Chief Executive Keith Creel said that the railroad was able to control costs during a challenging market where it contended with macroeconomic and trade policy headwinds. ...

Q4 2025 EARNINGS REVIEW January 28, 2026 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, but are not limited to, statements concerning expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and res ...

Financial Performance - Fourth-quarter revenues increased by 1% to $3.9 billion, with diluted EPS at $1.20 and core adjusted diluted EPS at $1.33, a 3% increase from Q4 2024[1][4] - For the full year 2025, total revenues rose to $15.1 billion, a 4% increase from $14.5 billion in 2024, with reported diluted EPS increasing to $4.51 from $3.98[4] - Net income for Q4 2025 was $1,077 million, a decrease of 10.2% from $1,199 million in Q4 2024[15] - Comprehensive income for the year 2025 was $2,647 million, down from $7,093 million in 2024, reflecting a significant decline[15] - Basic earnings per share for Q4 2025 were $1.20, down 7% from $1.29 in Q4 2024, while for the year, it increased by 14% to $4.52 from $3.98[26] - Net income for the year was $4,137 million, an 11% increase from $3,713 million[26] - Core adjusted income for the year ended December 31, 2025, was $4,226 million, compared to $3,973 million in 2024[48] - Diluted EPS as reported for the year ended December 31, 2025, was $4.51, up from $3.98 in 2024[51] - Core adjusted diluted EPS for the year ended December 31, 2025, was $4.61, compared to $4.25 in 2024[51] Operational Efficiency - The reported operating ratio (OR) improved to a record low of 58.9% in Q4 2025, a decrease of 80 basis points from the previous year, while the core adjusted OR reached 55.9%, a 120 basis point improvement[4] - Operating income for Q4 2025 was $1,613 million, a 3% increase from $1,560 million in Q4 2024, and for the year, operating income was $5,609 million, an 8% increase from $5,179 million[26] - The operating ratio improved to 58.9% in Q4 2025 from 59.7% in Q4 2024, and for the year, it improved to 62.8% from 64.4%[26] - CPKC's operational metrics in Q4 2025 set records in train weights, network speed, locomotive productivity, and car miles per car day[4] Safety and Compliance - CPKC achieved the lowest FRA-reportable train accident frequency among Class 1 railroads for the third consecutive year, continuing a legacy of 17 years of industry leadership[2] - The company reported a decrease in FRA-reportable personal injury frequency to 0.92 from 0.95 in 2024, and train accident frequency decreased to 0.85 from 1.01 in 2024[4] - FRA train accidents per million train-miles improved by 12% to 0.91 in Q4 2025, reflecting enhanced safety measures[32] Capital Expenditures and Investments - Capital expenditures for 2026 are projected at $2.65 billion, representing a reduction of approximately 15% from 2025[10] - The company plans to invest approximately $2.65 billion in capital programs in 2026, a reduction of about 15% from 2025[39] Debt and Cash Management - Long-term debt increased to $19,948 million in 2025 from $19,804 million in 2024, showing a rise of 0.7%[16] - Cash and cash equivalents at the end of Q4 2025 were $184 million, down from $739 million at the end of Q4 2024, representing a decline of 75%[17] - The company reported a net cash used in investing activities of $2,665 million for the year 2025, a decrease from $2,796 million in 2024[17] - Average long-term debt, including maturing debt, rose to CAD 22,906 million in 2025 from CAD 22,559 million in 2024, reflecting a 1.5% increase[60] - Long-term debt as of December 31, 2025, is CAD 23,188 million, an increase from CAD 22,623 million in 2024[72] - Adjusted net debt as of December 31, 2025, is CAD 24,023 million, compared to CAD 22,914 million in 2024[74] Shareholder Returns - Dividends paid in Q4 2025 were $204 million, compared to $177 million in Q4 2024, reflecting an increase of 15.3%[17] - The dividend declared per share increased to CAD 0.874 in 2025 from CAD 0.760 in 2024, resulting in a dividend payout ratio of 19.4%[69] - The core adjusted dividend payout ratio for 2025 was 19.0%, up from 17.9% in 2024, indicating a stronger commitment to shareholder returns[69] Revenue and Freight Performance - Total revenues for Q4 2025 reached $3,923 million, a 1% increase from $3,874 million in Q4 2024, while total revenues for the year were $15,078 million, up 4% from $14,546 million in 2024[26] - Freight revenues in Q4 2025 were $3,831 million, a 1% increase from $3,801 million in Q4 2024, with annual freight revenues totaling $14,776 million, up 4% from $14,223 million[26] - Grain freight revenues increased by $35 million (4%) in Q4 2025, totaling $984 million compared to $949 million in Q4 2024[28] - Coal freight revenues rose by $7 million (3%) in Q4 2025, reaching $257 million, while annual revenues increased by $82 million (9%) to $1,025 million[28] Employee Metrics - Total employees at the end of Q4 2025 decreased by 2% to 19,479 compared to the previous year[32] Miscellaneous - Acquisition-related costs of $72 million were incurred in 2025 due to the KCS acquisition, impacting diluted EPS by 6 cents[42] - The company recognized a gain on the sale of equity investment of $333 million for the year ended December 31, 2025[48] - The average foreign exchange rate for U.S.$ to Canadian$ was 0.72 in Q4 2025, a 1% increase from 0.71 in Q4 2024[26]

Additionally, CPKC today announced that Marc Parent has been appointed to the board effective Jan. 27, 2026, and that Kate Stevenson has been nominated to stand for election as a director at CPKC's Annual General Meeting of Shareholders in April 2026. CALGARY, AB, Jan. 28, 2026 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) announced today that, as part of its ongoing board succession planning, Gordon Trafton, a current member of the CPKC board, has been appointed vice-chair of the ...

