Core Points - Canadian Pacific Kansas City (CPKC) has awarded Cargill Elva in Canada and Elbow Lake Co-op Grain in the United States as the grain elevators of the year for the 2023-2024 crop year [1][2] - The award recognizes facilities that efficiently move high volumes from a single loading point while maintaining a strong commitment to safety [2][3] - Cargill Elva, located in Melita, Manitoba, is a first-time winner, having loaded over 450,000 metric tonnes of grain [3][4] - Elbow Lake Co-op Grain, based in Elbow Lake, Minnesota, has won the award for three consecutive years, achieving the highest tonnage in the U.S. north network with over 543,000 metric tonnes, an increase from the previous year [4][5] Company Insights - CPKC is the first and only single-line transnational railway connecting Canada, the United States, and Mexico, with extensive access to major ports [6] - The company operates approximately 20,000 route miles and employs 20,000 railroaders, providing comprehensive rail service and network reach across North America [6] - CPKC is focused on growth alongside its customers, offering a range of freight transportation services, logistics solutions, and supply chain expertise [6]

Core Points - Canadian Pacific Kansas City (CPKC) has filed its 2024 annual report on Form 10-K with the U.S. Securities and Exchange Commission and Canadian securities regulators [1] - The report includes annual audited financial statements and management's discussion and analysis [1] - Shareholders can request a printed copy of the complete 2024 audited financial statements free of charge [1] Company Overview - CPKC is the first and only single-line transnational railway linking Canada, the United States, and Mexico [2] - The railway stretches approximately 20,000 route miles and employs 20,000 railroaders [2] - CPKC provides North American customers with unparalleled rail service and network reach to key markets across the continent [2] - The company is focused on growth, offering a suite of freight transportation services, logistics solutions, and supply chain expertise [2]

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]