Audit Information |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Audit Information [Abstract] | |
| Auditor Name | Ernst & Young LLP |
| Auditor Location | Calgary, Canada |
| Auditor Firm ID | 1263 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - CAD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
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| Statement of Comprehensive Income [Abstract] | |||
| Net income | $ 4,137 | $ 3,713 | $ 3,923 |
| Net (loss) gain in foreign currency translation adjustments, net of hedging activities | (1,601) | 2,622 | (655) |
| Change in derivatives designated as cash flow hedges | (1) | 6 | 7 |
| Change in pension and post-retirement defined benefit plans | 185 | 979 | (73) |
| Other comprehensive income (loss) from equity investees | 7 | (8) | 7 |
| Other comprehensive (loss) income before income taxes | (1,410) | 3,599 | (714) |
| Income tax expense on above items | (80) | (219) | (4) |
| Net other comprehensive income (loss) | (1,490) | 3,380 | (718) |
| Comprehensive income | 2,647 | 7,093 | 3,205 |
| Comprehensive (loss) income attributable to non-controlling interest | (52) | 77 | (13) |
| Comprehensive income attributable to controlling shareholders | $ 2,699 | $ 7,016 | $ 3,218 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Statement of Financial Position [Abstract] | ||
| Common stock, shares authorized | Unlimited | Unlimited |
| Common stock, issued (in shares) | 897,600,000 | 933,500,000 |
| Common stock, outstanding (in shares) | 897,600,000 | 933,500,000 |
| First preferred stock, shares outstanding (in shares) | 0 | 0 |
| Second preferred stock, shares outstanding (in shares) | 0 | 0 |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Statement of Stockholders' Equity [Abstract] | |||
| Dividends declared (CAD per share) | $ 0.874 | $ 0.760 | $ 0.760 |
Description of the business |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Description of the business | Description of the business Canadian Pacific Kansas City Limited ("CPKC" or the "Company") owns and operates a transcontinental freight railway spanning Canada, the United States ("U.S."), and Mexico. CPKC provides rail and intermodal transportation services over a network of approximately 20,000 miles, serving principal business centres across Canada, the U.S., and Mexico. The Company transports bulk commodities, merchandise freight, and intermodal traffic. CPKC's Common Shares ("Common Shares") trade on the Toronto Stock Exchange and New York Stock Exchange under the symbol "CP". On April 14, 2023 (the "Control Date"), Canadian Pacific Railway Limited ("CPRL") assumed control of Kansas City Southern ("KCS") and changed its name to Canadian Pacific Kansas City Limited. The Company's Consolidated Financial Statements include KCS as a consolidated subsidiary from April 14, 2023. For the period beginning on January 1, 2023 and ending on April 13, 2023, the Company's 100% interest in KCS was accounted for and reported as an equity-method investment (see Notes 11 and 12).
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Summary of significant accounting policies |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Accounting Policies [Abstract] | |
| Summary of significant accounting policies | 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 presented in the Company's Consolidated Financial Statements as activities and amounts attributable to non-controlling interest. Revenues Revenues are primarily derived from the provision of freight rail transportation services. Non-freight revenues are primarily derived from passenger service operators, switching fees, and logistics services, and also from leasing land and other property. Revenues are recognized when promised services are delivered and obligations under the terms of a contract with a customer are satisfied. Revenues are measured as the amount of consideration the Company expects to receive in exchange for providing services. In the normal course of business, the Company does not generate material revenues from acting as an agent for other entities. Revenues are presented net of taxes collected from customers and remitted to governmental authorities. Freight revenues The Company has master service agreements with customers which establish pricing, terms and conditions for future freight services the Company will provide when service requests or bills of lading are received from those customers. Each bill of lading or service request is a distinct performance obligation. Transaction prices are generally determined when bills of lading or service requests are initiated and are allocated to distinct performance obligations based on estimated standalone selling prices which are determined based on observable fair market values. The Company also provides freight transportation services to customers at published rates established in public tariff agreements. In those arrangements, a performance obligation is triggered at the time the freight transportation services are ordered by the customer. Freight revenues are recognized over time as transportation services are provided and obligations under the terms of a contract with a customer are satisfied. Inputs are used to measure the percentage of completion towards satisfaction of performance obligations. Progress is measured based on elapsed freight transit time relative to total expected freight transit time from origination to destination. Performance obligations not fully satisfied as at the balance sheet date are generally expected to be satisfied in the following reporting period. Contract liabilities represent payments received for performance obligations not yet satisfied. The short duration over which freight rail services are delivered generally means that there is an immaterial value of outstanding performance obligations and contract liabilities as at the balance sheet date. Certain customer arrangements include variable consideration in the form of rebates, discounts, or incentives. The expected value method is used to estimate the amount of variable consideration to allocate to performance obligations as they are satisfied. Volume rebates are accrued based on estimated volumes and contract terms and recognized as a reduction of freight revenues as the related freight services are provided. Customer incentives are amortized over the term of the related service agreement. Customers are invoiced when a bill of lading or service request is processed. Payment for services are due when performance obligations are satisfied. Amounts outstanding as at the balance sheet date are generally collected in the following reporting period. Performance obligations not fully satisfied as at the balance sheet date are generally expected to be satisfied in the following reporting period. Income taxes The Company follows the asset and liability method of accounting for income taxes. Under this method, a deferred income tax asset or liability is determined based on the difference between the financial reporting and tax basis of the asset or liability, using enacted tax rates and laws that will be in effect when the difference is expected to reverse. The change in the net deferred income tax asset or liability is included in the computation of "Net income" and "Other comprehensive income (loss)". The effect of changes in income tax rates on deferred income tax assets and liabilities are recognized in the Company's Consolidated Statements of Income in the reporting period that the change occurs. The Company records a valuation allowance to reduce deferred income tax assets if it is more likely than not, based on available evidence about future events, that some or all of the deferred income tax assets will not be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by taxing authorities based on the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. A liability for "unrecognized tax benefits" is recorded for any tax benefits claimed in the Company’s tax returns that do not have a greater than 50% likelihood of being realized upon ultimate settlement. Investment and other similar tax credits are initially recognized in "Deferred income taxes" on the Company's Consolidated Balance Sheets and subsequently recognized in "Deferred income tax expense (recovery)" on the Company's Consolidated Statements of Income over the useful life of the related property. Earnings per share Basic earnings per share is calculated using the weighted-average number of the Company's Common Shares outstanding during the year. Diluted earnings per share is calculated using the treasury stock method for determining the dilutive effect of Common Shares issuable upon exercise of outstanding stock options. Equity method investments The Company's investments in entities over which it can exercise significant influence or has joint control are accounted for using the equity method. Equity-method investments are initially recognized on the Company's Consolidated Balance Sheets at cost. Subsequently, the carrying amounts of these investments are adjusted to reflect: •the Company's share of the investments' income or losses, and comprehensive income or losses, based on the Company's share of their common stock and in-substance common stock; •depreciation, amortization, or accretion related to any basis differences identified at the time the investments were initially recognized; •dividends and distributions received; •other-than-temporary impairments; and •the effects of any intra-entity income or losses and capital transactions. Distributions from equity-method investments are classified on the Company's Consolidated Statements of Cash Flows according to the nature of the activities that generated the distributions. If the Company acquires control of an equity-method investment, it stops accounting for the investment using the equity method. The investment is remeasured to fair value as of the date control was assumed, and any gain or loss is recognized in the Company's Consolidated Statements of Income. Any amounts in "Accumulated other comprehensive income" ("AOCI") related to the investment are reclassified and included in the calculation of the gain or loss. Any gain or loss on the settlement of a pre-existing relationship between the Company and the investment is recognized in the Company's Consolidated Statements of Income, separately from the business acquisition. Business acquisitions Management makes estimates and assumptions to determine the fair values of assets acquired and liabilities and non-controlling interest assumed in a business combination at the acquisition date. Such estimates and assumptions are inherently uncertain and subject to refinement. During the measurement period, the Company may adjust any provisional amounts reported on the acquisition date if additional information is obtained about facts and circumstances that existed that, if known, would have affected their measurement on that date. Adjustments to provisional amounts are recognized with corresponding adjustments to "Goodwill". If the acquisition-date fair value of an asset or liability arising from pre-acquisition contingencies cannot be determined as of the acquisition date or during the measurement period, the estimated amount of the asset or liability is recognized if it is probable that the asset existed or the liability had been incurred as of the acquisition date based on information available prior to the end of the measurement period and the amount of the asset or liability can be reasonably estimated. The measurement period ends at the earlier of the date that the necessary information about the facts and circumstances that existed as of the acquisition date concerning the provisional amounts is obtained, or one year after the acquisition date. Foreign currency translation Foreign currency transactions Foreign currency transactions are denominated in currencies other than the Company's functional currency, which is the Canadian dollar. Transactions denominated in foreign currencies are translated to the functional currency using the foreign exchange ("FX") rate prevailing on the day of the transaction. Monetary assets and liabilities denominated in foreign currencies are remeasured to the functional currency using the exchange rate in effect as at the balance sheet date. FX gains and losses resulting from the translation of monetary assets and liabilities are recognized in income in the reporting period they arise. Foreign operations FX gains and losses arising from the translation of the Company's foreign subsidiaries' and equity-method investees' functional currencies to Canadian currency presentation are recognized in "Other comprehensive income (loss)" and recognized in the Company's Consolidated Statements of Income upon the sale of the foreign operation. Asset and liability accounts are translated at the exchange rates in effect as at the balance sheet date, and revenues and expenses are translated using monthly average exchange rates. U.S. dollar-denominated long-term debt, finance lease obligations, short-term borrowings, and operating lease liabilities are designated as hedges of the Company's net investment in foreign subsidiaries and foreign equity-method investees. Accordingly, unrealized gains and losses arising from the translation of the designated U.S. dollar-denominated long-term debt, finance lease obligations, and operating lease liabilities are offset against gains and losses arising from the translation of the Company's foreign operations' accounts in "Other comprehensive income (loss)". Cash and cash equivalents Cash and cash equivalents include highly liquid investments with original maturities of less than three months. Accounts receivable, net Accounts receivable are recorded at cost, net of an allowance for expected credit losses. The allowance for expected credit losses is estimated based on relevant information about historical credit loss experience of receivables with similar risk characteristics, current conditions, and forecasts of future conditions expected to affect collectability. Accounts receivable are written off against the allowance for credit losses when it is probable that the remaining contractual payments will not be collected. Subsequent recoveries of amounts previously written off are credited to income in the reporting period they are recovered. Materials and supplies Materials and supplies, including fuel and parts used in the repair and maintenance of track structures, equipment, locomotives, and freight cars, are measured at the lower of average cost or net realizable value. Properties Properties are reported at historical cost, less accumulated depreciation or amortization and any impairment. The Company reviews properties for impairment when changes in circumstances indicate that their carrying amount may not be recoverable. If the estimated future undiscounted cash flows are less than the carrying amount, the carrying amount is reduced to the estimated fair values, measured using discounted cash flows, and a corresponding impairment loss is recognized in the Company's Consolidated Statements of Income. Additions and betterments For property additions and betterments, the Company capitalizes all costs necessary to make the assets ready for their intended use. A large amount of the Company's capital expenditures are for self-constructed properties, both new and the replacement of existing properties. Self-constructed assets are initially recorded at cost, including direct costs, attributable indirect costs, overheads, and carrying costs: •direct costs include labour, purchased services, materials and equipment, project supervision costs, and fringe benefits. •attributable indirect costs mainly include costs associated with work trains, material distribution, highway vehicles, and work equipment. •overheads primarily relate to engineering department costs of planning, designing, and administering the capital projects, which are allocated to projects using a measure consistent with the nature of the cost, based on cost studies. The Company capitalizes costs incurred for replacements or betterments that enhance the service potential or extend the useful life of properties, when the expenditures exceed minimum physical and financial thresholds: •the cost of ballast programs, including undercutting, shoulder ballasting, and renewal programs that form part of the annual track program are capitalized because the work and related added ballast material significantly improves drainage, which in turn extends the life of ties and other track materials. The cost of ballast programs are tracked separately from the underlying assets and depreciated over the estimated period to the next similar ballast program. Spot replacement of ballast is considered a repair, which is expensed as incurred. •significant freight car refurbishments, locomotive overhauls, and other capital improvements that enhance service potential or extend useful life are capitalized. •replacement project costs, including dismantling costs, are expensed or capitalized based on studies of the activities performed in the projects. Costs to repair or maintain the service potential of properties are expensed. The Company also capitalizes development costs for major new computer systems. Depreciation The Company primarily uses the group method of depreciation, in which properties with similar characteristics, use, and expected lives are allocated to asset groups: •the asset groups are depreciated on a straight-line basis reflecting their expected economic lives, using composite depreciation rates. All track assets are depreciated using a straight-line method which recognizes the value of the asset consumed as a percentage of the whole life of the asset. •composite depreciation rates are established through depreciation studies, which are regular, detailed reviews, performed by asset group, of service lives, salvage values, accumulated depreciation, and other related matters. •the depreciation studies also estimate accumulated depreciation surpluses or deficiencies for each asset group, which are amortized over the remaining life of the respective asset group. •when depreciable property is retired or otherwise disposed in the normal course of business, its life generally approximates its expected useful life as determined in the depreciation studies. For this reason, under group depreciation, a gain or loss on disposal is not recognized. Instead, the asset's net book value, less net salvage proceeds, is charged to accumulated depreciation. •for certain asset groups, the historical cost of the asset is separately recorded in the Company's property records. This amount is retired from the property records upon retirement of the asset. For assets for which the historical cost cannot be separately identified, the asset's gross book value to be retired is estimated using an indexation methodology, whereby the retired property's current replacement cost is indexed to its estimated year of installation, or a first-in, first-out approach, or statistical analysis. The Company uses indices that closely correlate to the principal costs of the assets. •when removal costs exceed the property's salvage value and removal is not a legal obligation, the removal costs are charged to income when the property is retired. •for the disposal of larger groups of depreciable assets that are unusual and were not considered in the Company's depreciation studies, a gain or loss is recognized for the difference between the net proceeds and the net book value of the assets sold or retired. The accumulated depreciation that is derecognized includes asset-specific accumulated depreciation, when known, or an appropriate portion of the accumulated depreciation recorded for the relevant asset class as a whole, calculated using a cost-based allocation. Concession assets CPKC holds a concession from the Mexican government which authorizes the Company to provide freight transportation services over certain rail lines, including the use of all related track and other assets necessary for the rail lines' operations (the "Concession"). The Concession term ends in June 2047, but is renewable under certain conditions, for additional periods, each up to 50 years. The underlying tangible assets that the Concession provides the Company with the right to use are capitalized in "Properties" and depreciated, using the group method, over the lesser of the expected Concession term, which includes one renewal period of 50 years, or the estimated useful life of the underlying asset groups. The intangible rights granted under the Concession are amortized over the expected term of the Concession. Finance lease right-of-use ("ROU") assets Finance lease ROU assets recognized in "Properties" are amortized to the earlier of the end of the useful life of the ROU asset or the end of the lease term. Government assistance The Company recognizes government assistance from various levels of governments and government agencies when there is reasonable assurance that the assistance will be received. Government assistance in connection with the acquisition or construction of properties sometimes includes conditions which, if not met within a certain period of time, may require repayment of some or all of the assistance received. It is the Company's intention to comply with all conditions imposed by the terms of government assistance accepted. Government assistance received or receivable related to property is recorded as a reduction of the cost of the property and amortized over the same period as the related assets are depreciated. Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets upon acquisition of a business. The carrying value of goodwill, which is not amortized, is assessed for impairment annually, or more frequently if events or changes in circumstances arise that suggest it may be impaired. The Company's annual review of goodwill is performed in the fourth quarter, on the October 1 balance. The Company first assesses qualitative factors, including, but not limited to, economic, market, and industry conditions, the reporting unit's overall financial performance, and events such as notable changes in management or customers. If the qualitative assessment indicates that it is more likely than not that the fair value of the reporting unit is less than its carrying value, a quantitative assessment is undertaken. The quantitative assessment is a comparison of the reporting unit's carrying value and fair value. The reporting unit's fair value is defined as the price expected to be received if it was sold in an orderly transaction between market participants. It is determined based on pre-tax discounted cash flows that reflect management's best estimates of the time value of money and risks specific to the reporting unit and its assets. If the carrying value of the reporting unit, including goodwill, exceeds its fair value, an impairment is recognized, measured at the amount by which the reporting unit's carrying value exceeds its fair value. Intangible assets Intangible assets with finite useful lives, consisting primarily of customer contracts, customer relationships, and favourable leases, are amortized on a straight-line basis over their estimated useful lives, with any changes in useful life estimates adjusted prospectively. If events or circumstances indicate that a finite-lived intangible asset's carrying amount may not be recoverable, then an impairment loss is recognized for the excess of its carrying amount over its fair value, determined using pre-tax discounted cash flows. Intangible assets with indefinite useful lives are primarily trackage rights that are expected to generate cash flows indefinitely. They are not amortized but are tested for impairment at least annually, or sooner if conditions warrant. Impairment is measured as the excess of the asset's carrying amount over its fair value, determined using pre-tax discounted cash flows. Financial instruments Financial instruments are contracts that give rise to a financial asset of one party and a financial liability or equity instrument of another party. Financial instruments are recognized initially at fair value, which is the amount of consideration that would be agreed upon in an arm’s-length transaction between willing parties. Cash and cash equivalents are reported at amounts that approximate fair value. Accounts receivable and investments consisting of loans and receivables are subsequently measured at amortized cost, using the effective interest method. Accounts payable and accrued liabilities, other long-term liabilities, and long-term debt are also subsequently measured at amortized cost. Derivative financial instruments Derivative financial instruments may be used from time to time to manage the Company's exposure to changes in FX rates, interest rates, fuel prices, and certain compensation tied to the Company's Common Share price. When derivative instruments are used in hedging relationships, the Company identifies, designates, and documents those hedging transactions and regularly tests the transactions to demonstrate effectiveness in order to continue hedge accounting. Derivative instruments are classified as held-for-trading and recorded at fair value on the Company's Consolidated Balance Sheets as current or non-current assets or liabilities depending on the timing of settlements and the resulting cash flows associated with the instruments. Any changes in the fair values of derivatives that are not designated as hedges are recognized in the Company's Consolidated Statements of Income in the reporting period the change occurs. For fair value hedges, changes in the fair value of the hedging instrument are recognized in the Company's Consolidated Statements of Income, along with changes in the fair value of the hedged risk of the asset or liability that is designated as part of the hedging relationship. For designated cash flow hedges, changes in the fair value of the hedging instrument are recognized in "Other comprehensive income (loss)" and reclassified to the Company's Consolidated Statements of Income when the hedged item impacts income. If a derivative instrument designated as a cash flow hedge ceases to be effective or is terminated, hedge accounting is discontinued and the gain or loss at that date is deferred in "Other comprehensive income (loss)" and recognized in the Company's Consolidated Statements of Income concurrently with the related transaction. If an anticipated hedged transaction is no longer probable, the gain or loss is immediately recognized. Subsequent gains and losses from derivative instruments for which hedge accounting has been discontinued are recognized in the reporting period in which they occur. Cash flows relating to derivative instruments designated as hedges are included in the same category as the related hedged items on the Company's Consolidated Statements of Cash Flows. Leases The Company leases rolling stock, buildings, vehicles, railway equipment and roadway machines. Lease liabilities and ROU assets are recognized on the Company's Consolidated Balance Sheets for finance leases and operating leases with fixed terms and in-substance fixed terms: •ROU assets and lease liabilities are recognized on the lease commencement date at the present value of the future lease payments over the lease term. Lease payments include fixed and variable payments that are based on an index or a rate. If the rate implicit in the lease is not readily determinable, the Company uses internal incremental secured borrowing rates for a comparable tenor and in the same currency at the lease commencement date to determine the present value of lease payments. •certain leases of rolling stock and roadway machines are fully variable or contain both fixed and variable components. Variable components are dependent on the hours and miles that the underlying equipment has been used. Fixed-term, short-term, and variable operating lease costs are recognized in "Equipment rents" and "Purchased services and other" in the Company's Consolidated Statements of Income. •components of finance lease costs are recognized in "Depreciation and amortization" and "Net interest expense" in the Company's Consolidated Statements of Income. •ROU assets are adjusted for lease prepayments, initial direct costs, and lease incentives. •lease terms include periods associated with options to extend or exclude periods associated with termination options when the Company is reasonably certain of exercising such options. •non-lease components are accounted for separately from lease components of roadway machine and fleet vehicle lease contracts. Otherwise, lease and non-lease components are combined and accounted as a single lease component. Leases with terms of 12 months or less that do not contain an option to purchase the underlying asset at the end of the lease term that the Company intends to exercise are not recognized on the Company's Consolidated Balance Sheets; lease payments are recognized as expenses in the Company's Consolidated Statements of Income on a straight-line basis over the lease term. Provision for environmental remediation Environmental remediation accruals, covering site-specific remediation programs, are recorded on an undiscounted basis unless a reliably determinable estimate of the amount and timing of costs can be established. The accruals are recorded when the costs to remediate are probable and can be reasonably estimated. Certain future costs to monitor sites are discounted at an adjusted risk-free rate. Provisions for environmental remediation costs are recognized in "Other long-term liabilities", except for the current portion, which is recognized in "Accounts payable and accrued liabilities". Pensions and other benefits Obligations and net periodic benefit (recovery) cost for the Company's defined benefit pension plans are actuarially determined using the projected benefit method, pro-rated over the credited service periods of employees. This method incorporates management’s best estimates of actuarial assumptions, such as discount rates, salary and other cost escalations, employees' retirement ages and mortality. The discount rates are based on blended market interest rates on high-quality debt instruments with matching cash flows. Plan assets are measured at fair value. The expected return on plan assets is calculated using market-related asset values, developed from a five-year average of adjusted market values for the fund’s public equity securities and absolute return strategies, plus the market value of the fund’s other asset classes, subject to the market-related asset value not being greater than 120% nor less than 80% of the market value. Actuarial gains and losses arise from the difference between the actual and expected return on plan assets, and changes in the measurement of the benefit obligation. Periodic net actuarial gains and losses and prior service costs are accumulated and presented as a component of AOCI on the Company's Consolidated Balance Sheets. Obligations and net periodic benefit (recovery) cost for the Company's other post-retirement and post-employment benefits are actuarially determined on a similar basis. The funded status of the Company's defined benefit pension plans, measured for each plan as the difference between the fair value of the plan's assets and projected benefit obligation, is reported on the Company's Consolidated Balance Sheets. Components of net periodic benefit (recovery) cost recognized in "Operating income" in the Company's Consolidated Statements of Income include: •current service costs for defined benefit pension and post-retirement benefits, and the Company's contributions to defined contribution pension plans, which are recognized in "Compensation and benefits" expense; and •current service costs for self-insured workers' compensation and long-term disability benefits, which are recognized in "Purchased services and other" expense. Other components of net periodic benefit recovery (cost) recognized outside of "Operating income" in the Company's Consolidated Statements of Income are: •interest cost on benefit obligation; •expected return on plan assets; •recognition of net actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation and the market-related value of pension plan assets, over the expected average remaining service period of the plan's active employee group (approximately 13 years); •amortization of prior service costs arising from collectively bargained amendments to pension plan benefit provisions (over the term of the applicable union agreement) and from all other sources (over the expected average remaining service period of active employees who are expected to receive benefits under the plan at the date of the amendment); •gains and losses on post-employment benefits that do not vest or accumulate, including certain workers' compensation and long-term disability benefits in Canada; and •the effects of special termination benefits. Stock-based compensation Stock options The cost of awards of equity-settled employee stock options is measured based on their grant date fair values. "Compensation and benefits" expense, with a corresponding increase to "Additional paid-in capital" in "Shareholders' equity", is recognized over the shorter of the vesting period or the period from the grant date to the date the employee becomes eligible to retire. The grant date fair value is determined using the Black-Scholes option-pricing model. Forfeitures are estimated at the grant date, and changes in the estimate of forfeitures in subsequent reporting periods are recognized as adjustments to "Compensation and benefits" expense in the reporting period that the change in estimate occurs. As stock options are exercised, the related amount accumulated in "Additional paid-in capital" is reclassified to "Share Capital" and the proceeds are recognized in "Share Capital". Share units The Company also issues cash-settled awards, including deferred share units ("DSUs"), performance share units ("PSUs") and performance deferred share units ("PDSUs"), for which a liability is remeasured each financial reporting period until settlement. For DSUs, "Compensation and benefits" expense is recognized over the shorter of the vesting term, or the period from the grant date to the date the employee is eligible to retire, based on the number of units outstanding and the closing price of CPKC's Common Shares on the reporting date. For PSUs and PDSUs, fair values are recognized for units that are probable of vesting, based on forecasted performance factors, and "Compensation and benefits" expense is recognized over the performance period. Forfeitures of share units are estimated at the grant date, and changes in the estimate of forfeitures in subsequent periods are recognized as adjustments to "Compensation and benefits" expense in the period that the change in estimate occurs. Share purchase plan The Company's contributions to the employee share purchase plan gives rise to compensation expense that is recognized at the issue price and recognized as "Compensation and benefits" expense over a one year vesting period.
