Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Q3 2025 Earnings Presentation
21 slides from Canadian Pacific Kansas City's earnings presentation, Oct 29, 2025
Slide 1: Q3 2025 Earnings Review
Q3 2025 EARNINGS REVIEW October 29, 2025
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: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS ▪ Solid quarterly results; well-positioned for strong finish to 2025 ▪ Diverse topline growth despite macro and trade policy headwinds ▪ Network operating well and building momentum into year-end ▪ On track to deliver 2025 earnings guidance and continued differentiated growt
Slide 6: Mark Redd, Chief Operating Officer
MARK REDD CHIEF OPERATING OFFICER
Slide 7: Operating Performance
OPERATING PERFORMANCE VS. Q3 2024 ▪ Improvement to key operating metrics, Average terminal dwell Average train length (hours) (feet) including train weights, train lengths, velocity and dwell 10.1 10.3 7,940 7,821 ▪ Strong safety performance with reductions 2% Improvement 2% Improvement in both FRA
Slide 8: John Brooks, Chief Marketing Officer
JOHN BROOKS CHIEF MARKETING OFFICER
Slide 9: Revenue Highlights
REVENUE HIGHLIGHTS VS. Q3 2024 TOTAL REVENUE FX-ADJUSTED REVENUE VARIANCE(1) +3% Grain Coal 3% 4% Potash 15% Fertilizers & sulphur 11% RTMs: +5% Forest products -3% Energy, chemicals & plastics -2% $/RTM: -1% Metals, minerals & consumer 2% Carloads: +4% Automotive 2% $/Carload: -% Intermodal 7% (1)
Slide 10: Revenue Update
REVENUE UPDATE VS. Q3 2024 BULK MERCHANDISE INTERMODAL FX-Adj Revenue(1) +6% | RTMs +7% FX-Adj Revenue(1) -% | RTMs -% FX-Adj Revenue(1) +7% | RTMs +11% ▪ Growth in U.S. Grain driven by increased ▪ ECP performance impacted by softer base ▪ Continued strong performance in Intermodal shipments to Mexi
Slide 11: Nadeem Velani, Chief Financial Officer
NADEEM VELANI CHIEF FINANCIAL OFFICER
Slide 12: Financial Performance
FINANCIAL PERFORMANCE Third Quarter FX Adjusted (in millions, except percentages and per share data) 2025 2024 Change Change(1) Total revenues $ 3,661 $ 3,549 3% 2% Total operating expenses 2,325 2,346 (1%) (2%) Operating income as reported $ 1,336 $ 1,203 11% Core adjusted operating income(1) 1,440
Slide 13: Operating Expenses
OPERATING EXPENSES Third Quarter $29 FX Adjusted $18 $19 $2,346 $15 (in millions, except percentages) 2025 2024 Change Change(1) $2,325 $(30) $(63) $(9) Compensation and benefits(2) $ 619 $ 644 (4%) (5%) Fuel 415 419 (1%) (2%) Materials(3) 114 99 15% 15% Equipment rents 109 89 22% 21% Depreciation a
Slide 14: Below the Line
BELOW THE LINE Third Quarter (in millions, except percentages) 2025 2024 Change Other expense $ 8 $ 1 700% Other components of net periodic benefit recovery (107) (89) 20% Net interest expense 222 192 16% Income tax expense 296 262 13%
Slide 15: Cash Flow Generation
CASH FLOW GENERATION YTD 2025 VS. YTD 2024 (in millions) Net cash provided by operating activities Additions to properties Shareholder Returns $3,785 $2,314 $4,137 $3,565 Share Repurchases $592 Dividends $2,083 $3,545 6% Increase 11% Increase $532 2025 2024 2025 2024 2025 2024 ▪ Effective capital de
Slide 16: 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 17: 2025 Outlook
2025 OUTLOOK 10-14% CORE ADJUSTED DILUTED EPS GROWTH vs. 2024 Core adjusted 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 (2) ▪ Core adjusted effec
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 2025 CDP Response in October 2025 ▪ Published 2024 Sustainability Data Report in July 2025 ▪ Published Task Force on Climate-related Financial Disclos
Slide 20: Operating Performance
OPERATING PERFORMANCE VS. Q3 2024 Average train speed Average train length Average train weight (miles per hour) (feet) (tons) 19.0 18.8 9,298 9,155 7,940 7,821 1% Improvement 2% Improvement 2% Improvement Q3'25 Q3'24 Q3'25 Q3'24 Q3'25 Q3'24 Fuel Efficiency FRA personal injuries(1) FRA train acciden
Slide 21: Operating Performance
OPERATING PERFORMANCE YTD 2025 VS. YTD 2024 Average train speed Average train length Average train weight (miles per hour) (feet) (tons) 7,804 9,173 8,955 7,629 19.1 19.1 Flat 2% Improvement 2% Improvement 2025 2024 2025 2024 2025 2024 Fuel Efficiency FRA personal injuries(1) FRA train accident freq
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