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Q2 2026 EARNINGS REVIEW July 29, 2026
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FORWARD -LOOKING STATEMENTS This investor presentation contains forward-looking information and forward-looking statements within the meaning of applicable securities laws in both the United States (“U.S.”) and Canada (collectively, "forward-looking statements"). Forward- looking statements include, but are not limited to, statements concerning expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance. Forward-looking statements may contain statements with the words or headings such as "financial expectations", "key assumptions", "anticipate", "believe", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "will", "outlook", “guidance", "should" or similar words suggesting future outcomes. All statements other than statements of historical fact may be forward-looking statements. This presentation contains forward-looking statements concerning, but not limited to, financial targets for 2024- 2028 and our ability to deliver on our 2026 financial guidance; opportunities for growth through entrepreneurial approach and the ability to continue delivering differentiated growth, our ability to deliver on our long-term value proposition; capital allocation strategies, including share repurchases and dividends; expected tax rates; expectations regarding commodity markets, volumes and contributions by business line; commercial opportunities, service offerings and pipeline development; ratification of tentative labour agreements; estimated capital expenditures; strategic initiatives and investments; the success of our business and our customers; the realization of anticipated benefits and synergies of the Canadian Pacific Railway Limited (“CP”)-Kansas City Southern (“KCS”) combination and the opportunities arising therefrom; our operations, priorities and plans (including sustainability-related targets and plans); net periodic benefit recovery in 2026; and anticipated financial and operational performance, business prospects and demand for our services and growth opportunities. The forward-looking statements contained in this presentation are based on current expectations, estimates, projections and assumptions, having regard to Canadian Pacific Kansas City Limited’s (“CPKC’s” or the “Company’s”) experience and its perception of historical trends, and include, but are not limited to, expectations, estimates, projections and assumptions relating to: changes in business strategies; North American and global economic growth and conditions; commodity demand growth; sustainable industrial and agricultural production; commodity prices and interest rates; foreign exchange rates; core adjusted effective tax rates; performance of our assets and equipment; sufficiency of our budgeted capital expenditures in carrying out our business plan; geopolitical conditions, applicable laws, regulations and government policies, including without limitation, those relating to regulation of rates, tariffs, import/export, trade, taxes, wages, labour and immigration; the availability and cost of labour, services and infrastructure; labour disruptions; the satisfaction by third parties of their obligations to CPKC; and carbon markets, evolving sustainability strategies, and scientific or technological developments. Although CPKC believes the expectations, estimates, projections and assumptions reflected in the forward-looking statements presented herein are reasonable as of the date hereof, there can be no assurance that they will prove to be correct. Current conditions, economic and otherwise, render assumptions, although reasonable when made, subject to greater uncertainty. Undue reliance should not be placed on forward-looking statements as actual results may differ materially from those expressed or implied by forward-looking statements. By their nature, CPKC's forward-looking statements involve numerous inherent risks and uncertainties that could cause actual results to differ materially from the forward looking statements, including, but not limited to, the following factors: changes in business strategies and strategic opportunities; general Canadian, U.S., Mexican and global social, economic, political, credit and business conditions; risks associated with agricultural production such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures, including competition from other rail carriers, trucking companies and maritime shippers in Canada, the U.S. and Mexico; North American and global economic growth and conditions; industry capacity; shifts in market demand; changes in commodity prices and commodity demand; uncertainty surrounding timing and volumes of commodities being shipped by CPKC; inflation; geopolitical instability; changes in laws, regulations and government policies, including, without limitation, those relating to regulation of rates, tariffs, import/export, trade, wages, labour and immigration; changes in taxes and tax rates; potential increases in maintenance and operating costs; changes in fuel prices; disruption of fuel supplies; uncertainties of investigations, proceedings or other types of claims and litigation; compliance with environmental regulations; labour disputes; changes in labour costs and labour difficulties; risks and liabilities arising from derailments; transportation of dangerous goods; timing of completion of capital and maintenance projects; sufficiency of budgeted capital expenditures in carrying out business plans; services and infrastructure; the satisfaction by third parties of their obligations; currency and interest rate fluctuations; exchange rates; effects of changes in market conditions and discount rates on the financial position of pension plans and investments; trade restrictions, including the imposition of any tariffs, or other changes to international trade arrangements; the effects of current and future multinational trade agreements on or other developments affecting the level of trade among Canada, the U.S. and Mexico; climate change and the market and regulatory responses to climate change; anticipated in-service dates; success of hedging activities; operational performance