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Accounting changes |
12 Months Ended |
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Dec. 31, 2025 | |
| Accounting Standards Update and Change in Accounting Principle [Abstract] | |
| Accounting changes | Accounting changes 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.
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Revenues |
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| Revenues | Revenues The following table presents disaggregated information about the Company’s revenues from contracts with customers by major source:
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.
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Other (income) expense |
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| Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other (income) expense | Other (income) expense
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Gain on sale of equity investment |
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| Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on sale of equity investments | Gain on sale of equity investment On April 1, 2025, CPKC sold its 50% equity method investment in the Panama Canal Railway Company to APM Terminals Panama Rail LP ("APM Terminals"), a subsidiary of A.P. Moller-Maersk A/S, for gross proceeds of U.S. $350 million. After finalizing purchase price adjustments for cash acquired and debt and net working capital assumed by APM Terminals, the Company received cash consideration of U.S. $344 million ($493 million) and recognized a pre-tax gain of U.S. $232 million ($333 million) in "Gain on sale of equity investment”. The after-tax gain was U.S. $177 million ($256 million). Investment in Kansas City SouthernOn April 14, 2023, the Company assumed control of KCS and derecognized its equity method investment in KCS (see Note 11). The carrying amount of the Company's equity investment in KCS reported in the Company's Consolidated Balance Sheets prior to derecognition reflected the total of the consideration paid to acquire KCS (see Note 11), the offsetting asset recorded on recognition of a deferred tax liability computed on an outside basis (see Note 7), the subsequent recognition of equity income recognized in "Equity earnings of Kansas City Southern" and "Other comprehensive income (loss) from equity investees", the receipt of dividends from KCS, and foreign currency translation based on the period-end exchange rate. The Company estimated approximately $30 billion of basis differences between the consideration paid to acquire KCS and the underlying carrying value of the net assets of KCS as at December 14, 2021. While the Company accounted for its investment in KCS using the equity method of accounting from December 14, 2021 until April 13, 2023, the basis difference was amortized and recorded as a reduction of the Company's equity earnings of KCS. The basis differences that related to depreciable property, plant and equipment, intangible assets with definite lives, and long-term debt were amortized over the related assets' remaining useful lives, and the remaining terms to maturity of the debt instruments. The remainder of the basis differences, related to non-depreciable property, plant and equipment, intangible assets with indefinite lives, and equity method goodwill, were not amortized and were carried at cost subject to an assessment for impairment. For the period January 1 to April 13, 2023, the Company recognized $230 million of equity earnings of KCS, and received dividends from KCS of $300 million. The foreign currency translation of the investment in KCS resulted in a FX loss of $578 million. Included within the equity earnings of KCS recognized for the period from January 1 to April 13, 2023 was amortization (net of tax) of basis differences of $48 million. The following table presents summarized financial information for KCS, on its historical cost basis:
(1) KCS's historical amounts in U.S. dollars were translated into Canadian dollars at the Bank of Canada average exchange rate for the period from January 1 to April 13, 2023 with an effective exchange rate of $1.35. (2) Includes Equity in net earnings of KCS's affiliates, Interest expense, FX loss, and Other income, net.
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Income taxes |
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| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income taxes | Income taxes The following is a summary of the major components of the Company’s income tax expense (recovery):
(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): Improvements to Income Tax Disclosures effective January 1, 2025. The provision for deferred income taxes arises from temporary differences in the carrying values of assets and liabilities for financial statement and income tax purposes and the effect of loss carryforwards. The items comprising the deferred income tax assets and liabilities are as follows:
The Company’s consolidated effective tax rate differs from the expected Canadian federal statutory tax rate. Expected income tax expense at the Canadian federal statutory rate is reconciled to income tax expense as follows for 2025(1):
(1) Rate reconciliation provided in accordance with the prospective adoption of ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures effective January 1, 2025. (2) The Canadian federal statutory income tax rate is comprised of basic federal tax rate 38%, federal abatement (10%), and general rate reduction (13%). (3) The majority of the provincial tax effects are derived from Ontario, Saskatchewan and British Columbia. (4) Tax impact from inflation adjustment required for Mexico tax purposes. The Company’s consolidated effective tax rate differs from the expected Canadian statutory tax rates. Expected income tax expense (recovery) at statutory rates is reconciled to income tax expense (recovery) as follows for 2024 and 2023:
In 2024, the Company revalued its deferred income tax balances as a result of decreases in the corporate income tax rates in the states of Louisiana and Arkansas, resulting in a net recovery of $81 million. In 2023, the Company revalued its deferred income tax balances as a result of decreases in the corporate income tax rates in the states of Iowa and Arkansas, resulting in a net recovery of $13 million. In 2023, the Company recognized a deferred income tax recovery of $23 million (U.S. $17 million) on the outside basis difference of the change in the equity investment in KCS for the period January 1, 2023 to April 13, 2023, prior to acquiring control of KCS. The outside basis difference is the excess of the carrying amount of the Company’s investment in KCS for financial reporting over the tax basis of this investment. In 2023, the Company recognized a deferred income tax recovery of $7,832 million on the derecognition of the deferred income tax liability on the outside basis difference of the investment in KCS upon acquiring control. The Company has not provided a deferred liability for the income taxes which might become payable on any temporary difference associated with its foreign investments because the Company intends to indefinitely reinvest in its foreign investments and does not intend to realize this difference by a sale of its interest in foreign investments. It is not practical to calculate the amount of the deferred income tax liability. It is more likely than not that the Company will realize the majority of its deferred income tax assets from the generation of future taxable income, as the payments for provisions, reserves, and accruals are made and losses and tax credits carried forward are utilized. As at December 31, 2025, the Company had $56 million (2024 - $33 million) in tax effected operating losses carried forward recognized as a deferred income tax asset, which will begin to expire in 2026. The Company expects to fully utilize these tax effected operating losses before their expiry. As at December 31, 2025, the Company had $5 million (2024 - $18 million) in tax effected capital losses carried forward recognized as a deferred income tax asset, which will begin to expire in 2029. The Company expects to fully utilize these tax effected capital losses before their expiry. As at December 31, 2025, the Company had $4 million (2024 - $6 million) in tax credits carried forward recognized as a deferred income tax asset, which will begin to expire in 2028. The Company expects to fully utilize these tax credits before their expiry. The Company did not have any minimum tax credits or investment tax credits carried forward. The following table provides a reconciliation of uncertain tax positions in relation to unrecognized tax benefits for the years ended December 31:
If these unrecognized tax benefits were recognized, $22 million of unrecognized tax benefits as at December 31, 2025 would impact the Company’s effective tax rate. The Company recognizes accrued interest, inflation and penalties related to unrecognized tax benefits as a component of "Income tax expense (recovery)" in the Company’s Consolidated Statements of Income. The net amount of accrued interest, inflation and penalties in 2025 was a $1 million expense (2024 - $4 million recovery; 2023 - $3 million recovery). The total amount of accrued interest, inflation and penalties associated with unrecognized tax benefits as at December 31, 2025 was $12 million (2024 - $11 million; 2023 - $15 million). The following table provides income taxes paid (net of refunds received) for the year ended December 31(1):
(1) Income taxes paid (net of refunds received) provided in accordance with the prospective adoption of ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures effective January 1, 2025. The Company and its subsidiaries are subject to either Canadian federal and provincial income tax, U.S. federal, state and local income tax, Mexican federal income tax or the relevant income tax in other international jurisdictions. The Company has substantially concluded all Canadian federal and provincial income tax matters for the years through 2020. The federal and provincial income tax returns filed for 2021 and subsequent years remain subject to examination by the Canadian taxation authorities. The U.S. income tax returns for 2022 and subsequent years continue to remain subject to examination by the Internal Revenue Service and U.S. state tax jurisdictions, with the exception of certain states that have ongoing audits for prior years. Kansas City Southern de México, S.A. de C.V. (also known as Canadian Pacific Kansas City Mexico) ("CPKCM") has concluded audit examinations for Mexican income tax returns for the tax years through 2021, except for the 2014 tax year which is currently in litigation before the Federal Collegiate Circuit Courts (see Note 26). The CPKCM Mexican income tax returns filed for 2022, and subsequent years remain subject to examination by the Mexican Tax Authority, Servicio de Administración Tributaria ("SAT"). There are certain other Mexican subsidiaries with ongoing audits for the years 2016-2020. As at December 31, 2025, the Company believes that it has recorded sufficient income tax reserves with respect to these income tax examinations and open tax years. Mexican tax audits During the year, the Company received final audit letters for CPKCM for 2021 and a payment of $11 million was made in respect of that year. CPKCM closed audit examinations with the SAT for the tax years 2016-2020 in September 2023 and the tax years 2009-2010, 2013 and 2015 in November 2023. The audit examinations were for corporate income tax and value added tax ("VAT"). The settlement of these audits resulted in payments of $135 million.
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| Earnings per share | Earnings per share
In 2025, there were 2.0 million options excluded from the computation of diluted earnings per share because their effects were not dilutive (2024 - 0.6 million; 2023 - 0.6 million).
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Other comprehensive income (loss) and Accumulated other comprehensive income (loss) |
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| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) and Accumulated other comprehensive income (loss) | Other comprehensive (loss) income and Accumulated other comprehensive income The components of Other comprehensive (loss) income and the related tax effects attributable to controlling shareholders are as follows:
Changes in AOCI attributable to controlling shareholders, net of tax, by component are as follows:
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Accounts receivable, net |
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| Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounts receivable, net | Accounts receivable, net
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Business acquisition |
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| Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business acquisition | 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 KCS’s 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 acquisition of KCS was completed on April 13, 2024, with the end of the measurement period and the final validation of the fair values assigned to acquired assets and assumed liabilities. This validation was completed using additional information about facts and circumstances as of the Control Date, that was obtained during the measurement period. The following table summarizes the final purchase price allocation with the amounts recognized in respect of the identifiable assets acquired and liabilities and non-controlling interest assumed on the Control Date, as well as the fair value of the previously held equity interest in KCS and the measurement period adjustments recorded:
During the measurement period, adjustments were recorded as a result of new information that was obtained about facts and circumstances of certain KCS assets and liabilities as of the Control Date. New information obtained during 2023 was primarily in relation to CPKCM's VAT assets and liabilities, as well as income and other tax positions. New information obtained during the first quarter of 2024 was primarily in relation to KCS's environmental liabilities, certain liabilities for other taxes in Mexico and legal and personal injury claims. Other adjustments recorded in relation to assets and liabilities were not significant in value. These adjustments to the Company's December 31, 2023 Consolidated Balance Sheets and March 31, 2024 Interim Consolidated Balance Sheets had a negligible impact to the Company's net income in 2023 and in the year ended December 31, 2024. During the year ended December 31, 2024, in relation to certain Mexican tax liabilities identified and recorded through Goodwill during the measurement period, the Company also recorded further adjustments to provisions and settlements of Mexican taxes of $4 million net recovery recognized within "Compensation and benefits". This comprises $10 million for liabilities incurred since the Control Date recognized in the first quarter of 2024 and a $14 million related recovery. On a pro forma basis, if the Company had consolidated KCS beginning on January 1, 2022, the revenue and net income attributable to controlling shareholders of the combined entity would be as follows for the year ended December 31, 2023:
(1) KCS's historical amounts in U.S. dollars were translated into Canadian dollars at the Bank of Canada average exchange rate for the period from January 1 to April 13, 2023 with an effective exchange rate of $1.35. For the year ended December 31, 2023, the supplemental pro forma Net income attributable to controlling shareholders for the combined entity was adjusted for: •the removal of the remeasurement loss of $7,175 million upon the derecognition of CPRL's previously held equity method investment in KCS, which included the reclassification of associated AOCI to retained earnings; •depreciation and amortization of differences between the historic carrying value and the fair value of tangible and intangible assets and investments prior to the Control Date; •amortization of differences between the carrying amount and the fair value of debt through net interest expense prior to the Control Date; •the elimination of intercompany transactions prior to the Control Date between the Company and KCS; •miscellaneous amounts reclassified across revenue, operating expenses, and non-operating income or expense, consistent with CPKC's financial statement captions; •the removal of equity earnings from KCS, previously recognized as an equity method investment prior to the Control Date, of $230 million; •transaction costs incurred by the Company; and •income tax adjustments including: ◦the derecognition of a deferred income tax recovery of $7,832 million related to the elimination of the deferred income tax liability on the outside basis difference of the investment in KCS; ◦the derecognition of a deferred income tax recovery on CPKC unitary state apportionment changes; ◦a deferred income tax recovery prior to the Control Date on amortization of fair value adjustments to investments, properties, intangible assets, and debt; and ◦a current income tax recovery on transaction costs expected to be incurred by CPKC.
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Investment in Kansas City Southern |
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| Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
| Investment in KCS | Gain on sale of equity investment On April 1, 2025, CPKC sold its 50% equity method investment in the Panama Canal Railway Company to APM Terminals Panama Rail LP ("APM Terminals"), a subsidiary of A.P. Moller-Maersk A/S, for gross proceeds of U.S. $350 million. After finalizing purchase price adjustments for cash acquired and debt and net working capital assumed by APM Terminals, the Company received cash consideration of U.S. $344 million ($493 million) and recognized a pre-tax gain of U.S. $232 million ($333 million) in "Gain on sale of equity investment”. The after-tax gain was U.S. $177 million ($256 million). Investment in Kansas City SouthernOn April 14, 2023, the Company assumed control of KCS and derecognized its equity method investment in KCS (see Note 11). The carrying amount of the Company's equity investment in KCS reported in the Company's Consolidated Balance Sheets prior to derecognition reflected the total of the consideration paid to acquire KCS (see Note 11), the offsetting asset recorded on recognition of a deferred tax liability computed on an outside basis (see Note 7), the subsequent recognition of equity income recognized in "Equity earnings of Kansas City Southern" and "Other comprehensive income (loss) from equity investees", the receipt of dividends from KCS, and foreign currency translation based on the period-end exchange rate. The Company estimated approximately $30 billion of basis differences between the consideration paid to acquire KCS and the underlying carrying value of the net assets of KCS as at December 14, 2021. While the Company accounted for its investment in KCS using the equity method of accounting from December 14, 2021 until April 13, 2023, the basis difference was amortized and recorded as a reduction of the Company's equity earnings of KCS. The basis differences that related to depreciable property, plant and equipment, intangible assets with definite lives, and long-term debt were amortized over the related assets' remaining useful lives, and the remaining terms to maturity of the debt instruments. The remainder of the basis differences, related to non-depreciable property, plant and equipment, intangible assets with indefinite lives, and equity method goodwill, were not amortized and were carried at cost subject to an assessment for impairment. For the period January 1 to April 13, 2023, the Company recognized $230 million of equity earnings of KCS, and received dividends from KCS of $300 million. The foreign currency translation of the investment in KCS resulted in a FX loss of $578 million. Included within the equity earnings of KCS recognized for the period from January 1 to April 13, 2023 was amortization (net of tax) of basis differences of $48 million. The following table presents summarized financial information for KCS, on its historical cost basis:
(1) KCS's historical amounts in U.S. dollars were translated into Canadian dollars at the Bank of Canada average exchange rate for the period from January 1 to April 13, 2023 with an effective exchange rate of $1.35. (2) Includes Equity in net earnings of KCS's affiliates, Interest expense, FX loss, and Other income, net.
