Revenue and Business Segments - In 2024, the Company generated Freight revenues totaling $14,223 million, an increase from $12,281 million in 2023[31]. - The Bulk business represented approximately 35% of total Freight revenues in 2024, with Grain accounting for 61% of bulk revenues and 21% of total Freight revenues[32]. - The Coal business contributed approximately 19% of bulk revenues and 7% of total Freight revenues in 2024[39]. - The Potash business represented approximately 12% of bulk revenues and 4% of total Freight revenues in 2024[41]. - The Merchandise business accounted for approximately 47% of total Freight revenues in 2024, with Energy, Chemicals and Plastics making up 42% of merchandise revenues[50]. - The Automotive business represented approximately 19% of merchandise revenues and 9% of total Freight revenues in 2024[59]. - The Intermodal business contributed approximately 18% of total Freight revenues in 2024, with domestic intermodal representing 55% of Intermodal revenues[61][65]. - Fuel surcharge revenues accounted for approximately 12% of the Company's Freight revenues in 2024, totaling $1,651 million, an increase of $28 million or 2% from 2023[69][70]. Operational Developments - The Company opened the CPKC Dallas Automotive Facility in Wylie, Texas, enhancing its closed-loop rail service for automotive manufacturers[60]. - The Company is actively developing new offerings such as transload facilities and new train services to remain competitive in the logistics market[72]. - First-quarter revenues are typically lower due to winter weather conditions, with operating income also affected by seasonal fluctuations[73]. Environmental and Regulatory Compliance - The Company has a consolidated 2030 locomotive GHG emissions reduction target validated by the Science Based Targets Initiative (SBTi)[99]. - The Company established a Carbon Reduction Task Force in 2022 to evaluate and implement climate action measures to reduce GHG emissions[100]. - The Company developed North America's first line-haul hydrogen-powered freight locomotive, with two in service and two in testing as of 2024[101]. - CPKCM holds a concession from the Mexican government until June 2047, with an annual concession duty of 1.25% of gross revenues[83]. - The Company is subject to extensive federal, provincial, state, and local environmental laws and regulations, which could materially affect its financial condition[85]. - The Company has implemented an Environmental Management System to reduce environmental risk and ensure compliance with applicable laws[86]. - The Company is required to maintain operational standards for its rail lines and return assets in specified condition at the end of the concession period[84]. - The Company’s U.S. operations are subject to safety regulations enforced by the Federal Railroad Administration and the Pipeline and Hazardous Materials Safety Administration[79]. - The Company’s rail operations in Canada are subject to economic regulation by the Canadian Transportation Agency, which indirectly regulates rates[75]. Workforce and Labor Relations - As of December 31, 2024, the total number of employees was 19,797, a decrease of 130 from 19,927 in 2023[104]. - The total workforce, including contractors and consultants, was 19,924, down 114 from 20,038 in 2023[104]. - The FRA-reportable personal injury incidents rate per 200,000 employee-hours decreased by 18% to 0.95 in 2024, compared to 1.16 in 2023[113]. - The FRA-reportable train accident rate per million train-miles decreased by 5% to 1.01 in 2024, down from 1.06 in 2023[113]. - Unionized employees represent nearly 73% of the workforce, with 74 active bargaining units[106]. - In Canada, there are eight bargaining units representing approximately 7,100 unionized active employees, with three agreements open for renewal[107]. - In the U.S., there are 65 active bargaining units representing about 4,200 unionized active employees, with 62 agreements recently opened for renewal[108]. - Approximately 3,200 employees in Mexico are covered by a single labor agreement, with terms subject to annual renegotiation[109]. - The Company has been recognized as one of Alberta's Top 85 Employers for six consecutive years, highlighting its commitment to attracting and retaining talent[118]. - The Company emphasizes diversity, with 33.3% of its Board of Directors being women and 58.3% identifying as members of designated groups[125]. - The Company faces human capital risks due to the availability of qualified personnel, particularly locomotive engineers, which could adversely affect operations and financial condition[138]. - Strikes or work stoppages related to collective bargaining agreements with labor unions could disrupt operations and negatively impact financial results[139]. Financial Condition and Risks - The company has $22,623 million in indebtedness as of December 31, 2024, which may reduce liquidity and limit flexibility in responding to business opportunities[179]. - The company's operations in Mexico are subject to significant economic and political risks, including potential adverse effects from currency fluctuations, inflation, and changes in government policies[157]. - The company is exposed to climate-related risks, including severe weather events that could disrupt operations and lead to substantial costs for infrastructure modifications[165]. - The company has established a GHG emissions reduction target, which may be impacted by various risks and uncertainties, including changes in carbon markets and regulatory environments[168]. - Fluctuations in the peso-dollar exchange rate could adversely affect the company's financial statements and tax obligations, potentially increasing cash tax obligations[163]. - The company has invested significantly in developing intermodal operations, which depend on the volume of Asian shipments routed through the Port of Lázaro Cárdenas[161]. - Changes in global economic conditions and international trade policies could negatively affect demand for commodities transported by the company, impacting financial results[176]. - The company faces liquidity risks due to potential instability in capital markets, which could restrict access to financing and increase costs[178]. - The company is subject to risks related to public health crises, such as pandemics, which can create economic disruption and volatility[177]. - The company’s ability to meet debt service obligations may be adversely affected by downturns in the U.S. or Mexican economies[161]. Financial Performance - Total revenues for 2024 reached CAD 14,546 million, a 15.8% increase from CAD 12,555 million in 2023[380]. - Operating income for 2024 was CAD 5,179 million, up 18.0% from CAD 4,388 million in 2023[380]. - Net income for 2024 was CAD 3,713 million, a decrease of 5.4% compared to CAD 3,923 million in 2023[381]. - The projected benefit obligation of the Company's defined benefit pension plan was CAD 10,166 million as of December 31, 2024[375]. - The fair value of the Company's fixed rate debt would increase by approximately CAD 1.7 billion with a hypothetical one percentage point decrease in interest rates[367]. - The Company reported net interest expense of CAD 801 million for 2024, compared to CAD 771 million in 2023[380]. - Comprehensive income for 2024 was CAD 7,093 million, significantly higher than CAD 3,205 million in 2023[381]. - The Company may need to raise substantial additional financing to fund working capital and capital expenditures[184]. - The Company’s ability to comply with debt covenants is subject to various risks and uncertainties[183]. - A hypothetical one percentage point change in interest rates on the Company's floating rate debt obligations is not material as of December 31, 2024[366]. - Total assets increased to CAD 87,744 million in 2024, up from CAD 79,902 million in 2023, representing a growth of 9.2%[382]. - Net income for 2024 was CAD 3,713 million, a decrease of 5.4% from CAD 3,923 million in 2023[385]. - Cash and cash equivalents rose to CAD 739 million in 2024, compared to CAD 464 million in 2023, marking a 59% increase[385]. - Total liabilities increased to CAD 38,854 million in 2024, up from CAD 37,491 million in 2023, reflecting a growth of 3.6%[382]. - Shareholders' equity reached CAD 48,890 million in 2024, an increase of 15.5% from CAD 42,411 million in 2023[382]. - The company reported net cash provided by operating activities of CAD 5,269 million in 2024, up from CAD 4,137 million in 2023, indicating a 27.4% increase[385]. - The company paid CAD 709 million in dividends in 2024, consistent with the previous year[386]. - Additions to properties amounted to CAD 2,825 million in 2024, compared to CAD 2,468 million in 2023, representing a 14.5% increase[385]. - The company recognized other comprehensive income of CAD 3,298 million in 2024, a significant increase from a loss of CAD 709 million in 2023[386]. - The company’s long-term debt stood at CAD 19,804 million in 2024, slightly up from CAD 19,351 million in 2023, reflecting a 2.3% increase[382]. Accounting and Financial Reporting - The Company uses the expected value method to estimate variable consideration, including volume rebates, which are recognized as a reduction of freight revenues[397]. - Performance obligations are generally expected to be satisfied in the following reporting period if not fully satisfied at the end of the current reporting period[398]. - The Company follows the asset and liability method for income taxes, with deferred income tax assets and liabilities determined based on enacted tax rates[399]. - A valuation allowance is recorded to reduce deferred income tax assets if it is more likely than not that they will not be realized[400]. - The Company recognizes tax benefits from uncertain tax positions only if there is a greater than 50% likelihood of being sustained upon examination[401]. - Basic earnings per share is calculated using the weighted-average number of Common Shares outstanding during the year[403]. - Equity-method investments are initially recognized at cost and adjusted for the Company's share of income or losses[404]. - Business acquisitions involve estimates and assumptions to determine the fair values of acquired assets and liabilities, which may be adjusted during the measurement period[407].

