Financial Analysis

"Business acquisition On December 14, 2021, the Company purchased 100% of the issued and outstanding shares of KCS with the objective of creating the only single-line railroad linking the U.S., Mexico and Canada, and the Company placed the shares of KCS in a voting trust. On March 15, 2023, the U.S. Surface Transportation Board approved the Company and KCSs joint merger application, and the Company assumed control of KCS on the Control Date. From December 14, 2021 to April 13, 2023, the Company recognized its investment in KCS using the equity method of accounting. Accordingly, the Company commenced consolidation of KCS on the Control Date, accounting for the acquisition as a business combination achieved in stages. The results from operations and cash flows have been consolidated prospectively from the Control Date. The Company derecognized its previously held equity method investment in KCS of $44,402 million as at April 13, 2023 and remeasured the investment at its Control Date fair value of $37,227 million, which formed part of the purchase consideration, resulting in a remeasurement loss of $7,175 million recognized in the second quarter of 2023. In addition, and on the same date, a deferred income tax recovery of $7,832 million was recognized upon the derecognition of the deferred income tax liability computed on the outside basis that the Company had recognized in relation to its investment in KCS while accounted for using the equity method. The accounting for the acqu …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"Commitments and contingencies Commitments At December 31, 2025, the Company had commitments amounting to $4,397 million, for investments in the Celaya-NBA Line Railway Bypass and the Concession, other capital expenditures, bulk fuel, locomotive maintenance and overhaul, and other goods and services. These commitments are for the years 2026-2033. Annual maturities and principal repayments of debt for the next five years and thereafter are provided in Note 17. Commitments related to leases, including minimum annual payments for the next five years and thereafter, are included in Note 20. Litigation In the normal course of its operations, the Company becomes involved in various legal actions, including claims relating to injuries and damage to property. The Company maintains provisions it considers to be adequate for such actions. While the final outcome with respect to actions outstanding or pending as at December 31, 2025 cannot be predicted with certainty, it is the opinion of management that their resolution will not have a material adverse effect on the Companys business, financial position, results of operations, or liquidity. However, an unexpected adverse resolution of one or more of these legal actions could have a material adverse effect on the Company's business, financial position, results of operations, or liquidity in a particular quarter or fiscal year. Legal proceedings related to Lac-Megantic rail accident On July 6, 2013, a train carrying petroleum crude oil o …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt The following table outlines the Company's outstanding long-term debt as at December 31, 2025: (in millions of Canadian dollars except percentages) Maturity Currency in which payable 2025 2024 2.90% 10-year Notes (A) Feb 2025 U.S.$ $ $ 924 3.70% 10.5-year Notes (A) Feb 2026 U.S.$ 343 360 3.125% 10-year Notes (A) Jun 2026 U.S.$ 309 320 1.75% 5-year Notes (A) Dec 2026 U.S.$ 1,370 1,438 2.54% 6.3-year Notes (A) Feb 2028 CDN$ 1,200 1,200 4.00% 10-year Notes (A) Jun 2028 U.S.$ 685 719 3.15% 10-year Notes (A) Mar 2029 CDN$ 400 400 2.875% 10-year Notes (A) Nov 2029 U.S.$ 533 551 2.05% 10-year Notes (A) Mar 2030 U.S.$ 685 719 4.80% 5-year Notes (A) Mar 2030 U.S.$ 821 7.125% 30-year Debentures (A) Oct 2031 U.S.$ 480 503 2.45% 10-year Notes (A) Dec 2031 U.S.$ 1,918 2,014 4.00% 7-year Notes (A) Jun 2032 CDN$ 500 5.75% 30-year Debentures (A) Mar 2033 U.S.$ 339 355 5.20% 10-year Notes (A) Mar 2035 U.S.$ 818 4.80% 20-year Notes (A) Sep 2035 U.S.$ 410 431 4.40% 10.5-year Notes (A) Jan 2036 CDN$ 600 5.95% 30-year Notes (A) May 2037 U.S.$ 612 642 6.45% 30-year Notes (A) Nov 2039 CDN$ 400 400 3.00% 20-year Notes (A) Dec 2041 U.S.$ 1,365 1,433 5.75% 30-year Notes (A) Jan 2042 U.S.$ 338 355 4.30% 30-year Notes (A) May 2043 U.S.$ 539 563 4.80% 30-year Notes (A) Aug 2045 U.S.