CPKC Delivers Strong Fourth-Quarter Results; Positioned to Accelerate Growth in 2025

Canadian Pacific Kansas City (CPKC) announced its fourth-quarter results, including revenues of $3.9 billion, diluted earnings per share (EPS) of $1.28 and core adjusted combined diluted EPS¹ of $1.29.

Fourth-quarter 2024 results

• Revenues increased by three percent to $3.9 billion from $3.8 billion in Q4 2023
• Reported operating ratio (OR) decreased by 210 basis points to 59.7 percent from 61.8 percent in Q4 2023
• Core adjusted combined OR¹ decreased by 160 basis points to 57.1 percent from 58.7 percent in Q4 2023
• Reported diluted EPS increased to $1.28 from $1.10 in Q4 2023
• Core adjusted combined diluted EPS¹ increased nine percent to $1.29 from $1.18 in Q4 2023
• Federal Railroad Administration (FRA)-reportable personal injury frequency decreased to 0.84 from 1.13 in Q4 2023²
• FRA-reportable train accident frequency decreased to 1.03 from 1.08 in Q4 2023

“Our team finished our first full year as a combined company strong, with volume growth, improved safety performance, and solid operational execution that allowed CPKC to deliver industry-leading earnings growth in 2024,” said Keith Creel, CPKC President and Chief Executive Officer. “Thanks to our remarkable team of railroaders and their dedication to safety, service and efficiency, we delivered on our commitments to customers and shareholders as we continue to drive sustainable long-term success on this unrivaled North American network.”

Full-year 2024 results³

• Reported operating ratio (OR) decreased by 60 basis points to 64.4 percent from 65.0 percent in 2023
• Core adjusted combined OR¹ decreased by 70 basis points to 61.3 percent from 62.0 percent in 2023
• Reported diluted EPS decreased to $3.98 from $4.21 in 2023
• Core adjusted combined diluted EPS¹ increased 11 percent to $4.25 from $3.84 in 2023
• FRA-reportable personal injury frequency decreased to 0.95 from 1.15 in 2023^{2, 4}
• FRA-reportable train accident frequency increased to 1.01 from 0.99 in 2023⁴

In 2024, for the second consecutive year, CPKC led the industry with the lowest FRA-reportable train accident frequency among Class 1 railroads, building on Canadian Pacific’s legacy of 17 consecutive years of industry leadership.

“Looking forward to 2025, we expect another year of strong earnings growth consistent with CPKC’s multi-year guidance provided at our 2023 Investor Day,” Creel added. “We continue to do what we said we would do, staying focused on safety and growth. The opportunities ahead of us are unique as we have the team, the network and the capacity to deliver strong results for all stakeholders.”

1	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 and forward-looking non-GAAP measures, see attached supplementary schedule of Non-GAAP Measures.
2	The fourth-quarter and full year 2023 FRA-reportable personal injury frequency have been restated to reflect new information available within specified periods stipulated by the FRA but that exceed the Company’s financial reporting timeline.
3	The results of Kansas City Southern 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.
4	The full year 2023 comparison for FRA-reportable personally injury frequency and FRA-reportable train accident frequency represent combined operating information to illustrate the estimated effects of the acquisition as if the acquisition closed on January 1, 2022.

Full-year 2025 Guidance

• CPKC expects core adjusted diluted EPS¹ to increase between 12 and 18 percent versus 2024 core adjusted combined diluted EPS¹ of $4.25
• Mid-single digit volume growth, as measured in Revenue Ton Miles
• Capital expenditures of $2.9 billion, with the increase compared to 2024 driven by a higher expected USD/CAD FX rate
• Other components of net periodic benefit recovery will increase by $76 million from $352 million in 2024

For full 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