Core Viewpoint - Canadian Pacific Kansas City (CPKC) has announced a normal course issuer bid (NCIB) to repurchase up to 37,348,539 common shares, representing approximately 4% of its outstanding shares as of February 18, 2025, with the program set to commence on March 3, 2025, and end on March 2, 2026 [1][2]. Group 1: Share Buyback Program - The NCIB aims to strengthen the balance sheet and reduce leverage following the merger of Canadian Pacific and Kansas City Southern into CPKC [2]. - CPKC's management expresses confidence in the company's ability to generate strong free cash flow and sees a pipeline of growth opportunities as a basis for reinstituting the share buyback program [2]. - The shares will be purchased through various means, including open market transactions and automatic purchase programs, with the price determined by the market at the time of purchase [2][3]. Group 2: Automatic Purchase Plan - CPKC plans to enter into an automatic purchase plan with a designated broker to facilitate share purchases during internal quarterly blackout periods [3]. - The timing and amount of purchases under this plan will be at the broker's discretion, based on parameters set by CPKC [3]. - The plan is expected to be implemented on March 3, 2025, and will be included in the total shares repurchased under the NCIB [3]. Group 3: Shareholder Returns - As of February 18, 2025, CPKC had 933,713,487 common shares issued and outstanding, with a daily purchase limit of 351,655 shares on the TSX, which is 25% of the average daily trading volume [4]. - The actual number of shares repurchased will depend on market conditions and regulatory limits, with no guarantees on the total shares acquired [5]. - CPKC believes that repurchasing shares is a beneficial use of its funds, reflecting a commitment to returning cash to shareholders [5]. Group 4: Company Overview - CPKC is the first and only single-line transnational railway linking Canada, the United States, and Mexico, providing extensive access to major ports across North America [12]. - The company operates approximately 20,000 route miles and employs 20,000 railroaders, offering a range of freight transportation services and logistics solutions [12].