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Properties |
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| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Properties | Properties
Concession assets included within each asset group of Properties shown above are as follows:
Finance lease ROU assets
Government assistance During the year ended December 31, 2025, the Company received $5 million (2024 - $26 million) of government assistance towards the purchase and construction of . As at December 31, 2025, the total Properties balance of $55,323 million is net of $263 million (2024 - $272 million) of unamortized government assistance, primarily related to the enhancement of the Company's track and roadway infrastructure. Amortization related to government assistance for the year ended December 31, 2025, was $11 million (2024 - $10 million).
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Goodwill |
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| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | Goodwill
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| Intangible assets | Intangible assets
(1) As at December 31, 2025, the Company held $1,863 million (2024 - $1,956 million) of Intangible assets not subject to amortization. Provided below is the estimated aggregate amortization expense for each of the five succeeding fiscal years, and thereafter:
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| Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounts payable and accrued liabilities | Accounts payable and accrued liabilities
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Debt |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | Debt The following table outlines the Company's outstanding long-term debt as at December 31, 2025:
As at December 31, 2025, the gross amount of U.S. dollar-denominated debt was U.S. $14,691 million (December 31, 2024 - U.S. $14,598 million). Annual maturities and principal repayment requirements, excluding those pertaining to finance leases, for each of the five years following 2025 are (in millions): 2026 - $3,228; 2027 - $7; 2028 - $1,893; 2029 - $990; 2030 - $1,514; thereafter - $16,189. Fees on long-term debt are amortized to income over the term of the related debt. A. These debentures and notes are presented net of unamortized discounts, require interest payments semi-annually, and are unsecured but carry a negative pledge. In 2025, the Company issued U.S. $600 million 4.80% 5-year unsecured Notes due March 30, 2030 for net proceeds of U.S. $596 million ($857 million), $500 million 4.00% 7-year unsecured Notes due June 13, 2032 for net proceeds of $498 million, U.S. $600 million 5.20% 10-year unsecured Notes due March 30, 2035 for net proceeds of U.S. $593 million ($853 million), $600 million 4.40% unsecured Notes due January 13, 2036 for net proceeds of $598 million, and $300 million 4.80% 30-year unsecured Notes due June 13, 2055 for net proceeds of $296 million. In 2025, the Company repaid, at maturity, the remaining balance of U.S. $642 million ($930 million) on its 2.90% 10-year Notes. In 2024, the Company repaid, at maturity, the remaining balance of U.S. $1,429 million ($2,002 million) on its 1.35% 3-year Notes. The Company also repurchased, on the open market, certain Senior Notes with principal values of U.S. $176 million ($241 million). These repurchases were accounted for as debt extinguishments, with gains of $22 million recognized in “Other (income) expense” on the Company's Consolidated Statements of Income. In 2024, the Company repaid, at maturity, U.S. $48 million ($66 million) 5.41% Senior Secured Notes collateralized by specific locomotives. The Company also repaid $21 million 6.91% Secured Equipment Notes which were full recourse obligations of the Company collateralized by a first charge on specific locomotives. B. The following loans were made under the Railroad Rehabilitation and Improvement Financing ("RRIF") Program administered by the Federal Railroad Administration: The Kansas City Southern Railway Company ("KCSR") RRIF Loan Agreement was entered into on February 21, 2012 to borrow U.S. $55 million to be used to reimburse KCSR for a portion of the purchase price of 30 new locomotives (the "Locomotives") in the fourth quarter of 2011. The loan bears interest at 2.96% annually and the principal balance amortizes quarterly with a final maturity of February 24, 2037. This loan is secured by a first priority security interest in the Locomotives with a carrying value of $96 million as at December 31, 2025. The Texas Mexican Railway Company ("Tex-Mex") RRIF Loan Agreement was entered into on June 28, 2005 to borrow U.S. $50 million to be used for infrastructure improvements in order to accommodate growing freight rail traffic. The loan bears interest at 4.29% annually and the principal balance amortizes quarterly with a final maturity of July 13, 2030. The loan is guaranteed by Mexrail Inc. ("Mexrail"), which has issued a pledge agreement in favour of the lender equal to the gross revenues earned by Mexrail on per-car fees on traffic crossing the Texas Mexican Railway International Bridge in Laredo, Texas. The Company wholly owns Mexrail which, in turn, wholly owns Tex-Mex. C. The carrying value of the assets collateralizing the Company's finance lease obligations was $100 million at December 31, 2025. D. The Consolidated Debenture Stock, authorized by an Act of Parliament of 1889, constitutes a first charge upon and over the whole of the undertaking, railways, works, rolling stock, plant, property and effects of the Company, with certain exceptions. Credit facilities The Company has a revolving credit facility (the "facility") agreement with 15 highly rated financial institutions for a commitment amount of U.S. $2.2 billion. The facility can accommodate draws of cash and/or letters of credit at market competitive pricing. Effective August 20, 2025, the Company entered into a facility agreement to extend the maturity dates of its five-year U.S. $1.1 billion facility and two-year U.S. $1.1 billion facility to June 25, 2030 and June 25, 2027, respectively. As at December 31, 2025 the five-year U.S. $1.1 billion facility was undrawn (December 31, 2024 - undrawn) and the two-year U.S. $1.1 billion facility was undrawn (December 31, 2024 - U.S. $200 million ($288 million)). The interest rate on borrowings outstanding as at December 31, 2024 was 5.57%. These borrowings were included in "Long-term debt maturing within one year" on the Company's Consolidated Balance Sheets. As at December 31, 2025 and 2024, the Company was in compliance with all terms and conditions of the credit facility arrangements and satisfied the financial covenant. In 2025, the Company entered into, and fully repaid, a U.S. $500 million unsecured non-revolving term credit facility (the "term facility"). The Company presents draws and repayments on its term facility in the Company's Consolidated Statements of Cash Flows on a net basis. The Company also has a commercial paper program, under which it may issue up to a maximum aggregate principal amount of U.S. $1.5 billion in the form of unsecured promissory notes. This commercial paper program is backed by the U.S. $2.2 billion revolving credit facility. As at December 31, 2025, the Company had total commercial paper borrowings outstanding of U.S. $850 million ($1,165 million), recognized in "Long-term debt maturing within one year" on the Company's Consolidated Balance Sheets (December 31, 2024 - U.S. $1,102 million ($1,586 million)). The weighted-average interest rate on these borrowings as at December 31, 2025 was 4.02% (December 31, 2024 - 4.75%). The Company presents issuances and repayments of commercial paper, all of which have a maturity of less than 90 days, in the Company's Consolidated Statements of Cash Flows, on a net basis. The Company has bilateral letter of credit facilities with six highly rated financial institutions to support its requirement to post letters of credit in the ordinary course of business. Under these agreements, the Company has the option to post collateral in the form of cash or cash equivalents, equal at least to the face value of the letter of credit issued. These agreements permit the Company to withdraw amounts posted as collateral at any time; therefore, the amounts posted as collateral are presented as "Cash and cash equivalents" on the Company’s Consolidated Balance Sheets. As at December 31, 2025 and 2024, the Company did not have any collateral posted on its bilateral letter of credit facilities but had letters of credit drawn of $79 million (December 31, 2024 - $95 million) from a total available amount of $300 million. Satisfaction and discharge of KCS 2023 Notes On April 24, 2023, the Company irrevocably deposited U.S. $647 million of non-callable government securities with the trustee of two series of notes that matured in 2023 (the "KCS 2023 Notes"), to satisfy and discharge KCS's obligations under the KCS 2023 Notes. On May 15, 2023 and November 15, 2023, the U.S. $439 million 3.00% senior notes and U.S. $199 million 3.85% senior notes, respectively, that comprise the KCS 2023 Notes were repaid by release of funds from the trustee. The purchase of government securities of U.S. $198 million ($267 million) associated with the November maturity, along with the settlement of these government securities for U.S. $200 million ($274 million) are presented within investing activities in the Company's Consolidated Statements of Cash Flows.
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Financial instruments |
12 Months Ended |
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Dec. 31, 2025 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| Financial instruments | Financial instruments A. Fair values of financial instruments The Company categorizes its financial assets and liabilities measured at fair value into a three-level hierarchy that prioritizes those inputs to valuation techniques used to measure fair value based on the degree to which they are observable. The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices in active markets for identical assets and liabilities; Level 2 inputs, other than quoted prices included within Level 1, are observable for the asset or liability either directly or indirectly; and Level 3 inputs are not observable in the market. The Company’s short-term financial instruments include cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and short-term borrowings including commercial paper and term loans. The carrying value of short-term financial instruments approximate their fair values. The carrying value of the Company’s debt does not approximate its fair value. The estimated fair value has been determined based on market information where available, or by discounting future payments of principal and interest at estimated interest rates expected to be available to the Company at period end. All measurements are classified as Level 2. The Company’s long-term debt, including current maturities, with a carrying value of $22,023 million as at December 31, 2025 (December 31, 2024 - $20,749 million), had a fair value of $20,740 million (December 31, 2024 - $18,911 million). B. Financial risk management Derivative financial instruments Derivative financial instruments may be used to selectively reduce volatility associated with fluctuations in interest rates, FX rates, the price of fuel, and stock-based compensation expense. Where derivatives are designated as hedging instruments, the relationship between the hedging instruments and their associated hedged items is documented, as well as the risk management objective and strategy for the use of the hedging instruments. This documentation includes linking the derivatives that are designated as fair value or cash flow hedges to specific assets, liabilities, commitments, or forecasted transactions. At the time a derivative contract is entered into and at each balance sheet date thereafter, an assessment is made as to whether the derivative item is effective in offsetting the changes in fair value or cash flows of the hedged items. The derivative qualifies for hedge accounting treatment if it is effective in substantially mitigating the risk it was designed to address. The Company does not use financial derivatives or commodity instruments for trading or speculative purposes. Credit risk management Credit risk refers to the possibility that a customer or counterparty will fail to fulfil its obligations under a contract and as a result create a financial loss for the Company. The railway industry predominantly serves financially established customers, and the Company has experienced limited financial losses with respect to credit risk. The credit worthiness of customers is assessed using credit scores supplied by a third party and through direct monitoring of their financial well-being on a continual basis. The Company establishes guidelines for customer credit limits and should thresholds in these areas be reached, appropriate precautions are taken to improve collectability. Counterparties to financial instruments expose the Company to credit losses in the event of non-performance. Counterparties for derivative and cash transactions are limited to high credit quality financial institutions, which are monitored on an ongoing basis. Counterparty credit assessments are based on the financial health of the institutions and their credit ratings from external agencies. The Company does not anticipate non-performance that would materially impact the Company’s Consolidated Financial Statements. In addition, the Company believes there are no significant concentrations of credit risk. FX management The Company conducts business transactions and owns assets in Canada, the U.S., and Mexico. As a result, the Company is exposed to fluctuations in the value of financial commitments, assets, liabilities, income, or cash flows due to changes in FX rates. The Company may enter into FX risk management transactions primarily to manage fluctuations in the exchange rate between Canadian and U.S. currencies, and between the Mexican peso and U.S. dollar as discussed below in "Mexican Peso-U.S. dollar FX forward contracts". FX exposure is primarily mitigated through natural offsets created by revenues, expenditures, and balance sheet positions incurred in the same currency. Where appropriate, the Company may negotiate with customers and suppliers to reduce the net exposure. Net investment hedge The majority of the Company’s U.S. dollar-denominated long-term debt, finance lease obligations, short-term borrowings, and operating lease liabilities have been designated as a hedge of the Company's net investment in foreign subsidiaries. This designation has the effect of mitigating volatility on Net income by offsetting long-term FX gains and losses on U.S. dollar-denominated long-term debt and gains and losses on its net investment. The effect of the Company's net investment hedge recognized in "Other comprehensive (loss) income" in 2025 was an FX gain of $293 million (2024 - FX loss of $380 million; 2023 - FX gain of $194 million) (see Note 9). Mexican Peso-U.S. dollar FX Forward contracts The Company’s Mexican subsidiaries have net U.S. dollar-denominated monetary assets or liabilities which, for Mexican income tax purposes, are subject to periodic revaluation based on changes in the value of the Mexican peso ("Ps.") against the U.S. dollar. This revaluation creates fluctuations in the Company’s Mexican income tax expense and the amount of income taxes paid in Mexican pesos. The Company also has net monetary assets or liabilities denominated in Mexican pesos that are subject to periodic re-measurement and settlement that create fluctuations within "Other (income) expense". Until January 2024, the Company hedged its net exposure to fluctuations in the Ps./U.S. dollar exchange rate with foreign currency forward contracts. The foreign currency forward contracts involved the Company’s agreement to buy or sell pesos at an agreed-upon exchange rate on a future date. As of January 12, 2024, the Company settled all outstanding foreign currency forward contracts, resulting in a cash outflow of $65 million included in "Operating activities" within the Company's Consolidated Statements of Cash Flows. As at December 31, 2025 and 2024, the Company had no foreign currency forward contracts outstanding. The Company measures the foreign currency derivative contracts at fair value each period and recognizes any change in "Other (income) expense" within the Company's Consolidated Statements of Income. During the year ended December 31, 2025, no amounts were recognized in "Other (income) expense" (2024 - loss of $4 million; 2023 - loss of $39 million). Offsetting The Company’s foreign currency forward contracts were executed with counterparties in the U.S. and were governed by International Swaps and Derivatives Association agreements that included standard netting arrangements. Asset and liability positions from contracts with the same counterparty were net settled upon maturity/expiration and presented on a net basis in the Company's Consolidated Balance Sheets prior to settlement. Interest rate management The Company is exposed to interest rate risk, which is the risk that the fair value or future cash flows of a financial instrument will vary as a result of changes in market interest rates. In order to manage funding needs or capital structure goals, the Company enters into debt or finance lease agreements that are subject to either fixed market interest rates set at the time of issue or floating rates determined by ongoing market conditions. Debt subject to variable interest rates exposes the Company to variability in interest expense, while debt subject to fixed interest rates exposes the Company to variability in the fair value of debt. To manage interest rate exposure, the Company accesses diverse sources of financing and manages borrowings in line with a targeted range of capital structure, debt ratings, liquidity needs, maturity schedule, and currency and interest rate profiles. In anticipation of future debt issuances, the Company may enter into forward rate agreements that are designated as cash flow hedges, to substantially lock in all or a portion of the effective future interest expense. The Company may also enter into swap and lock agreements, designated as fair value hedges, to manage the mix of fixed and floating rate debt. Designated hedges that were previously settled were amortized from AOCI to "Net interest expense" for a total net gain of $1 million in the year ended December 31, 2025 (2024 - net loss $6 million; 2023 - net loss $7 million).
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Other long-term liabilities |
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| Other Liabilities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other long-term liabilities | Other long-term liabilities
(1) As at December 31, 2025, the aggregate provision for , including the current portion was $241 million (2024 - $257 million). (2) The deferred lease and license revenue is being amortized to income on a straight-line basis over the related lease terms. Provision for environmental remediation Environmental remediation accruals cover site-specific remediation programs. The estimate of the probable costs to be incurred in the remediation of properties contaminated by past activities reflects the nature of contamination at individual sites according to typical activities and scale of operations conducted. The Company has developed remediation strategies for each property based on the nature and extent of the contamination, as well as the location of the property and surrounding areas that may be adversely affected by the presence of contaminants, considering available technologies, treatment and disposal facilities and the acceptability of site-specific plans based on the local regulatory environment. Site-specific plans range from containment and risk management of the contaminants through to the removal and treatment of the contaminants and affected soils and groundwater. The details of the estimates reflect the environmental liability at each property. Provisions for environmental remediation costs are recognized in "Other long-term liabilities", except for the current portion which is recognized in "Accounts payable and accrued liabilities". Payments are expected to be made over 10 years to 2035. The accruals for environmental remediation represent the Company’s best estimate of its probable future obligation and include both asserted and unasserted claims, without reduction for anticipated recoveries from third parties. Although the recorded accruals include the Company’s best estimate of all probable costs, the Company’s total environmental remediation costs cannot be predicted with certainty. Accruals for environmental remediation may change from time to time as new information about previously untested sites becomes known, environmental laws and regulations evolve and advances are made in environmental remediation technology. The accruals may also vary as the courts decide legal proceedings against outside parties responsible for contamination. These potential charges, which cannot be quantified at this time, may materially affect income in the particular period in which a charge is recognized. Costs related to existing, but as yet unknown, or future contamination will be accrued in the period in which they become probable and reasonably estimable. Changes to costs are reflected as changes to "Other long-term liabilities" or "Accounts payable and accrued liabilities" and to "Purchased services and other" within operating expenses on the Company's Consolidated Statements of Income. As a result of the acquisition of KCS and subsequent changes during the measurement period, changes to costs were reflected as changes to "Goodwill" on the Company's Consolidated Balance Sheets (see Note 11). The amount charged to income in 2025 was $9 million (2024 - $8 million; 2023 - $8 million)
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Leases |
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| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases | Leases The Company’s 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:
ROU Assets and Lease Liabilities recognized in the Company's Consolidated Balance Sheets are as follows:
The following table provides the Company's weighted-average remaining lease terms and discount rates:
Cash Flow information related to leases is as follows:
The following table provides the maturities of lease liabilities for the next five years and thereafter as at December 31, 2025:
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| Leases | Leases The Company’s 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:
ROU Assets and Lease Liabilities recognized in the Company's Consolidated Balance Sheets are as follows:
The following table provides the Company's weighted-average remaining lease terms and discount rates:
Cash Flow information related to leases is as follows:
The following table provides the maturities of lease liabilities for the next five years and thereafter as at December 31, 2025:
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Shareholders' equity |
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| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders' equity | 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:
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% tax on the fair market value of Shares repurchased (net of qualifying issuances of equity) as a direct cost of Common Share repurchases recognized in Shareholders’ equity. During the twelve months ended December 31, 2025, the Company has accrued a liability of $77 million, 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:
(1) Includes brokerage fees and applicable tax on share repurchases. On January 28, 2026, the Company announced that the Toronto Stock Exchange ("TSX") has accepted its notice to implement a new NCIB, commencing February 2, 2026, to purchase up to approximately 44.9 million Common Shares for cancellation on or before February 1, 2027.