$ 752 790 4.95% 30-year Notes (A) Aug 2045 U.S.$ 597 626 4.70% 30-year Notes (A) May 2048 U.S.$ 623 653 3.05% 30-year Notes (A) Mar 2050 CDN$ 298 298 3.50% 30-year Notes (A) May 2050 U.S.$ 566 591 3.10% 30-year Notes (A) …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents disaggregated information about the Companys revenues from contracts with customers by major source: For the year ended December 31 (in millions of Canadian dollars) 2025 2024 2023 Grain $ 3,217 $ 3,012 $ 2,496 Coal 1,025 943 859 Potash 640 614 566 Fertilizers and sulphur 423 406 385 Forest products 792 816 696 Energy, chemicals and plastics 2,898 2,851 2,301 Metals, minerals and consumer products 1,792 1,777 1,579 Automotive 1,310 1,280 934 Intermodal 2,679 2,524 2,465 Total freight revenues 14,776 14,223 12,281 Non-freight excluding leasing revenues 193 191 161 Revenues from contracts with customers 14,969 14,414 12,442 Leasing revenues 109 132 113 Total revenues $ 15,078 $ 14,546 $ 12,555 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"Stock-based compensation At December 31, 2025, the Company had several stock-based co mpensation plans including a stock options plan, various cash-settled liability plans, and an employee share purchase plan. These plans resulted in an expense of $59 million in 2025 (2024 - $108 million; 2023 - $122 million) and the total tax benefit related to these plans was $14 million in 2025 (2024 - $26 million; 2023 - $27 million). A. Stock options plan The following table summarizes the activity related to the stock options during 2025: Options outstanding Non-vested options Number of stock options Weighted-average exercise price Number of stock options Weighted-average grant date fair value Outstanding, January 1, 2025 5,734,600 $ 86.59 2,043,630 $ 27.68 Granted 967,335 $ 107.65 967,335 $ 28.81 Exercised (1,395,289) $ 52.19 N/A N/A Vested N/A N/A (879,620) $ 25.25 Forfeited (33,387) $ 89.76 (33,387) $ 23.86 Outstanding, December 31, 2025 5,273,259 $ 96.68 2,097,958 $ 29.32 Vested or expected to vest at December 31, 2025 (1) 5,228,360 $ 96.59 N/A N/A Exercisable, December 31, 2025 3,175,301 $ 89.02 N/A N/A (1) As at December 31, 2025, the weighted-average remaining term of vested or expected to vest options was 3.5 years with an aggregate intrinsic value of $44 million . The following table provides the number of stock options outstanding and exercisable as at December 31, 2025 by range of exercise price and their related intrinsic aggregate value, and for stock options outstanding, …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"Income taxes The following is a summary of the major components of the Companys income tax expense (recovery): For the year ended December 31 (in millions of Canadian dollars) 2025 2024 2023 Current income tax expense $ 1,174 $ 1,031 $ 909 Deferred income tax expense (recovery) Reversal of outside basis deferred income tax (Note 11) (7,832) Origination and reversal of temporary differences 214 65 53 Effect of tax rate decrease (7) (70) (72) Effect of hedge of net investment in foreign subsidiaries and equity-method investees (Note 9) (31) 36 (22) Other (5) (3) (12) Total deferred income tax expense (recovery) 171 28 (7,885) Total income tax expense (recovery) $ 1,345 $ 1,059 $ (6,976) Income (loss) before income tax expense (recovery) Canada $ 2,495 $ 2,426 $ 2,359 Foreign 2,987 2,346 (5,412) Total income (loss) before income tax expense (recovery) 5,482 4,772 (3,053) Income tax expense (recovery) Current Canada 369 409 377 Foreign 805 622 532 Total current income tax expense 1,174 1,031 909 Deferred Canada 286 206 238 Foreign (115) (178) (8,123) Total deferred income tax expense (recovery) 171 28 (7,885) Total income tax expense (recovery) 1,345 1,059 (6,976) Canada - Federal (1) 379 Canada - Provincial (1) 276 Foreign 690 Total income tax expense (recovery) $ 1,345 $ 1,059 $ (6,976) (1) Disaggregation of domestic federal and provincial income tax expense in accordance with the prospective adoption of Accounting Standards Update (""ASU"") 2023-09 Income Taxes (Topic 740): I …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases The Companys leases have remaining terms of less than one year to 15 years. Residual value guarantees are also provided on certain vehicle operating leases. Cumulatively, these guarantees are minimal and are not included in lease liabilities as