Core Points - Canadian Pacific Kansas City (CPKC) will be represented by President and CEO Keith Creel at the 2025 J.P. Morgan Industrials Conference on March 13, 2025 [1] - CPKC is the first and only single-line transnational railway connecting Canada, the United States, and Mexico, providing extensive access to major ports [1] - The railway spans approximately 20,000 route miles and employs around 20,000 railroaders, offering comprehensive rail service and network reach across North America [1] - CPKC is focused on growth alongside its customers, providing a range of freight transportation services, logistics solutions, and supply chain expertise [1]

Core Insights - Canadian Pacific Kansas City (CP) is experiencing operational efficiencies due to effective cost-cutting initiatives, although it faces economic uncertainties [1] Group 1: Factors Favoring CP - CP's proactive cost-cutting measures have led to a 1% year-over-year reduction in total operating expenses in Q4 2024 [2] - Compensation and benefits expenses, which constitute 26.8% of total operating expenses, decreased by 18% year-over-year [2] - Locomotive productivity increased by 1% year-over-year, and fuel efficiency improved by 2% compared to Q4 2023, indicating a commitment to operational excellence [2] Group 2: Safety Commitment - CP has made significant strides in safety, achieving a personal injury frequency rate of 0.84 in Q4 2024, down from 1.13 in the same period of 2023 [3] Group 3: Shareholder Returns - The company has shown financial confidence by increasing dividend payouts from C$507 million in 2021 to C$707 million in 2022 and 2023 [4] - In Q4 2024, CP paid out a total dividend of C$177 million, with a quarterly dividend of 19 cents per share [4] Group 4: Key Risks - CP is facing volume-related challenges, with U.S. coal volumes dropping by 8% year-over-year due to a specific customer outage [5] - The potash sector experienced a 7% year-over-year decline in volumes due to a strike and adverse weather conditions [5] - The Metals, Minerals, and Consumer Products sector saw a 5% year-over-year drop in volumes, attributed to softer demand and production issues at a customer's facility [6] Group 5: Stock Performance - CP's shares have declined by 11.9% over the past year, compared to an 11% decline in its industry [6]

Core Points - Canadian Pacific Kansas City (CPKC) has ratified a new four-year collective agreement with Unifor, which represents mechanical employees in Canada [1][2] - The agreement is expected to provide improved wages and benefits for approximately 1,200 mechanics, laborers, diesel service attendants, and mechanical support staff, ensuring long-term labor stability [2] - This is the second collective agreement ratified by CPKC employees in Canada this year, following an agreement with Teamsters Canada Rail Conference for about 2,300 engineering services employees [3] Company Overview - CPKC is the first and only single-line transnational railway connecting Canada, the United States, and Mexico, with access to major ports across North America [4] - The company operates approximately 20,000 route miles and employs around 20,000 railroaders, providing extensive rail service and network reach [4] - CPKC is focused on growth alongside its customers, offering a range of freight transportation services, logistics solutions, and supply chain expertise [4]