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Change in non-cash working capital balances related to operations |
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| Change in non-cash working capital balances related to operations | Change in non-cash working capital balances related to operations
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Pensions and other benefits |
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| Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pensions and other benefits | 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 Company’s 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 Finance Committee of the Board of Directors has approved an investment policy that establishes long-term asset mix targets, which take into account the Company’s expected risk tolerances. Pension plan assets are managed by a suite of independent investment managers, with the allocation by manager reflecting these asset mix targets. Most of the assets are actively managed with the objective of outperforming applicable benchmarks. In accordance with the investment policy, derivative instruments may be used by investment managers to hedge or adjust existing or anticipated exposures. To develop the expected long-term rate of return assumption used in the calculation of net periodic benefit cost applicable to the market-related value of plan assets, the Company considers the expected composition of the plans’ assets, past experience, and future estimates of long-term investment returns. Future estimates of investment returns reflect the long-term return expectation for fixed income, public equity, real estate, infrastructure, private debt, and absolute return investments, and the expected added value (relative to applicable benchmark indices) from active management of pension plan assets. The Company has elected to use a market-related value of assets for the purpose of calculating net periodic benefit cost, developed from a five-year average of market values for the plans’ public equity and absolute return investments (with each prior year’s market value adjusted to the current date for assumed investment income during the intervening period) plus the market value of the plans’ fixed income, real estate, infrastructure, and private debt securities. The benefit obligation is discounted using a discount rate that is a blended yield to maturity for a hypothetical portfolio of high-quality debt instruments with cash flows matching projected benefit payments. The discount rate is determined by management. In 2025, the Company amended the Canadian DB pension plans to offer a temporary, voluntary early retirement program. Eligible employees were invited to apply to the program by December 15, 2025, and participants were confirmed by December 31, 2025. The cost of enhanced pension and other benefits resulting from the program is recognized as special termination benefits in 2025. Net periodic benefit (recovery) cost The elements of net periodic benefit (recovery) cost for DB pension plans and other benefits recognized in the year include the following components:
Projected benefit obligation, plan assets, and funded status Information about the Company’s DB pension plans and other benefits, in aggregate, is as follows:
The net actuarial gains for Pensions and Other benefits in 2025 were primarily due to the increase in the discount rate from 4.68% to 4.94%. The net actuarial gains for Pensions and Other benefits in 2024 were primarily due to demographic experience and the increase in the discount rate from 4.64% to 4.68%.
The table below shows the aggregate pension projected benefit obligation and aggregate fair value of plan assets for pension plans with fair value of plan assets in excess of projected benefit obligations (i.e. surplus), and for pension plans with projected benefit obligations in excess of fair value of plan assets (i.e. deficit):
The DB pension plans’ accumulated benefit obligation as at December 31, 2025 was $9,679 million (2024 - $10,006 million). The accumulated benefit obligation is calculated on a basis similar to the projected benefit obligation, except no future salary increases are assumed in the projection of future benefits. For pension plans with accumulated benefit obligations in excess of fair value of plan assets (i.e. deficit), the aggregate pension accumulated benefit obligation as at December 31, 2025 was $162 million (2024 - $159 million) and the aggregate fair value of plan assets as at December 31, 2025 was $20 million (2024 - $21 million). All Other benefits plans were in a deficit position as at December 31, 2025 and 2024. Pension asset and liabilities in the Company’s Consolidated Balance Sheets Amounts recognized in the Company’s Consolidated Balance Sheets are as follows:
The measurement date used to determine the plan assets and the benefit obligation is December 31. Accumulated other comprehensive income (loss) Amounts recognized in AOCI are as follows:
Actuarial assumptions Weighted-average actuarial assumptions used were approximately:
(1) The expected rate of return on plan assets that will be used to compute the 2026 net periodic benefit recovery is 6.70%. Plan assets Plan assets are recorded at fair value. The major asset categories are public equity securities, fixed income securities, real estate, infrastructure, absolute return investments, and private debt. The fair values of the public equity and fixed income securities are primarily based on quoted market prices. Real estate and infrastructure values are based on the value of each fund’s assets as calculated by the fund manager, generally using third party appraisals or discounted cash flow analysis and taking into account current market conditions and recent sales transactions where practical and appropriate. Private debt values are based on the value of each fund’s assets as calculated by the fund manager taking into account current market conditions and reviewed annually by external parties. Absolute return investments are a portfolio of units of externally managed hedge funds and are valued by the fund administrators. The Company’s pension plan asset allocation, the weighted-average asset allocation targets, and the weighted-average policy range for each major asset class at year-end were as follows:
All asset allocations are within their policy ranges as at December 31, 2025. Summary of the assets of the Company’s DB pension plans The following is a summary of the assets of the Company’s DB pension plans as at December 31, 2025 and 2024. As at December 31, 2025 and 2024, there were no plan assets classified as Level 3 valued investments.
(1) Investments measured at net asset value ("NAV"): Amounts are comprised of certain investments measured using NAV (or its equivalent) as a practical expedient. These investments have not been classified in the fair value hierarchy. (2) Government & Corporate Bonds: Fair values for bonds are based on market prices supplied by independent sources as of the last trading day. (3) Mortgages: The fair values of mortgages are based on current market yields of financial instruments of similar maturity, coupon and risk factors. (4) Mortgage-backed and asset-backed securities: The fair values of mortgage-backed and asset-backed securities are determined based on valuations from pricing sources that incorporate broker-dealer quotations, reported trades or valuation estimates from their internal pricing models which consider tranche-level attributes, current market data, estimated cash flows, and market-based yield spreads and incorporate deal collateral performance, as available. (5) Real estate: Real estate fund values are based on the NAV of the funds that invest directly in real estate investments. The values of the investments have been estimated using the capital accounts representing the plans' ownership interest in the funds. Of the total, $407 million is subject to redemption frequencies ranging from monthly to annually and a redemption notice period of 90 days (2024 - $435 million). The remaining $100 million is not subject to redemption and is normally returned through distributions as a result of the liquidation of the underlying real estate investments (2024 - $86 million). As at December 31, 2025, there are $262 million of unfunded commitments for real estate investments (December 31, 2024 - $309 million). (6) Infrastructure: Infrastructure fund values are based on the NAV of the funds that invest directly in infrastructure investments. The values of the investments have been estimated using the capital accounts representing the plans' ownership interest in the funds. Of the total, $644 million is subject to redemption frequencies ranging from monthly to annually and a redemption notice period of 90 days (2024 - $606 million). The remaining $632 million is not subject to redemption and is normally returned through distributions as a result of the liquidation of the underlying infrastructure investments (2024 - $588 million). As at December 31, 2025, there are $248 million of unfunded commitments for infrastructure investments (December 31, 2024 - $205 million). (7) Private debt: Private debt fund values are based on the NAV of the funds that invest directly in private debt investments. The values of the investments have been estimated using the capital accounts representing the plans' ownership interest in the funds. Of the total, $61 million is subject to redemption frequencies ranging from monthly to annually and a redemption notice period of 90 days (2024 - $115 million). The remaining $1,049 million is not subject to redemption and is normally returned through distributions as a result of the repayment of the underlying loans (2024 - $1,031 million). As at December 31, 2025, there are $598 million of unfunded commitments for private debt investments (December 31, 2024 - $764 million). (8) Derivative Instruments: The investment managers may utilize the following derivative instruments: equity futures to replicate equity index returns (Level 2); currency forwards to partially hedge foreign currency exposures (Level 2); bond futures and forwards to manage duration and interest rate risk (Level 2); interest rate swaps to manage duration and interest rate risk (Level 2); credit default swaps to manage credit risk (Level 2); and options to manage interest rate risk and volatility (Level 2). The Company may utilize derivatives directly, but only for the purpose of hedging foreign currency exposures. One of the fixed income investment managers utilizes a portfolio of bond forwards for the purpose of reducing asset/liability interest rate exposure. As at December 31, 2025, there are bond forwards with a notional value of $420 million (December 31, 2024 - $555 million) and a fair value of $(14) million (December 31, 2024 - $2 million). (9) Absolute return: The value of absolute return fund investments is based on the NAV reported by the fund administrators. The funds have different redemption policies with redemption notice periods varying from 30 to 120 days and frequencies ranging from monthly to triennially. Additional plan assets information The Company's primary investment objective for pension plan assets is to achieve a long-term return, net of all fees and expenses, that is sufficient for the plan's assets to satisfy the current and future obligations to plan beneficiaries, while minimizing the financial impact on the Company. In identifying the asset allocation ranges, consideration was given to the long-term nature of the underlying plan liabilities, the solvency and going-concern financial position of the plan, long-term return expectations, and the risks associated with key asset classes as well as the relationships of returns on key asset classes with each other, inflation, and interest rates. When advantageous and with due consideration, derivative instruments may be utilized by investment managers, provided the total value of the underlying assets represented by financial derivatives (excluding currency forwards, liability hedging derivatives in fixed income portfolios, and derivatives held by absolute return funds) is limited to 30% of the market value of the fund. The funded status of the plans is exposed to fluctuations in interest rates, which affects the relative values of the plans' liabilities and assets. In order to mitigate interest rate risk, the Company's main Canadian DB pension plan utilizes a liability driven investment strategy in its fixed income portfolio, which uses a combination of long duration bonds and derivatives to hedge interest rate risk, managed by the investment manager. As at December 31, 2025, the plan's solvency funded position was 53% hedged against interest rate risk (2024 - 51%). When investing in foreign securities, the plans are exposed to foreign currency risk; the effect of which is included in the valuation of the foreign securities. As at December 31, 2025 and 2024, the plans were 39% exposed to the U.S. dollar, 7% exposed to the Euro, and 5% exposed to various other currencies. As at December 31, 2025, plan assets included 440,925 of the Common Shares of the Company (2024 - 322,733) at a market value of $45 million (2024 - $34 million) and Fixed income securities of the Company at a market value of $5 million (2024 - $2 million). Estimated future benefit payments The estimated future DB pension and other benefit payments to be paid by the plans for each of the next five years and the subsequent five-year period are as follows:
The benefit payments from the Canadian registered and U.S. qualified DB pension plans are payable from their respective pension funds. Benefit payments from the supplemental pension plans and from the other benefits plans are payable directly by the Company. Defined contribution plan The Canadian DC plan provides a pension benefit based on total employee and Company contributions plus investment income earned on those contributions. Canadian non-unionized employees hired after July 1, 2010 are generally required to participate. Employee and Company contributions are based on a percentage of earnings. In 2025, the net cost of the Canadian DC plan, which generally equals the Company’s required contribution, was $12 million (2024 - $13 million; 2023 - $12 million). In 2026, the Company estimates that it will make contributions of $12 million to the Canadian DC plan. Effective December 31, 2024, the U.S. DC plan was amalgamated into a Company-sponsored savings plan. The net cost of the U.S. DC plan, generally equal to the Company's required contribution, was $3 million in 2024 and $2 million in 2023. Contributions to multi-employer plans Some of the Company’s unionized employees in the U.S. are members of a U.S. national multi-employer benefit plan. Contributions made by the Company to this plan in 2025 in respect of post-retirement medical benefits were $2 million (2024 - $3 million; 2023 - $4 million).
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Stock-based compensation |
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| Stock-based compensation | Stock-based compensation At December 31, 2025, the Company had several stock-based compensation 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:
(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, the weighted-average years to expiration. The table also provides the aggregate intrinsic value for in-the-money stock options, which represents the amount that would have been received by option holders had they exercised their options on December 31, 2025 at the Company’s closing stock price of $101.05.
(1) As at December 31, 2025, the total number of in-the-money stock options outstanding was 2,800,002 with a weighted-average exercise price of $85.20. The weighted-average years to expiration of exercisable stock options is 2.0 years. Pursuant to the plan, stock options may be exercised upon vesting, which is between 12 and 48 months after the grant date, and expire seven years from the grant date. The grant date fair value of the stock options granted in 2025 was $28 million (2024 - $27 million; 2023 - $26 million). The following table provides assumptions used to determine the fair values of stock option awards, and the weighted-average grant date fair values for units granted in 2025, 2024, and 2023:
(1) Represents the period of time that awards are expected to be outstanding. Historical data on exercise behaviour or, when available, specific expectations regarding future exercise behaviour were used to estimate the expected life of the option. (2) Based on the implied yield available on zero-coupon government issues with an equivalent term commensurate with the expected term of the option. (3) Based on the historical volatility of the Company’s stock price over a period commensurate with the expected term of the option. (4) Determined by the calculated projected annual dividend yield based on the current annual dividend yield at the time of grant. The Company does not employ different dividend yields throughout the contractual term of the option. (5) The Company estimates forfeitures based on past experience. The rate is monitored on a periodic basis. In 2025, the expense for stock options was $28 million (2024 - $24 million; 2023 - $25 million). At December 31, 2025, there was $9 million of total unrecognized compensation related to stock options, which is expected to be recognized over a weighted-average period of approximately 1.1 years. The total fair value of shares vested for the stock option plan during 2025 was $22 million (2024 - $20 million; 2023 - $18 million). The following table provides information related to all stock options exercised in the plan during the years ended December 31:
B. Share unit plans Performance share unit plan During 2025, the Company issued 611,516 PSUs with a grant date fair value of $68 million and 24,149 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 Company's Common Shares, and vest to four years after the grant date, contingent on the Company’s performance ("performance factor"). Vested PSUs are settled in cash. Vested PDSUs are converted into DSUs pursuant to the DSU plan, are eligible for a 25% Company match if the employee has not exceeded their Common Share ownership requirements, and are settled in cash only when the holder ceases their employment with the Company. The performance period for all PSUs and PDSUs granted in 2025 is January 1, 2025 to December 31, 2027 and the performance factors are Free Cash Flow ("FCF"), and Total Shareholder Return ("TSR") compared to the Standard and Poor's ("S&P")/TSX 60 Index, TSR compared to the S&P 500 Industrials Index, and TSR compared to Class I railways. The performance period for 568,159 PSUs and 25,589 PDSUs granted in 2024 is January 1, 2024 to December 31, 2026 and the performance factors are FCF, annualized Earnings Before Interest, Taxes, Depreciation, Amortization ("EBITDA"), TSR compared to the S&P/TSX 60 Index, TSR compared to the S&P 500 Industrials Index, and TSR compared to Class I railways. The performance period for all of the 544,175 PSUs and all 26,333 PDSUs granted in 2023 is January 1, 2023 to December 31, 2025, and the performance factors are FCF, EBITDA, TSR compared to the S&P/TSX 60 Index, TSR compared to the S&P 500 Industrials Index, and TSR compared to Class I railways. The payout on these awards is 91% on 461,766 PSUs (including dividends reinvested) and 26,555 PDSUs (including dividends reinvested and matching units) outstanding, representing fair values of $43 million and $3 million, respectively, as at December 31, 2025, calculated based on the Company's average Common Share price of the last 30 trading days preceding December 31, 2025. The performance period for the other 347,236 PSUs granted in 2023 is April 28, 2023 to December 1, 2026 and the performance factors are EBITDA and TSR compared to Class I railways. The performance period for all of the 415,660 PSUs and 13,506 PDSUs granted in 2022 was January 1, 2022 to December 31, 2024, and the performance factors were FCF, Adjusted net debt to Adjusted EBITDA Modifier, TSR compared to the S&P/TSX 60 Index, and TSR compared to the S&P 500 Industrials Index. The resulting payout was 120% of the outstanding units multiplied by the Company's average Common Share price calculated based on the last 30 trading days preceding December 31, 2024. In the first quarter of 2025, payouts were $48 million on 381,759 PSUs, including dividends reinvested. The 9,774 PDSUs that vested on December 31, 2024, with a fair value of $2 million, including dividends reinvested and matching units, will be paid out in future reporting periods pursuant to the DSU plan (as described above). The following table summarizes the activity related to PSUs and PDSUs for each of the years ended December 31:
In 2025, the expense for PSUs and PDSUs was $8 million (2024 - $72 million; 2023 - $78 million). At December 31, 2025, there was $16 million of total unrecognized compensation related to these awards, which is expected to be recognized over a weighted-average period of approximately 1.3 years. Deferred share unit plan The Company established the DSU plan as a means to compensate and assist in attaining Common Share ownership targets set for certain key employees and Directors. A DSU entitles the holder to receive, upon redemption, a cash payment equivalent to the Company's average Common Share price based on the 10 trading days prior to redemption. DSUs vest over various periods of up to 36 months and are only redeemable for a specified period after employment is terminated. Senior managers may elect to receive DSUs in lieu of annual cash bonuses under the bonus deferral program. In addition, senior managers will be granted a 25% Company match of DSUs when deferring cash to DSUs to meet ownership targets. The election to receive eligible payments in DSUs is no longer available to a participant when the value of the participant’s DSUs is sufficient to meet the Company’s Common Share ownership guidelines. Senior managers have five years to meet their ownership targets. The expense for DSUs is recognized over the vesting period for both the initial subscription price and the change in value between reporting periods. The following table summarizes the activity related to DSUs for each of the years ended December 31:
During 2025, the Company granted 91,071 DSUs with a grant date fair value of approximately $10 million. In 2025, the expense for DSUs was $7 million (2024 - $1 million of recovery; 2023 - $10 million of expense). At December 31, 2025, there was $1 million of total unrecognized compensation related to DSUs, which is expected to be recognized over a weighted-average period of approximately 1.8 years. Summary of share unit liabilities settled The following table summarizes the total share unit liabilities settled for each of the years ended December 31:
C. Employee share purchase plan The Company has an employee share purchase plan whereby both employee and the Company contributions are used to purchase Common Shares on the open market for employees. The Company’s contributions are expensed over the one year vesting period. Under the plan, the Company matches $1 for every $3 contributed by employees up to a maximum employee contribution of 6% of annual salary. The total number of Common Shares purchased in 2025 on behalf of participants, including the Company's contributions, was 737,804 (2024 - 746,544; 2023 - 600,730). In 2025, the Company’s contributions were $17 million (2024 - $17 million; 2023 - $15 million) and the related compensation and benefits expense was $13 million (2024 - $12 million; 2023 - $11 million)
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Variable interest entities |
12 Months Ended |
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Dec. 31, 2025 | |
| Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
| Variable interest entities | Variable interest entities The Company leases equipment from certain trusts, which are financed by a combination of debt and equity and are unrelated third parties. The lease agreements, which are classified as operating leases, have fixed price purchase options that create the Company’s variable interests and result in the trusts being considered variable interest entities ("VIE"). Maintaining and operating the leased assets according to specific contractual obligations outlined in the terms of the lease agreements and industry standards is the Company’s responsibility. The rigour of the contractual terms of the lease agreements and industry standards are such that the Company has limited discretion over the maintenance activities associated with these assets. Accordingly, the Company does not have the power to direct the activities that most significantly impact these entities economic performance. The Company's financial exposure resulting from its involvement with these entities, is limited to its fixed lease payments. In 2025, lease payments related to the VIE were $12 million. Total future minimum lease payments to the end of the lease term in 2030 are $41 million. The fixed price purchase options for all leased assets expire in 2026. Although the leased assets must be returned in good operating condition, subject to normal wear and tear, the Company does not guarantee the residual value of the assets at the end of the lease. Since the Company has neither the power to direct the activities of the VIE, or the obligation to absorb expected losses or residual returns, it does not consolidate the
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Commitments and contingencies |
12 Months Ended |
