CPKC Reports Strong Second-Quarter Results

Canadian Pacific Kansas City (CPKC) announced its second-quarter results, including revenues of $3.6 billion, diluted earnings per share (EPS) of $0.97 and core adjusted combined diluted EPS^{1, 2} of $1.05.

“Our excellent second quarter results showcase how the advantages of this unrivaled North American network are being realized,” said Keith Creel, CPKC President and Chief Executive Officer. “These results are a direct reflection of the dedication and hard work of our railroaders, whose commitment to safety, service and efficiency remains the cornerstone of our achievements. We delivered robust revenue growth driven by synergies, along with strong operating and safety performance.”

Second-quarter 2024 results¹

• Reported operating ratio (OR) decreased by 550 basis points to 64.8 percent from 70.3 percent in Q2 2023
• Core adjusted combined OR² decreased 280 basis points to 61.8 percent from 64.6 percent in Q2 2023
• Reported diluted EPS decreased to $0.97 from $1.42 in Q2 2023
• Core adjusted combined diluted EPS² increased 27 percent to $1.05 from $0.83 in Q2 2023
• Volumes, as measured in Revenue Ton-Miles³ (RTMs), increased six percent on a combined basis
• Federal Railroad Administration (FRA)-reportable train accident frequency decreased to 0.77 from 0.80 in Q2 2023 on a combined basis⁴
• FRA-reportable personal injury frequency decreased to 0.81 from 1.31 in Q2 2023 on a combined basis⁴

“Looking ahead, we are confident in our strategy and our team’s ability to continue this momentum. We are well on track to deliver on our guidance for the year, leveraging our strong operational foundation to deliver sustainable growth and value for our stakeholders,” Creel added. “Together, we are moving forward with a clear vision of success for all stakeholders and an industry leading team in place to execute it.”

1	The results of Kansas City Southern (KCS) are included on a consolidated basis from April 14, 2023, the date we acquired control. From December 14, 2021 to April 13, 2023, we recorded our interest in KCS under the equity method of accounting.
2	These measures have no standardized meanings prescribed by accounting principles generally accepted in the United States of America (“GAAP”) and, therefore, may not be comparable to similar measures presented by other companies. For information regarding non-GAAP measures including reconciliations, see attached supplementary schedule of Non-GAAP Measures.
3	These operating statistics represent combined operating information to illustrate the estimated effects of the acquisition for the second quarter ended June 30, 2023, as if the acquisition closed on January 1, 2022. For the three months ended June 30, 2024, KCS was consolidated.
4	FRA statistics for Q2 2023 reflect Canadian Pacific (CP) and KCS results on a combined basis. The second-quarter 2023 FRA-reportable train accident frequency and FRA-reportable personal injury frequency on a combined basis were previously reported as 0.79 and 1.25 respectively. These restatements reflect new information available within a specified period as stipulated by the FRA but that exceeds CPKC’s financial reporting timeline.

For the full second quarter results, click here.

About CPKC

Canadian Pacific Kansas City Limited (“CPKC” or the “Company”) owns and operates a transcontinental freight railway spanning Canada, the United States (“U.S.”), and Mexico. CPKC provides rail and intermodal transportation services over a network of approximately 20,000 miles, serving principal business centres across Canada, the U.S., and Mexico. The Company transports bulk commodities, merchandise, and intermodal freight. CPKC’s Common Shares trade on the Toronto Stock Exchange and New York Stock Exchange under the symbol “CP”.

Contact:

Chris de Bruyn – Investor Relations – investor@cpkcr.com – (403) 319-3591

Source: Canadian Pacific Kansas City Limited