitment to Climate Action (1,2) Consolidated target to reduce our well-to-wheel locomotive emissions by 36.9% by 2030 , which has been validated by the Science Based Targets initiative P
Slide 21: Combined Operating Expenses – Full Year
COMBINED OPERATING EXPENSES – FULL YEAR vs CPKC Combined Full Year 2023(1) Full Year $9,152 $62 $29 $21 $96 $94 $9,367 FX Adjusted $(22) $(65) (in millions, except percentages) 2024 2023 Change Change(1) Compensation and benefits(2) $ 2,565 $ 2,575 —% (1%) Fuel 1,802 1,851 (3%) (3%) Materials(3) 406
Slide 22: Operating Performance – Q4
OPERATING PERFORMANCE – Q4 VS. Q4 2023 Average train speed Average train length Average train weight (miles per hour) (feet) (tons) 18.7 18.6 7,606 7,345 9,083 8,732 1% Improvement 4% Improvement 4% Improvement Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Fuel Efficiency FRA personal injuries (1) FRA train a
Slide 23: Operating Performance – Full Year
OPERATING PERFORMANCE – FULL YEAR (1) VS. CPKC COMBINED 2023 Average train speed Average train length Average train weight (miles per hour) (feet) (tons) 19.0 17.8 8,988 8,954 7,623 7,609 7% Improvement Flat Flat 2024 2023 2024 2023 2024 2023 Fuel Efficiency FRA personal injuries(2) FRA train accide
Canadian Pacific Kansas City — Q4 2024 Earnings Presentation on 6ix