it is not currently probable that any amounts will be owed. Components of lease expense recognized in the Company's Consolidated Statements of Income for the years ended December 31 are as follows: (in millions of Canadian dollars) 2025 2024 2023 Operating lease cost $ 115 $ 111 $ 94 Short-term lease cost 19 19 29 Variable lease cost 5 16 10 Sublease income (1) (2) (1) Finance lease cost Amortization of ROU assets 14 11 10 Interest on lease liabilities 1 2 2 Total lease costs $ 153 $ 157 $ 144 ROU Assets and Lease Liabilities recognized in the Company's Consolidated Balance Sheets are as follows: As at December 31 (in millions of Canadian dollars) Classification 2025 2024 ROU Assets Operating leases Other assets (long-term) $ 422 $ 364 Finance leases Properties 100 102 Lease Liabilities Current liabilities Operating leases Accounts payable and accrued liabilities 111 112 Finance leases Long-term debt maturing within one year 17 14 Long-term liabilities Operating leases Other long-term liabilities 299 254 Finance leases Long-term debt 10 21 The following table provides the Company's weighted-average remaining lease terms and discount rates: 2025 2024 Weighted-Average Remaining Lease Term Operating leases 5 years 4 years Finance l …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Accounting pronouncements that became effective during the reporting period did not materially change the reported amounts of ""Operating income"", ""Net income"", or ""Earnings per share"". Recently issued accounting standards that will become effective in future reporting periods are not expected to have a material impact on the Company's Consolidated Financial Statements when they are adopted."

NewAccountingPronouncementsPolicyPolicyTextBlock

"Pensions and other benefits The Company has both defined benefit (""DB"") and defined contribution (""DC"") pension plans. As at December 31, 2025, the Canadian pension plans represent nearly all of total combined pension plan assets and nearly all of total combined pension plan obligations. The DB plans provide for pensions based principally on years of service and compensation rates near retirement. Pensions for Canadian pensioners are partially indexed to inflation. Annual employer contributions to the DB plans, which are actuarially determined, are made on the basis of being not less than the minimum amounts required by federal pension supervisory authorities. The Company has other benefit plans including post-retirement health benefits and life insurance, post-employment long-term disability and workers compensation benefits based on Company-specific claims, and certain other non-pension post-employment benefits. As at December 31, 2025, the Canadian other benefits plans represent nearly all of total combined other plan obligations. The most recent actuarial valuation for pension funding purposes for the Companys main Canadian pension plan was performed as at January 1, 2025. During 2026, the Company expects to file with the pension regulator a new valuation performed as at January 1, 2026. In aggregate, the Company estimates that it will make contributions in 2026 of $13 million to the DB pension plans and of $39 million to the other benefit plans. The Audit and Financ …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"Revenues The following table presents disaggregated information about the Companys revenues from contracts with customers by major source: For the year ended December 31 (in millions of Canadian dollars) 2025 2024 2023 Grain $ 3,217 $ 3,012 $ 2,496 Coal 1,025 943 859 Potash 640 614 566 Fertilizers and sulphur 423 406 385 Forest products 792 816 696 Energy, chemicals and plastics 2,898 2,851 2,301 Metals, minerals and consumer products 1,792 1,777 1,579 Automotive 1,310 1,280 934 Intermodal 2,679 2,524 2,465 Total freight revenues 14,776 14,223 12,281 Non-freight excluding leasing revenues 193 191 161 Revenues from contracts with customers 14,969 14,414 12,442 Leasing revenues 109 132 113 Total revenues $ 15,078 $ 14,546 $ 12,555 Contract liabilities Contract liabilities represent payments received for performance obligations not yet satisfied. They are presented within ""Accounts payable and accrued liabilities"" and ""Other long-term liabilities"" on the Company's Consolidated Balance Sheets. As of December 31, 2025 and 2024, there were no material contract liabilities."