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Dec. 31, 2025 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and contingencies | 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 Company’s 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-Mégantic rail accident On July 6, 2013, a train carrying petroleum crude oil operated by Montréal Maine and Atlantic Railway ("MMAR") or a subsidiary, Montréal Maine & Atlantic Canada Co. ("MMAC" and collectively the "MMA Group"), derailed in Lac-Mégantic, Québec. 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 distribution of approximately $440 million amongst those claiming derailment damages. A number of legal proceedings, set out below, were commenced in Canada and the U.S. against the Company and others: (1)Québec's Minister of Sustainable Development, Environment, Wildlife and Parks ordered various parties, including the Company, to remediate the derailment site (the "Cleanup Order") and served the Company with a Notice of Claim for $95 million for those costs. The Company appealed the Cleanup Order and contested the Notice of Claim with the Administrative Tribunal of Québec. These proceedings are stayed pending determination of the Attorney General of Québec ("AGQ") action (paragraph 2 below). (2)The AGQ sued the Company in the Québec Superior Court claiming $409 million in damages, which was further amended and reduced to $231 million (the "AGQ Action"). The AGQ Action alleges that: (i) the Company was responsible for the petroleum crude oil from its point of origin until its delivery to Irving Oil Ltd.; and (ii) the Company is vicariously liable for the acts and omissions of the MMA Group. (3)A class action in the Québec Superior Court on behalf of persons and entities residing in, owning or leasing property in, operating a business in, or physically present in Lac-Mégantic at the time of the derailment was certified against the Company on May 8, 2015 (the "Class Action"). Other defendants including MMAC and Mr. Thomas Harding ("Harding") were added to the Class Action on January 25, 2017. On November 28, 2019, the plaintiffs' motion to discontinue their action against Harding was granted. The Class Action seeks unquantified damages, including for wrongful death, personal injury, property damage, and economic loss. (4)Eight subrogated insurers sued the Company in the Québec Superior Court claiming approximately $16 million in damages, which was amended and reduced to approximately $14 million (the "Promutuel Action"), and two additional subrogated insurers sued the Company claiming approximately $3 million in damages (the "Royal Action"). Both actions contain similar allegations as the AGQ Action. The actions do not identify the subrogated parties. As such, the extent of any overlap between the damages claimed in these actions and under the Plans is unclear. The Royal Action is stayed pending determination of the consolidated proceedings described below. On December 11, 2017, the AGQ Action, the Class Action and the Promutuel Action were consolidated. The joint liability trial of these consolidated claims commenced on September 21, 2021 with oral arguments ending on June 15, 2022. The Québec Superior Court issued a decision on December 14, 2022 dismissing all claims against the Company, finding that the Company’s actions were not the direct and immediate cause of the accident and the damages suffered by the plaintiffs. All three plaintiffs filed a declaration of appeal on January 13, 2023. The appeal was heard October 7 to 10, 2024 by the Québec Court of Appeal. On February 26, 2025, the Québec Court of Appeal issued its unanimous decision upholding the trial decision and dismissing the appeals in their entirety. On April 28, 2025, all three plaintiffs filed applications for leave to appeal to the Supreme Court of Canada. On May 30, 2025, the Company filed its response to the plaintiffs' leave applications. A damages trial will follow after the disposition of all appeals, if necessary. (5)Forty-eight plaintiffs (all individual claims joined in one action) sued the Company, MMAC, and Harding in the Québec Superior Court claiming approximately $5 million in damages for economic loss and pain and suffering, and asserting similar allegations as in the Class Action and the AGQ Action. The majority of the plaintiffs opted-out of the Class Action and all but two are also plaintiffs in litigation against the Company, described in paragraph 7 below. This action is stayed pending determination of the consolidated claims described above. (6)The MMAR U.S. bankruptcy estate representative commenced an action against the Company in November 2014 in the Maine Bankruptcy Court claiming that the Company failed to abide by certain regulations and seeking approximately U.S. $30 million in damages for MMAR’s loss in business value according to an expert report filed by the bankruptcy estate. This action asserts that the Company knew or ought to have known that the shipper misclassified the petroleum crude oil and therefore should have refused to transport it. Summary judgement motion was argued and taken under advisement on June 9, 2022. On May 23, 2023, the case management judge stayed the proceedings pending the outcome of the appeal in the Canadian consolidated claims. On April 18, 2025, the Court lifted the stay and ordered briefing concerning the Company’s request for summary judgement based on the preclusive effect of matters decided in other Lac-Mégantic cases. The Court will address that basis for summary judgement first, then will address other arguments for summary judgement, if necessary, afterwards. On October 8, 2025, the Court heard the Company's summary judgement motion. The Court's decision is pending. (7)The class and mass tort action commenced against the Company in June 2015 in Texas (on behalf of Lac-Mégantic residents and wrongful death representatives) and the wrongful death and personal injury actions commenced against the Company in June 2015 in Illinois and Maine, were all transferred and consolidated in Federal District Court in Maine (the "Maine Actions"). The Maine Actions allege that the Company negligently misclassified and improperly packaged the petroleum crude oil. On the Company’s motion, the Maine Actions were dismissed. The plaintiffs appealed the dismissal decision to the U.S. First Circuit Court of Appeals, which dismissed the plaintiffs' appeal on June 2, 2021. The plaintiffs further petitioned the U.S. First Circuit Court of Appeals for a rehearing, which was denied on September 8, 2021. On January 24, 2022, the plaintiffs further appealed to the U.S. Supreme Court on two bankruptcy procedural grounds. On May 31, 2022, the U.S. Supreme Court denied the petition, thereby rejecting the plaintiffs' appeal. (8)The trustee for the wrongful death trust commenced Carmack Amendment claims against the Company in North Dakota Federal Court, seeking to recover approximately U.S. $6 million for damaged rail cars and lost crude oil and reimbursement for the settlement paid by the consignor and the consignee under the Plans (alleged to be U.S. $110 million and U.S. $60 million, respectively). The Court issued an Order on August 6, 2020 granting and denying in parts the parties' summary judgement motions which has been reviewed and confirmed following motions by the parties for clarification and reconsideration. Final briefs of dispositive motions for summary judgement and for reconsideration on tariff applicability were submitted on September 30, 2022. On January 20, 2023, the Court granted in part the Company's summary judgement motion by dismissing all claims for recovery of settlement payments but leaving for trial the determination of the value of the lost crude oil. It also dismissed the Company's motion for reconsideration on tariff applicability. The remaining issues of the value of the lost crude oil and applicability of judgement reduction provisions did not require trial, and were fully briefed in 2024. On January 5, 2024, the Court issued its decision finding that the Company was liable for approximately U.S. $3.9 million plus pre-judgement interest, but declined to determine whether judgement reduction provisions were applicable, referring the parties to a court in Maine on that issue. On January 18, 2024, the Company filed a motion for reconsideration for the Court to apply the judgement reduction provisions. On January 19, 2024, the trustee for the wrongful death trust filed a Notice of Appeal for the January 5, 2024 decision, as well as prior decisions. On February 23, 2024, the Court denied the Company’s motion for reconsideration, again referring the parties to a court in Maine to apply the judgement reduction provision. On March 6, 2024, the Company filed its notice of appeal of this latest ruling, as well as prior decisions. The appeal was heard on March 18, 2025. On July 3, 2025, the U.S. Eighth Circuit Court of Appeals unanimously allowed the Company’s appeal, reversing the district court decision and remanding the matter back to the district court for a complete reduction of the judgement against the Company. On July 17, 2025, the trustee for the wrongful death trust petitioned the U.S. Eighth Circuit Court of Appeals for a rehearing. On August 7, 2025, the U.S. Eighth Circuit Court of Appeals denied the petition for a rehearing. The deadline for any petition to the U.S. Supreme Court for certiorari passed in November 2025 and no petition was filed. At this stage of the proceedings, any potential responsibility and the quantum of potential losses cannot be determined. Nevertheless, the Company denies liability and is vigorously defending these proceedings. Court decision related to Remington Development Corporation legal claim On October 20, 2022, the Court of King’s Bench of Alberta issued a decision in a claim brought by Remington Development Corporation ("Remington") against the Company and the Province of Alberta ("Alberta") with respect to an alleged breach of contract by the Company in relation to the sale of certain properties in Calgary. In its decision, the Court found the Company had breached its contract with Remington and Alberta had induced the contract breach. The Court found the Company and Alberta liable for damages of approximately $164 million plus interest and costs, and subject to an adjustment to the acquisition value of the property. In a further decision on August 30, 2023, the Court determined that adjustment and set the total damages at $165 million plus interest and costs. On October 20, 2023, the Court determined the costs payable to Remington, however, the Court had not provided any indication of how the damages, which were estimated to total approximately $232 million as at June 30, 2025, should be apportioned between the Company and Alberta. On November 17, 2022, the Company filed an appeal of the Court’s decision. On April 11, 2024, the Court of Appeal of Alberta ("ABCA") stayed the judgement pending the outcome of the appeal. On September 10, 2024, the ABCA heard the Company's appeal and reserved its decision. On July 2, 2025, the ABCA unanimously allowed the Company’s appeal and set aside the trial judgement and costs order. A majority of the ABCA ordered a new trial in the Court of King’s Bench. On September 26, 2025, Remington sought leave to appeal the ABCA’s decision to the Supreme Court of Canada. 2014 tax assessment On April 13, 2022, the SAT delivered an audit assessment of CPKCM’s 2014 tax returns (the "2014 Assessment"). As at December 31, 2025, the 2014 Assessment, including inflation, interest, and penalties was Ps.6,552 million ($499 million). On July 7, 2022, CPKCM filed an administrative appeal (the "Administrative Appeal") before the SAT, seeking to revoke the 2014 Assessment on the basis that the SAT’s notification of the 2014 Assessment through the tax mailbox was not legal, because it was in violation of a tax mailbox injunction previously granted to CPKCM on March 19, 2015. On September 26, 2022, the SAT dismissed the Administrative Appeal, on the basis that it was not a timely submission (the "Administrative Appeal Resolution"). On October 10, 2022, CPKCM submitted an annulment lawsuit (the "Annulment Lawsuit") before the Federal Administrative Court (the "Administrative Court"), challenging the 2014 Assessment, its notification, and the Administrative Appeal Resolution. On April 24, 2024, the Administrative Court resolved the Annulment Lawsuit, confirming the Administrative Appeal Resolution and the 2014 Assessment (the "Administrative Court Resolution"). On June 21, 2024, CPKCM challenged the Administrative Court Resolution by submitting an Amparo appeal (Demanda de Amparo) before the Collegiate Circuit Court (Tribunal Colegiado de Circuito). On June 4, 2025, the Twenty Third Collegiate Court of the First Circuit (the "Circuit Court") unanimously granted CPKCM’s Amparo petition, vacating the prior decision and sending the matter back to the Administrative Court with an order to issue a new resolution addressing CPKCM’s arguments that were presented in the Annulment Lawsuit. On June 25, 2025, the Administrative Court resolved the Annulment Lawsuit unfavourably to CPKCM (the "2025 Administrative Court Resolution"). On August 19, 2025, CPKCM submitted a new Amparo appeal challenging the 2025 Administrative Court Resolution. On September 8, 2025, the Circuit Court admitted the Amparo appeal submitted by CPKCM. CPKCM expects to prevail based on the technical merits of its case. On August 20, 2025, derived from the submission of the Amparo appeal, the Administrative Court issued a resolution granting an injunction against the enforcement and collection of the 2014 Assessment, as long as the 2014 Assessment is duly guaranteed. 2023 business interruption insurance settlement During the third quarter of 2023, the Company realized gain contingencies of $51 million recognized to "Purchased services and other", as a result of settlements reached with insurers for business interruption losses incurred by the Company related to a wildfire and flooding in British Columbia in 2021.
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Guarantees |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Guarantees [Abstract] | |
| Guarantees | Guarantees In the normal course of operations, the Company enters into contractual arrangements that involve providing certain guarantees, which extend over the term of the contracts. These guarantees include, but are not limited to: •guarantees to pay other parties in the event of the occurrence of specified events, including damage to equipment, in relation to assets used in the operation of the railway through operating leases, rental agreements, easements, trackage, and interline agreements; •guarantees to pay other parties in the event of a specified change in control of the Company or particular subsidiaries of the Company; •guarantees to repay amounts outstanding for certain debt obligations; •a guarantee to repay a portion of amounts outstanding for certain debt obligations held by an equity investee; and •indemnifications of certain tax-related payments incurred by lessors and lenders. The maximum amount that could be payable under these guarantees, excluding residual value guarantees, cannot be reasonably estimated due to the nature of certain guarantees. All or a portion of amounts paid under guarantees to other parties in the event of the occurrence of specified events could be recoverable from other parties or through insurance. The Company has accrued for all guarantees that it expects to pay. As at December 31, 2025, accruals of $16 million (2024 - $8 million), were recognized in "Accounts payable and accrued liabilities". Indemnification Pursuant to a trust and custodial services agreement with the trustee of the Canadian Pacific Railway Company Pension Plan, the Company has undertaken to indemnify and save harmless the trustee, to the extent not paid by the fund, from any and all taxes, claims, liabilities, damages, costs, and expenses arising out of the performance of the trustee’s obligations under the agreement, except as a result of misconduct by the trustee. The indemnity includes liabilities, costs, or expenses relating to any legal reporting or notification obligations of the trustee with respect to the defined benefit and defined contribution options of the pension plans, or otherwise with respect to the assets of the pension plans that are not part of the fund. The indemnity survives the termination or expiry of the agreement with respect to claims and liabilities arising prior to the termination or expiry. As at December 31, 2025, the Company had not recognized a liability associated with this indemnification as it does not expect to make any payments pertaining to it.
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Segmented and geographic information |
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| Segmented and geographic information | 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:
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Subsequent events |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Subsequent Events [Abstract] | |
| Subsequent events | Subsequent events In February 2026, the Company repaid, at maturity, U.S. $250 million ($339 million) 3.70% Notes.
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Schedule II – Valuation and Qualifying Accounts |
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| Schedule II – Valuation and Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts
(1) Includes provisions for environmental remediation, personal injury and other claims. Provisions associated with self-insured workers’ compensation benefits administered through the Workers' Compensation Boards of four Canadian provinces are presented in Note 23 Pensions and Other Benefits of the Financial Statements.
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Insider Trading Arrangements |
3 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Trading Arrangements, by Individual | |
| Rule 10b5-1 Arrangement Adopted | false |
| Non-Rule 10b5-1 Arrangement Adopted | false |
| Rule 10b5-1 Arrangement Terminated | false |
| Non-Rule 10b5-1 Arrangement Terminated | false |
Insider Trading Policies and Procedures |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Insider Trading Policies and Procedures [Line Items] | |
| Insider Trading Policies and Procedures Adopted | true |
Cybersecurity Risk Management and Strategy Disclosure |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Cybersecurity Risk Management, Strategy, and Governance [Line Items] | |
| Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block] | CPKC’s cybersecurity risk management program is an integrated and essential component of the Company’s overall risk management strategy. Through its Security Management Plan, CPKC maintains a comprehensive, risk-based plan that is modelled on and was developed in conjunction with the security plan prepared by the Association of American Railroads post-September 11, 2001. This plan also covers regulatory requirements such as TSA Cyber Security Directives and auditing requirements. Under this plan, the Company routinely examines and prioritizes cyber vulnerabilities and threats while also testing and revising protective measures for its assets and operations, both physical or cyber. Likewise, the Company’s cybersecurity risk management program entails real-time review and monitoring of CPKC’s cyber-risk exposures and implements strategic processes to manage those risks. The Company's cybersecurity program utilizes the National Institute of Standards and Technology Cybersecurity Framework as its foundation. Accordingly, CPKC’s program includes periodic risk assessments, penetration testing by a third-party, audit participation, employee and contractor training, and the implementation of technologies to assist in mitigating cybersecurity risks and harms. Incident response procedures, including escalation procedures, are designed, implemented, and periodically tested to assist the Company in detecting, responding to, and recovering from a potential cybersecurity incident, and making any timely notification or disclosure that may be required under the circumstances. The Company scopes the third-party penetration tests as real-world attacks against perimeter defences and internal processes such as social engineering and phishing. The Company's cybersecurity risk management program also includes ongoing threat research and analysis conducted with the assistance of third parties, including on emerging threat attack vectors, tactics, actors, and motivations. The Company also engages in ongoing network monitoring and has implemented a vulnerability management and patching program. Further, CPKC employs structured vetting and ongoing risk management processes to identify and mitigate cyber risks associated with the use of third-party service providers, including specifically in the area of technology. To date, risks arising from cybersecurity threats have not materially affected the Company, its results of its operations, or its financial condition. However, the Company also recognizes the reality of the ever-evolving cyber risk landscape faced by industries and businesses across the world. Depending on their source and nature, cyber incidents could in the future materially affect CPKC and its operations, and financial condition.
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| Cybersecurity Risk Management Processes Integrated [Flag] | true |
| Cybersecurity Risk Management Processes Integrated [Text Block] | CPKC’s cybersecurity risk management program is an integrated and essential component of the Company’s overall risk management strategy. Through its Security Management Plan, CPKC maintains a comprehensive, risk-based plan that is modelled on and was developed in conjunction with the security plan prepared by the Association of American Railroads post-September 11, 2001. This plan also covers regulatory requirements such as TSA Cyber Security Directives and auditing requirements. Under this plan, the Company routinely examines and prioritizes cyber vulnerabilities and threats while also testing and revising protective measures for its assets and operations, both physical or cyber. Likewise, the Company’s cybersecurity risk management program entails real-time review and monitoring of CPKC’s cyber-risk exposures and implements strategic processes to manage those risks.
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| Cybersecurity Risk Management Third Party Engaged [Flag] | true |
| Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] | true |
| Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] | false |
| Cybersecurity Risk Board of Directors Oversight [Text Block] | The Board of Directors oversees the work of all its committees, including the Audit and Finance Committee. |
| Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] | The Audit and Finance Committee is responsible for, among other things, overseeing the Company’s financial disclosures and its internal and external audit functions, maintaining the integrity of financial reporting and internal controls, and providing stewardship and guidance to management in its approach to the assessment and mitigation of cybersecurity risks. |
| Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] | The Chief Information Officer ("CIO") provides annual and periodic updates to the Audit and Finance Committee and the Board of Directors on cybersecurity risks and the Company’s strategy for mitigating such risks. Additionally, the Chief Information Security Officer ("CISO") briefs the Audit and Finance Committee periodically. The Audit and Finance Committee also receives updates on information systems and cybersecurity audit and advisory engagements from the Chief Internal Auditor. |
| Cybersecurity Risk Role of Management [Text Block] | Additionally, the Chief Information Security Officer ("CISO") briefs the Audit and Finance Committee periodically. The Audit and Finance Committee also receives updates on information systems and cybersecurity audit and advisory engagements from the Chief Internal Auditor. The CISO reports directly to the CIO and is responsible for: •overseeing and implementing CPKC's cybersecurity strategy; •aligning cybersecurity objectives with the overall business objectives; •ensuring compliance with regulatory directives related to cybersecurity; •promoting a cybersecurity culture through comprehensive awareness and training programs; and •managing and coordinating incident response activities. The Company's cybersecurity risk management program is supervised by the Managing Director of Enterprise Security who reports directly to the CISO. The CIO and CISO regularly update senior leadership and the executive committee on cybersecurity risks. The CISO, CIO, and certain members of their management team who are involved in implementing the Company's cybersecurity program possess expertise in cybersecurity risk management. Our CISO and CIO each have many years of experience in designing and implementing cybersecurity frameworks and working to mitigate cyber threats. Among other qualifications, certain members of the CISO's and CIO's management team also have certifications as a Certified Information Systems Security Professional and Certified Information Security Manager.
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| Cybersecurity Risk Management Positions or Committees Responsible [Flag] | true |
| Cybersecurity Risk Management Positions or Committees Responsible [Text Block] | The CISO reports directly to the CIO and is responsible for: •overseeing and implementing CPKC's cybersecurity strategy; •aligning cybersecurity objectives with the overall business objectives; •ensuring compliance with regulatory directives related to cybersecurity; •promoting a cybersecurity culture through comprehensive awareness and training programs; and •managing and coordinating incident response activities.
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| Cybersecurity Risk Management Expertise of Management Responsible [Text Block] | Our CISO and CIO each have many years of experience in designing and implementing cybersecurity frameworks and working to mitigate cyber threats. Among other qualifications, certain members of the CISO's and CIO's management team also have certifications as a Certified Information Systems Security Professional and Certified Information Security Manager. |
| Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] | The Chief Information Officer ("CIO") provides annual and periodic updates to the Audit and Finance Committee and the Board of Directors on cybersecurity risks and the Company’s strategy for mitigating such risks. Additionally, the Chief Information Security Officer ("CISO") briefs the Audit and Finance Committee periodically. The Audit and Finance Committee also receives updates on information systems and cybersecurity audit and advisory engagements from the Chief Internal Auditor. The CISO reports directly to the CIO and is responsible for: •overseeing and implementing CPKC's cybersecurity strategy; •aligning cybersecurity objectives with the overall business objectives; •ensuring compliance with regulatory directives related to cybersecurity; •promoting a cybersecurity culture through comprehensive awareness and training programs; and •managing and coordinating incident response activities. The Company's cybersecurity risk management program is supervised by the Managing Director of Enterprise Security who reports directly to the CISO. The CIO and CISO regularly update senior leadership and the executive committee on cybersecurity risks.
