Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Q2 2026 Earnings Presentation
24 slides from Canadian Pacific Kansas City's earnings presentation, Jul 29, 2026
Slide 1: Q2 2026 Earnings Review
Q2 2026 EARNINGS REVIEW July 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: Second Quarter Highlights
SECOND QUARTER HIGHLIGHTS VS. Q2 2025 ▪ Strong results driven by broad-based volume growth and disciplined execution ▪ Record service and operating performance deliver value for customers ▪ Unique network continues to unlock growth opportunities ▪ Accelerating momentum into second half of 2026 and b
Slide 6: Mark Redd, Chief Operating Officer
MARK REDD CHIEF OPERATING OFFICER
Slide 7: Operating Performance
OPERATING PERFORMANCE Average train speed Average terminal dwell ▪ Achieved record productivity levels while (miles per hour) (hours) delivering reliable and consistent customer 20.6 10.2 19.3 service 8.6 7% Improvement 16% Improvement ▪ Integration benefits enhancing network visibility, coordinatio
Slide 8: John Brooks, Chief Marketing Officer
JOHN BROOKS CHIEF MARKETING OFFICER
Slide 9: Revenue Highlights
REVENUE HIGHLIGHTS VS. Q2 2025 TOTAL REVENUES FX-ADJUSTED REVENUE VARIANCE(1) +13% Grain Coal -18% 24% Potash 10% Fertilizers & sulphur 12% RTMs: +4% Forest products 2% $/RTM: +9% Energy, chemicals & plastics 8% Carloads: -% Metals, minerals & consumer 16% $/Carload: +12% Automotive 19% Intermodal 1
Slide 10: Sustained Volume Growth
SUSTAINED VOLUME GROWTH THREE-YEAR RTM GROWTH REFLECTS BROAD-BASED DEMAND AND DISCIPLINED COMMERCIAL EXECUTION Q2 RTMs - YOY Growth 4% 7% 6% ▪ Broad-based growth reflects strong demand across our core franchise and key growth corridors 17% Cumulative Q2 RTM Growth Since 2023 ▪ Underlying volume tren
Slide 11: Bulk
BULK VS. Q2 2025 FX-ADJUSTED REVENUE VARIANCE(1) MARKET DRIVERS +13% ▪ Growth in Canadian Grain driven by a record harvest and continued growth into Mexico ▪ U.S. Grain growth from strong demand to Mexico and Pacific Northwest exports ▪ Solid supply and demand fundamentals support constructive Grain
Slide 12: Merchandise
MERCHANDISE VS. Q2 2025 FX-ADJUSTED REVENUE VARIANCE(1) MARKET DRIVERS +12% ▪ ECP growth from higher crude, partially offset by lower fuel oil shipments ▪ Strength in Forest products lumber synergy shipments ▪ Improving outlook for ECP and Forest products in the second half of the year RTMs 6% ▪ MMC
Slide 13: Intermodal
INTERMODAL VS. Q2 2025 FX-ADJUSTED REVENUE VARIANCE(1) MARKET DRIVERS +11% ▪ Domestic Intermodal growth, supported by SMX service and improving truck-to-rail conversion opportunity ▪ International Intermodal lapped pull-ahead prior year comparisons ▪ Robust second half opportunity pipeline in both D
Slide 14: Nadeem Velani, Chief Financial Officer
NADEEM VELANI CHIEF FINANCIAL OFFICER
Slide 15: Financial Performance
FINANCIAL PERFORMANCE Second Quarter FX Adjusted (in millions, except percentages and per share data) 2026 2025 Change Change(1) Total revenues $ 4,164 $ 3,699 13% 12% Total operating expenses 2,692 2,356 14% 13% Operating income as reported $ 1,472 $ 1,343 10% Core adjusted operating income(1) 1,60
Slide 16: Operating Expenses
OPERATING EXPENSES Second Quarter FX Adjusted (in millions, except percentages) 2026 2025 Change Change(1) $26 $27 $2,692 $203 $4 Compensation and benefits(2) $ 723 $ 659 10% 8% $(6) $54 Fuel 618 405 53% 49% $28 $2,356 Materials 130 124 5% 3% Equipment rents 97 103 (6%) (6%) Depreciation and amortiz
Slide 17: Below the Line
BELOW THE LINE Second Quarter (in millions, except percentages) 2026 2025 Change Other income $ (14) $ (16) (13%) Other components of net periodic benefit recovery (110) (107) 3% Net interest expense(1) 237 208 14% Gain on sale of equity investment - (333) (100%) Income tax expense(2) 335 357 (6%) (
Slide 18: Cash Flow Generation
CASH FLOW GENERATION YTD 2026 VS. YTD 2025 (in millions) Share Repurchases Net cash provided by operating Additions to Properties Shareholder returns Dividends activities $2,371 $2,702 $2,127 $408 $2,511 $387 $1,963 $1,454 $1,422 $1,740 8% Increase 2% Reduction 11% Increase 2025 2026 2025 2026 2025
Slide 19: 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 20: 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 21: 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 22: CPKC's Sustainability Leadership
CPKC ’S SUSTAINABILITY LEADERSHIP Advancing our commitment to sustainable, long-term growth ▪ Sustainability Disclosures and Publications ▪ Published 2025 Sustainability Data Report with environmental, social and governance data for the 2025 calendar year ▪ Published Climate Insights report in March
Slide 23: Operating Performance
OPERATING PERFORMANCE VS. Q2 2025 Average train speed Average train length Average train weight (miles per hour) (feet) (tons) 9,187 9,294 20.6 7,844 7,812 19.3 7% Improvement Flat 1% Improvement Q2'25 Q2'26 Q2'25 Q2'26 Q2'25 Q2'26 Fuel efficiency FRA personal injuries(1) FRA train accident frequenc
Slide 24: Operating Performance
OPERATING PERFORMANCE YTD 2026 VS. YTD 2025 Average train speed Average train length Average train weight (miles per hour) (feet) (tons) 9,111 9,334 7,737 7,834 19.2 20.3 1% Improvement 2% Improvement 6% Improvement 2025 2026 2025 2026 2025 2026 Fuel Efficiency FRA personal injuries(1) FRA train acc
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