"CPKC's strong free cash flow generation, robust growth pipeline, and proven operational execution underpin our confidence in launching this new share repurchase program," said CPKC President and CEO Keith Creel. "We remain firmly committed to creating long-term shareholder value through disciplined and opportunistic capital allocation." CPKC has terminated its existing normal course issuer bid which commenced on March 3, 2025 and had an expiry date of March 2, 2026 (the "2025 NCIB"). CPKC repurchased and c ...

CALGARY, AB, Jan. 28, 2026 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today announced its fourth-quarter results, including revenues of $3.9 billion, diluted earnings per share (EPS) of $1.20 and core adjusted diluted EPS of $1.33. Fourth-quarter 2025 results "Our fourth quarter and full year results demonstrate exceptional execution in a challenging market by controlling what we could control," said Keith Creel, CPKC President and Chief Executive Officer. "Despite macroeconomic ...

Core Viewpoint - Canadian Pacific Kansas City (CPKC) is continuing its locomotive fleet renewal with a multi-year investment of US$800 million in American manufacturing, focusing on enhancing reliability and fuel efficiency for growth and service improvement [1][2]. Group 1: Investment and Fleet Renewal - CPKC has completed the purchase of 100 Wabtec Tier 4 locomotives built in Texas in 2025 and will add 30 additional Tier 4 locomotives from Progress Rail in 2026, manufactured in Indiana [2][3]. - The company expects to receive 70 more Texas-built Tier 4 units from Wabtec in 2026, with the first two units expected in January [2]. - The investment in new locomotives is part of CPKC's ongoing locomotive renewal program and aligns with its previously announced multi-year capital plan [3]. Group 2: Operational Impact - The new locomotives are aimed at maintaining CPKC's industry-leading service and supporting the North American economy through improved operational reliability and fuel efficiency [2]. - CPKC operates a transnational railway linking Canada, the United States, and Mexico, providing extensive access to major ports and key markets across North America [4].

Core Viewpoint - The article emphasizes the importance of fundamental analysis in identifying undervalued stocks with growth potential in both Brazilian and global markets [1]. Group 1: Company Analysis - The analyst has a broad career in the financial market, covering both Brazilian and global stocks, indicating a diverse expertise in various market conditions [1]. - The focus is on value investing, which involves identifying stocks that are undervalued relative to their intrinsic value [1]. Group 2: Industry Insights - The article reflects a growing interest in fundamental analysis as a strategy for investment, particularly in the context of fluctuating market conditions [1].

Core Viewpoint - Canadian Pacific Kansas City (CPKC) has successfully ratified 16 tentative collective bargaining agreements with various unions in the United States, enhancing wages for approximately 700 railroaders across multiple states [1][2]. Group 1: Agreements and Ratifications - All new five-year agreements have been ratified, benefiting railroaders in states including Illinois, Indiana, Louisiana, Minnesota, Mississippi, Missouri, New York, North Dakota, Oklahoma, Texas, and Wisconsin [1]. - An agreement with the Brotherhood of Locomotive Engineers and Trainmen (BLET) has been ratified, representing around 300 locomotive engineers operating in Illinois, Indiana, Minnesota, North Dakota, and Wisconsin [2]. - Five agreements have been ratified with the Brotherhood of Railway Carmen, covering 231 carmen across various properties [3]. - Five agreements have been ratified with the Transportation Communications Union (TCU/IAM) and American Railway and Airway Supervisors Association (ARASA), representing approximately 108 U.S. employees [4]. - Two agreements have been ratified with the National Conference of Firemen and Oilers (NCF&O), representing 26 hostlers and laborers [5]. - Three additional agreements have been ratified with various associations, covering a total of 23 employees in specific roles [6]. Group 2: Future Agreements - Two tentative five-year collective agreements have been reached with the International Brotherhood of Electrical Workers (IBEW), representing 76 electricians, pending ratification [7]. Group 3: Company Overview - CPKC is the first and only single-line transnational railway linking Canada, the United States, and Mexico, with a network of approximately 20,000 route miles and a workforce of 20,000 railroaders [8]. - The company provides extensive rail service and logistics solutions, contributing to economic growth across North America [2][8].

Group 1 - The article emphasizes the importance of returning to normalcy after the holiday season, indicating a preference for routine over the unpredictability of holiday schedules [1] - Leo Nelissen is identified as an analyst focusing on significant economic developments related to supply chains, infrastructure, and commodities, contributing to iREIT®+HOYA Capital [1] - The analysis aims to provide actionable investment ideas with a focus on dividend growth opportunities, highlighting the potential for income generation in the investment landscape [1]