CANADIAN PACIFIC KANSAS CITY LTD/CN (CP) FY2025 Annual Statement of Cash Flows

Income StatementCash FlowBalance Sheet

Statement of Cash Flows

2025-01-01 to 2025-12-31

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CANADIAN PACIFIC KANSAS CITY LTD/CN cash flow reconciliation, Jan 1, 2025 through Dec 31, 2025One connected Sankey reconciles operating, investing and financing net cash flows through a shared cash pool, from beginning cash to ending cash. Ribbons flow left to right on one dollar scale. Activity totals are dark gray; beginning and ending cash are blue. Cash basis for beginning and ending balances and net cash change: Cash, cash equivalents, and restricted cash. Intermediate calculation bars are lighter gray. Net income is green for profit and red for loss. Identified asset purchases, sales and maturities are blue in either cash direction. Purple identifies capital transactions such as borrowing, repayments, share issuance and dividends. Free cash flow is a separate comparison, not an added cash flow. Read chart description and values below for full signed amounts, including zero items.Net income → Net cash from operating activities: $4,137,000,000.00Depreciation and amortization (Note 13, 15) → Operating adjustments reconciliation: $2,019,000,000.00Deferred income tax expense (recovery) (Note 11) → Operating adjustments reconciliation: $171,000,000.00Operating adjustments reconciliation → Net cash from operating activities: $1,172,000,000.00Operating adjustments reconciliation → Pension recovery and funding (Note 23): $367,000,000.00Operating adjustments reconciliation → Gain on sale of equity investment (Note 6): $333,000,000.00Operating adjustments reconciliation → Change in non-cash working capital balances related to operations (Note 22): $196,000,000.00Operating adjustments reconciliation → Other operating activities, net: $110,000,000.00Operating adjustments reconciliation → Settlement of Mexican taxes (Note 7): $12,000,000.00Proceeds from Sale of Equity Method Investments → investing reconciliation: $493,000,000.00Proceeds from sale of properties and other assets → investing reconciliation: $58,000,000.00investing reconciliation → Additions to properties: $3,102,000,000.00investing reconciliation → Other investing activities, net: $76,000,000.00investing reconciliation → Additions to Meridian Speedway properties: $38,000,000.00Net cash used in financing activities → financing reconciliation: $3,146,000,000.00Issuance of long-term debt, excluding commercial paper (Note 17) → financing reconciliation: $3,102,000,000.00Issuance of Common Shares (Note 21) → financing reconciliation: $73,000,000.00financing reconciliation → Payments for Repurchase of Common Stock: $3,942,000,000.00financing reconciliation → Repayment of Long-Term Debt, Long-Term Lease Obligation, and Capital Security: $951,000,000.00financing reconciliation → Dividends paid: $796,000,000.00financing reconciliation → Net (repayment) Issuance of commercial paper (note 17): $346,000,000.00financing reconciliation → Net (repayment) issuance in short-term borrowings (Note 17): $278,000,000.00financing reconciliation → Other financing activities, net: $8,000,000.00Net cash used in investing activities → investing reconciliation: $2,665,000,000.00Beginning cash: Cash, cash equivalents, and restricted cash → Cash sources and uses: $739,000,000.00Net cash from operating activities → Cash sources and uses: $5,309,000,000.00Cash sources and uses → Exchange-rate effect: $53,000,000.00Cash sources and uses → Ending cash: Cash, cash