CPKC reports first quarter results; solid demand, precision execution and a resilient network powers strong start to 2025

PR Newswire

CALGARY, AB, April 30, 2025

CALGARY, AB, April 30, 2025 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) $(CP)$ (CPKC) today announced its first-quarter results, including revenues of $3.8 billion, diluted earnings per share (EPS) of $0.97 and core adjusted diluted EPS(1) of $1.06.

"Our talented team of world-class railroaders executed our precision scheduled operating plan to safely and efficiently move solid freight demand to start 2025, producing strong first-quarter results amidst ongoing turbulent market and macroeconomic conditions," said Keith Creel, CPKC President and Chief Executive Officer. "These first-quarter results demonstrate the power and resiliency of our unrivalled North American network."

First-quarter 2025 results

   -- Revenues increased by eight percent to $3.8 billion from $3.5 billion in 
      Q1 2024 
 
   -- Reported operating ratio $(OR)$ decreased by 210 basis points to 65.3 
      percent from 67.4 percent in Q1 2024 
 
   -- Core adjusted OR1 decreased 150 basis points to 62.5 percent from 64.0 
      percent in Q1 2024 
 
   -- Reported diluted EPS increased 17 percent to $0.97 from $0.83 in Q1 2024 
 
   -- Core adjusted diluted EPS1 increased 14 percent to $1.06 from $0.93 in Q1 
      2024 
 
   -- Volumes, as measured in Revenue Ton-Miles (RTMs), increased four percent 
 
   -- Federal Railroad Administration $(FRA)$-reportable personal injury 
      frequency decreased to 0.98 from 1.14 in Q1 20242 
 
   -- FRA-reportable train accident frequency decreased to 0.38 from 0.90 in Q1 
      20242 

"We remain focused on controlling what we can control, however, the increasing uncertainty created by evolving trade policies and the heightened risk of economic recession make it prudent to amend our 2025 earnings guidance at this time," said Creel. "CPKC's long-term value proposition remains unchanged. We will continue to operate safely and efficiently, as we deliver on our promise to provide premium service to our customers, bring new customer solutions and products to the market, and strengthen North American trade."

Updated 2025 Outlook

   -- As a result of the ongoing tariff and trade policy uncertainty, CPKC now 
      expects 2025 core adjusted diluted EPS1 to increase between 10 and 14 
      percent versus 2024 core adjusted diluted EPS1 of $4.25. 
 
(1)  These measures have no standardized meanings prescribed by accounting 
     principles generally accepted in the United States of America ("GAAP") 
     and, therefore, may not be comparable to similar measures presented by 
     other companies. For information regarding non-GAAP measures including 
     reconciliations and forward-looking non-GAAP measures, see attached 
     supplementary schedule of Non-GAAP Measures. 
(2)  The first-quarter 2024 FRA-reportable personal injury frequency and 
     FRA-reportable train accident frequency have been restated to reflect new 
     information available within specified periods stipulated by the FRA but 
     that exceed CPKC's financial reporting timeline. 
 

Conference Call Details

CPKC will discuss its results with the financial community in a conference call beginning at 4:30 p.m. ET (2:30 p.m. MT) on April 30, 2025.

Conference Call Access

Canada and U.S.: 800-274-8461

International: 203-518-9814

*Conference ID: CPKCQ125

Callers should dial in 10 minutes prior to the call.

Webcast

We encourage you to access the webcast and presentation material in the Investors section of CPKC's website at investor.cpkcr.com.

A replay of the first-quarter conference call will be available through May 7, 2025, at 800-839-5125 (Canada/U.S.) or 402-220-1502 (International).

Forward-looking information

This news release contains 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, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance. Forward-looking information may contain statements with words or headings such as "financial expectations", "key assumptions", "anticipate", "believe", "expect", "plan", "will", "outlook", "guidance", "should" or similar words suggesting future outcomes. This news release contains forward-looking information relating, but not limited, to statements concerning our ability to deliver on our financial guidance for 2025, strategic initiatives and investments, the success of our business, the realization of anticipated benefits and synergies of the CP-KCS combination, and the opportunities arising therefrom, our operations, priorities and plans, anticipated financial and operational performance, business prospects and demand for our services and growth opportunities.

The forward-looking information in this news release is based on current expectations, estimates, projections and assumptions, having regard to CPKC's experience and its perception of historical trends, and includes, but is 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; 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 information 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 information as actual results may differ materially from those expressed or implied by forward-looking information. By its nature, CPKC's forward-looking information involves inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking information, 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 via 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 in 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 or other changes to international trade arrangements; the effects of current and future multinational trade agreements on 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 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, including the availability of short and long-term financing; 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, and disruptions to global

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