and reliability; customer, regulatory and other stakeholder approvals and support; regulatory and legislative decisions and actions; the adverse impact of any termination or revocation by the Mexican government of Kansas City Southern de México, S.A. de C.V.'s Concession; public opinion; various events that could disrupt operations, including severe weather, such as droughts, floods, avalanches, volcanism and earthquakes, and cybersecurity attacks, as well as security threats and governmental response to them, and technological changes; acts of terrorism, war or other acts of violence or crime or risk of such activities; insurance coverage limitations; material adverse changes in economic and industry conditions; the outbreak of a pandemic or contagious disease and the resulting effects on economic conditions; the demand environment for logistics requirements and energy prices; restrictions imposed by public health authorities or governments; fiscal and monetary policy responses by governments and financial institutions; disruptions to global supply chains; the realization of anticipated benefits and synergies of the CP-KCS transaction and the timing thereof; the satisfaction of the conditions imposed by the U.S. Surface Transportation Board in its March 15, 2023 decision; the successful integration of KCS into the Company; the focus of management time and attention on the CP-KCS integration and other disruptions arising from the CP-KCS integration; estimated future dividends; financial strength and flexibility; debt and equity market conditions, including the ability to access capital markets on favourable terms or at all; cost of debt and equity capital; improvement in data collection and measuring systems; industry-driven changes to methodologies; and the ability of the management of CPKC to execute key priorities, including those in connection with the CP- KCS transaction. The foregoing list of factors is not exhaustive. These and other factors that could cause actual results to differ materially from those described in the forward-looking statements contained in this presentation are detailed from time to time in reports filed by CPKC with securities regulators in Canada and the United States, which can be accessed on SEDAR+ (www.sedarplus.ca) and EDGAR (www.sec.gov). Reference should be made to "Part I - Item 1A - Risk Factors" and "Part II - Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Forward-Looking Statements" in CPKC's annual report on Form 10-K and "Part II - Item 1A – Risk Factors" and "Part I - Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations - Forward-Looking Statements" in the CPKC’s interim reports on Form 10-Q. The forward-looking statements contained in this presentation are made as of the date hereof. Except as required by law, CPKC undertakes no obligation to update publicly or otherwise revise any forward-looking statements, or the foregoing assumptions and risks affecting such forward-looking statements, whether as a result of new information, future events or otherwise.
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BASIS OF PRESENTATION & NON -GAAP MEASURES BASIS OF PRESENTATION Except where noted, all amounts are in millions of Canadian dollars. Financial information is prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), unless otherwise noted. NON-GAAP MEASURES CPKC presents Non-GAAP measures, including Core adjusted operating ratio, Core adjusted diluted earnings per share (“EPS”), FX-adjusted revenue and operating expense percent change, Core adjusted operating income, Core adjusted income and Core adjusted effective tax rate, to provide a basis for evaluating underlying earnings trends in CPKC's current periods' financial results that can be compared with the results of operations in prior periods and facilitate a multi-period assessment of long- term profitability. These Non-GAAP measures have no standardized meaning and are not defined by GAAP and, therefore, may not be comparable to similar measures presented by other companies. The presentation of these Non-GAAP measures is not intended to be considered in isolation from, as a substitute for, or as superior to the financial information presented in accordance with GAAP. Although CPKC has provided forward-looking Non-GAAP measures (Core adjusted diluted EPS, Core adjusted effective tax rate, Adjusted free cash conversion and Core adjusted return on invested capital (“ROIC”)) management is unable to reconcile, without unreasonable efforts, the forward-looking Core adjusted diluted EPS, Core adjusted effective tax rate, Adjusted free cash conversion and Core adjusted ROIC to the most comparable GAAP measures (Diluted EPS, effective tax rate, net cash provided by operating activities and Return on average shareholders’ equity), due to unknown variables and uncertainty related to future results. These unknown variables and uncertainty may include unpredictable transactions of significant value. In recent years, the Company has recognized acquisition-related costs, KCS purchase accounting, certain adjustments to provisions and settlements of Mexican taxes, changes in income tax rates, a gain on sale of an equity investment, a change to an uncertain tax item and advisory costs related to rail consolidation matters. These or other similar, large unforeseen transactions affect diluted EPS, effective tax rate, net cash flow from operating activities, and return on average shareholders' equity but may be excluded from CPKC's Core adjusted diluted EPS, Core adjusted effective tax rate, Adjusted free cash conversion, and Core adjusted ROIC. Additionally, the Canadian-to-U.S. dollar and Mexican peso-to-U.S. dollar exchange rates are unpredictable and can have a significant impact on CPKC's reported results but may be excluded from CPKC’s Core adjusted diluted EPS, Core adjusted effective tax rate, Adjusted free cash conversion and Core adjusted ROIC. For further information regarding Non-GAAP measures, including reconciliations to the most directly comparable GAAP measures, see the Non-GAAP Measures supplement to the Q2 2026 Earnings Release on our website at investor.cpkcr.com and on SEDAR+ at www.sedarplus.ca under CPKC’s SEDAR+ profile.
