Mr. Keith Creel reports

CPKC REPORTS SECOND-QUARTER RESULTS; FOCUSED ON DELIVERING ON BENEFITS OF NEW COMBINED NETWORK

Canadian Pacific Kansas City Ltd. has released its second quarter results, including revenues of $3.2-billion, diluted earnings per share (EPS) of $1.42 and core adjusted combined diluted EPS of 83 cents.

"This quarter, we made history by completing our transformational combination to create the first single-line transnational railroad linking Canada, the United States and Mexico," said Keith Creel, president and chief executive officer of CPKC. "By uniting the outstanding railroaders at Canadian Pacific and Kansas City Southern to form our new CPKC family, we already are changing the freight rail industry, redrawing the map and delivering on the many benefits of our combined network."

Second quarter 2023 results:

• Reported operating ratio (OR) increased by 970 basis points to 70.3 per cent from 60.6 per cent in Q2 2022.
• Core adjusted combined OR increased 430 basis points to 64.6 per cent from 60.3 per cent in Q2 2022.
• Reported diluted EPS increased to $1.42 from 82 cents in Q2 2022 due to the net impact of the derecognition of the investment in Kansas City Southern (KCS) upon consolidation.
• Core adjusted combined diluted EPS decreased to 83 cents from 95 cents in Q2 2022.
• Federal Railroad Administration reportable train accident frequency declined 32 per cent to 0.76 from 1.11 in Q2 2022.

"Despite the challenging results, we still expect to deliver mid-single-digit core adjusted combined diluted EPS growth in 2023," Mr. Creel added. "The long-term growth opportunities for this franchise are unique and undeniable. With our CPKC advantage, we are extending our reach for our customers, introducing new service offerings to the marketplace and creating new competition in North American supply chains."

2023 guidance

CPKC expects core adjusted combined diluted EPS to grow mid-single-digits versus 2022 core adjusted combined diluted EPS of $3.77. CPKC's reported diluted EPS was also $3.77 in 2022.

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 July 27, 2023.

Conference call access

Canada and United States:  800-225-9448

International:  203-518-9708

Conference ID:  CPQ223

Callers should dial in 10 minutes prior to the call.

Webcast

The company encourages you to access the webcast and presentation material in the investors section of CPKC's website.

A replay of the second quarter conference call will be available by phone through to Aug. 4, 2023, at 800-839-2434 (Canada/United States) or 402-220-7211 (international).

About Canadian Pacific Kansas City Ltd.

With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and Mexico, with unrivalled access to major ports from Vancouver to Atlantic Canada to the Gulf of Mexico to Lazaro Cardenas, Mexico. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise.

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