CALGARY, AB, May 2, 2024 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) Executive Vice-President and Chief Marketing Officer John Brooks will address the 2024 Bank of America Transportation, Airlines and Industrials Conference on May 15, 2024, at 08:45 a.m. ET. CPKC will provide access to the live audio webcast at investor.cpkcr.com. A replay will also be available following the conclusion of the event. About Canadian Pacific Kansas City With its global headquarters in Calgary, Al ...

CALGARY, AB, May 1, 2024 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) President and Chief Executive Officer Keith Creel will address the 2024 RBC Capital Markets Canadian Industrials Conference on May 14, 2024, at 10:55 a.m. ET. CPKC will provide access to the live audio webcast at investor.cpkcr.com. A replay will also be available following the conclusion of the event. About Canadian Pacific Kansas City With its global headquarters in Calgary, Alta., Canada, CPKC is the first ...

Canadian Pacific Kansas City Limited (CP) reported first-quarter 2024 earnings (excluding 7 cents from non-recurring items) per share of 69 cents, which missed the Zacks Consensus Estimate of 70 cents. However, the bottom line increased 9.5% year over year. Quarterly revenues of $2.61 billion surpassed the Zacks Consensus Estimate of $2.59 billion and improved 0.8% year over year.Freight revenues, contributing 97.4% to the top line, rose 54.6% on a year-over-year basis. We had expected the metric to jump 55 ...

CALGARY, AB, April 24, 2024 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today announced the results of the 2024 annual meeting held earlier today, including the election of all 11 nominees listed in the management proxy circular dated March 21, 2024, as directors of CPKC. All directors received at least 96.21 percent of votes cast. The advisory vote on executive compensation (Say on Pay) received 94.05 percent approval. The advisory vote on approach to climate change (Say on Clim ...

Financial Data and Key Metrics Changes - The first quarter produced revenues of $3.5 billion, an increase of 2% year-over-year, with a core EPS of $0.93, up 3% [11][31] - The operating ratio was reported at 67.4%, with a core adjusted combined operating ratio of 64%, reflecting a 50 basis points increase compared to the previous year [31][11] - Cash provided by operating activities was $1.15 billion, with adjusted combined free cash flow of $555 million in the quarter [35][31] Business Line Data and Key Metrics Changes - Freight revenue growth was 1% on 1% RTM growth, with carloads down 3% [21][22] - In the bulk segment, grain revenues increased by 2% driven by a 19% growth in U.S. grain volumes, while Canadian grain volumes decreased by 15% [22][23] - Potash revenues were up 4% on 2% volume growth, while coal revenue and volume declined by 7% due to weather impacts [24][25] - Automotive volumes increased by 8% and revenues by 10%, although results were below expectations due to production holds [27] Market Data and Key Metrics Changes - The intermodal segment saw a 1% decline in revenue despite a 7% increase in volume, with international intermodal volumes up 14% [28] - The port of Lazaro Cardenas experienced over 40% year-over-year growth in TEUs through February [28] - The domestic intermodal volumes remained flat, but the Mexico Midwest Express service showed strong performance with over 24% growth in weekly volumes since February [29] Company Strategy and Development Direction - The company aims to be the most relevant rail network in North America, focusing on competition and service efficiency [15] - Strategic investments in safety and capacity are prioritized, with a capital investment plan of approximately $2.75 billion for 2024 [35][20] - The company is focused on building a value proposition for customers, emphasizing the reliability and service quality of its operations [55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance despite potential challenges, including labor negotiations and macroeconomic uncertainties [52][44] - The company is prepared for various outcomes related to labor negotiations, with a focus on maintaining operational efficiency [49][44] - There is cautious optimism regarding volume growth, with expectations for a strong second quarter despite potential headwinds from grain volumes [30][56] Other Important Information - The company has made significant progress on synergy targets, with expectations to double revenue synergies and maintain cost synergies [63] - Moody's upgraded the company's credit rating outlook from stable to positive during the quarter [35] Q&A Session Summary Question: Impact of Chinese imports on Lazaro and new services - Management noted steady growth at Lazaro, with a mix of truck and rail volumes, primarily intra-Mexico, and expects continued volume growth [38][40] Question: Update on TCRC union negotiations - Management discussed ongoing negotiations, expressing cautious optimism but acknowledging the potential for a strike if no agreement is reached by May 19 [42][44] Question: Volume guidance and macroeconomic outlook - Management indicated a responsibly conservative volume guidance, with potential upside depending on macroeconomic conditions and labor negotiations [52][56] Question: Pricing environment and service-related pricing opportunities - Management emphasized the value proposition of their service and the disciplined pricing approach, with expectations for continued pricing improvements [55][58] Question: Synergy targets and operating ratio performance - Management confirmed they are on track with synergy targets and expect sequential improvements in the operating ratio [63][66]

For the quarter ended March 2024, Canadian Pacific Kansas City (CP) reported revenue of $2.61 billion, up 55.8% over the same period last year. EPS came in at $0.69, compared to $0.63 in the year-ago quarter.The reported revenue represents a surprise of +0.84% over the Zacks Consensus Estimate of $2.59 billion. With the consensus EPS estimate being $0.70, the EPS surprise was -1.43%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wa ...