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| Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] | true |
Summary of significant accounting policies (Policies) |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Accounting Policies [Abstract] | |
| Basis of presentation | 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.
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| Use of estimates and judgements | 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).
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| Principles of consolidation | 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 presented in the Company's Consolidated Financial Statements as activities and amounts attributable to non-controlling interest.
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| Revenues | Revenues Revenues are primarily derived from the provision of freight rail transportation services. Non-freight revenues are primarily derived from passenger service operators, switching fees, and logistics services, and also from leasing land and other property. Revenues are recognized when promised services are delivered and obligations under the terms of a contract with a customer are satisfied. Revenues are measured as the amount of consideration the Company expects to receive in exchange for providing services. In the normal course of business, the Company does not generate material revenues from acting as an agent for other entities. Revenues are presented net of taxes collected from customers and remitted to governmental authorities. Freight revenues The Company has master service agreements with customers which establish pricing, terms and conditions for future freight services the Company will provide when service requests or bills of lading are received from those customers. Each bill of lading or service request is a distinct performance obligation. Transaction prices are generally determined when bills of lading or service requests are initiated and are allocated to distinct performance obligations based on estimated standalone selling prices which are determined based on observable fair market values. The Company also provides freight transportation services to customers at published rates established in public tariff agreements. In those arrangements, a performance obligation is triggered at the time the freight transportation services are ordered by the customer. Freight revenues are recognized over time as transportation services are provided and obligations under the terms of a contract with a customer are satisfied. Inputs are used to measure the percentage of completion towards satisfaction of performance obligations. Progress is measured based on elapsed freight transit time relative to total expected freight transit time from origination to destination. Performance obligations not fully satisfied as at the balance sheet date are generally expected to be satisfied in the following reporting period. Contract liabilities represent payments received for performance obligations not yet satisfied. The short duration over which freight rail services are delivered generally means that there is an immaterial value of outstanding performance obligations and contract liabilities as at the balance sheet date. Certain customer arrangements include variable consideration in the form of rebates, discounts, or incentives. The expected value method is used to estimate the amount of variable consideration to allocate to performance obligations as they are satisfied. Volume rebates are accrued based on estimated volumes and contract terms and recognized as a reduction of freight revenues as the related freight services are provided. Customer incentives are amortized over the term of the related service agreement. Customers are invoiced when a bill of lading or service request is processed. Payment for services are due when performance obligations are satisfied. Amounts outstanding as at the balance sheet date are generally collected in the following reporting period. Performance obligations not fully satisfied as at the balance sheet date are generally expected to be satisfied in the following reporting period.
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| Income taxes | Income taxes The Company follows the asset and liability method of accounting for income taxes. Under this method, a deferred income tax asset or liability is determined based on the difference between the financial reporting and tax basis of the asset or liability, using enacted tax rates and laws that will be in effect when the difference is expected to reverse. The change in the net deferred income tax asset or liability is included in the computation of "Net income" and "Other comprehensive income (loss)". The effect of changes in income tax rates on deferred income tax assets and liabilities are recognized in the Company's Consolidated Statements of Income in the reporting period that the change occurs. The Company records a valuation allowance to reduce deferred income tax assets if it is more likely than not, based on available evidence about future events, that some or all of the deferred income tax assets will not be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by taxing authorities based on the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. A liability for "unrecognized tax benefits" is recorded for any tax benefits claimed in the Company’s tax returns that do not have a greater than 50% likelihood of being realized upon ultimate settlement. Investment and other similar tax credits are initially recognized in "Deferred income taxes" on the Company's Consolidated Balance Sheets and subsequently recognized in "Deferred income tax expense (recovery)" on the Company's Consolidated Statements of Income over the useful life of the related property.
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| Earnings per share | Earnings per share Basic earnings per share is calculated using the weighted-average number of the Company's Common Shares outstanding during the year. Diluted earnings per share is calculated using the treasury stock method for determining the dilutive effect of Common Shares issuable upon exercise of outstanding stock options.
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| Equity method investments | Equity method investments The Company's investments in entities over which it can exercise significant influence or has joint control are accounted for using the equity method. Equity-method investments are initially recognized on the Company's Consolidated Balance Sheets at cost. Subsequently, the carrying amounts of these investments are adjusted to reflect: •the Company's share of the investments' income or losses, and comprehensive income or losses, based on the Company's share of their common stock and in-substance common stock; •depreciation, amortization, or accretion related to any basis differences identified at the time the investments were initially recognized; •dividends and distributions received; •other-than-temporary impairments; and •the effects of any intra-entity income or losses and capital transactions. Distributions from equity-method investments are classified on the Company's Consolidated Statements of Cash Flows according to the nature of the activities that generated the distributions. If the Company acquires control of an equity-method investment, it stops accounting for the investment using the equity method. The investment is remeasured to fair value as of the date control was assumed, and any gain or loss is recognized in the Company's Consolidated Statements of Income. Any amounts in "Accumulated other comprehensive income" ("AOCI") related to the investment are reclassified and included in the calculation of the gain or loss. Any gain or loss on the settlement of a pre-existing relationship between the Company and the investment is recognized in the Company's Consolidated Statements of Income, separately from the business acquisition.
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| Business acquisitions | Business acquisitions Management makes estimates and assumptions to determine the fair values of assets acquired and liabilities and non-controlling interest assumed in a business combination at the acquisition date. Such estimates and assumptions are inherently uncertain and subject to refinement. During the measurement period, the Company may adjust any provisional amounts reported on the acquisition date if additional information is obtained about facts and circumstances that existed that, if known, would have affected their measurement on that date. Adjustments to provisional amounts are recognized with corresponding adjustments to "Goodwill". If the acquisition-date fair value of an asset or liability arising from pre-acquisition contingencies cannot be determined as of the acquisition date or during the measurement period, the estimated amount of the asset or liability is recognized if it is probable that the asset existed or the liability had been incurred as of the acquisition date based on information available prior to the end of the measurement period and the amount of the asset or liability can be reasonably estimated. The measurement period ends at the earlier of the date that the necessary information about the facts and circumstances that existed as of the acquisition date concerning the provisional amounts is obtained, or one year after the acquisition date.
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| Foreign currency translation | Foreign currency translation Foreign currency transactions Foreign currency transactions are denominated in currencies other than the Company's functional currency, which is the Canadian dollar. Transactions denominated in foreign currencies are translated to the functional currency using the foreign exchange ("FX") rate prevailing on the day of the transaction. Monetary assets and liabilities denominated in foreign currencies are remeasured to the functional currency using the exchange rate in effect as at the balance sheet date. FX gains and losses resulting from the translation of monetary assets and liabilities are recognized in income in the reporting period they arise. Foreign operations FX gains and losses arising from the translation of the Company's foreign subsidiaries' and equity-method investees' functional currencies to Canadian currency presentation are recognized in "Other comprehensive income (loss)" and recognized in the Company's Consolidated Statements of Income upon the sale of the foreign operation. Asset and liability accounts are translated at the exchange rates in effect as at the balance sheet date, and revenues and expenses are translated using monthly average exchange rates. U.S. dollar-denominated long-term debt, finance lease obligations, short-term borrowings, and operating lease liabilities are designated as hedges of the Company's net investment in foreign subsidiaries and foreign equity-method investees. Accordingly, unrealized gains and losses arising from the translation of the designated U.S. dollar-denominated long-term debt, finance lease obligations, and operating lease liabilities are offset against gains and losses arising from the translation of the Company's foreign operations' accounts in "Other comprehensive income (loss)".
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| Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include highly liquid investments with original maturities of less than three months.
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| Accounts receivable, net | Accounts receivable, net Accounts receivable are recorded at cost, net of an allowance for expected credit losses. The allowance for expected credit losses is estimated based on relevant information about historical credit loss experience of receivables with similar risk characteristics, current conditions, and forecasts of future conditions expected to affect collectability. Accounts receivable are written off against the allowance for credit losses when it is probable that the remaining contractual payments will not be collected. Subsequent recoveries of amounts previously written off are credited to income in the reporting period they are recovered.
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| Materials and supplies | Materials and supplies Materials and supplies, including fuel and parts used in the repair and maintenance of track structures, equipment, locomotives, and freight cars, are measured at the lower of average cost or net realizable value.
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| Properties | Properties Properties are reported at historical cost, less accumulated depreciation or amortization and any impairment. The Company reviews properties for impairment when changes in circumstances indicate that their carrying amount may not be recoverable. If the estimated future undiscounted cash flows are less than the carrying amount, the carrying amount is reduced to the estimated fair values, measured using discounted cash flows, and a corresponding impairment loss is recognized in the Company's Consolidated Statements of Income. Additions and betterments For property additions and betterments, the Company capitalizes all costs necessary to make the assets ready for their intended use. A large amount of the Company's capital expenditures are for self-constructed properties, both new and the replacement of existing properties. Self-constructed assets are initially recorded at cost, including direct costs, attributable indirect costs, overheads, and carrying costs: •direct costs include labour, purchased services, materials and equipment, project supervision costs, and fringe benefits. •attributable indirect costs mainly include costs associated with work trains, material distribution, highway vehicles, and work equipment. •overheads primarily relate to engineering department costs of planning, designing, and administering the capital projects, which are allocated to projects using a measure consistent with the nature of the cost, based on cost studies. The Company capitalizes costs incurred for replacements or betterments that enhance the service potential or extend the useful life of properties, when the expenditures exceed minimum physical and financial thresholds: •the cost of ballast programs, including undercutting, shoulder ballasting, and renewal programs that form part of the annual track program are capitalized because the work and related added ballast material significantly improves drainage, which in turn extends the life of ties and other track materials. The cost of ballast programs are tracked separately from the underlying assets and depreciated over the estimated period to the next similar ballast program. Spot replacement of ballast is considered a repair, which is expensed as incurred. •significant freight car refurbishments, locomotive overhauls, and other capital improvements that enhance service potential or extend useful life are capitalized. •replacement project costs, including dismantling costs, are expensed or capitalized based on studies of the activities performed in the projects. Costs to repair or maintain the service potential of properties are expensed. The Company also capitalizes development costs for major new computer systems. Depreciation The Company primarily uses the group method of depreciation, in which properties with similar characteristics, use, and expected lives are allocated to asset groups: •the asset groups are depreciated on a straight-line basis reflecting their expected economic lives, using composite depreciation rates. All track assets are depreciated using a straight-line method which recognizes the value of the asset consumed as a percentage of the whole life of the asset. •composite depreciation rates are established through depreciation studies, which are regular, detailed reviews, performed by asset group, of service lives, salvage values, accumulated depreciation, and other related matters. •the depreciation studies also estimate accumulated depreciation surpluses or deficiencies for each asset group, which are amortized over the remaining life of the respective asset group. •when depreciable property is retired or otherwise disposed in the normal course of business, its life generally approximates its expected useful life as determined in the depreciation studies. For this reason, under group depreciation, a gain or loss on disposal is not recognized. Instead, the asset's net book value, less net salvage proceeds, is charged to accumulated depreciation. •for certain asset groups, the historical cost of the asset is separately recorded in the Company's property records. This amount is retired from the property records upon retirement of the asset. For assets for which the historical cost cannot be separately identified, the asset's gross book value to be retired is estimated using an indexation methodology, whereby the retired property's current replacement cost is indexed to its estimated year of installation, or a first-in, first-out approach, or statistical analysis. The Company uses indices that closely correlate to the principal costs of the assets. •when removal costs exceed the property's salvage value and removal is not a legal obligation, the removal costs are charged to income when the property is retired. •for the disposal of larger groups of depreciable assets that are unusual and were not considered in the Company's depreciation studies, a gain or loss is recognized for the difference between the net proceeds and the net book value of the assets sold or retired. The accumulated depreciation that is derecognized includes asset-specific accumulated depreciation, when known, or an appropriate portion of the accumulated depreciation recorded for the relevant asset class as a whole, calculated using a cost-based allocation. Concession assets CPKC holds a concession from the Mexican government which authorizes the Company to provide freight transportation services over certain rail lines, including the use of all related track and other assets necessary for the rail lines' operations (the "Concession"). The Concession term ends in June 2047, but is renewable under certain conditions, for additional periods, each up to 50 years. The underlying tangible assets that the Concession provides the Company with the right to use are capitalized in "Properties" and depreciated, using the group method, over the lesser of the expected Concession term, which includes one renewal period of 50 years, or the estimated useful life of the underlying asset groups. The intangible rights granted under the Concession are amortized over the expected term of the Concession. Finance lease right-of-use ("ROU") assets Finance lease ROU assets recognized in "Properties" are amortized to the earlier of the end of the useful life of the ROU asset or the end of the lease term. Government assistance The Company recognizes government assistance from various levels of governments and government agencies when there is reasonable assurance that the assistance will be received. Government assistance in connection with the acquisition or construction of properties sometimes includes conditions which, if not met within a certain period of time, may require repayment of some or all of the assistance received. It is the Company's intention to comply with all conditions imposed by the terms of government assistance accepted. Government assistance received or receivable related to property is recorded as a reduction of the cost of the property and amortized over the same period as the related assets are depreciated.
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| Goodwill & Intangible assets | Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets upon acquisition of a business. The carrying value of goodwill, which is not amortized, is assessed for impairment annually, or more frequently if events or changes in circumstances arise that suggest it may be impaired. The Company's annual review of goodwill is performed in the fourth quarter, on the October 1 balance. The Company first assesses qualitative factors, including, but not limited to, economic, market, and industry conditions, the reporting unit's overall financial performance, and events such as notable changes in management or customers. If the qualitative assessment indicates that it is more likely than not that the fair value of the reporting unit is less than its carrying value, a quantitative assessment is undertaken. The quantitative assessment is a comparison of the reporting unit's carrying value and fair value. The reporting unit's fair value is defined as the price expected to be received if it was sold in an orderly transaction between market participants. It is determined based on pre-tax discounted cash flows that reflect management's best estimates of the time value of money and risks specific to the reporting unit and its assets. If the carrying value of the reporting unit, including goodwill, exceeds its fair value, an impairment is recognized, measured at the amount by which the reporting unit's carrying value exceeds its fair value. Intangible assets Intangible assets with finite useful lives, consisting primarily of customer contracts, customer relationships, and favourable leases, are amortized on a straight-line basis over their estimated useful lives, with any changes in useful life estimates adjusted prospectively. If events or circumstances indicate that a finite-lived intangible asset's carrying amount may not be recoverable, then an impairment loss is recognized for the excess of its carrying amount over its fair value, determined using pre-tax discounted cash flows. Intangible assets with indefinite useful lives are primarily trackage rights that are expected to generate cash flows indefinitely. They are not amortized but are tested for impairment at least annually, or sooner if conditions warrant. Impairment is measured as the excess of the asset's carrying amount over its fair value, determined using pre-tax discounted cash flows.
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| Financial instruments | Financial instruments Financial instruments are contracts that give rise to a financial asset of one party and a financial liability or equity instrument of another party. Financial instruments are recognized initially at fair value, which is the amount of consideration that would be agreed upon in an arm’s-length transaction between willing parties. Cash and cash equivalents are reported at amounts that approximate fair value. Accounts receivable and investments consisting of loans and receivables are subsequently measured at amortized cost, using the effective interest method. Accounts payable and accrued liabilities, other long-term liabilities, and long-term debt are also subsequently measured at amortized cost.
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| Derivative financial instruments | Derivative financial instruments Derivative financial instruments may be used from time to time to manage the Company's exposure to changes in FX rates, interest rates, fuel prices, and certain compensation tied to the Company's Common Share price. When derivative instruments are used in hedging relationships, the Company identifies, designates, and documents those hedging transactions and regularly tests the transactions to demonstrate effectiveness in order to continue hedge accounting. Derivative instruments are classified as held-for-trading and recorded at fair value on the Company's Consolidated Balance Sheets as current or non-current assets or liabilities depending on the timing of settlements and the resulting cash flows associated with the instruments. Any changes in the fair values of derivatives that are not designated as hedges are recognized in the Company's Consolidated Statements of Income in the reporting period the change occurs. For fair value hedges, changes in the fair value of the hedging instrument are recognized in the Company's Consolidated Statements of Income, along with changes in the fair value of the hedged risk of the asset or liability that is designated as part of the hedging relationship. For designated cash flow hedges, changes in the fair value of the hedging instrument are recognized in "Other comprehensive income (loss)" and reclassified to the Company's Consolidated Statements of Income when the hedged item impacts income. If a derivative instrument designated as a cash flow hedge ceases to be effective or is terminated, hedge accounting is discontinued and the gain or loss at that date is deferred in "Other comprehensive income (loss)" and recognized in the Company's Consolidated Statements of Income concurrently with the related transaction. If an anticipated hedged transaction is no longer probable, the gain or loss is immediately recognized. Subsequent gains and losses from derivative instruments for which hedge accounting has been discontinued are recognized in the reporting period in which they occur. Cash flows relating to derivative instruments designated as hedges are included in the same category as the related hedged items on the Company's Consolidated Statements of Cash Flows.
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| Leases | Leases The Company leases rolling stock, buildings, vehicles, railway equipment and roadway machines. Lease liabilities and ROU assets are recognized on the Company's Consolidated Balance Sheets for finance leases and operating leases with fixed terms and in-substance fixed terms: •ROU assets and lease liabilities are recognized on the lease commencement date at the present value of the future lease payments over the lease term. Lease payments include fixed and variable payments that are based on an index or a rate. If the rate implicit in the lease is not readily determinable, the Company uses internal incremental secured borrowing rates for a comparable tenor and in the same currency at the lease commencement date to determine the present value of lease payments. •certain leases of rolling stock and roadway machines are fully variable or contain both fixed and variable components. Variable components are dependent on the hours and miles that the underlying equipment has been used. Fixed-term, short-term, and variable operating lease costs are recognized in "Equipment rents" and "Purchased services and other" in the Company's Consolidated Statements of Income. •components of finance lease costs are recognized in "Depreciation and amortization" and "Net interest expense" in the Company's Consolidated Statements of Income. •ROU assets are adjusted for lease prepayments, initial direct costs, and lease incentives. •lease terms include periods associated with options to extend or exclude periods associated with termination options when the Company is reasonably certain of exercising such options. •non-lease components are accounted for separately from lease components of roadway machine and fleet vehicle lease contracts. Otherwise, lease and non-lease components are combined and accounted as a single lease component. Leases with terms of 12 months or less that do not contain an option to purchase the underlying asset at the end of the lease term that the Company intends to exercise are not recognized on the Company's Consolidated Balance Sheets; lease payments are recognized as expenses in the Company's Consolidated Statements of Income on a straight-line basis over the lease term.
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| Provision for environmental remediation | Provision for environmental remediation Environmental remediation accruals, covering site-specific remediation programs, are recorded on an undiscounted basis unless a reliably determinable estimate of the amount and timing of costs can be established. The accruals are recorded when the costs to remediate are probable and can be reasonably estimated. Certain future costs to monitor sites are discounted at an adjusted risk-free rate. Provisions for environmental remediation costs are recognized in "Other long-term liabilities", except for the current portion, which is recognized in "Accounts payable and accrued liabilities".
