CPKC Files Q2 2024 10-Q Report

TL;DR

**CPKC Q2 2024 10-Q FILED: Financials and operations detailed for the quarter ending June 30.**

AI Summary

Canadian Pacific Kansas City Ltd. (CPKC) filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Key financial metrics and business segments are presented, reflecting the company's ongoing activities and strategic positioning in the rail transportation industry.

Why It Matters

This report provides investors and analysts with crucial financial data and operational insights into CPKC's performance during the second quarter of 2024, impacting investment decisions and market analysis.

Risk Assessment

Risk Level: medium — As a major transportation company, CPKC is subject to various economic, regulatory, and operational risks inherent in the rail industry.

Key Numbers

• 2024 Q2 — Reporting Period (Indicates the second quarter of 2024 financial reporting.)
• 1231 — Fiscal Year End (Specifies the company's fiscal year concludes on December 31st.)

Key Players & Entities

• CANADIAN PACIFIC KANSAS CITY LTD/CN (company) — Filer
• 0000016875 (company) — Central Index Key
• 20240630 (date) — Period of Report
• 20240731 (date) — Filed as of Date

FAQ

Filing Documents

• cp-20240630.htm (10-Q) — 1668KB
• exhibit102q22024.htm (EX-10.2) — 9KB
• exhibit221q22024.htm (EX-22.1) — 9KB
• exhibit311q22024.htm (EX-31.1) — 11KB
• exhibit312q22024.htm (EX-31.2) — 11KB
• exhibit321q22024.htm (EX-32.1) — 7KB
• exhibit322q22024.htm (EX-32.2) — 7KB
• 0000016875-24-000026.txt ( ) — 7181KB
• cp-20240630.xsd (EX-101.SCH) — 49KB
• cp-20240630_cal.xml (EX-101.CAL) — 87KB
• cp-20240630_def.xml (EX-101.DEF) — 262KB
• cp-20240630_lab.xml (EX-101.LAB) — 560KB
• cp-20240630_pre.xml (EX-101.PRE) — 370KB
• cp-20240630_htm.xml (XML) — 935KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Page

Financial Statements

Item 1. Financial Statements: Interim Consolidated Statements of Income (Unaudited) 2 For the Three and Six Months Ended June 30, 2024 and 2023 Interim Consolidated Statements of Comprehensive Income (Unaudited) 3 For the Three and Six Months Ended June 30, 2024 and 2023 Interim Consolidated Balance Sheets (Unaudited) 4 As at June 30, 2024 and December 31, 2023 Interim Consolidated Statements of Cash Flows (Unaudited) 5 For the Three and Six Months Ended June 30, 2024 and 2023 Interim Consolidated Statements of Changes in Equity (Unaudited) 6 For the Three and Six Months Ended June 30, 2024 and 2023 Notes to Interim Consolidated Financial Statements (Unaudited) 7

Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Executive Summary 20 Performance Indicators 20 Financial Highlights 21 Results of Operations 21 Liquidity and Capital Resources 33 Share Capital 37 Non-GAAP Measures 37 Critical Accounting Estimates 41

Forward-Looking Statements 42

Forward-Looking Statements 42

Quantitative and Qualitative Disclosures about Market Risk 44

Item 3. Quantitative and Qualitative Disclosures about Market Risk 44

Controls and Procedures 45

Item 4. Controls and Procedures 45

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings 46

Item 1. Legal Proceedings 46

Risk Factors 46

Item 1A. Risk Factors 46

Unregistered Sales of Equity Securities and Use of Proceeds 46

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 46

Defaults Upon Senior Securities 46

Item 3. Defaults Upon Senior Securities 46

Mine Safety Disclosures 46

Item 4. Mine Safety Disclosures 46

Other Information 46

Item 5. Other Information 46

Exhibits 47

Item 6. Exhibits 47 Signature 48 PART I

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS INTERIM CONSOLIDATED STATEMENTS OF INCOME (unaudited) For the three months ended June 30 For the six months ended June 30 (in millions of Canadian dollars, except share and per share data) 2024 2023 2024 2023 Revenues (Note 3) Freight $ 3,534 $ 3,101 $ 6,961 $ 5,318 Non-freight 69 73 162 122 Total revenues 3,603 3,174 7,123 5,440 Operating expenses Compensation and benefits (Note 8) 612 659 1,302 1,097 Fuel 466 397 924 723 Materials (Note 8) 97 98 191 170 Equipment rents 82 80 164 110 Depreciation and amortization (Note 8) 473 410 940 635 Purchased services and other (Note 8) 606 586 1,186 932 Total operating expenses 2,336 2,230 4,707 3,667 Operating income 1,267 944 2,416 1,773 Less: Equity earnings of Kansas City Southern (Note 8, 9) — ( 26 ) — ( 230 ) Other (income) expense (Note 8, 10) ( 40 ) 21 ( 42 ) 23 Other components of net periodic benefit recovery (Note 12) ( 88 ) ( 83 ) ( 176 ) ( 169 ) Net interest expense (Note 8) 200 204 406 358 Remeasurement loss of Kansas City Southern (Note 8) — 7,175 — 7,175 Income (loss) before income tax expense (recovery) 1,195 ( 6,347 ) 2,228 ( 5,384 ) Less: Current income tax expense (Note 4) 274 281 516 419 Deferred income tax expense (recovery) (Note 4, 8) 18 ( 7,953 ) 35 ( 7,928 ) Income tax expense (recovery) (Note 4) 292 ( 7,672 ) 551 ( 7,509 ) Net income $ 903 $ 1,325 $ 1,677 $ 2,125 Less: Net (loss) income attributable to non-controlling interest (Note 8) ( 2 ) 1 ( 3 ) 1 Net income attributable to controlling shareholders $ 905 $ 1,324 $ 1,680 $ 2,124 Earnings per share (Note 5) Basic earnings per share $ 0.97 $ 1.42 $ 1.80 $ 2.28 Diluted earnings per share $ 0.97 $ 1.42 $ 1.80 $ 2.28 Weighted-average number of shares (millions) (Note 5) Basic 932.8 931.2 932.6 930.9 Diluted 934.6 933.8 934.5 933.6 Dividends declared per share $ 0.19 $ 0.19 $ 0.38 $ 0.38 See Notes to Interim Consolidated Financial Statements. 2 INTERIM CONSOLI

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