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KEITH CREEL PRESIDENT & CHIEF EXECUTIVE OFFICER
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Revenues $4.2 billion | +13% Operating Ratio 64.6% | +90 bps Diluted EPS $1.15 | -14% Core Adjusted Diluted EPS(1) $1.27 | +13% Core Adjusted Operating Ratio(1) 61.6% | +90 bps Revenue Ton-Miles 57,577 million | +4% ▪ Strong results driven by broad-based volume growth and disciplined execution ▪ Record service and operating performance deliver value for customers ▪ Unique network continues to unlock growth opportunities ▪ Accelerating momentum into second half of 2026 and beyond SECOND QUARTER HIGHLIGHTS (1) For a full description and reconciliation of Non-GAAP Measures, see CPKC’s Q2 2026 Earnings Release on investor.cpkcr.com and CPKC’s Q2 2026 MD&A available on SEDAR+ at www.sedarplus.ca under CPKC’s SEDAR+ profile VS. Q2 2025
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MARK REDD CHIEF OPERATING OFFICER
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OPERATING PERFORMANCE ▪ Achieved record productivity levels while delivering reliable and consistent customer service ▪ Integration benefits enhancing network visibility, coordination and execution ▪ Strategic locomotive investment improving reliability, strengthening network resilience and supporting growth ▪ Continued productivity gains are creating capacity and enabling efficient growth (1) Gross Ton-Miles 19.3 20.6 Q2'25 Q2'26 Average train speed (miles per hour) 7% Improvement 10.2 8.6 Q2'25 Q2'26 Average terminal dwell (hours) 16% Improvement 169 177 Q2'25 Q2'26 Locomotive productivity (GTMs(1) / operating horsepower) 5% Improvement 1.034 0.992 Q2'25 Q2'26 Fuel efficiency (U.S. gallons of locomotive fuel / 1,000 GTMs) 4% Improvement
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JOHN BROOKS CHIEF MARKETING OFFICER
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REVENUE HIGHLIGHTS TOTAL REVENUES +13% RTMs: +4% $/RTM: +9% Carloads: -% $/Carload: +12% FX-ADJUSTED REVENUE VARIANCE(1) VS. Q2 2025 (1) For a full description and reconciliation of Non-GAAP Measures, see CPKC’s Q2 2026 Earnings Release on investor.cpkcr.com 24% -18% 10% 12% 2% 8% 16% 19% 11% Grain Coal Potash Fertilizers & sulphur Forest products Energy, chemicals & plastics Metals, minerals & consumer Automotive Intermodal
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Q2 2023 Q2 2024 Q2 2025 Q2 2026 Q2 RTMs ex. Coal - YOY Growth Q2 2023 Q2 2024 Q2 2025 Q2 2026 Q2 RTMs - YOY Growth SUSTAINED VOLUME GROWTH THREE-YEAR RTM GROWTH REFLECTS BROAD-BASED DEMAND AND DISCIPLINED COMMERCIAL EXECUTION ▪ Broad-based growth reflects strong demand across our core franchise and key growth corridors ▪ Underlying volume trends remain strong, with RTMs excluding coal up 22% since the merger ▪ Commercial execution and synergy realization continue to drive differentiated growth ▪ A strong customer pipeline across our three-nation network supports confidence in future growth 17% Cumulative Q2 RTM Growth Since 2023 22% Cumulative Q2 RTM ex Coal Growth Since 2023 (1) 6% 7% 4% 7% 7% 8% (1) (1) Combined Commodity Data from January 1, 2023 through to April 13, 2023 was used in the determination of the RTM Growth. It has been determined through the combination of CPRL's and KCS's revenue commodity data consistent with CPKC’s definitions and line of business categories used for financial reporting purposes. For the periods starting April 14, 2023 through to the second quarter of 2026, KCS was consolidated for these periods. For a full description and reconciliation see Q2 2023 Unaudited Combined Summary of Supplemental Data on investor.cpkcr.com.
