CPKC Delivers Strong Fourth-Quarter Results

Canadian Pacific Kansas City announced its fourth-quarter results, including revenues of $3.8 billion, diluted earnings per share (EPS) of $1.10 and core adjusted combined diluted EPS^{1, 2} of $1.18.

Fourth-quarter 2023 results¹

• Reported operating ratio (OR) increased by 200 basis points to 61.8 percent from 59.8 percent in Q4 2022
• Core adjusted combined OR² decreased 220 basis points to 58.7 percent from 60.9 percent in Q4 2022
• Reported diluted EPS decreased to $1.10 from $1.36 in Q4 2022
• Core adjusted combined diluted EPS² increased to $1.18 from $1.14 in Q4 2022
• Federal Railroad Administration (FRA)-reportable train accident frequency declined 23 percent to 1.08 from 1.40 in Q4 2022 on a combined basis³
• FRA-reportable personal injury frequency declined 15 percent to 1.10 from 1.29 in Q4 2022 on a combined basis³

“I am proud of how our team of incredible railroaders finished this transformational year with a strong fourth quarter, allowing CPKC to deliver volume growth and best-in-class earnings growth in 2023,” said Keith Creel, CPKC President and Chief Executive Officer. “Since our historic combination in April 2023, our united CPKC team has steadily built momentum, bringing new competition to supply chains and creating more value for our customers, while remaining focused on service and safety.”

Full-year 2023 results¹

• Reported OR increased by 280 basis points to 65.0 percent from 62.2 percent in 2022
• Core adjusted combined OR² increased 30 basis points to 62.0 percent from 61.7 percent in 2022
• Reported diluted EPS increased to $4.21 from $3.77 in 2022
• Core adjusted combined diluted EPS² increased two percent to $3.84 from $3.77 in 2022
• FRA-reportable train accident frequency declined 32 percent to 0.99 from 1.45 in 2022 on a combined basis³
• FRA-reportable personal injury frequency declined 12 percent to 1.14 from 1.30 in 2022 on a combined basis³

In 2023, 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.

Full-year 2024 guidance

• CPKC expects core adjusted combined diluted EPS² to grow double digits versus 2023 core adjusted combined diluted EPS² of $3.84
• Capital expenditures of $2.75 billion
• Other components of net periodic benefit recovery will increase by approximately $23 million from $327 million in 2023

“Looking forward to 2024, we are confident that our unique synergy opportunities, along with improving macro-economic conditions, can overcome a weak Canadian grain crop and position us for another strong performance this year, our first full year as a combined company,” Creel added. “We stand ready to deliver on our commitments to our customers and our shareholders with long term sustainable growth.”

For full fourth quarter results click here.

About Canadian Pacific Kansas City

With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and México, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf of México to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpkcr.com to learn more about the rail advantages of CPKC. CP-IR

Contact:

Media – mediarelations@cpkcr.com

Source: Canadian Pacific Kansas City Limited