Core Insights - Canadian Pacific Kansas City (CPKC) has published its 2025 Climate Mileposts report, emphasizing its commitment to sustainability and decarbonization of its locomotive fleet [1][6] - The company is focused on enhancing locomotive operating efficiency and advancing hydrogen locomotive testing as part of its long-term sustainability objectives [1][6] Sustainability Initiatives - CPKC is investing in innovative technology solutions to reduce emissions from locomotive operations [1] - The Hydrogen Locomotive Program has progressed significantly, achieving over 6,000 miles in freight service testing by the end of 2024 [6] - Plans to double the hydrogen test fleet in early 2025, adding three additional locomotives and a tender car, with four more locomotives planned for later in 2025 [6] - The company successfully conducted over 1,100 fueling events in 2024 as part of a biofuel trial in British Columbia [6] - CPKC is preparing to deliver 100 Tier 4 diesel-electric locomotives in 2025, aimed at reducing air pollutants and enhancing fuel economy [6] Company Overview - CPKC is the first and only single-line transnational railway linking Canada, the United States, and Mexico, with approximately 20,000 route miles and 20,000 employees [11] - The company provides North American customers with extensive rail service and logistics solutions, enhancing supply chain expertise [11]

Group 1 - Canadian Pacific Kansas City (CPKC) will participate in the 46th Annual Raymond James Institutional Investors Conference on March 3, 2025, at 8:05 a.m. ET [1] - The event will feature CPKC's Executive Vice-President and Chief Financial Officer Nadeem Velani, along with Senior Vice-President Ian Gray [1] - A live audio webcast of the conference will be available, with a replay accessible after the event [1] Group 2 - CPKC is the first and only single-line transnational railway connecting Canada, the United States, and Mexico, providing extensive access to major ports [2] - The railway spans approximately 20,000 route miles and employs around 20,000 railroaders, offering significant rail service and network reach across North America [2] - CPKC is focused on growth alongside its customers, providing a range of freight transportation services, logistics solutions, and supply chain expertise [2]

Core Points - Canadian Pacific Kansas City (CPKC) has ratified a new four-year collective agreement with Teamsters Canada Rail Conference Maintenance of Way Employees Division (TCRC-MWED) [1][2] - The agreement aims to provide improved wages and benefits for approximately 2,300 engineering service employees across Canada [2] - CPKC emphasizes that this agreement will bring long-term labor stability, allowing the company to operate safely and efficiently while serving customers and contributing to the Canadian economy [2] Company Overview - CPKC is the first and only single-line transnational railway connecting Canada, the United States, and Mexico, with access to major ports from Vancouver to Atlantic Canada and the Gulf of Mexico [3] - The company operates approximately 20,000 route miles and employs around 20,000 railroaders, providing extensive rail service and network reach across North America [3] - CPKC is focused on growth alongside its customers, offering a range of freight transportation services, logistics solutions, and supply chain expertise [3]

Core Points - Canadian Pacific Kansas City (CPKC) officially opened the Patrick J. Ottensmeyer International Railway Bridge, enhancing trade between the U.S. and Mexico [1] - The bridge is named after Patrick J. Ottensmeyer, the final president and CEO of Kansas City Southern, who played a significant role in its development [1][2] - The bridge, costing $100 million, more than doubles the capacity of the railway trade corridor at the U.S.-Mexico border [3] Company Overview - CPKC is the first and only single-line transnational railway linking Canada, the U.S., and Mexico, with a network of approximately 20,000 route miles [4] - The company employs 20,000 railroaders and provides extensive rail service and logistics solutions across North America [4] Bridge Features - The Ottensmeyer Bridge has a total length of 1,170 feet and includes a ballasted deck plate girder design supported by six reinforced concrete piers [5] - It allows trains to operate in both directions simultaneously, with 4,500 feet of new track added [5] - Enhanced border security measures include a new VACIS X-ray railcar inspection system and surveillance cameras [5]

CALGARY, AB, Feb. 5, 2025 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) President and Chief Executive Officer Keith Creel will address the 2025 Citi Global Industrial Tech and Mobility Conference on Feb. 18, 2025, at 2:40 p.m. ET and the 2025 Barclays Industrial Select Conference on Feb. 19, 2025, at 9:50 a.m. ET.CPKC will provide access to the live audio webcasts at investor.cpkcr.com. A replay will also be available following the conclusion of the events. Keith Creel, CPKC Pre ...