CALGARY, AB, Feb. 5, 2025 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today said it has reached a tentative four-year collective agreement with United Steelworkers (USW) representing clerical and intermodal employees in Canada."We are very pleased to have reached another collective agreement at the bargaining table, our third tentative agreement this year in Canada," said Keith Creel, CPKC President and Chief Executive Officer. "Working together with the United Steelworkers, we'v ...

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Group 1 - Canadian Pacific Kansas City Limited (CPKC) held its Fourth Quarter and Full Year 2024 Conference Call on January 29, 2025 [1] - The call featured key company participants including the President and CEO, EVP and COO, and EVP and CFO [1][2] - The presentation included forward-looking information and non-GAAP measures, with actual results potentially differing from projections [3][4] Group 2 - Supplemental Q4 and full-year combined revenue and operating performance data is available for investors [4]

Core Insights - Canadian Pacific Kansas City (CP) reported a revenue of $2.77 billion for Q4 2024, reflecting a slight year-over-year decline of 0.2% but exceeding the Zacks Consensus Estimate by 1.91% [1] - The earnings per share (EPS) for the same quarter was $0.92, up from $0.87 a year ago, representing a surprise of 5.75% over the consensus estimate [1] Financial Performance Metrics - The adjusted operating ratio was reported at 57.1%, better than the average estimate of 57.8% from eight analysts [4] - Total carloads amounted to 1.12 million, slightly below the average estimate of 1.14 million [4] - Revenue ton miles (RTMs) totaled 55.97 billion, surpassing the average estimate of 53.37 billion from four analysts [4] Stock Performance - Over the past month, shares of Canadian Pacific Kansas City have returned +9.4%, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Q4 2024 EARNINGS REVIEW January 29, 2025 FORWARD-LOOKING STATEMENTS This investor presentation may contain certain forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws in both the U.S. and Canada. Forward-looking information includes, but is not limited to, statements concerning expectations, beliefs, targets, plans, goals, objectives, assumptions and statements about possible future events, conditions, and ...

Group 1 - Canadian Pacific Kansas City (CP) reported quarterly earnings of $0.92 per share, exceeding the Zacks Consensus Estimate of $0.87 per share, and showing an increase from $0.87 per share a year ago, representing an earnings surprise of 5.75% [1] - The company posted revenues of $2.77 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.91%, with year-ago revenues also at $2.77 billion [2] - Canadian Pacific Kansas City shares have increased approximately 9.4% since the beginning of the year, outperforming the S&P 500's gain of 3.2% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $0.77 on revenues of $2.67 billion, and for the current fiscal year, it is $3.53 on revenues of $11.11 billion [7] - The Zacks Industry Rank indicates that the Transportation - Rail sector is currently in the bottom 42% of over 250 Zacks industries, suggesting that the industry's outlook can significantly impact stock performance [8]

Earnings Per Share (EPS) and Growth Expectations - Core adjusted combined diluted EPS growth expected to be 12-18% in 2025, based on Core adjusted combined diluted EPS of $4.25 in 2024[48] - CPKC expects mid single-digit RTM growth in 2025[48] - CPKC's Core adjusted combined diluted EPS is calculated using GAAP-based Diluted EPS adjusted for significant items less KCS purchase accounting[52] Capital Investment and Financial Adjustments - CPKC plans to invest approximately $2.9 billion in capital programs in 2025, driven by a higher expected USD/CAD FX rate[48] - Core adjusted combined operating ratio and Core adjusted combined diluted EPS exclude KCS purchase accounting, which includes amortization of basis differences and fair value adjustments[47] - Core adjusted effective tax rate is a Non-GAAP measure, calculated as the effective tax rate adjusted for significant items and excludes KCS purchase accounting[50] Impact of Acquisition and Tax Adjustments on EPS - Acquisition-related costs of $112 million in 2023 unfavourably impacted Diluted EPS by 9 cents[53] - Deferred income tax recovery of $81 million in 2023 due to changes in tax rates favourably impacted Diluted EPS by 9 cents[53] - Remeasurement loss of KCS of $7,175 million in 2023 unfavourably impacted Diluted EPS by $7.68[53] - Adjustments to provisions and settlements of Mexican taxes of $4 million recovery in 2023 had minimal impact on Diluted EPS[53]

Core Insights - Canadian Pacific Kansas City (CPKC) reported strong fourth-quarter results with revenues of $3.9 billion, a diluted EPS of $1.28, and a core adjusted combined diluted EPS of $1.29, reflecting a solid performance in the rail industry [1][10]. Financial Performance - In Q4 2024, revenues increased by 3% to $3.9 billion from $3.8 billion in Q4 2023 [10]. - The reported operating ratio (OR) improved, decreasing by 210 basis points to 59.7% from 61.8% in Q4 2023 [10]. - Core adjusted combined OR decreased by 160 basis points to 57.1% from 58.7% in Q4 2023 [10]. - Reported diluted EPS rose to $1.28 from $1.10 in Q4 2023, while core adjusted combined diluted EPS increased by 9% to $1.29 from $1.18 [10]. - For the full year 2024, CPKC achieved a net income of $3.713 billion, compared to $3.923 billion in 2023 [15]. Operational Highlights - CPKC led the industry with the lowest Federal Railroad Administration (FRA)-reportable train accident frequency among Class 1 railroads for the second consecutive year, continuing a legacy of 17 years of industry leadership [3]. - The company expects continued strong earnings growth in 2025, consistent with multi-year guidance provided at the 2023 Investor Day [4]. Capital Expenditures and Guidance - CPKC plans capital expenditures of $2.9 billion for 2025, reflecting an increase compared to 2024, driven by a higher expected USD/CAD FX rate [10]. - The company anticipates core adjusted diluted EPS to increase between 12% and 18% compared to 2024 core adjusted combined diluted EPS of $4.25 [10]. Company Overview - CPKC operates a transcontinental freight railway spanning Canada, the U.S., and Mexico, providing rail and intermodal transportation services over a network of approximately 20,000 miles [21][22].

Core Points - Canadian Pacific Kansas City (CPKC) has reached a tentative four-year collective agreement with the Teamsters Canada Rail Conference Maintenance of Way Employees Division (TCRC-MWED) [1][2] - The agreement is aimed at benefiting approximately 2,300 engineering service employees across Canada [2] - Details of the agreement will remain confidential until ratification [3] Company Overview - CPKC is the first and only single-line transnational railway connecting Canada, the United States, and Mexico, with extensive access to major ports [4] - The company operates approximately 20,000 route miles and employs around 20,000 railroaders [4] - CPKC offers a range of freight transportation services, logistics solutions, and supply chain expertise to its North American customers [4]