RevenueFromContractWithCustomerTextBlock

"Segmented and geographic information Operating segment The Company only has one operating segment: rail transportation. The Company's chief operating decision-maker (""CODM"") is the Company's Chief Executive Officer. The CODM uses ""Net income attributable to controlling shareholders"" to assess the Company's performance and decide on the allocation of resources. ""Net income attributable to controlling shareholders"" is used in conjunction with certain Non-GAAP measures, operational performance indicators, and figures prepared on a forecast basis to evaluate the return on the Company's assets and make operational and investment decisions. The Company's significant segment expenses are consistent with the expenses presented on the Company's Consolidated Statements of Income. For the years ended December 31, 2025, 2024, and 2023, no single customer accounted for more than 10% of ""Total revenues"". Geographic information The Company's ""Total revenues"" were all earned, and long-lived assets were all held, within Canada, the U.S., and Mexico, as reported in the table below: For the years ended and as at December 31 (in millions of Canadian dollars) Canada U.S. Mexico Total 2025 Revenues $ 7,243 $ 5,124 $ 2,711 $ 15,078 Long-lived assets: Properties and Operating lease ROU assets 17,559 26,860 11,326 55,745 2024 Revenues 6,936 4,988 2,622 14,546 Long-lived assets: Properties and Operating lease ROU assets 16,536 27,897 11,955 56,388 2023 Revenues 6,651 4,257 1,647 12,555"

SegmentReportingDisclosureTextBlock

"Summary of significant accounting policies Basis of presentation The Company's Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the U.S. (""GAAP""). Amounts are expressed in Canadian dollars, unless otherwise noted. Use of estimates, assumptions, and judgements The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions, and judgements that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts and classification of revenues, expenses, and other income items during the reporting period. These estimates, assumptions, and judgements are based on management's best knowledge of current events, actions, and conditions. Actual results could differ. Critical estimates, assumptions, and judgements used in the preparation of the Company's Consolidated Financial Statements relate to: Deferred income taxes (Note 7); Properties (Note 13); Goodwill (Note 14); Intangible assets (Note 15); Pensions and other benefits (Note 23); and Contingent liabilities (Notes 19 and 26). Principles of consolidation The Company's Consolidated Financial Statements include the accounts of the Company's subsidiaries from the date control was assumed. Intercompany accounts and transactions are eliminated. Third-party ownership interest in one of the Company's subsidiaries is presente …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"Shareholders equity Authorized and issued share capital The Company is authorized to issue an unlimited number of Common Shares, an unlimited number of First Preferred Shares, and an unlimited number of Second Preferred Shares. As at December 31, 2025, no First or Second Preferred Shares had been issued. The following table summarizes information related to Common Share balances: (number of Shares in millions) 2025 2024 2023 Share capital, January 1 933.5 932.1 930.5 Common Shares repurchased (37.3) Common Shares issued under stock option plans 1.4 1.4 1.6 Share capital, December 31 897.6 933.5 932.1 The change in the ""Share capital"" balance includes $17 million of stock-based compensation transferred from ""Additional paid-in capital"" (2024 - $18 million; 2023 - $17 million). Share repurchases On February 27, 2025, the Company announced a normal course issuer bid (""NCIB""), commencing March 3, 2025, to purchase up to 37.3 million Common Shares in the open market for cancellation on or before March 2, 2026. By October 29, 2025, the Company had purchased and cancelled all 37.3 million Common Shares authorized to be purchased under the NCIB. All purchases were made in accordance with the respective NCIB at prevailing market prices plus brokerage fees, with consideration allocated to ""Share capital"" up to the average carrying amount of the Shares and any excess allocated to ""Retained earnings"". In accordance with Canadian tax legislation, the Company has accrued for a 2 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent events In February 2026, the Company repaid, at maturity, U.S. $250 million ($339 million) 3.70% 10.5-year Notes.

SubsequentEventsTextBlock

"Contingencies Litigation In the normal course of its operations, the Company becomes involved in various legal actions, including claims relating to injuries and damage to property. The Company maintains provisions it considers to be adequate for such actions. While the final outcome with respect to actions outstanding or pending as at June 30, 2026 cannot be predicted with certainty, it is the opinion of management that their resolution will not have a material adverse effect on the Companys business, financial position, results of operations, or liquidity. However, an unexpected adverse resolution of one or more of these legal actions could have a material adverse effect on the Company's business, financial position, results of operations, or liquidity in a particular quarter or fiscal year. Legal proceedings related to Lac-Megantic rail accident On July 6, 2013, a train carrying petroleum crude oil operated by Montreal Maine and Atlantic Railway (MMAR) or a subsidiary, Montreal Maine & Atlantic Canada Co. (MMAC and collectively the MMA Group), derailed in Lac-Megantic, Quebec. The derailment occurred on a section of railway owned and operated by the MMA Group and while the MMA Group exclusively controlled the train. Following the derailment, MMAC sought court protection in Canada under the Companies Creditors Arrangement Act and MMAR filed for bankruptcy in the U.S. Plans of arrangement were approved in both Canada and the U.S. (the Plans), providing for the distribut …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt During the six months ended June 30, 2026, the Company repaid, at maturity, U.S. $250 million ($339 million) 3.70% 10.5-year notes and U.S. $250 million ($345 million) 3.125% 10-year