Mr. Keith Creel reports

CPKC REPORTS THIRD-QUARTER RESULTS

Canadian Pacific Kansas City Ltd. has released its third quarter results, including revenues of $3.3-billion, diluted earnings per share (EPS) of 84 cents and core adjusted combined diluted EPS of 92 cents.

"We are now more than six months into the CPKC story, and I am pleased with the progress we continue to make in unlocking the value of this unrivalled truly North American network," said Keith Creel, president and chief executive officer of CPKC. "While we encountered challenges this quarter due to a softer macroeconomic environment and external labour disruptions, we remain focused on safely delivering for our customers across this powerful franchise."

Third quarter 2023 results:

• Reported operating ratio (OR) increased by 540 basis points to 64.9 per cent from 59.5 per cent in Q3 2022.
• Core adjusted combined OR increased 190 basis points to 61.7 per cent from 59.8 per cent in Q3 2022.
• Reported diluted EPS decreased to 84 cents from 96 cents in Q3 2022.
• Core adjusted combined diluted EPS decreased to 92 cents from $1.01 in Q3 2022.
• FRA-reportable (Federal Railroad Administration) train accident frequency declined 9 per cent to 1.30 from 1.43 in Q3 2022 on a combined basis.
• FRA-reportable personal injury frequency declined 35 per cent to 0.97 from 1.50 in Q3 2022 on a combined basis.

2023 guidance update:

• CPKC now expects core adjusted combined diluted EPS to be flat to slightly positive versus 2022 core adjusted combined diluted EPS of $3.77.

"Economic headwinds and other near-term challenges, including the Port of Vancouver strike, have weighed on volumes more than we anticipated; therefore, we are adjusting our near-term guidance accordingly," Mr. Creel added. "Our enthusiasm for this combination and the long-term value it will produce remains unchanged as we stay focused on executing CPKC's unique and undeniable growth opportunities."

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 Oct. 25, 2023.

Conference call access

Canada and United States:   800-225-9448

International:   203-518-9708

Conference ID:  CPKCQ323

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 conference call will be available by phone through to Nov. 1, 2023, at 800-757-4764 (Canada/U.S.) or 402-220-7226 (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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