Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Q1 2025 Earnings Presentation
20 slides from Canadian Pacific Kansas City's earnings presentation, Apr 30, 2025
Slide 1: Q1 2025 Earnings Review
Q1 2025 EARNINGS REVIEW April 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 & CEO
KEITH CREEL PRESIDENT & CHIEF EXECUTIVE OFFICER
Slide 5: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS ▪ Disciplined execution and strength in demand through the first four months ▪ Record safety performance ▪ Managing uncertainty with strong demand fundamentals, synergies and self-help ▪ Carrying momentum into Q2 ▪ Guidance update: ▪ 10-14% Core adjusted diluted EPS(1) growt
Slide 6: Mark Redd, Chief Operating Officer
MARK REDD CHIEF OPERATING OFFICER
Slide 7: Operating Performance
OPERATING PERFORMANCE VS. Q1 2024 ▪ Network displayed resiliency in Q1 Average train weight Average train length (tons) (feet) 9,034 ▪ Strong safety performance with record 8,639 7,628 7,324 low train accident frequency 5% Improvement 4% Improvement ▪ Continued progress on labour Q1'25 Q1'24 Q1'25 Q
Slide 8: John Brooks, Chief Marketing Officer
JOHN BROOKS CHIEF MARKETING OFFICER
Slide 9: Revenue Highlights
REVENUE HIGHLIGHTS VS. Q1 2024 TOTAL REVENUE FX-ADJUSTED REVENUE VARIANCE(1) +8% Grain Coal 4% 21% Potash 10% Fertilizers & sulphur 5% RTMs: +4% Forest products 2% Energy, chemicals, & plastics 3% $/RTM: +5% Metals, minerals & consumer -1% Carloads: +3% Automotive 18% Intermodal 4% $/Carload: +6% (1
Slide 10: Revenue Update
REVENUE UPDATE VS. Q1 2024 BULK MERCHANDISE INTERMODAL FX-Adj Revenue(1) +7% | RTMs +5% FX-Adj Revenue(1) +4% | RTMs +2% FX-Adj Revenue(1) +4% | RTMs +4% ▪ Growth in Canadian Grain from ▪ Diversified growth in ECP from synergies ▪ Growth in Domestic Intermodal from increased export shipments for the
Slide 11: Nadeem Velani, Chief Financial Officer
NADEEM VELANI CHIEF FINANCIAL OFFICER
Slide 12: Financial Performance
FINANCIAL PERFORMANCE First Quarter FX Adjusted (in millions, except percentages and per share data) 2025 2024 Change Change(1) Total revenues $ 3,795 $ 3,520 8% 4% Total operating expenses 2,478 2,371 5% 2% Operating income as reported $ 1,317 $ 1,149 15% Core adjusted operating income(1) 1,425 1,2
Slide 13: Operating Expenses
OPERATING EXPENSES First Quarter $12 $18 $2,478 $30 FX Adjusted $56 $12 $(6) (in millions, except percentages) 2025 2024 Change Change(1) $2,371 $(15) Compensation and benefits(2) $ 682 $ 690 (1%) (2%) Fuel 481 458 5% 3% Materials(3) 124 94 32% 32% Equipment rents 99 82 21% 14% Depreciation and amor
Slide 14: Below the Line
BELOW THE LINE First Quarter (in millions, except percentages) 2025 2024 Change Other expense (income) $ 7 $ (2) (450%) Other components of net periodic benefit recovery (107) (88) 22% Net interest expense 216 206 5% Income tax expense 292 259 13%
Slide 15: Adjusted Free Cash
ADJUSTED FREE CASH First Quarter ▪ Continued strong cash flow (in millions, except percentages and per share data) 2025 2024 generation Net cash provided by operating activities $ 1,156 $ 1,015 Net cash used in investing activities (715) (542) ▪ Returning cash to shareholders Effect of foreign curre
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 [email protected] investor.cpkcr.com
Slide 17: 2025 Outlook
(1) 2025 OUTLOOK 10-14% CORE ADJUSTED DILUTED EPS(1) 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 adjuste
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 as a combined company ▪ Sustainability Disclosures and Publications ▪ Published Climate Mileposts report in February 2025, providing a progress update on the transition to low-carbon freight rail ▪ Published
Slide 20: Operating Performance
OPERATING PERFORMANCE VS. Q1 2024 Average train speed Average train length Average train weight (miles per hour) (feet) (tons) 7,628 9,034 8,639 19.1 19.1 7,324 Flat 4% Improvement 5% Improvement Q1'25 Q1'24 Q1'25 Q1'24 Q1'25 Q1'24 Fuel Efficiency FRA train accident frequency(1) FRA personal injurie
Canadian Pacific Kansas City — Q1 2025 Earnings Presentation on 6ix