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| Pensions and other benefits | Pensions and other benefits Obligations and net periodic benefit (recovery) cost for the Company's defined benefit pension plans are actuarially determined using the projected benefit method, pro-rated over the credited service periods of employees. This method incorporates management’s best estimates of actuarial assumptions, such as discount rates, salary and other cost escalations, employees' retirement ages and mortality. The discount rates are based on blended market interest rates on high-quality debt instruments with matching cash flows. Plan assets are measured at fair value. The expected return on plan assets is calculated using market-related asset values, developed from a five-year average of adjusted market values for the fund’s public equity securities and absolute return strategies, plus the market value of the fund’s other asset classes, subject to the market-related asset value not being greater than 120% nor less than 80% of the market value. Actuarial gains and losses arise from the difference between the actual and expected return on plan assets, and changes in the measurement of the benefit obligation. Periodic net actuarial gains and losses and prior service costs are accumulated and presented as a component of AOCI on the Company's Consolidated Balance Sheets. Obligations and net periodic benefit (recovery) cost for the Company's other post-retirement and post-employment benefits are actuarially determined on a similar basis. The funded status of the Company's defined benefit pension plans, measured for each plan as the difference between the fair value of the plan's assets and projected benefit obligation, is reported on the Company's Consolidated Balance Sheets. Components of net periodic benefit (recovery) cost recognized in "Operating income" in the Company's Consolidated Statements of Income include: •current service costs for defined benefit pension and post-retirement benefits, and the Company's contributions to defined contribution pension plans, which are recognized in "Compensation and benefits" expense; and •current service costs for self-insured workers' compensation and long-term disability benefits, which are recognized in "Purchased services and other" expense. Other components of net periodic benefit recovery (cost) recognized outside of "Operating income" in the Company's Consolidated Statements of Income are: •interest cost on benefit obligation; •expected return on plan assets; •recognition of net actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation and the market-related value of pension plan assets, over the expected average remaining service period of the plan's active employee group (approximately 13 years); •amortization of prior service costs arising from collectively bargained amendments to pension plan benefit provisions (over the term of the applicable union agreement) and from all other sources (over the expected average remaining service period of active employees who are expected to receive benefits under the plan at the date of the amendment); •gains and losses on post-employment benefits that do not vest or accumulate, including certain workers' compensation and long-term disability benefits in Canada; and •the effects of special termination benefits.
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| Stock-based compensation | Stock-based compensation Stock options The cost of awards of equity-settled employee stock options is measured based on their grant date fair values. "Compensation and benefits" expense, with a corresponding increase to "Additional paid-in capital" in "Shareholders' equity", is recognized over the shorter of the vesting period or the period from the grant date to the date the employee becomes eligible to retire. The grant date fair value is determined using the Black-Scholes option-pricing model. Forfeitures are estimated at the grant date, and changes in the estimate of forfeitures in subsequent reporting periods are recognized as adjustments to "Compensation and benefits" expense in the reporting period that the change in estimate occurs. As stock options are exercised, the related amount accumulated in "Additional paid-in capital" is reclassified to "Share Capital" and the proceeds are recognized in "Share Capital". Share units The Company also issues cash-settled awards, including deferred share units ("DSUs"), performance share units ("PSUs") and performance deferred share units ("PDSUs"), for which a liability is remeasured each financial reporting period until settlement. For DSUs, "Compensation and benefits" expense is recognized over the shorter of the vesting term, or the period from the grant date to the date the employee is eligible to retire, based on the number of units outstanding and the closing price of CPKC's Common Shares on the reporting date. For PSUs and PDSUs, fair values are recognized for units that are probable of vesting, based on forecasted performance factors, and "Compensation and benefits" expense is recognized over the performance period. Forfeitures of share units are estimated at the grant date, and changes in the estimate of forfeitures in subsequent periods are recognized as adjustments to "Compensation and benefits" expense in the period that the change in estimate occurs. Share purchase plan The Company's contributions to the employee share purchase plan gives rise to compensation expense that is recognized at the issue price and recognized as "Compensation and benefits" expense over a one year vesting period.
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| Adoption of new standards & New pronouncements | 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.
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Revenues (Tables) |
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| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disaggregation of Revenue | The following table presents disaggregated information about the Company’s revenues from contracts with customers by major source:
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Other (income) expense (Tables) |
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| Other (income) expense |
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Income taxes (Tables) |
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| Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of the Major Components of the Company's Income Tax Expense | The following is a summary of the major components of the Company’s income tax expense (recovery):
(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): Improvements to Income Tax Disclosures effective January 1, 2025.
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| Deferred Income Tax Assets and Liabilities | The items comprising the deferred income tax assets and liabilities are as follows:
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| Expected Income Tax Expense Reconciled to Income Tax Expense | The Company’s consolidated effective tax rate differs from the expected Canadian federal statutory tax rate. Expected income tax expense at the Canadian federal statutory rate is reconciled to income tax expense as follows for 2025(1):
(1) Rate reconciliation provided in accordance with the prospective adoption of ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures effective January 1, 2025. (2) The Canadian federal statutory income tax rate is comprised of basic federal tax rate 38%, federal abatement (10%), and general rate reduction (13%). (3) The majority of the provincial tax effects are derived from Ontario, Saskatchewan and British Columbia. (4) Tax impact from inflation adjustment required for Mexico tax purposes. The Company’s consolidated effective tax rate differs from the expected Canadian statutory tax rates. Expected income tax expense (recovery) at statutory rates is reconciled to income tax expense (recovery) as follows for 2024 and 2023:
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| Reconciliation of Uncertain Tax Positions in Relation to Unrecognized Tax Benefits | The following table provides a reconciliation of uncertain tax positions in relation to unrecognized tax benefits for the years ended December 31:
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| Schedule of Income Taxes Paid | The following table provides income taxes paid (net of refunds received) for the year ended December 31(1):
(1) Income taxes paid (net of refunds received) provided in accordance with the prospective adoption of ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures effective January 1, 2025.
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Earnings per share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Number of Shares Used in the Earnings Per Share Calculations |
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Other comprehensive income (loss) and Accumulated other comprehensive income (loss) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive Income (Loss) | The components of Other comprehensive (loss) income and the related tax effects attributable to controlling shareholders are as follows:
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| Schedule of Changes in Accumulated Other Comprehensive Income Loss by Component, Net of Tax | Changes in AOCI attributable to controlling shareholders, net of tax, by component are as follows:
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Accounts receivable, net (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Accounts Receivable, Net |
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Business acquisition (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combination, Separately Recognized Transaction | The following table summarizes the final purchase price allocation with the amounts recognized in respect of the identifiable assets acquired and liabilities and non-controlling interest assumed on the Control Date, as well as the fair value of the previously held equity interest in KCS and the measurement period adjustments recorded:
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| Business Combination, Pro Forma Information | On a pro forma basis, if the Company had consolidated KCS beginning on January 1, 2022, the revenue and net income attributable to controlling shareholders of the combined entity would be as follows for the year ended December 31, 2023:
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Investment in Kansas City Southern (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
| Summarized Financial Information | The following table presents summarized financial information for KCS, on its historical cost basis:
(1) KCS's historical amounts in U.S. dollars were translated into Canadian dollars at the Bank of Canada average exchange rate for the period from January 1 to April 13, 2023 with an effective exchange rate of $1.35. (2) Includes Equity in net earnings of KCS's affiliates, Interest expense, FX loss, and Other income, net.
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Properties (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Properties |
Concession assets included within each asset group of Properties shown above are as follows:
Finance lease ROU assets
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Goodwill (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Goodwill |
|
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Intangible assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Finite-Lived Intangible Assets |
(1) As at December 31, 2025, the Company held $1,863 million (2024 - $1,956 million) of Intangible assets not subject to amortization.
|
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| Schedule of Indefinite-Lived Intangible Assets |
(1) As at December 31, 2025, the Company held $1,863 million (2024 - $1,956 million) of Intangible assets not subject to amortization.
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| Schedule of Finite-Lived Intangible Assets, Future Amortization Expense |
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Accounts payable and accrued liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounts Payable and Accrued Liabilities |
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Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term Debt | The following table outlines the Company's outstanding long-term debt as at December 31, 2025:
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Other long-term liabilities (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Liabilities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Long-Term Liabilities |
(1) As at December 31, 2025, the aggregate provision for , including the current portion was $241 million (2024 - $257 million). (2) The deferred lease and license revenue is being amortized to income on a straight-line basis over the related lease terms.
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Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of Lease Expense | Components of lease expense recognized in the Company's Consolidated Statements of Income for the years ended December 31 are as follows:
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| Supplemental Balance Sheet Information | ROU Assets and Lease Liabilities recognized in the Company's Consolidated Balance Sheets are as follows:
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| Weighted Average Remaining Lease Terms and Discount Rates | The following table provides the Company's weighted-average remaining lease terms and discount rates:
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| Supplemental Information Related to Leases | Cash Flow information related to leases is as follows:
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| Maturities of Lease Liabilities | The following table provides the maturities of lease liabilities for the next five years and thereafter as at December 31, 2025:
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Shareholders' equity (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Information Related to Common Share Balances | The following table summarizes information related to Common Share balances:
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| Schedule of Shares Repurchase Program Activity | The following table provides activities under the share repurchase program:
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Change in non-cash working capital balances related to operations (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Changes In Non-cash Working Capital Balances Related To Operations |
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Pensions and other benefits (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Periodic Benefit Cost | The elements of net periodic benefit (recovery) cost for DB pension plans and other benefits recognized in the year include the following components:
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| Schedule of Changes in Projected Benefit Obligation | Information about the Company’s DB pension plans and other benefits, in aggregate, is as follows:
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| Schedule of Changes in Fund Assets |
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| Funded Status of Pension Plans | The table below shows the aggregate pension projected benefit obligation and aggregate fair value of plan assets for pension plans with fair value of plan assets in excess of projected benefit obligations (i.e. surplus), and for pension plans with projected benefit obligations in excess of fair value of plan assets (i.e. deficit):
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| Pension Asset and Liabilities in the Company's Consolidated Balance Sheets | Amounts recognized in the Company’s Consolidated Balance Sheets are as follows:
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| Accumulated Other Comprehensive Loss | Amounts recognized in AOCI are as follows:
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| Actuarial Assumptions | Weighted-average actuarial assumptions used were approximately:
(1) The expected rate of return on plan assets that will be used to compute the 2026 net periodic benefit recovery is 6.70%.
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| Pension Plan Asset Allocation and Weighted-average Policy Ranges | The Company’s pension plan asset allocation, the weighted-average asset allocation targets, and the weighted-average policy range for each major asset class at year-end were as follows:
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| Summary of the Assets of the Company's DB Pension Plans | The following is a summary of the assets of the Company’s DB pension plans as at December 31, 2025 and 2024. As at December 31, 2025 and 2024, there were no plan assets classified as Level 3 valued investments.
(1) Investments measured at net asset value ("NAV"): Amounts are comprised of certain investments measured using NAV (or its equivalent) as a practical expedient. These investments have not been classified in the fair value hierarchy. (2) Government & Corporate Bonds: Fair values for bonds are based on market prices supplied by independent sources as of the last trading day. (3) Mortgages: The fair values of mortgages are based on current market yields of financial instruments of similar maturity, coupon and risk factors. (4) Mortgage-backed and asset-backed securities: The fair values of mortgage-backed and asset-backed securities are determined based on valuations from pricing sources that incorporate broker-dealer quotations, reported trades or valuation estimates from their internal pricing models which consider tranche-level attributes, current market data, estimated cash flows, and market-based yield spreads and incorporate deal collateral performance, as available. (5) Real estate: Real estate fund values are based on the NAV of the funds that invest directly in real estate investments. The values of the investments have been estimated using the capital accounts representing the plans' ownership interest in the funds. Of the total, $407 million is subject to redemption frequencies ranging from monthly to annually and a redemption notice period of 90 days (2024 - $435 million). The remaining $100 million is not subject to redemption and is normally returned through distributions as a result of the liquidation of the underlying real estate investments (2024 - $86 million). As at December 31, 2025, there are $262 million of unfunded commitments for real estate investments (December 31, 2024 - $309 million). (6) Infrastructure: Infrastructure fund values are based on the NAV of the funds that invest directly in infrastructure investments. The values of the investments have been estimated using the capital accounts representing the plans' ownership interest in the funds. Of the total, $644 million is subject to redemption frequencies ranging from monthly to annually and a redemption notice period of 90 days (2024 - $606 million). The remaining $632 million is not subject to redemption and is normally returned through distributions as a result of the liquidation of the underlying infrastructure investments (2024 - $588 million). As at December 31, 2025, there are $248 million of unfunded commitments for infrastructure investments (December 31, 2024 - $205 million). (7) Private debt: Private debt fund values are based on the NAV of the funds that invest directly in private debt investments. The values of the investments have been estimated using the capital accounts representing the plans' ownership interest in the funds. Of the total, $61 million is subject to redemption frequencies ranging from monthly to annually and a redemption notice period of 90 days (2024 - $115 million). The remaining $1,049 million is not subject to redemption and is normally returned through distributions as a result of the repayment of the underlying loans (2024 - $1,031 million). As at December 31, 2025, there are $598 million of unfunded commitments for private debt investments (December 31, 2024 - $764 million). (8) Derivative Instruments: The investment managers may utilize the following derivative instruments: equity futures to replicate equity index returns (Level 2); currency forwards to partially hedge foreign currency exposures (Level 2); bond futures and forwards to manage duration and interest rate risk (Level 2); interest rate swaps to manage duration and interest rate risk (Level 2); credit default swaps to manage credit risk (Level 2); and options to manage interest rate risk and volatility (Level 2). The Company may utilize derivatives directly, but only for the purpose of hedging foreign currency exposures. One of the fixed income investment managers utilizes a portfolio of bond forwards for the purpose of reducing asset/liability interest rate exposure. As at December 31, 2025, there are bond forwards with a notional value of $420 million (December 31, 2024 - $555 million) and a fair value of $(14) million (December 31, 2024 - $2 million). (9) Absolute return: The value of absolute return fund investments is based on the NAV reported by the fund administrators. The funds have different redemption policies with redemption notice periods varying from 30 to 120 days and frequencies ranging from monthly to triennially.
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| Estimated Future Benefit Payments | The estimated future DB pension and other benefit payments to be paid by the plans for each of the next five years and the subsequent five-year period are as follows:
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Stock-based compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Stock Option Plan | The following table summarizes the activity related to the stock options during 2025:
(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.
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| Stock Options Outstanding and Exercisable | 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, the weighted-average years to expiration. The table also provides the aggregate intrinsic value for in-the-money stock options, which represents the amount that would have been received by option holders had they exercised their options on December 31, 2025 at the Company’s closing stock price of $101.05.
(1) As at December 31, 2025, the total number of in-the-money stock options outstanding was 2,800,002 with a weighted-average exercise price of $85.20. The weighted-average years to expiration of exercisable stock options is 2.0 years.
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| Weighted-Average Fair Value Assumptions | The following table provides assumptions used to determine the fair values of stock option awards, and the weighted-average grant date fair values for units granted in 2025, 2024, and 2023:
(1) Represents the period of time that awards are expected to be outstanding. Historical data on exercise behaviour or, when available, specific expectations regarding future exercise behaviour were used to estimate the expected life of the option. (2) Based on the implied yield available on zero-coupon government issues with an equivalent term commensurate with the expected term of the option. (3) Based on the historical volatility of the Company’s stock price over a period commensurate with the expected term of the option. (4) Determined by the calculated projected annual dividend yield based on the current annual dividend yield at the time of grant. The Company does not employ different dividend yields throughout the contractual term of the option. (5) The Company estimates forfeitures based on past experience. The rate is monitored on a periodic basis.
