CPKC Reports Third-Quarter Results Driven by Solid Execution; Poised for Strong Finish to 2024

Canadian Pacific Kansas City (CPKC) announced its third-quarter results, including revenues of $3.5 billion, diluted earnings per share (EPS) of $0.90 and core adjusted combined diluted EPS¹ of $0.99.

“During the third quarter, we delivered strong performance across the operations of our unrivaled North American network, despite dealing with a number of temporary headwinds,” said Keith Creel, CPKC President and Chief Executive Officer. “We continue to see strong revenue growth, uniquely enabled by this new network. With our commitment to operational excellence, safety and customer service, we are doing what we said we would do and generating value for all stakeholders.”

Third-quarter 2024 results

• Revenues increased by six percent to $3.5 billion from $3.3 billion in Q3 2023
• Reported operating ratio (OR) increased by 120 basis points to 66.1 percent from 64.9 percent in Q3 2023
• Core adjusted combined OR¹ increased by 120 basis points to 62.9 percent from 61.7 percent in Q3 2023
• Reported diluted EPS increased to $0.90 from $0.84 in Q3 2023
• Core adjusted combined diluted EPS¹ increased eight percent to $0.99 from $0.92 in Q3 2023
• Volumes, as measured in Revenue Ton-Miles (RTMs), increased four percent
• Federal Railroad Administration (FRA)-reportable personal injury frequency decreased to 0.85 from 1.02 in Q3 2023²
• FRA-reportable train accident frequency decreased to 1.27 from 1.38 in Q3 2023²

“I am proud of this team of railroaders for overcoming challenges to still deliver on our guidance; as we look to close 2024 with growing momentum, we’ve never been more excited about the opportunities ahead,” Creel added. “Our strategic initiatives and investments position us well for more growth and success for the remainder of this year, in 2025 and beyond. Fueled by the strength of our dedicated team of railroaders, we are confident in our ability to continue producing results for our customers and long-term value for shareholders.”

2024 Guidance

CPKC now expects RTMs³ to increase mid-single digits vs 2023 on a combined basis. CPKC continues to expect 2024 core adjusted combined diluted EPS¹ to grow double digits versus 2023 core adjusted combined diluted EPS¹ of $3.84.

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, see attached supplementary schedule of Non-GAAP Measures.
2	The third-quarter 2023 FRA-reportable train accident frequency and 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 2023 comparison for RTMs represents combined operating information to illustrate the estimated effects of the acquisition as if the acquisition closed on January 1, 2022.

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