notes. Issuance of long-term debt During the six months ended June 30, 2026, the Company issued U.S. $600 million ($821 million) 4.00% 3-year unsecured notes due March 15, 2029 for net proceeds of U.S. $597 million ($816 million), and U.S. $600 million ($821 million) 5.50% 30-year unsecured notes due March 15, 2056 for net proceeds of U.S. $589 million ($805 million). The issued notes pay interest semi-annually and carry a negative pledge. Credit facility Effective July 6, 2026, the Company amended its revolving credit facility agreement (the ""facility"") to extend the maturity dates of its two-year U.S. $1.1 billion tranche and five-year U.S. $1.1 billion tranche to June 25, 2028, and June 25, 2031, respectively. As at June 30, 2026, the facility was undrawn (December 31, 2025 - undrawn). The Company presents draws and repayments on the facility in the Interim Consolidated Statements of Cash Flows on a net basis. Commercial paper program Effective March 27, 2026, the Company increased the maximum size of its commercial paper program through the addition of a Canadian dollar commercial paper program which allows the Company to borrow Canadian dollars in the form of unsecured promissory notes. This increased the maximum amount the Company can borrow under the program from U.S. $1.5 billion …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents disaggregated information about the Companys revenues from contracts with customers by major source: For the three months ended June 30 For the six months ended June 30 (in millions of Canadian dollars) 2026 2025 2026 2025 Grain $ 925 $ 743 $ 1,796 $ 1,531 Coal 209 256 435 513 Potash 184 167 333 323 Fertilizers and sulphur 110 98 222 212 Forest products 198 195 379 412 Energy, chemicals and plastics 777 712 1,477 1,470 Metals, minerals and consumer products 524 444 962 892 Automotive 403 330 699 645 Intermodal 758 684 1,413 1,358 Total freight revenues 4,088 3,629 7,716 7,356 Non-freight excluding leasing revenues 49 44 94 85 Revenues from contracts with customers 4,137 3,673 7,810 7,441 Leasing revenues 27 26 55 53 Total revenues $ 4,164 $ 3,699 $ 7,865 $ 7,494 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"Stock-based compensation As at June 30, 2026, the Company had several stock-based compensation plans including stock option plans, various cash-settled liability plans, and an employee share purchase plan. These plans resulted in an expense for the three and six months ended June 30, 2026 of $94 million and $143 million, respectively (three and six months ended June 30, 2025 - $59 million and $92 million, respectively). Stock options plan In the six months ended June 30, 2026, under the Companys stock option plan, the Company issued 1,189,411 options at the weighted-average price of $104.69 per share, based on the closing price of the Company's Common Shares on the TSX at the grant date. Pursuant to the employee plan, these options may be exercised upon vesting, which is between 12 months and 48 months after the grant date, and will expire seven years from the grant date. Under the fair value method, the fair value of the stock options at the grant date was approximately $30 million. Performance share unit plans During the six months ended June 30, 2026, the Company issued 629,722 Performance Share Units (""PSUs"") with a grant date fair value of $66 million and 20,386 Performance Deferred Share Units (""PDSUs"") with a grant date fair value, including the fair value of expected future matching units, of $3 million. PSUs and PDSUs attract dividend equivalents in the form of additional units based on dividends paid on the Companys Common Shares, and vest three to four years a …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"Income taxes The effective income tax rate including discrete items for the three and six months ended June 30, 2026 was 24.65% and 24.63%, respectively, compared to 22.45% and 23.26%, respectively for the same periods in 2025. For the three months ended June 30, 2026, the effective income tax rate was 24.75%, excluding the discrete items of amortization of the fair value adjustments associated with purchase accounting of $94 million and acquisition-related costs of $27 million, both related to the Kansas City Southern (""KCS"") acquisition, and advisory costs related to the analysis and advocacy in connection with the U.S. Surface Transportation Board's (the ""STB"") review of the proposed merger between Union Pacific Corporation (""UP"") and Norfolk Southern Corporation (""NS"") of $14 million. For the three months ended June 30, 2025, the effective income tax rate was 24.50%, excluding the discrete items of a gain on sale of an equity investment of $333 million, amortization of the fair value adjustments associated with purchase accounting of $96 million and acquisition-related costs of $19 million, both related to the KCS acquisition. For the six months ended June 30, 2026, the effective income tax rate was 24.75%, excluding the discrete items of amortization of the fair value adjustments associated with purchase accounting of $187 million and acquisition-related costs of $36 million, both related to the KCS acquisition, and advisory costs related to the analysis and adv …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Accounting Standards Update (""ASU"") 2025-05 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets On January 1, 2026, the Company prospectively adopted ASU 2025-05, which simplifies estimating credit losses on current accounts receivable and current contract assets. Under the new guidance, CPKC elected to adopt a practical expedient allowing the Company to assume that conditions existing as of the balance sheet date will remain unchanged over the remaining life of the asset when developing reasonable and supportable forecasts for estimating expected credit losses. Adoption of ASU 2025-05 did not have a material impact on the Company's Interim Consolidated Financial Statements. Other accounting standards that became effective during the three and six months ended June 30, 2026, did not have a material impact on the Company's Interim Consolidated Financial Statements. Recently issued accounting pronouncements are not expected to have a material impact on the Company's financial position or results of operations upon adoption."