equivalents, and restricted cash: $184,000,000.00Cash sources and uses → Net cash used in investing activities: $2,665,000,000.00Cash sources and uses → Net cash used in financing activities: $3,146,000,000.00Settlement of foreign currency forward contracts (Note 18): $0.00Deferred income tax expense (recovery) (Note 11): $171,000,000.00Deferred income taxes+$171.00 MEquity earnings of Kansas City Southern (Note 11, 12): $0.00Pension recovery and funding (Note 23): -$367,000,000.00Pension expense, noncash−$367.00 MDividends from Kansas City Southern (Note 12): $0.00Depreciation and amortization (Note 13, 15): $2,019,000,000.00Depreciation & amortization+$2.02 BRemeasurement loss of Kansas City Southern (Note 11): $0.00Other operating activities, net: -$110,000,000.00Other operating, net−$110.00 MNet income: $4,137,000,000.00Net income+$4.14 BSettlement of Mexican taxes (Note 7): -$12,000,000.00Settlement of Mexican taxes (Note 7)−$12.00 MChange in non-cash working capital balances related to operations (Note 22): -$196,000,000.00Other current items, net−$196.00 MGain on sale of equity investment (Note 6): -$333,000,000.00Equity-method sale gain & loss−$333.00 MNet cash from operating activities: $5,309,000,000.00Operating cash+$5.31 BOperating adjustments reconciliation: $2,190,000,000.00Net (repayment) Issuance of commercial paper (note 17): -$346,000,000.00Commercial paper, net−$346.00 MIssuance of Common Shares (Note 21): $73,000,000.00Common stock issued+$73.00 MNet (repayment) issuance in short-term borrowings (Note 17): -$278,000,000.00Credit lines, net−$278.00 MPayments for Repurchase of Common Stock: -$3,942,000,000.00Common stock repurchases−$3.94 BAcquisition-related financing fees: $0.00Other financing activities, net: -$8,000,000.00Other financing, net−$8.00 MDividends paid: -$796,000,000.00Common dividends paid−$796.00 MRepayment of Long-Term Debt, Long-Term Lease Obligation, and Capital Security: -$951,000,000.00Debt & capital securities repaid−$951.00 MIssuance of long-term debt, excluding commercial paper (Note 17): $3,102,000,000.00Other long-term debt issued+$3.10 BNet cash used in financing activities: -$3,146,000,000.00. Cash required to fund net payments.Financing cash−$3.15 Bfinancing reconciliation: $6,321,000,000.00Proceeds from sale of properties and other assets: $58,000,000.00Other asset sales+$58.00 MOther investing activities, net: -$76,000,000.00Other investing, net−$76.00 MAdditions to Meridian Speedway properties: -$38,000,000.00Meridian Speedway additions−$38.00 MAdditions to properties: -$3,102,000,000.00PP&E purchases−$3.10 BProceeds from settlement of government securities (Note 17): $0.00Investment in government securities (Note 17): $0.00Cash acquired on control of Kansas City Southern (Note 11): $0.00Proceeds from Sale of Equity Method Investments: $493,000,000.00Equity-method investment sales+$493.00 MNet cash used in investing activities: -$2,665,000,000.00. Cash required to fund net payments.Investing cash−$2.67 Binvesting reconciliation: $3,216,000,000.00Cash sources and uses: $6,048,000,000.00Beginning cash: Cash, cash equivalents, and restricted cash: $739,000,000.00Beginning cash$739.00 MEnding cash: Cash, cash equivalents, and restricted cash: $184,000,000.00Ending cash$184.00 MExchange-rate effect: -$53,000,000.00FX effect−$53.00 MCASH RECONCILIATIONOperatingflowsInvestingflowsFinancingflowsFree cash flow$2.21 BOperating cash − cash spent on PP&ECash flow / Net income1.28×Operating cash flow ÷ net incomeNet cash change−$555.00 MEnding cash − beginning cash
Chart details

CANADIAN PACIFIC KANSAS CITY LTD/CN cash flow reconciliation, Jan 1, 2025 through Dec 31, 2025

Cash flows for Jan 1, 2025 through Dec 31, 2025. Cash basis: Cash, cash equivalents, and restricted cash. Beginning cash: Dec 31, 2024. Ending cash: Dec 31, 2025. Beginning and ending cash are dated balances. Positive cash flows add cash; negative cash flows reduce it.

Beginning cash on Dec 31, 2024
739,000,000 US dollars. Beginning cash: Cash, cash equivalents, and restricted cash
Operating activities
5,309,000,000 US dollars. Net cash provided.
Settlement of foreign currency forward contracts (Note 18)
0 US dollars
Deferred income tax expense (recovery) (Note 11)
171,000,000 US dollars
Equity earnings of Kansas City Southern (Note 11, 12)
0 US dollars
Pension recovery and funding (Note 23)
negative 367,000,000 US dollars
Dividends from Kansas City Southern (Note 12)
0 US dollars
Depreciation and amortization (Note 13, 15)
2,019,000,000 US dollars
Remeasurement loss of Kansas City Southern (Note 11)
0 US dollars
Other operating activities, net
negative 110,000,000 US dollars
Net income
4,137,000,000 US dollars
Settlement of Mexican taxes (Note 7)
negative 12,000,000 US dollars
Change in non-cash working capital balances related to operations (Note 22)
negative 196,000,000 US dollars
Gain on sale of equity investment (Note 6)
negative 333,000,000 US dollars
Investing activities
negative 2,665,000,000 US dollars. Net cash used.
Proceeds from sale of properties and other assets
58,000,000 US dollars
Other investing activities, net
negative 76,000,000 US dollars
Additions to Meridian Speedway properties
negative 38,000,000 US dollars
Additions to properties
negative 3,102,000,000 US dollars
Proceeds from settlement of government securities (Note 17)
0 US dollars
Investment in government securities (Note 17)
0 US dollars
Cash acquired on control of Kansas City Southern (Note 11)
0 US dollars
Proceeds from Sale of Equity Method Investments
493,000,000 US dollars
Financing activities
negative 3,146,000,000 US dollars. Net cash used.
Net (repayment) Issuance of commercial paper (note 17)
negative 346,000,000 US dollars
Issuance of Common Shares (Note 21)
73,000,000 US dollars
Net (repayment) issuance in short-term borrowings (Note 17)
negative 278,000,000 US dollars
Payments for Repurchase of Common Stock
negative 3,942,000,000 US dollars
Acquisition-related financing fees
0 US dollars
Other financing activities, net
negative 8,000,000 US dollars
Dividends paid
negative 796,000,000 US dollars
Repayment of Long-Term Debt, Long-Term Lease Obligation, and Capital Security
negative 951,000,000 US dollars
Issuance of long-term debt, excluding commercial paper (Note 17)
3,102,000,000 US dollars
Operating adjustment reconciliation
2,190,000,000 US dollars. Intermediate calculation joining the operating reconciliation branches. Its gross amount includes any portion of net income routed through this junction. It is not an additional cash source or use.
financing gross reconciliation
6,321,000,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
investing gross reconciliation
3,216,000,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
Exchange-rate effect
negative 53,000,000 US dollars
Ending cash on Dec 31, 2025
184,000,000 US dollars. Ending cash: Cash, cash equivalents, and restricted cash
Cash sources and uses
6,048,000,000 US dollars. Opening cash plus net sources, equal to net uses plus ending cash.
Net cash change
negative 555,000,000 US dollars. Ending cash minus beginning cash.
Cash flow / Net income
1.28×. Operating cash flow divided by reconciliation net income for the same period. Black from 0.90× through 1.10×; green above 1.10×; red below 0.90×. Color uses the unrounded ratio.
Operating cash flow
5,309,000,000 US dollars. Operating cash flow used in the free cash flow calculation.
Cash purchases of property, plant and equipment
3,102,000,000 US dollars. These cash purchases are already included in investing activities above.
Free cash flow
2,207,000,000 US dollars. A supplemental measure; finance-lease payments are excluded from this definition.

Chart connections

  • Beginning cash plus operating, investing and financing cash flows plus the exchange-rate effect equals ending cash. Negative amounts reduce cash.
  • Financing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Investing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Operating reconciliation adjustments are not all independent cash receipts.
  • Net income enters operating cash directly in the reconciliation. The adjustment junction contributes the remaining $1.17B after reconciling the other positive and negative adjustments. These connections depict an accounting reconciliation, not traced cash receipts.
  • Each activity has one net cash bar connected to the shared cash pool. Positive activity totals enter the pool; negative activity totals leave the pool to fund that activity's net payments. The central pool does not assign a particular funding source to a particular payment.
  • The intermediate calculation bars include both sides of the displayed activity breakdowns; they are not additional cash flows.
  • Operating cash flow minus cash purchases of property, plant and equipment equals free cash flow: 5,309,000,000 US dollars minus 3,102,000,000 US dollars equals 2,207,000,000 US dollars.
CANADIAN PACIFIC KANSAS CITY LTD/CN (CP) FY2025 Annual Statement of Cash Flows Sankey chart
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