Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Q3 2026 Earnings Presentation
24 slides from Canadian Pacific Kansas City's earnings presentation, Oct 28, 2026
Slide 1: Q3 2026 Earnings Review
Q3 2026 EARNINGS REVIEW October 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: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS VS. Q3 2025 ▪ Strong volume growth despite a dynamic macro-environment ▪ Continued operating momentum across key service metrics and efficiency measures ▪ Differentiated network driving commercial wins and record volumes ▪ Deep opportunity pipeline supports continued profita
Slide 6: Mark Redd, Chief Operating Officer
MARK REDD CHIEF OPERATING OFFICER
Slide 7: Operating Performance
OPERATING PERFORMANCE ▪ Strong operating execution delivering reliable Average train speed (miles per hour) Average terminal dwell (hours) service and growth 20.5 10.1 9.4 19.0 ▪ Continued broad-based momentum across key 8% Improvement 7% Improvement service and productivity metrics Q3'25 Q3'26 Q3'2
Slide 8: John Brooks, Chief Marketing Officer
JOHN BROOKS CHIEF MARKETING OFFICER
Slide 9: Revenue Highlights
REVENUE HIGHLIGHTS VS. Q3 2025 TOTAL REVENUES FX-ADJUSTED REVENUE VARIANCE(1) +15% Grain Coal -1% 27% Potash 8% Fertilizers & sulphur 2% RTMs: +6% Forest products 7% $/RTM: +9% Energy, chemicals & plastics 7% Carloads: +5% Metals, minerals & consumer 13% Automotive 5% $/Carload: +10% Intermodal 21%
Slide 10: Sustained Volume Growth
SUSTAINED VOLUME GROWTH THREE-YEAR Q3 YTD RTM GROWTH REFLECTS CONSISTENT AND SUSTAINABLE GROWTH YTD RTMs 4% 5% 4% ▪ Broad-based growth reflects strong demand across our core franchise and key corridors 13% Cumulative Q3 YTD RTM Growth ▪ Underlying volume trends remain strong, with Q3 YTD Q3 2023 YTD
Slide 11: Bulk
BULK VS. Q3 2025 FX-ADJUSTED REVENUE VARIANCE(1) MARKET DRIVERS +16% ▪ Growth in Canadian Grain driven by high carry-out stocks and continued growth into Mexico ▪ U.S. Grain growth from strong demand to Mexico and Pacific Northwest exports ▪ Solid supply and demand and continued merger- enabled grow
Slide 12: Merchandise
MERCHANDISE VS. Q3 2025 FX-ADJUSTED REVENUE VARIANCE(1) MARKET DRIVERS +8% ▪ ECP demand impacted by energy prices; offsetting with business wins and self-help ▪ Resilient Forest products performance from synergy shipments and industrial development ▪ MMC growth from steel, aluminum and metals, suppo
Slide 13: Intermodal
INTERMODAL VS. Q3 2025 FX-ADJUSTED REVENUE VARIANCE(1) MARKET DRIVERS +21% ▪ ▪ Record intermodal performance Broad-based Domestic Intermodal growth across Canadian, U.S. and Mexico ▪ Reliable MMX and SMX services well-positioned to capture truck-to-rail conversion opportunity ▪ Record International
Slide 14: Nadeem Velani, Chief Financial Officer
NADEEM VELANI CHIEF FINANCIAL OFFICER
Slide 15: Financial Performance
FINANCIAL PERFORMANCE Third Quarter FX Adjusted (in millions, except percentages and per share data) 2026 2025 Change Change(1) Total revenues $ 4,219 $ 3,661 15% 13% Total operating expenses 2,732 2,325 18% 15% Operating income as reported $ 1,487 $ 1,336 11% Core adjusted operating income(1) 1,608
Slide 16: Operating Expenses
OPERATING EXPENSES Third Quarter FX Adjusted (in millions, except percentages) 2026 2025 Change Change(1) $21 $18 $2,732 $239 $14 Compensation and benefits(2) $ 711 $ 619 15% 13% $(10) Fuel 667 415 61% 56% $79 $46 Materials 130 114 14% 12% $2,325 Equipment rents 101 109 (7%) (9%) Depreciation and am
Slide 17: Below the Line
BELOW THE LINE Third Quarter (in millions, except percentages) 2026 2025 Change Other (income)/expense $ (5) $ 8 (163%) Other components of net periodic benefit recovery (111) (107) 4% Net interest expense(1) 239 222 8% Income tax expense(2) 448 296 51% (1) Net interest expense includes purchase acc
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 $4,137 $4,032 $2,314 $4,252 $592 $644 $3,785 $2,035 $3,545 $3,388 12% Increase 12% Reduction 3% Decline 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 [email protected] 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. Q3 2025 Average train speed Average train length Average train weight (miles per hour) (feet) (tons) 7,940 9,298 9,258 20.5 7,882 19.0 8% Improvement 1% Decline Flat Q3'25 Q3'26 Q3'25 Q3'26 Q3'25 Q3'26 Fuel efficiency FRA personal injuries(1) FRA train accident frequency (U
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) 7,850 9,173 9,308 20.3 7,804 19.1 6% Improvement 1% Improvement 1% Improvement 2025 2026 2025 2026 2025 2026 Fuel Efficiency FRA personal injuries FRA train accide
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