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Pension and other benefits During the three months ended June 30, 2026, the Company received a refund, net of contributions, from its defined benefit pension plans of $1 million, and during the six months ended June 30, 2026, made contributions, net of refunds, of $2 million (three and six months ended June 30, 2025 - $4 million and $8 million contributions, net of refunds, respectively). Net periodic benefit (recovery) cost for defined benefit pension plans and other benefits included the following components: For the three months ended June 30 Pensions Other benefits Total (in millions of Canadian dollars) 2026 2025 2026 2025 2026 2025 Current service cost $ 19 $ 21 $ 3 $ 4 $ 22 $ 25 Other components of net periodic benefit (recovery) cost: Interest cost on benefit obligation 118 116 6 6 124 122 Expected return on plan assets (234) (231) (234) (231) Recognized net actuarial (gain) loss (1) 2 (1) (1) 1 Amortization of prior service costs 1 1 1 1 Total other components of net periodic benefit (recovery) cost (116) (112) 6 5 (110) (107) Net periodic benefit (recovery) cost $ (97) $ (91) $ 9 $ 9 $ (88) $ (82) For the six months ended June 30 Pensions Other benefits Total (in millions of Canadian dollars) 2026 2025 2026 2025 2026 2025 Current service cost $ 38 $ 42 $ 6 $ 7 $ 44 $ 49 Other components of net periodic benefit (recovery) cost: Interest cost on benefit obligation 236 233 11 11 247 244 Expected return on plan assets (468) (463) (468) (463) Recognized net actuarial (ga …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Revenues The following table presents disaggregated information about the Companys revenues from contracts with customers by major source: For the three months ended June 30 For the six months ended June 30 (in millions of Canadian dollars) 2026 2025 2026 2025 Grain $ 925 $ 743 $ 1,796 $ 1,531 Coal 209 256 435 513 Potash 184 167 333 323 Fertilizers and sulphur 110 98 222 212 Forest products 198 195 379 412 Energy, chemicals and plastics 777 712 1,477 1,470 Metals, minerals and consumer products 524 444 962 892 Automotive 403 330 699 645 Intermodal 758 684 1,413 1,358 Total freight revenues 4,088 3,629 7,716 7,356 Non-freight excluding leasing revenues 49 44 94 85 Revenues from contracts with customers 4,137 3,673 7,810 7,441 Leasing revenues 27 26 55 53 Total revenues $ 4,164 $ 3,699 $ 7,865 $ 7,494 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Share repurchases On January 28, 2026, the Company announced a normal course issuer bid (""NCIB""), commencing February 2, 2026, to purchase up to 44.9 million Common Shares in the open market for cancellation on or before February 1, 2027. On February 27, 2025, the Company announced a NCIB, commencing March 3, 2025, to purchase up to 37.3 million Common Shares in the open market for cancellation on or before March 2, 2026. By October 29, 2025, the Company had purchased and cancelled all 37.3 million Common Shares authorized to be purchased under the NCIB. All purchases were made in accordance with the respective NCIB at prevailing market prices plus brokerage fees, with consideration allocated to ""Share capital"" up to the average carrying amount of the Common Shares and any excess allocated to ""Retained earnings"". In accordance with Canadian tax legislation, the Company has accrued for a 2% tax on the fair market value of Common Shares repurchased (net of qualifying issuances of equity) as a direct cost of Common Share repurchases recognized in Shareholders equity. During the three and six months ended June 30, 2026, the Company has accrued a liability of $25 million and $36 million, respectively, for the tax due on the net share repurchases made, payable within the first quarter of the following year. The following table provides activities under the share repurchase program: For the three months ended June 30 For the six months ended June 30 2026 2025 2026 2025 Number …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing