Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Q4 2025 Earnings Presentation
23 slides from Canadian Pacific Kansas City's earnings presentation, Jan 28, 2026
Slide 1: Q4 2025 Earnings Review
Q4 2025 EARNINGS REVIEW January 28, 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: Highlights
HIGHLIGHTS Q4 2025 ▪ Strong operational execution and cost control delivered record margins Total Revenues Total Revenues $3.9 billion | 1% $15.1 billion | 4% ▪ Unique self-help wins offsetting areas of demand softness Operating Ratio Operating Ratio 58.9% | -80 bps 62.8% | -160 bps ▪ Record grain h
Slide 6: Mark Redd, Chief Operating Officer
MARK REDD CHIEF OPERATING OFFICER
Slide 7: Operating Performance
OPERATING PERFORMANCE VS. Q4 2024 ▪ Record CPKC operating results across key Average train weight Average train speed metrics driving strong network (tons) (miles per hour) performance 9,395 9,083 19.5 18.7 ▪ Industry-leading safety record 3% Improvement 4% Improvement ▪ Continued labour progress wi
Slide 8: John Brooks, Chief Marketing Officer
JOHN BROOKS CHIEF MARKETING OFFICER
Slide 9: Revenue Highlights
REVENUE HIGHLIGHTS VS. Q4 2024 TOTAL REVENUE FX-ADJUSTED REVENUE VARIANCE(1) 1% Grain 4% Coal 2% Potash -2% Fertilizers & sulphur 1% RTMs: -% Forest products -13% Energy, chemicals & plastics -3% $/RTM: 1% Metals, minerals & consumer 1% Carloads: 1% Automotive -3% $/Carload: -% Intermodal 3% (1) For
Slide 10: Revenue Update
REVENUE UPDATE VS. Q4 2024 BULK MERCHANDISE INTERMODAL FX-Adj Revenue(1) +3% | RTMs +1% FX-Adj Revenue(1) -3% | RTMs -4% FX-Adj Revenue(1) +3% | RTMs +4% ▪ Growth in Canadian Grain driven by a stronger ▪ ECP performance impacted by lower crude and ▪ Continued solid performance in Intermodal harvest
Slide 11: Nadeem Velani, Chief Financial Officer
NADEEM VELANI CHIEF FINANCIAL OFFICER
Slide 12: Financial Performance
FINANCIAL PERFORMANCE VS. Q4 2024 Fourth Quarter FX Adjusted (in millions, except percentages and per share data) 2025 2024 Change Change(1) Total revenues $ 3,923 $ 3,874 1% 1% Total operating expenses 2,310 2,314 -% (1%) Operating income as reported $ 1,613 $ 1,560 3% Core adjusted operating incom
Slide 13: Financial Performance (Full Year)
FINANCIAL PERFORMANCE Full Year 2025 VS. Full Year 2024 Full Year FX Adjusted (in millions, except percentages and per share data) 2025 2024 Change Change(1) Total revenues $ 15,078 $ 14,546 4% 3% Total operating expenses 9,469 9,367 1% -% Operating income as reported $ 5,609 $ 5,179 8% Core adjuste
Slide 14: Operating Expenses
OPERATING EXPENSES VS. Q4 2024 Fourth Quarter FX Adjusted $15 $32 $2,314 $2,310 (in millions, except percentages) 2025 2024 Change Change(1) $4 $(3) $(35) $(12) $(5) Compensation and benefits(2) $ 621 $ 619 -% -% Fuel 430 459 (6%) (8%) Materials(3) 112 116 (3%) (4%) Equipment rents 97 94 3% 4% Depre
Slide 15: Below the Line
BELOW THE LINE VS. Q4 2024 Fourth Quarter (in millions, except percentages) 2025 2024 Change Other income(1) $ - $ (1) 100% Other components of net periodic benefit recovery(2) (94) (87) 8% Net interest expense(3) 230 203 13% Income tax expense(4) 400 246 63% (1) Other income includes purchase accou
Slide 16: Cash Flow Generation
CASH FLOW GENERATION Additions to Properties Net cash used in financing activities Shareholder Returns $4,738 $3,146 $796 Share Repurchases $3,102 Dividends $2,650 $2,252 $3,942 ~15% Reduction 40% Increase $709 2026 est 2025 2025 2024 2025 2024 ▪ Effective capital deployment: ▪ Balanced, opportunist
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: 2026 Outlook
(1) 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
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 free cash(2) conversion of $4.15 USD/U.
Slide 20: CPKC's Sustainability Leadership
CPKC ’S SUSTAINABILITY LEADERSHIP Advancing our commitment to sustainable, long-term growth ▪ Sustainability Disclosures and Publications ▪ Published 2025 CDP Response in October 2025 ▪ Published 2024 Sustainability Data Report in July 2025 ▪ Published Task Force on Climate-related Financial Disclos
Slide 21: Operating Expenses (Full Year)
OPERATING EXPENSES Full Year 2025 VS. Full Year 2024 Full Year FX Adjusted (in millions, except percentages) 2025 2024 Change Change(1) 9,680 9,660 9,640 9,620 $97 9,600 9,580 9,560 9,540 $75 $7 $68 $54 $9,469 9,520 9,500 9,480 9,460 $9,367 9,440 9,420 9,400 9,380 9,360 9,340 9,320 9,300 $(112) Comp
Slide 22: Operating Performance
OPERATING PERFORMANCE VS. Q4 2024 Average train speed Average train length Average train weight (miles per hour) (feet) (tons) 9,395 9,083 7,896 7,606 19.5 18.7 4% Improvement 4% Improvement 3% Improvement Q4'25 Q4'24 Q4'25 Q4'24 Q4'25 Q4'24 Fuel efficiency FRA train accident frequency FRA personal
Slide 23: Operating Performance (Full Year)
OPERATING PERFORMANCE Full Year 2025 VS. Full Year 2024 Average train speed Average train length Average train weight (miles per hour) (feet) (tons) 7,827 9,228 8,988 7,623 19.2 19.0 1% Improvement 3% Improvement 3% Improvement 2025 2024 2025 2024 2025 2024 Fuel efficiency FRA personal injuries FRA
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