Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Q2 2025 Earnings Presentation
21 slides from Canadian Pacific Kansas City's earnings presentation, Jul 30, 2025
Slide 1: Q2 2025 Earnings Review
Q2 2025 EARNINGS REVIEW July 30, 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
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 ▪ Solid base demand and synergies driving differentiated volume performance ▪ Creating new opportunities through entrepreneurial approach ▪ Well-positioned to meet guidance and continue delivering differentiated growth Revenues Operating Ratio Diluted EPS $3.7 billion | +3%
Slide 6: Mark Redd, Chief Operating Officer
MARK REDD CHIEF OPERATING OFFICER
Slide 7: Operating Performance
OPERATING PERFORMANCE VS. Q2 2024 Average terminal dwell Legacy KCS U.S. Average Terminal Dwell ▪ Metrics impacted by complex systems (hours) (hours) integration, primarily in portions of the southern U.S. network 10.2 9.5 ▪ Strong progress over last two months on 7% Increase Legacy KCS U.S. Q2'25 Q
Slide 8: John Brooks, Chief Marketing Officer
JOHN BROOKS CHIEF MARKETING OFFICER
Slide 9: Revenue Highlights
REVENUE HIGHLIGHTS VS. Q2 2024 TOTAL REVENUE FX-ADJUSTED REVENUE VARIANCE(1) +3% Grain Coal 8% 11% Potash -8% Fertilizers & sulphur -6% RTMs: +7% Forest products -5% Energy, chemicals, & plastics 2% $/RTM: -4% Metals, minerals & consumer -3% Carloads: +6% Automotive -5% Intermodal 8% $/Carload: -3%
Slide 10: Revenue Update
REVENUE UPDATE VS. Q2 2024 BULK MERCHANDISE INTERMODAL FX-Adj Revenue(1) +6% | RTMs +9% FX-Adj Revenue(1) -1% | RTMs -3% FX-Adj Revenue(1) +8% | RTMs +18% ▪ Growth in Canadian Grain from increased export ▪ Diversified growth in ECP from synergies and ▪ Strong International Intermodal from Gemini shi
Slide 11: Nadeem Velani, Chief Financial Officer
NADEEM VELANI CHIEF FINANCIAL OFFICER
Slide 12: Financial Performance
FINANCIAL PERFORMANCE Second Quarter FX Adjusted (in millions, except percentages and per share data) 2025 2024 Change Change(1) Total revenues $ 3,699 $ 3,603 3% 3% Total operating expenses 2,356 2,336 1% 1% Operating income as reported $ 1,343 $ 1,267 6% Core adjusted operating income(1) 1,453 1,3
Slide 13: Operating Expenses
OPERATING EXPENSES $18 Second Quarter $55 $19 $28 $2,356 FX Adjusted $2,336 (in millions, except percentages) 2025 2024 Change Change(1) $(31) $(14) $(55) Compensation and benefits(2) $ 659 $ 612 8% 9% Fuel 405 466 (13%) (12%) Materials(3) 124 97 28% 29% Equipment rents 103 82 26% 23% Depreciation a
Slide 14: Below the Line
BELOW THE LINE Second Quarter (in millions, except percentages) 2025 2024 Change Other income $ (16) $ (40) (60%) Other components of net periodic benefit recovery (107) (88) 22% Net interest expense 208 200 4% Gain on sale of equity investment (333) — 100% Income tax expense 357 292 22%
Slide 15: Cash Flow Generation
CASH FLOW GENERATION VS. Q2 2024 Net cash provided by operating Net cash used in investing activities ▪ Disciplined strategic investments in the activities network to enhance safety and growth ($782) $1,355 $1,278 ▪ Continued strong cash flow generation ($306) 6% Increase 61% Decline ▪ Adjusted net
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 (1) ▪ 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/US
Slide 19: CPKC's Sustainability Leadership
CPKC ’S SUSTAINABILITY LEADERSHIP Advancing our commitment to sustainable, long-term growth ▪ Sustainability Disclosures and Publications ▪ Published 2024 Sustainability Data Report in July 2025 ▪ Published Task Force on Climate-related Financial Disclosures (TCFD) Index in March 2025 ▪ Published Cl
Slide 20: Operating Performance
OPERATING PERFORMANCE VS. Q2 2024 Average train weight Average train speed Average train length (tons) (miles per hour) (feet) 9,187 9,090 7,844 7,761 19.3 19.3 Flat 1% Improvement 1% Improvement Q2'25 Q2'24 Q2'25 Q2'24 Q2'25 Q2'24 Fuel Efficiency FRA personal injuries(1) FRA train accident frequenc
Slide 21: Operating Performance
OPERATING PERFORMANCE VS. YTD 2024 Average train speed Average train length Average train weight (miles per hour) (feet) (tons) 7,737 9,111 8,860 7,538 19.2 19.2 Flat 3% Improvement 3% Improvement 2025 2024 2025 2024 2025 2024 Fuel Efficiency FRA personal injuries(1) FRA train accident frequency(1)
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