Mr. Keith Creel reports

CPKC REACHES TENTATIVE LONG-TERM HOURLY COLLECTIVE AGREEMENTS WITH SMART-TD AND BLET

Canadian Pacific Kansas City Ltd. has reached new tentative collective bargaining agreements with the Sheet Metal, Air, Rail and Transportation Works -- Transportation Division (SMART-TD), and the Brotherhood of Locomotive Engineers and Trainmen (BLET) consolidating 11 existing contracts across the company's U.S. network into two new long-term hourly agreements.

Each of the tentative agreements has a term from 2025 to 2034 and covers approximately 1,700 train and engine (T&E) service employees across 11 states -- Illinois, Iowa, Missouri, Kansas, Oklahoma, Arkansas, Texas, Mississippi, Alabama, Tennessee and Louisiana.

"This is a significant milestone for our railroaders and our network," said Keith Creel, CPKC president and chief executive officer. "These historic tentative agreements provide long-term labour stability while enhancing flexibility and bringing meaningful improvements in pay and quality of life for our railroaders. Thank you to the leaders of SMART-TD and the BLET for working with us at the bargaining table to reach this outcome that supports our railroaders and their families, while strengthening our ability to better serve our customers safely and efficiently."

The SMART-TD agreement covers conductors, brakemen and other train service employees, while the BLET agreement covers locomotive engineers and other T&E employees, bringing railway employees previously covered under multiple agreements into a modern, streamlined labour framework aligned with CPKC's integrated North American network.

The ratification of these two long-term hourly agreements, combined with the recently ratified Soo Line BLET agreement, would represent the conclusion of negotiations for approximately 81 per cent of CPKC's U.S. T&E work force. The Soo Line BLET agreement ratified in December, 2025, is not scheduled to reopen again for collective bargaining until 2029.

About Canadian Pacific Kansas City Ltd.

With its global headquarters in Calgary, CPKC is the first and only single-line transnational railway linking Canada, the United States and Mexico, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf Coast to Lazaro Cardenas, Mexico.