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BULK FX-ADJUSTED REVENUE VARIANCE(1) +13% VS. Q2 2025 (1) For a full description and reconciliation of Non-GAAP Measures, see CPKC’s Q2 2026 Earnings Release on investor.cpkcr.com ▪ Growth in Canadian Grain driven by a record harvest and continued growth into Mexico ▪ U.S. Grain growth from strong demand to Mexico and Pacific Northwest exports ▪ Solid supply and demand fundamentals support constructive Grain outlook for the second half of the year ▪ Healthy Potash export demand fundamentals ▪ Moderating Coal volume declines as mine production improves MARKET DRIVERS RTMs $/RTM(1) Carloads $/Carload(1) 13% -% 9% 4%
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MERCHANDISE VS. Q2 2025 (1) For a full description and reconciliation of Non-GAAP Measures, see CPKC’s Q2 2026 Earnings Release on investor.cpkcr.com FX-ADJUSTED REVENUE VARIANCE(1) +12% ▪ ECP growth from higher crude, partially offset by lower fuel oil shipments ▪ Strength in Forest products lumber synergy shipments ▪ Improving outlook for ECP and Forest products in the second half of the year ▪ MMC growth from improving steel volumes and strength in aggregate shipments driven by construction activity ▪ Automotive growth from new business wins MARKET DRIVERS RTMs $/RTM(1) Carloads $/Carload(1) 10% 2% 6% 6%
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INTERMODAL VS. Q2 2025 (1) For a full description and reconciliation of Non-GAAP Measures, see CPKC’s Q2 2026 Earnings Release on investor.cpkcr.com FX-ADJUSTED REVENUE VARIANCE(1) +11% ▪ Domestic Intermodal growth, supported by SMX service and improving truck-to-rail conversion opportunity ▪ International Intermodal lapped pull-ahead prior year comparisons ▪ Robust second half opportunity pipeline in both Domestic and International Intermodal MARKET DRIVERS 12% -1% 10% -%RTMs $/RTM(1) Carloads $/Carload(1)
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NADEEM VELANI CHIEF FINANCIAL OFFICER
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FINANCIAL PERFORMANCE Second Quarter (in millions, except percentages and per share data) 2026 2025 Change FX Adjusted Change(1) Total revenues $ 4,164 $ 3,699 13% 12% Total operating expenses 2,692 2,356 14% 13% Operating income as reported $ 1,472 $ 1,343 10% Core adjusted operating income(1) 1,601 1,453 10% Net income attributable to controlling shareholders as reported $ 1,024 $ 1,234 (17%) Core adjusted income(1) 1,123 1,036 8% Diluted earnings per share as reported $ 1.15 $ 1.33 (14%) Core adjusted diluted earnings per share(1) 1.27 1.12 13% Weighted average number of diluted shares outstanding 887.1 924.8 (4%) Operating ratio as reported 64.6% 63.7% 90 bps Core adjusted operating ratio(1) 61.6% 60.7% 90 bps (1) For a full description and reconciliation of Non-GAAP Measures, see CPKC’s Q2 2026 Earnings Release on investor.cpkcr.com and CPKC’s Q2 2026 MD&A available on SEDAR+ at www.sedarplus.ca under CPKC’s SEDAR+ profile Revenues $4.2 billion | +13% Operating Ratio 64.6% | +90 bps Core Adjusted Operating Ratio(1) 61.6% | +90 bps Diluted EPS $1.15 | -14% Core Adjusted Diluted EPS(1) $1.27 | +13%
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OPERATING EXPENSES (1) For a full description and reconciliation of Non-GAAP Measures, see CPKC’s Q2 2026 Earnings Release on investor.cpkcr.com (2) Compensation and benefits includes acquisition-related costs of $21M in Q2 2026 and $7M in Q2 2025 (3) Depreciation and amortization includes purchase accounting of $88M in Q2 2026 and $91M in Q2 2025 (4) Purchased services and other includes acquisition-related costs of $6M in Q2 2026 and $12M in Q2 2025, and advisory costs related to rail consolidation matters of $14M in Q2 2026 and $nil in Q2 2025 (in millions, except percentages) Second Quarter Change FX Adjusted Change(1)2026 2025 Compensation and benefits(2) $ 723 $ 659 10% 8% Fuel 618 405 53% 49% Materials 130 124 5% 3% Equipment rents 97 103 (6%) (6%) Depreciation and amortization(3) 519 493 5% 5% Purchased services and other(4) 605 572 6% 5% Total operating expenses $ 2,692 $ 2,356 14% 13% $2,356 $2,692 $28 $54 $4 $(6) $26 $27$203
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BELOW THE LINE (1) Net interest expense includes purchase accounting of $6M in Q2 2026 and $5M in Q2 2025 (2) Income tax expense includes tax recoveries from pre-tax significant items and purchase accounting of $35M in Q2 2026 and tax expense of $21M in Q2 2025 Second Quarter (in millions, except percentages) 2026 2025 Change Other income $ (14) $ (16) (13%) Other components of net periodic benefit recovery (110) (107) 3% Net interest expense(1) 237 208 14% Gain on sale of equity investment - (333) (100%) Income tax expense(2) 335 357 (6%)
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$1,740 $1,963 $387 $408 2025 2026 $1,454 $1,422 2025 2026 Additions to Properties $2,511 $2,702 2025 2026 Net cash provided by operating activities Share Repurchases DividendsShareholder returns CASH FLOW GENERATION ▪ Effective capital deployment: ▪ Q2 capital expenditures declined 2% ▪ On track to deliver 2026 capital outlook of $2.65B, ~15% reduction from 2025 2% Reduction $2,371 ▪ Balanced, opportunistic shareholder returns: ▪ Continued disciplined execution of 5% share repurchase program with ~37% of program completed ▪ 11% YOY increase in shareholder returns $2,127 11% Increase8% Increase YTD 2026 VS. YTD 2025 (in millions)
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INVESTOR RELATIONS CONTACTS CHRIS DE BRUYN Vice President Capital Markets, Tax and Treasurer ASHLEY THORNE Assistant Vice President Investor Relations 403-319-3591 investor@cpkcr.com investor.cpkcr.com
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2026 OUTLOOK LOW DOUBLE-DIGIT CORE ADJUSTED DILUTED EPS (1) GROWTH vs. 2025 Core adjusted diluted EPS(1) of $4.61 MID-SINGLE DIGIT RTM GROWTH CAPITAL EXPENDITURES ~$2.65B Assumptions ▪ Other components of net periodic benefit recovery will be $441M in 2026 ▪ Core adjusted effective tax rate of approximately 24.75% (1) (1) For a full description and reconciliation of Non-GAAP Measures see CPKC’s Q2 2026 Earnings Release on investor.cpkcr.com and on SEDAR+ at www.sedarplus.ca under CPKC’s SEDAR+ profile
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OUTLOOK FOR LONG -TERM GROWTH: 2024 – 2028 (1) High single-digit revenue growth Capital expenditures of $2.6 to $2.8 billion per year Return to double-digit Core adjusted ROIC(3) Adjusted free cash(2) conversion of Core adjusted income(2) of ~90% Double-digit Core adjusted EPS(2) growth Strong margin improvement through cost control and operating leverage Key Assumptions ▪ Exchange rate of $1.35 CAD/USD ▪ On-Highway Diesel price of $4.15 USD/U.S. gallon ▪ Other components of net periodic benefit recovery of $330 million to $370 million ▪ Annualized 2024 – 2028 Core adjusted effective tax rateof approximately 25.5%(2), excluding significant items (1) Outlook for Long-Term Growth as provided during CPKC’s Investor Day on June 28, 2023. Certain assumptions have changed, including higher expected CAD/USD FX, lower on-highway diesel price, higher Other components of net periodic benefit recovery and lower expected Core adjusted effective tax rate (2) For a full description and reconciliation of Non-GAAP Measures, see CPKC’s Q2 2026 Earnings Release on investor.cpkcr.com and CPKC’s Q2 2026 MD&A available on SEDAR+ at www.sedarplus.ca under CPKC’s SEDAR+ profile (3) For a full description and reconciliation of Non-GAAP Measures, see CPKC’s Q4 2024 Unaudited Combined Summary of Supplemental Data on investor.cpkcr.com
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CPKC’S SUSTAINABILITY LEADERSHIP ▪ Sustainability Disclosures and Publications ▪ Published 2025 Sustainability Data Report with environmental, social and governance data for the 2025 calendar year ▪ Published Climate Insights report in March 2026, providing an overview of CPKC’s climate governance and strategic approach to climate change, including the processes implemented to identify, assess and manage climate-related risks and opportunities ▪ Published second Climate Mileposts report in March 2026, providing an update on CPKC’s progress toward lower carbon freight rail and stronger network resilience ▪ Low carbon innovation ▪ Continuing biofuel trial in British Columbia; completed more than 1,100 fueling events consuming approximately 10.2 million liters of B20 locomotive fuel in 2025 ▪ Continue to make progress on hydrogen locomotive program ▪ Eight units in CPKC fleet testing or revenue service, as of the end of 2025 ▪ Launched Hyion Technologies, a joint venture with CSX Transportation to develop low-horsepower locomotives powered by hydrogen and fuel cell battery systems ▪ Investing in our communities - 2025 ▪ Raised >$2M and collected >175k pounds of food for foodbanks in 190 communities across our network through the annual Holiday Train Program ▪ Raised >$690k and awareness for veterans facing homelessness in Canada and the U.S. through Spin for a Veteran Advancing our commitment to sustainable, long-term growth
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OPERATING PERFORMANCE VS. Q2 2025 (1) FRA personal injuries per 200,000 employee-hours for the three months ended June 30, 2025 have been restated to reflect new information available within specified periods stipulated by the FRA but that exceed the Company's financial reporting timeline 19.3 20.6 Q2'25 Q2'26 Average train speed (miles per hour) 7% Improvement 7,844 7,812 Q2'25 Q2'26 Average train length (feet) Flat 9,187 9,294 Q2'25 Q2'26 Average train weight (tons) 1% Improvement 1.034 0.992 Q2'25 Q2'26 Fuel efficiency (U.S. gallons of locomotive fuel / 1,000 GTMs) 4% Improvement 0.73 0.96 Q2'25 Q2'26 FRA personal injuries(1) (per 200,000 employee-hours) 32% Deterioration 0.97 1.00 Q2'25 Q2'26 FRA train accident frequency (per million train-miles) 3% Deterioration
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OPERATING PERFORMANCE YTD 2026 VS. YTD 2025 (1) FRA personal injuries per 200,000 employee-hours for the six months ended June 30, 2025 have been restated to reflect new information available within specified periods stipulated by the FRA but that exceed the Company's financial reporting timeline 19.2 20.3 2025 2026 Average train speed (miles per hour) 6% Improvement 9,111 9,334 2025 2026 Average train weight (tons) 2% Improvement 1.049 1.017 2025 2026 Fuel Efficiency (U.S. gallons of locomotive fuel / 1,000 GTMs) 3% Improvement 0.85 0.94 2025 2026 FRA personal injuries(1) (per 200,000 employee-hours) 11% Deterioration 0.68 0.93 2025 2026 FRA train accident frequency (per million train-miles) 37% Deterioration 7,737 7,834 2025 2026 Average train length (feet) 1% Improvement