Group 1 - Canadian Pacific Kansas City (CPKC) held its 2024 annual meeting, where all 11 nominees for the board of directors were elected with at least 96.21% of votes cast in favor [1][2] - The advisory vote on executive compensation received 94.05% approval, while the advisory vote on the company's approach to climate change garnered 89.26% approval [1] - Ernst & Young LLP was appointed as the auditor with a 99.83% approval rate [1] Group 2 - Isabelle Courville was re-elected as a director and re-appointed as Chair of CPKC's Board of Directors [1] - The detailed voting results for each director showed high levels of support, with Keith E. Creel receiving 99.90% approval and Henry Maier receiving 96.21% approval [2] - CPKC operates as a single-line transnational railway connecting Canada, the United States, and Mexico, covering approximately 20,000 route miles and employing 20,000 railroaders [3]

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]

Core Insights - Canadian Pacific Kansas City (CP) reported a revenue of $2.61 billion for the quarter ended March 2024, reflecting a year-over-year increase of 55.8% [1] - The earnings per share (EPS) for the quarter was $0.69, slightly up from $0.63 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate by 0.84%, while the EPS fell short of the consensus estimate by 1.43% [1] Financial Performance Metrics - Adjusted Operating Ratio was reported at 64%, higher than the estimated 62.6% [2] - Total carloads were 1,072.6 thousand, below the average estimate of 1,101 thousand [2] - Carloads for Intermodal were 412.1 thousand, compared to the estimate of 424 thousand [2] - Carloads for Automotive were 55.7 thousand, slightly above the estimate of 55.48 thousand [2] - Carloads for Grain were 132.3 thousand, below the estimate of 136.52 thousand [2] - Carloads for Metals, Minerals, and Consumer Products were 129.7 thousand, exceeding the estimate of 127.77 thousand [2] - Carloads for Potash were 37 thousand, below the estimate of 42.54 thousand [2] - Carloads for Fertilizers and Sulphur were 17.2 thousand, slightly below the estimate of 17.41 thousand [2] - Carloads for Forest Products were 35.9 thousand, below the estimate of 36.72 thousand [2] - Carloads for Energy, Chemicals, and Plastics were 144.5 thousand, above the estimate of 141.3 thousand [2] - Carloads for Coal were 108.2 thousand, below the estimate of 119.26 thousand [2] - Revenue ton miles (RTMs) totaled 51,838 million, slightly above the estimate of 51,771.98 million [2] Stock Performance - Shares of Canadian Pacific Kansas City have returned +0.5% over the past month, outperforming the Zacks S&P 500 composite, which declined by -3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

分组1 - Canadian Pacific Kansas City reported quarterly earnings of $0.69 per share, missing the Zacks Consensus Estimate of $0.70 per share, but showing an increase from $0.63 per share a year ago, resulting in an earnings surprise of -1.43% [1] - The company posted revenues of $2.61 billion for the quarter ended March 2024, surpassing the Zacks Consensus Estimate by 0.84%, and compared to year-ago revenues of $1.68 billion [1] - Over the last four quarters, Canadian Pacific Kansas City has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [1] 分组2 - The stock has gained about 11% since the beginning of the year, outperforming the S&P 500's gain of 6.3% [2] - The current consensus EPS estimate for the coming quarter is $0.75 on revenues of $2.59 billion, and for the current fiscal year, it is $3.20 on revenues of $10.74 billion [4] - The Zacks Industry Rank for Transportation - Rail is currently in the bottom 33% of over 250 Zacks industries, indicating potential challenges for stock performance [5]

[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)

[First-Quarter 2024 Results Overview](index=1&type=section&id=First-Quarter%202024%20Results%20Overview) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) In Q1 2024, CPKC reported revenues of $3.5 billion, with core adjusted combined diluted EPS increasing by 3% to $0.93, despite a slight decrease in reported diluted EPS to $0.83 Q1 2024 Key Financial Metrics vs. Q1 2023 | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenues | $3.5 billion | - | - | | Reported Diluted EPS | $0.83 | $0.86 | -3.5% | | Core Adjusted Combined Diluted EPS | $0.93 | $0.90 | +3.3% | | Reported Operating Ratio (OR) | 67.4% | 63.4% | +400 bps | | Core Adjusted Combined OR | 64.0% | 63.5% | +50 bps | - CEO Keith Creel stated that the results show the success of driving growth through the combined network connecting Canada, the U.S., and Mexico, and the company is well-positioned to deliver on its 2024 guidance[1](index=1&type=chunk)[2](index=2&type=chunk) [Operational and Safety Highlights](index=1&type=section&id=Operational%20and%20Safety%20Highlights) Operational volumes, measured in Revenue Ton-Miles (RTMs), saw a 1% increase on a combined basis, while safety metrics showed a decline with increased train accident and personal injury frequencies - Volumes, as measured in Revenue Ton-Miles (RTMs), increased by **1%** on a combined basis year-over-year[2](index=2&type=chunk) Q1 2024 Safety Performance (Combined Basis) | Safety Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | FRA-reportable train accident frequency | 0.89 | 0.71 | Increased | | FRA-reportable personal injury frequency | 1.15 | 1.12 | Increased | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Interim Consolidated Statements of Income](index=5&type=section&id=Interim%20Consolidated%20Statements%20of%20Income) For Q1 2024, total revenues significantly increased to $3.52 billion due to KCS consolidation, leading to operating income growth, though net income attributable to controlling shareholders slightly decreased to $775 million Q1 2024 Income Statement Highlights (in millions CAD) | Account | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenues | $3,520 | $2,266 | | Total Operating Expenses | $2,371 | $1,437 | | Operating Income | $1,149 | $829 | | Net Income Attributable to Controlling Shareholders | $775 | $800 | | Diluted Earnings Per Share | $0.83 | $0.86 | - The significant year-over-year increase in revenues and operating expenses is primarily due to the consolidation of Kansas City Southern (KCS) results starting from April 14, 2023, whereas in Q1 2023, CPKC's interest in KCS was recorded under the equity method[3](index=3&type=chunk)[12](index=12&type=chunk) [Interim Consolidated Balance Sheets](index=7&type=section&id=Interim%20Consolidated%20Balance%20Sheets) As of March 31, 2024, CPKC's total assets increased to $81.67 billion, with total liabilities at $37.91 billion and total equity rising to $43.76 billion, primarily driven by growth in Properties and Goodwill Balance Sheet Summary (in millions CAD) | Account | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $3,146 | $3,002 | | Total Assets | $81,668 | $79,902 | | Total Current Liabilities | $6,424 | $5,710 | | 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 provided by operating activities increased to $1.015 billion, while net cash used in investing activities rose to $542 million, resulting in a net increase in cash of $55 million for the quarter Q1 2024 Cash Flow Summary (in millions CAD) | 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) | | Net Increase (Decrease) in Cash | $55 | ($161) | | 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) [Note 3: Revenues](index=11&type=section&id=Note%203%20Revenues) Total freight revenues for Q1 2024 reached $3.43 billion, a substantial increase from Q1 2023, driven by significant growth across all commodity groups due to the full consolidation of KCS operations Freight Revenues by Commodity (in millions CAD) | Commodity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | 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 | | **Total Freight Revenues** | **$3,427** | **$2,217** | [Note 8: Business Acquisition](index=12&type=section&id=Note%208%20Business%20acquisition) The accounting for the KCS acquisition was finalized on April 13, 2024, resulting in $17.63 billion in goodwill, with the company incurring $26 million in acquisition-related costs in Q1 2024 - The accounting for the KCS acquisition was finalized, with goodwill recognized at **$17.632 billion**, representing future synergies and the acquired workforce[37](index=37&type=chunk)[38](index=38&type=chunk)[40](index=40&type=chunk) Final Purchase Price Allocation Highlights (in millions CAD) | Item | Final Allocation | | :--- | :--- | | Properties | $28,749 | | Intangible assets | $3,022 | | Total identifiable net assets | $20,539 | | Goodwill | $17,632 | | Fair value of previously held equity investment | $37,227 | - In Q1 2024, the company incurred **$26 million** in acquisition-related costs and recognized **$84 million** of KCS purchase accounting amortization[43](index=43&type=chunk)[45](index=45&type=chunk) [Note 10: Debt](index=16&type=section&id=Note%2010%20Debt) During Q1 2024, CPKC repaid U.S. $48 million of Senior Secured Notes and maintained a U.S. $1.5 billion commercial paper program with U.S. $650 million outstanding at a 5.55% weighted-average interest rate - The company repaid U.S. **$48 million** (**$66 million CAD**) of 5.41% Senior Secured Notes at maturity during the quarter[49](index=49&type=chunk) - As of March 31, 2024, U.S. **$650 million** was outstanding under the commercial paper program at a weighted-average interest rate of **5.55%**[50](index=50&type=chunk) [Note 14: Contingencies](index=19&type=section&id=Note%2014%20Contingencies) The company faces ongoing legal proceedings, including an appeal related to the 2013 Lac-Mégantic rail accident, a challenge to a $499 million Mexican tax assessment, and an accrued $252 million for environmental remediation liabilities - Regarding the Lac-Mégantic rail accident, a Québec Superior Court decision on December 14, 2022, dismissed all claims against the company, but the plaintiffs filed an appeal on January 13, 2023[72](index=72&type=chunk)[73](index=73&type=chunk) - The Mexican tax authority (SAT) issued a 2014 tax assessment against subsidiary CPKCM for Ps. 6,141 million (approx. **$499 million**), which CPKCM is challenging in Administrative Court with a decision expected in 2024[79](index=79&type=chunk)[80](index=80&type=chunk) - The company has accrued **$252 million** for environmental remediation costs as of March 31, 2024, with payments expected to be made over the next 10 years[83](index=83&type=chunk) [Supplementary Rail Data](index=22&type=section&id=Supplementary%20Rail%20Data) [Commodity and Volume Data](index=23&type=section&id=Commodity%20and%20Volume%20Data) In Q1 2024, total Revenue Ton-Miles (RTMs) increased by 38% to 51.8 billion, and total carloads grew by 58% to 1.07 million, driven by the KCS consolidation, with freight revenue per RTM increasing by 12% Q1 2024 Volume Growth vs. Q1 2023 | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Total RTMs (millions) | 51,838 | 37,549 | +38% | | Total Carloads (thousands) | 1,072.6 | 679.5 | +58% | - The largest percentage increases in carloads were in Metals, minerals & consumer products (**+110%**), Forest products (**+103%**), and Automotive (**+94%**)[87](index=87&type=chunk) - Overall freight revenue per carload decreased by **2%** to **$3,195**, while freight revenue per RTM increased by **12%** to **6.61 cents**[86](index=86&type=chunk) [Operations Performance](index=26&type=section&id=Operations%20Performance) Key operational efficiency metrics declined in Q1 2024 compared to the prior year, reflecting the integration of KCS's network, with average train speed decreasing by 10% and average terminal dwell time increasing by 14% Q1 2024 Key Operational Metrics vs. Q1 2023 | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Average train speed (mph) | 19.1 | 21.3 | -10% | | Average terminal dwell (hours) | 9.7 | 8.5 | +14% | | Fuel efficiency (US gal / 1,000 GTMs) | 1.065 | 0.973 | +9% (less efficient) | [Non-GAAP Measures](index=27&type=section&id=Non-GAAP%20Measures) [Reconciliation of Non-GAAP Measures](index=27&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) CPKC provides non-GAAP measures to offer a clearer view of underlying performance by excluding significant items like KCS acquisition costs and purchase accounting, adjusting reported diluted EPS of $0.83 to a Core adjusted combined diluted EPS of $0.93 and the reported operating ratio of 67.4% to 64.0% Reconciliation of Diluted EPS | Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | CPKC diluted EPS as reported | $0.83 | $0.86 | | Adjustments (Acquisition costs, tax, etc.) | ($0.04) | ($0.03) | | KCS purchase accounting | ($0.09) | ($0.05) | | Tax effect of adjustments & other tax items | $0.03 | $0.04 | | **Core adjusted combined diluted EPS** | **$0.93** | **$0.90** | Reconciliation of Operating Ratio | Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | CPKC operating ratio as reported | 67.4% | 63.4% | | KCS operating income & pro forma adjustments | 0.0% | 3.1% | | Less: Tax adjustments & Acquisition costs | (1.1%) | (0.7%) | | Less: KCS purchase accounting | (2.3%) | (2.3%) | | **Core adjusted combined operating ratio** | **64.0%** | **63.5%** | - Significant items excluded from Q1 2024 GAAP results include **$26 million** in acquisition-related costs and **$10 million** for adjustments to Mexican tax provisions[97](index=97&type=chunk)

Core Insights - Canadian Pacific Kansas City (CPKC) reported first-quarter 2024 revenues of $3.5 billion, diluted earnings per share (EPS) of $0.83, and core adjusted combined diluted EPS of $0.93, reflecting a successful integration of Kansas City Southern (KCS) into its operations [1][2][8] Financial Performance - The reported operating ratio (OR) increased by 400 basis points to 67.4% from 63.4% in Q1 2023, while the core adjusted combined OR increased by 50 basis points to 64.0% from 63.5% in Q1 2023 [2] - Reported diluted EPS decreased to $0.83 from $0.86 in Q1 2023, but core adjusted combined diluted EPS increased by 3% to $0.93 from $0.90 in Q1 2023 [2][27] - Total revenues rose to $3.52 billion from $2.27 billion in Q1 2023, with freight revenues increasing to $3.43 billion from $2.22 billion [8][22] Operational Metrics - Volumes, measured in Revenue Ton-Miles (RTMs), increased by 1% on a combined basis [2] - The Federal Railroad Administration (FRA)-reportable train accident frequency increased to 0.89 from 0.71 in Q1 2023, and personal injury frequency increased to 1.15 from 1.12 in Q1 2023 [2] Strategic Outlook - CPKC's management expressed confidence in delivering on its 2024 guidance, citing strong momentum and an improving demand environment [2] - The company aims to leverage its unique position as the only railway connecting Canada, the U.S., and Mexico to drive growth and create long-term value for stakeholders [1][2] Acquisition Impact - The results include KCS on a consolidated basis from April 14, 2023, following the acquisition, which is expected to enhance CPKC's operational capabilities and market reach [1][17][31]

Canadian Pacific Kansas City Limited (CP) is scheduled to report first-quarter 2024 results on Apr 24 before market open.The company has a disappointing earnings history, having surpassed the Zacks Consensus Estimate only twice in the preceding four quarters while underperforming in the other two quarters. The average miss is 3.46%.Let’s see how things have shaped up for Canadian Pacific Kansas City this earnings season.CP’s financial stability is challenged by high operating expenses and low liquidity. Ele ...

CALGARY, AB, April 19, 2024 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) said today it will release its first-quarter 2024 financial and operating results at 9 a.m. ET (7 a.m. MT) on April 24, 2024.  CPKC will discuss its results with the financial community in a conference call beginning at 9:45 a.m. ET (7:45 a.m. MT) on April 24, 2024. Conference Call Access Canada and U.S.: 800-225-9448 International: 203-518-9708 *Conference ID: CPKCQ124 Callers should dial in 10 minutes prior ...

Group 1: Bill Ackman's Investment Strategy - Bill Ackman is known for his concentrated portfolio and long-term investment approach, focusing on large stakes in companies and collaborating with management to unlock value [1] - Ackman's current portfolio consists of eight holdings, with three highlighted stocks that offer growth potential, stability, and value [1] Group 2: Alphabet (GOOGL, GOOG) - Alphabet reported impressive revenues of $86.3 billion for the full year 2023, marking a 13% year-over-year increase, with diluted EPS rising to $1.64 from $1.05 [2][3] - The company returned $61.5 billion to shareholders through stock repurchases, showcasing its robust financial position and ability to invest in future growth [3] - GOOGL's stock has gained 13% year-to-date, trading at 26 times forward earnings, with a 12-month median price forecast of $166.68, indicating a potential upside of 7% [3] Group 3: Canadian Pacific Kansas City (CP) - Canadian Pacific reported revenues of $3.8 billion, a significant increase from $2.5 billion in the same quarter of the previous year, although adjusted diluted EPS slightly decreased to $1.18 from $1.36 [5][6] - The stock has gained 8% year-to-date, trading at 27 times forward earnings, with a 12-month median price forecast suggesting a potential upside of about 2% [6] Group 4: Restaurant Brands International (QSR) - Restaurant Brands International achieved over $35 billion in annual sales, with global sales increasing by 10% in Q4 and over 12% for the full year 2023 [7][8] - Adjusted diluted EPS for the fiscal year was $3.24, up from $3.14 in 2022, and the company returned $1.5 billion to shareholders [7] - QSR stock has declined about 9% in 2024, currently trading at a forward P/E ratio of 21x, with Wall Street projecting an upside potential of around 20% and a current dividend yield of 3.2% [8]