Canadian Pacific Kansas City (CP) came out with quarterly earnings of $0.69 per share, missing the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.63 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.43%. A quarter ago, it was expected that this railroad would post earnings of $0.83 per share when it actually produced earnings of $0.87, delivering a surprise of 4.82%.Over the last four quarters, t ...

[PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the company's unaudited interim consolidated financial statements and management's discussion and analysis for the first quarter [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited Interim Consolidated Financial Statements for Canadian Pacific Kansas City Limited for the three months ended March 31, 2024, compared to the same period in 2023, reflecting the KCS consolidation - The financial statements for the three months ended March 31, 2024, include Kansas City Southern (KCS) as a consolidated subsidiary, while the comparative period in 2023 reports the company's 100% interest in KCS as an equity-method investment[12](index=12&type=chunk) [Interim Consolidated Statements of Income](index=5&type=section&id=Interim%20Consolidated%20Statements%20of%20Income) Q1 2024 income statements show significant revenue growth driven by KCS consolidation, despite a slight decrease in net income attributable to controlling shareholders Q1 2024 vs Q1 2023 Income Statement Highlights (in CAD millions, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Total Revenues** | $3,520 | $2,266 | | **Operating Income** | $1,149 | $829 | | **Net Income Attributable to Controlling Shareholders** | $775 | $800 | | **Diluted Earnings Per Share** | $0.83 | $0.86 | [Interim Consolidated Balance Sheets](index=7&type=section&id=Interim%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets increased to $81.67 billion, primarily driven by properties and goodwill, with corresponding increases in liabilities and equity Balance Sheet Summary (in CAD millions) | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | $81,668 | $79,902 | | **Total Liabilities** | $37,907 | $37,491 | | **Total Equity** | $43,761 | $42,411 | [Interim Consolidated Statements of Cash Flows](index=8&type=section&id=Interim%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2024, net cash from operating activities increased, while cash used in investing activities rose and cash used in financing activities decreased Q1 2024 vs Q1 2023 Cash Flow Summary (in CAD millions) | Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $1,015 | $881 | | **Net Cash used in Investing Activities** | ($542) | ($401) | | **Net Cash used in Financing Activities** | ($431) | ($645) | | **Cash and Cash Equivalents at End of Period** | $519 | $290 | [Notes to Interim Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Interim%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of financial statements, including revenue disaggregation, KCS acquisition accounting, debt details, and contingency updates Q1 2024 Freight Revenues by Commodity (in CAD millions) | Commodity | Q1 2024 Revenue | Q1 2023 Revenue | | :--- | :--- | :--- | | Grain | $730 | $515 | | Energy, chemicals and plastics | $702 | $366 | | Intermodal | $638 | $492 | | Metals, minerals and consumer products | $440 | $233 | | Automotive | $265 | $125 | | Coal | $209 | $155 | | Forest products | $202 | $103 | | Potash | $137 | $132 | | Fertilizers and sulphur | $104 | $96 | | **Total Freight Revenues** | **$3,427** | **$2,217** | - The accounting for the KCS acquisition was finalized on April 13, 2024, with measurement period adjustments resulting in a final goodwill value of **$17.632 billion**[31](index=31&type=chunk)[32](index=32&type=chunk)[34](index=34&type=chunk) - The company is involved in multiple legal proceedings related to the 2013 Lac-Mégantic derailment, with an appeal ongoing despite a December 2022 dismissal of claims against the company[62](index=62&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The MD&A provides management's perspective on Q1 2024 financial results, focusing on the KCS acquisition's impact on performance, expenses, liquidity, and non-GAAP measures [Executive Summary](index=22&type=section&id=Executive%20Summary) The executive summary highlights Q1 2024 diluted EPS and operating ratio, reflecting the full consolidation impact of KCS Q1 2024 Key Performance Metrics | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Diluted EPS | $0.83 | $0.86 | -3% | | Core adjusted combined diluted EPS | $0.93 | $0.90 | +3% | | Operating Ratio | 67.4% | 63.4% | +400 bps | | Core adjusted combined operating ratio | 64.0% | 63.5% | +50 bps | [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Q1 2024 results show significant revenue and operating expense increases, primarily driven by the KCS acquisition and higher freight rates Q1 2024 vs Q1 2023 Revenue & Volume Metrics | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues (in CAD millions)** | $3,520 | $2,266 | 55% | | **Carloads (in thousands)** | 1,072.6 | 679.5 | 58% | | **Revenue Ton-Miles (in millions)** | 51,838 | 37,549 | 38% | Q1 2024 vs Q1 2023 Operating Expenses (in CAD millions) | Expense Category | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Compensation and benefits | $690 | $438 | 58% | | Fuel | $458 | $326 | 40% | | Depreciation and amortization | $467 | $225 | 108% | | Purchased services and other | $580 | $346 | 68% | | **Total Operating Expenses** | **$2,371** | **$1,437** | **65%** | - Net interest expense increased by **34%** to **$206 million**, primarily due to interest on debt assumed from KCS and higher interest on commercial paper[117](index=117&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity, primarily from operations, commercial paper, and credit facilities, is deemed adequate, supported by investment-grade credit ratings - Cash provided by operating activities increased by **15%** to **$1,015 million** in Q1 2024, mainly due to higher cash-generating income from the KCS acquisition[133](index=133&type=chunk) - Cash used in financing activities decreased by **33%** to **$431 million**, primarily due to lower principal repayments on long-term debt compared to the prior-year period[135](index=135&type=chunk) Credit Ratings as at March 31, 2024 | Agency | Long-term Debt | Commercial Paper | Outlook | | :--- | :--- | :--- | :--- | | Standard & Poor's | BBB+ | A-2 | Stable | | Moody's | Baa2 | P-2 | Positive | [Non-GAAP Measures](index=35&type=section&id=Non-GAAP%20Measures) This section reconciles non-GAAP measures like Core adjusted combined diluted EPS and operating ratio, providing a clearer view of underlying performance by excluding significant items Reconciliation of Diluted EPS to Core Adjusted Combined Diluted EPS | Description | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **CPKC diluted earnings per share as reported** | **$0.83** | **$0.86** | | Adjustments for significant items & KCS purchase accounting (net of tax) | $0.10 | $0.04 | | **Core adjusted combined diluted earnings per share** | **$0.93** | **$0.90** | Reconciliation of Operating Ratio to Core Adjusted Combined Operating Ratio | Description | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **CPKC operating ratio as reported** | **67.4%** | **63.4%** | | KCS pre-control date adjustments | — | 3.1% | | **Combined Operating Ratio** | **67.4%** | **66.5%** | | Less: Adjustments for significant items & KCS purchase accounting | 3.4% | 3.0% | | **Core adjusted combined operating ratio** | **64.0%** | **63.5%** | [Quantitative and Qualitative Disclosures about Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks from interest rate and foreign exchange fluctuations, which are managed through various strategies - A hypothetical one percentage point decrease in interest rates as at March 31, 2024, would result in an increase of approximately **$1.8 billion** to the fair value of the Company's debt[174](index=174&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes in internal control over financial reporting - Based on an evaluation as of March 31, 2024, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[176](index=176&type=chunk) - No changes in internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, internal controls were identified in Q1 2024[177](index=177&type=chunk) [PART II - OTHER INFORMATION](index=43&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section details legal proceedings, risk factors, and equity security sales, providing additional disclosures [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 14 for details on contingencies and discloses an ongoing inquiry from the U.S. EPA regarding Clean Air Act compliance - The company is responding to an inquiry from the U.S. EPA regarding compliance with the Clean Air Act's mobile source provisions, with ongoing discussions with the DOJ to resolve the matter[179](index=179&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2023 Annual Report on Form 10-K - No material changes to risk factors from the 2023 Annual Report on Form 10-K are reported[180](index=180&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has suspended its share repurchase program in connection with the KCS transaction and did not have an active program as of March 31, 2024 - Share repurchases were suspended due to the KCS transaction, and no active program was in place as of March 31, 2024[180](index=180&type=chunk)

Release: April 24, 2024 CPKC reports first-quarter results; celebrating one year as a combined company Calgary – Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today announced its first-quarter results, including revenues of $3.5 billion, diluted earnings per share (EPS) of $0.83 and core adjusted combined diluted EPS1, 2 of $0.93. “One year into our historic combination, I am proud of what our dedicated family of railroaders has accomplished as we deliver on the benefits of our unrivalled network ...

CALGARY, AB, April 24, 2024 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today announced its first-quarter results, including revenues of $3.5 billion, diluted earnings per share (EPS) of $0.83 and core adjusted combined diluted EPS1, 2 of $0.93. "One year into our historic combination, I am proud of what our dedicated family of railroaders has accomplished as we deliver on the benefits of our unrivalled network – spurring competition, increasing safety and connecting more markets ...