CALGARY, AB, Jan. 28, 2026 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) $(CP)$ (CPKC) today announced its fourth-quarter results, including revenues of $3.9 billion, diluted earnings per share (EPS) of $1.20 and core adjusted diluted EPS(1) of $1.33.

Fourth-quarter 2025 results

   -- Revenues increased one percent to $3.9 billion 
 
   -- Reported operating ratio $(OR)$ decreased 80 basis points (bps) to 58.9 
      percent, a CPKC record 
 
   -- Record CPKC core adjusted OR1 of 55.9 percent, a 120 bps improvement 
 
   -- Reported diluted EPS decreased to $1.20 from $1.28 in Q4 2024 
 
   -- Core adjusted diluted EPS1 increased three percent to $1.33 from $1.29 in 
      Q4 2024 
 
   -- Record CPKC Q4 operating metrics in train weights, network speed, 
      locomotive productivity and car miles per car day 

"Our fourth quarter and full year results demonstrate exceptional execution in a challenging market by controlling what we could control," said Keith Creel, CPKC President and Chief Executive Officer. "Despite macroeconomic and trade policy headwinds in 2025, our Precision Scheduled Railroading model again enabled us to control costs and deliver a record core adjusted operating ratio while capitalizing on our unique growth opportunities."

Full-year 2025 results

   -- Revenues increased four percent to $15.1 billion from $14.5 billion in 
      2024 
 
   -- Reported OR decreased 160 bps to 62.8 percent 
 
   -- Core adjusted OR1 improved to a CPKC record-low 59.9 percent, a 140 bps 
      improvement year over year 
 
   -- Reported diluted EPS increased to $4.51 from $3.98 in 2024 
 
   -- Core adjusted diluted EPS1 increased eight percent to $4.61 from $4.25 in 
      2024 
 
   -- Federal Railroad Administration $(FRA)$-reportable personal injury 
      frequency decreased to 0.92 from 0.95 in 2024 
 
   -- FRA-reportable train accident frequency decreased to 0.85 from 1.01 in 
      2024 

In 2025, for the third consecutive year, CPKC led the industry with the lowest FRA-reportable train accident frequency among Class 1 railroads, building on Canadian Pacific's legacy of 17 consecutive years of industry leadership.

"Safety is at the core of everything that we do, and our performance reflects the dedication of our railroaders and their unwavering focus on operational excellence," Creel added. "Looking ahead to 2026, record grain harvests and a pipeline of unique growth opportunities position this company to continue producing differentiated results."

Full-year 2026 Guidance

   -- Low double-digit core adjusted diluted EPS1 growth versus 2025 core 
      adjusted diluted EPS1 of $4.61 
 
   -- Mid-single digit volume growth, as measured in Revenue Ton Miles 
 
   -- Capital expenditures of $2.65 billion, a reduction of approximately 15% 
      from 2025 

CPKC's guidance is based on the following key assumptions:

   -- Core adjusted effective tax rate1 of 24.75 percent 
 
   -- Other components of net periodic benefit recovery will be $441 million in 
      2026 
 
(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. 
 

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 January 28, 2026.

Conference Call Access

Canada and U.S.: 800-245-3047

International: 203-518-9765

*Conference ID: CPKCQ425

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 fourth-quarter conference call will be available through Feb. 4, 2026, at 800-839-5125 (Canada/U.S.) or 402-220-1502 (International).

Forward-looking statements

This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws in both the 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 news release contains forward-looking statements concerning, but not limited to, our ability to deliver on our financial guidance for 2026, our ability to deliver on our long-term value proposition, strategic initiatives and investments, the success of our business and our customers, 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 statements contained in this news release are based on current expectations, estimates, projections and assumptions, having regard to CPKC'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,

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