CPKC(CP) - 2024 Q4 - Annual Results

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]