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| Schedule of Options Exercised | The following table provides information related to all stock options exercised in the plan during the years ended December 31:
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| Summary of Performance Share Unit and Performance Deferred Share Unit Plans | The following table summarizes the activity related to PSUs and PDSUs for each of the years ended December 31:
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| Summary of Deferred Share Unit Plan | The following table summarizes the activity related to DSUs for each of the years ended December 31:
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| Summary of Share-Based Liabilities Paid | The following table summarizes the total share unit liabilities settled for each of the years ended December 31:
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Segmented and geographic information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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:
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Description of the business (Details) - mi mi in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Apr. 13, 2023 |
|
| Description of Business [Line Items] | ||
| Miles of transportation network | 20 | |
| Kansas City Southern | ||
| Description of Business [Line Items] | ||
| Ownership percentage | 100.00% |
Summary of significant accounting policies (Details) |
12 Months Ended |
|---|---|
|
Dec. 31, 2025
renewal_period
| |
| Summary of Significant Accounting Policies [Line items] | |
| Probability threshold for recognizing income tax benefits to be realized upon settlement | 50.00% |
| Short-term investments maturity, maximum | 3 months |
| Market-related asset value, maximum percentage | 120.00% |
| Market-related asset value, minimum percentage | 80.00% |
| Unrecognized actuarial gains and losses, maximum percentage | 10.00% |
| Expected average remaining service period of active employees expected to receive benefits | 13 years |
| Vesting period | 1 year |
| Concession land rights | |
| Summary of Significant Accounting Policies [Line items] | |
| Property, plant and equipment, useful life | 50 years |
| Property, plant and equipment, renewal period | 1 |
Other (income) expense (Details) - CAD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Other expense [Line Items] | |||
| Other (income) expense (Note 5, 17, 18) | $ (1) | $ (42) | $ 52 |
| Forward starting swaps | |||
| Other expense [Line Items] | |||
| Loss on foreign currency forward contract (Note 18) | $ 0 | $ 4 | $ 39 |
| Derivative, Loss, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other (income) expense (Note 5, 17, 18) | Other (income) expense (Note 5, 17, 18) | Other (income) expense (Note 5, 17, 18) |
| Other Expense | |||
| Other expense [Line Items] | |||
| Other FX gains | $ (14) | $ (6) | $ (12) |
| Acquisition-related costs | 0 | 0 | 6 |
| Gain on debt repurchases (Note 17) | 0 | (22) | 0 |
| Other | $ 13 | $ (18) | $ 19 |
Gain on sale of equity investment (Details) $ in Millions, $ in Millions |
12 Months Ended | ||||
|---|---|---|---|---|---|
|
Apr. 01, 2025
USD ($)
|
Dec. 31, 2025
CAD ($)
|
Dec. 31, 2025
USD ($)
|
Dec. 31, 2024
CAD ($)
|
Dec. 31, 2023
CAD ($)
|
|
| Schedule of Equity Method Investments [Line Items] | |||||
| Proceeds from Sale of Equity Method Investments | $ 493 | $ 0 | $ 0 | ||
| Equity Method Investment, Realized Gain (Loss) on Disposal | 333 | $ 0 | $ 0 | ||
| Panama Canal Railway Company | |||||
| Schedule of Equity Method Investments [Line Items] | |||||
| Equity Method Investment, Ownership Percentage Sold | 50.00% | ||||
| Equity Method Investments, Gross Sale Amount | $ 350 | ||||
| Proceeds from Sale of Equity Method Investments | 493 | $ 344 | |||
| Equity Method Investment, Realized Gain (Loss) on Disposal | 333 | 232 | |||
| Equity Method Investment, Realized Gain (Loss) on Disposal, After Tax | $ 256 | $ 177 | |||
Income taxes - Deferred Income Tax Assets and Liabilities (Details) - CAD ($) $ in Millions |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Deferred income tax assets | ||
| Tax losses and other attributes carried forward | $ 290 | $ 298 |
| Liabilities carrying value in excess of tax basis | 259 | 300 |
| Environmental remediation costs | 47 | 50 |
| Unrealized foreign exchange losses | 26 | 57 |
| Other | 17 | 10 |
| Total deferred income tax assets | 639 | 715 |
| Less: Valuation allowance | (38) | (57) |
| Total net deferred income tax assets | 601 | 658 |
| Deferred income tax liabilities | ||
| Properties carrying value in excess of tax basis | 9,910 | 10,155 |
| Pensions carrying value in excess of tax basis | 1,228 | 1,084 |
| Intangibles carrying value in excess of tax basis | 764 | 824 |
| Investments carrying value in excess of tax basis | 452 | 498 |
| Other | 76 | 71 |
| Total deferred income tax liabilities | 12,430 | 12,632 |
| Total net deferred income tax liabilities | $ 11,829 | $ 11,974 |
Income taxes - Reconciliation of Uncertain Tax Positions Related to Unrecognized Tax Benefits (Details) - CAD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Reconciliation of Uncertain Tax Positions to Unrecognized Tax Benefits [Roll Forward] | |||
| Unrecognized tax benefits at January 1 | $ 29 | $ 22 | $ 20 |
| Tax benefits related to the current year | 1 | 1 | 2 |
| Tax benefits related to prior years | 1 | 14 | 10 |
| Tax benefits acquired with KCS | 0 | 0 | 2 |
| Gross uncertain tax benefits related to prior years | (4) | (1) | (6) |
| Settlements with taxing authorities | 0 | (7) | (6) |
| Unrecognized tax benefits at December 31 | $ 27 | $ 29 | $ 22 |
Income Taxes - Income Tax Paid (Details) - CAD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Income Tax Paid, by Individual Jurisdiction [Line Items] | |||
| Income taxes paid | $ 1,155 | $ 958 | $ 906 |
| Canada | |||
| Income Tax Paid, by Individual Jurisdiction [Line Items] | |||
| Federal | 219 | ||
| State and local | 162 | ||
| U.S. | |||
| Income Tax Paid, by Individual Jurisdiction [Line Items] | |||
| Foreign federal | 246 | ||
| Foreign state and local | 55 | ||
| Mexico | |||
| Income Tax Paid, by Individual Jurisdiction [Line Items] | |||
| Foreign | 346 | ||
| Switzerland | |||
| Income Tax Paid, by Individual Jurisdiction [Line Items] | |||
| Foreign federal | 65 | ||
| Foreign state and local | 37 | ||
| Other jurisdictions | |||
| Income Tax Paid, by Individual Jurisdiction [Line Items] | |||
| Foreign | $ 25 | ||
Earnings per share - Number of Shares Used in the Earnings Per Share Calculations (Details) - CAD ($) $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Earnings Per Share [Abstract] | |||
| Net income | $ 4,141 | $ 3,718 | $ 3,927 |
| Weighted-average basic shares outstanding (in shares) | 916.2 | 933.0 | 931.3 |
| Dilutive effect of stock options (in shares) | 0.9 | 1.6 | 2.4 |
| Weighted-average diluted shares outstanding (in shares) | 917.1 | 934.6 | 933.7 |
| Earnings per share – basic (cad per share) | $ 4.52 | $ 3.98 | $ 4.22 |
| Earnings per share – diluted (cad per share) | $ 4.51 | $ 3.98 | $ 4.21 |
Earnings per share - Narrative (Details) - shares shares in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Stock Option Plan | |||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
| Number of options excluded from the computation of diluted earnings per share (in shares) | 2.0 | 0.6 | 0.6 |
Accounts receivable, net (Details) - CAD ($) $ in Millions |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Total accounts receivable | $ 2,146 | $ 2,066 |
| Allowance for credit losses | (117) | (98) |
| Total accounts receivable, net | 2,029 | 1,968 |
| Freight | ||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Total accounts receivable | 1,722 | 1,635 |
| Allowance for credit losses | (91) | (75) |
| Total accounts receivable, net | 1,631 | 1,560 |
| Non-freight | ||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Total accounts receivable | 424 | 431 |
| Allowance for credit losses | (26) | (23) |
| Total accounts receivable, net | $ 398 | $ 408 |
Business acquisition - Pro Forma Information (Details) $ in Millions |
3 Months Ended | 12 Months Ended |
|---|---|---|
Apr. 13, 2023 |
Dec. 31, 2023
CAD ($)
|
|
| Business Combination [Line Items] | ||
| KCS historical, revenue | $ 1,351 | |
| Pro forma CPKC, revenue | 13,909 | |
| KCS historical, net income attributable to controlling shareholders | 280 | |
| Pro forma, net income attributable to controlling shareholders | $ 3,174 | |
| Canada, Dollars | ||
| Business Combination [Line Items] | ||
| Average exchange rate used, revenue | 1.35 |
Investment in Kansas City Southern - Narrative (Details) - CAD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|
Apr. 13, 2023 |
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 14, 2021 |
|
| Schedule of Equity Method Investments [Line Items] | |||||
| Equity earnings of Kansas City Southern | $ 230 | $ 0 | $ 0 | $ 230 | |
| Dividend from Kansas City Southern | 300 | $ 0 | $ 0 | ||
| Kansas City Southern | |||||
| Schedule of Equity Method Investments [Line Items] | |||||
| Basis difference | $ 30,000 | ||||
| Equity method investment, foreign currency translation loss | (578) | ||||
| Amortization of basis difference | $ 48 | ||||
Investment in Kansas City Southern - Summarized Financial Information, Statement of Income (Details) $ in Millions |
3 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|
|
Apr. 13, 2023
CAD ($)
|
Dec. 31, 2025
CAD ($)
|
Dec. 31, 2024
CAD ($)
|
Dec. 31, 2023
CAD ($)
|
|
| Schedule of Equity Method Investments [Line Items] | ||||
| Total revenues | $ 15,078 | $ 14,546 | $ 12,555 | |
| Total operating expenses | 9,469 | 9,367 | 8,167 | |
| Operating income | 5,609 | 5,179 | 4,388 | |
| Less: Other | (1) | (42) | 52 | |
| Income (loss) before income tax expense (recovery) | 5,482 | 4,772 | (3,053) | |
| Net income attributable to controlling shareholders | $ 4,141 | $ 3,718 | $ 3,927 | |
| Canada, Dollars | ||||
| Schedule of Equity Method Investments [Line Items] | ||||
| Average exchange rate used, revenue | 1.35 | |||
| Kansas City Southern | ||||
| Schedule of Equity Method Investments [Line Items] | ||||
| Total revenues | $ 1,351 | |||
| Total operating expenses | 888 | |||
| Operating income | 463 | |||
| Less: Other | 83 | |||
| Income (loss) before income tax expense (recovery) | 380 | |||
| Net income attributable to controlling shareholders | $ 280 | |||
Properties - Narrative (Details) - CAD ($) $ in Millions |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Property, Plant and Equipment [Abstract] | ||
| Government assistance, amount | $ 5 | $ 26 |
| Property balance | 55,323 | 56,024 |
| Government assistance, unamortized amount | 263 | 272 |
| Amortization expense related to government assistance | $ 11 | $ 10 |
| Government Assistance, Income, Increase (Decrease), Statement of Income or Comprehensive Income [Extensible Enumeration] | Property balance | Property balance |
Properties - Capital Leases Included in Properties (Details) - CAD ($) $ in Millions |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Finance Leased Assets [Line Items] | ||
| Cost | $ 206 | $ 194 |
| Accumulated depreciation | 106 | 92 |
| Net book value | 100 | 102 |
| Rolling stock | ||
| Finance Leased Assets [Line Items] | ||
| Cost | 188 | 186 |
| Accumulated depreciation | 102 | 90 |
| Net book value | 86 | 96 |
| Other | ||
| Finance Leased Assets [Line Items] | ||
| Cost | 18 | 8 |
| Accumulated depreciation | 4 | 2 |
| Net book value | $ 14 | $ 6 |
Goodwill (Details) - CAD ($) $ in Millions |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Goodwill | ||
| Opening balance | $ 19,350 | $ 17,729 |
| Addition | 67 | |
| FX impact | (914) | 1,554 |
| Ending balance | $ 18,436 | $ 19,350 |
Intangible assets - Schedule of Finite and Indefinite-Lived Intangible Assets (Details) - CAD ($) $ in Millions |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Cost | ||
| Beginning balance | $ 3,315 | $ 3,061 |
| FX impact | (158) | 254 |
| Ending balance | 3,157 | 3,315 |
| Accumulated amortization | ||
| Beginning balance | (169) | (87) |
| Amortization | (87) | (85) |
| FX impact | 10 | 3 |
| Ending balance | (246) | (169) |
| Net carrying amount | ||
| Beginning balance | 3,146 | 2,974 |
| Amortization | (87) | (85) |
| FX impact | (148) | 257 |
| Ending balance | 2,911 | 3,146 |
| Indefinite-lived intangible assets | $ 1,863 | $ 1,956 |
Finite-lived Intangible assets - Future Amortization Expense (Details) $ in Millions |
Dec. 31, 2025
CAD ($)
|
|---|---|
| Goodwill and Intangible Assets Disclosure [Abstract] | |
| 2026 | $ 85 |
| 2027 | 85 |
| 2028 | 85 |
| 2029 | 85 |
| 2030 | 85 |
| 2031 and thereafter | 623 |
| Total | $ 1,048 |
Accounts payable and accrued liabilities (Details) - CAD ($) $ in Millions |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Payables and Accruals [Abstract] | ||
| Trade payables | $ 682 | $ 768 |
| Accrued charges | 597 | 732 |
| Income and other taxes payable | 459 | 379 |
| Dividends payable | 204 | 177 |
| Accrued interest | 195 | 167 |
| Payroll-related accruals | 122 | 151 |
| Accrued vacation | 116 | 99 |
| Operating lease liabilities (Note 20) | 111 | 112 |
| Personal injury and other claims provision | 78 | 78 |
| Stock-based compensation liabilities | 73 | 58 |
| Other | 114 | 121 |
| Total accounts payable and accrued liabilities | $ 2,751 | $ 2,842 |
Financial instruments - Narrative (Details) - CAD ($) $ in Millions |
12 Months Ended | |||
|---|---|---|---|---|
Jan. 12, 2024 |
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Schedule of Investments [Line Items] | ||||
| Long-term debt, excluding commercial paper | $ 22,023 | $ 20,749 | ||
| Long-term debt, fair value | 20,740 | 18,911 | ||
| Settlement of foreign currency forward contracts | 0 | 65 | $ 0 | |
| Treasury Rate Locks | Net Interest Expense | ||||
| Schedule of Investments [Line Items] | ||||
| Derivative gains (losses) amortized to net interest expense | 1 | (6) | (7) | |
| Foreign Exchange Contract | ||||
| Schedule of Investments [Line Items] | ||||
| Foreign exchange loss on FX forward contracts | 4 | 39 | ||
| Settlement of foreign currency forward contracts | $ 65 | |||
| Net Investment Hedge | ||||
| Schedule of Investments [Line Items] | ||||
| Gain (loss) on derivative | $ 293 | $ (380) | $ 194 | |
Other long-term liabilities - Schedule of Other Long-Term Liabilities (Details) - CAD ($) $ in Millions |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Other Liabilities Disclosure [Abstract] | ||
| Operating lease liabilities, net of current portion (Note 20) | $ 299 | $ 254 |
| Provision for environmental remediation, net of current portion | 218 | 231 |
| Stock-based compensation liabilities, net of current portion | 118 | 177 |
| Deferred lease and license revenue, net of current portion | 50 | 67 |
| Deferred revenue, net of current portion | 22 | 20 |
| Other, net of current portion | 108 | 118 |
| Total other long-term liabilities | 815 | 867 |
| Aggregate provision for environmental remediation, including current portion | $ 241 | $ 257 |
| Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Accounts payable and accrued liabilities (Note 16, 20), Total other long-term liabilities | Accounts payable and accrued liabilities (Note 16, 20), Total other long-term liabilities |
Other long-term liabilities - Narrative (Details) - CAD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Other Liabilities Disclosure [Abstract] | |||
| Expected time period for payment of provision for environmental remediation | 10 years | ||
| Environmental remediation costs charged to income | $ 9 | $ 8 | $ 8 |
Leases - Narrative (Details) |
Dec. 31, 2025 |
|---|---|
| Minimum | |
| Lessee, Lease, Description [Line Items] | |
| Remaining lease terms | 1 year |
| Maximum | |
| Lessee, Lease, Description [Line Items] | |
| Remaining lease terms | 15 years |
Leases - Components of Lease Expense (Details) - CAD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Leases [Abstract] | |||
| 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 |
Leases - Supplemental Balance Sheet Information (Details) - CAD ($) $ in Millions |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Leases [Abstract] | ||
| Operating lease, ROU asset | $ 422 | $ 364 |
| Operating lease, ROU asset, location | Other assets (Note 20) | Other assets (Note 20) |
| Finance lease, ROU asset | $ 100 | $ 102 |
| Finance lease, ROU asset, location | Property balance | Property balance |
| Operating lease liabilities, current | $ 111 | $ 112 |
| Operating lease liabilities, current, location | Accounts payable and accrued liabilities (Note 16, 20) | Accounts payable and accrued liabilities (Note 16, 20) |
| Finance lease liabilities, current | $ 17 | $ 14 |
| Finance lease liabilities, current, location | Long-term debt maturing within one year (Note 17, 18, 20) | Long-term debt maturing within one year (Note 17, 18, 20) |
| Operating lease liabilities, long-term | $ 299 | $ 254 |
| Operating lease liabilities, long-term, location | Other long-term liabilities (Note 19, 20) | Other long-term liabilities (Note 19, 20) |
| Obligations under finance leases | $ 10 | $ 21 |
| Finance lease liabilities, long-term, location | Long-term debt | Long-term debt |
Leases - Weighted Average Remaining Lease Terms and Discount Rates (Details) |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Weighted-Average Remaining Lease Term | ||
| Operating leases | 5 years | 4 years |
| Finance leases | 4 years | 4 years |
| Weighted-Average Discount Rate | ||
| Operating leases | 3.41% | 3.61% |
| Finance leases | 5.30% | 5.39% |
Leases - Supplemental Information Related to Leases (Details) - CAD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Leases [Abstract] | |||
| Operating cash outflows from operating leases | $ 127 | $ 114 | $ 96 |
| Operating cash outflows from finance leases | 1 | 1 | 2 |
| Financing cash outflows from finance leases | 11 | 13 | 13 |
| ROU assets obtained in exchange for lease liabilities | |||
| Operating leases | $ 191 | $ 105 | $ 62 |
Leases - Maturities of Lease Liabilities (Details) $ in Millions |
Dec. 31, 2025
CAD ($)
|
|---|---|
| Finance leases | |
| 2026 | $ 18 |
| 2027 | 2 |
| 2028 | 1 |
| 2029 | 1 |
| 2030 | 1 |
| Thereafter | 7 |
| Total lease future payments | 30 |
| Imputed interest | (3) |
| Present value of future lease payments | 27 |
| Operating leases | |
| 2026 | 143 |
| 2027 | 111 |
| 2028 | 83 |
| 2029 | 54 |
| 2030 | 39 |
| Thereafter | 58 |
| Total lease future payments | 488 |
| Imputed interest | (78) |
| Present value of future lease payments | $ 410 |
Shareholders' equity - Narrative (Details) - CAD ($) $ / shares in Units, $ in Millions |
8 Months Ended | 12 Months Ended | ||||
|---|---|---|---|---|---|---|
Oct. 29, 2025 |
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
Feb. 02, 2026 |
Mar. 03, 2025 |
|
| Class of Stock [Line Items] | ||||||
| Preferred shares issued | 0 | |||||
| Common shares authorized to be repurchased (in shares) | 37,300,000 | |||||
| Common Shares repurchased (in shares) | 37,300,000 | 0 | 0 | |||
| Subsequent Event | ||||||
| Class of Stock [Line Items] | ||||||
| Common shares authorized to be repurchased (in shares) | 44,900,000 | |||||
| March 2025 Normal Course Issuer Bid (NCIB) | ||||||
| Class of Stock [Line Items] | ||||||
| Common Shares repurchased (in shares) | 37,300,000 | 37,348,539 | ||||
| Common Shares repurchased, value | $ 4,019 | |||||
| Weighted-average price per share | $ 107.61 | |||||
| Share Repurchase Program, Change in Accrued Tax Liability | $ 77 | |||||
| Share capital | ||||||
| Class of Stock [Line Items] | ||||||
| Stock-based compensation transferred from APIC | $ 17 | $ 18 | $ 17 | |||
Shareholders' equity - Summary of Information Related to Common Share Balances (Details) - shares shares in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
| Share capital, January 1 (in shares) | 933.5 | 932.1 | 930.5 |
| Stock Repurchased During Period, Shares | (37.3) | 0.0 | 0.0 |
| Shares issued under stock option plan (in shares) | 1.4 | 1.4 | 1.6 |
| Share capital, December 31 (in shares) | 897.6 | 933.5 | 932.1 |
Shareholders' equity - Schedule of Shares Repurchased Program Activity (Details) - CAD ($) $ / shares in Units, $ in Millions |
8 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|
Oct. 29, 2025 |
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Share Repurchase Program [Line Items] | ||||
| Common Shares repurchased (in shares) | 37,300,000 | 0 | 0 | |
| March 2025 Normal Course Issuer Bid (NCIB) | ||||
| Share Repurchase Program [Line Items] | ||||
| Common Shares repurchased (in shares) | 37,300,000 | 37,348,539 | ||
| Weighted-average price per share | $ 107.61 | |||
| Common Shares repurchased, value | $ 4,019 | |||
Change in non-cash working capital balances related to operations (Details) - CAD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Supplemental Cash Flow Elements [Abstract] | |||
| Accounts receivable, net | $ 32 | $ (133) | $ (317) |
| Materials and supplies | (53) | (36) | 1 |
| Other current assets | 96 | (9) | (49) |
| Accounts payable and accrued liabilities | (271) | 202 | 57 |
| Change in non-cash working capital balances related to operations | $ (196) | $ 24 | $ (308) |
Pensions and other benefits - Funded Status of Pension Plans (Details) - Pensions - CAD ($) $ in Millions |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Pension plans in surplus | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Projected benefit obligation at December 31 | $ (9,549) | $ (9,725) |
| Fair value of fund assets at December 31 | 14,678 | 14,311 |
| Funded Status | 5,129 | 4,586 |
| Pension plans in deficit | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Projected benefit obligation at December 31 | (271) | (441) |
| Fair value of fund assets at December 31 | 116 | 281 |
| Funded Status | $ (155) | $ (160) |
Pensions and other benefits - Amounts Recognized in Company's Consolidated Balance Sheets (Details) - CAD ($) $ in Millions |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Defined Benefit Plan Disclosure [Line Items] | ||
| Pension asset | $ 5,129 | $ 4,586 |
| Accounts payable and accrued liabilities | (49) | (45) |
| Pension and other benefit liabilities | (537) | (548) |
| Total amount recognized | 4,543 | 3,993 |
| Pensions | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Pension asset | 5,129 | 4,586 |
| Accounts payable and accrued liabilities | (11) | (10) |
| Pension and other benefit liabilities | (144) | (150) |
| Total amount recognized | 4,974 | 4,426 |
| Other benefits | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Pension asset | 0 | 0 |
| Accounts payable and accrued liabilities | (38) | (35) |
| Pension and other benefit liabilities | (393) | (398) |
| Total amount recognized | $ (431) | $ (433) |
Pensions and other benefits - Amounts Recognized in Accumulated Other Comprehensive Losses (Details) - CAD ($) $ in Millions |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Defined Benefit Plan Disclosure [Line Items] | ||
| Other than deferred investment (losses) gains | $ (1,329) | $ (1,449) |
| Deferred investment gains | 464 | 405 |
| Prior service cost | (53) | (59) |
| Deferred income tax expense (recovery) | 316 | 365 |
| Total (Note 9) | (602) | (738) |
| Pensions | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Other than deferred investment (losses) gains | (1,383) | (1,501) |
| Deferred investment gains | 464 | 405 |
| Prior service cost | (53) | (58) |
| Deferred income tax expense (recovery) | 329 | 377 |
| Total (Note 9) | (643) | (777) |
| Other benefits | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Other than deferred investment (losses) gains | 54 | 52 |
| Deferred investment gains | 0 | 0 |
| Prior service cost | 0 | (1) |
| Deferred income tax expense (recovery) | (13) | (12) |
| Total (Note 9) | $ 41 | $ 39 |
Pensions and other benefits - Actuarial Assumptions (Details) |
12 Months Ended | |||
|---|---|---|---|---|
Dec. 31, 2026 |
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Benefit obligation as at December 31: | ||||
| Discount rate | 4.94% | 4.68% | 4.64% | |
| Projected future salary increases | 2.75% | 2.75% | 2.75% | |
| Health care cost trend rate | 5.00% | 5.00% | 5.00% | |
| Benefit cost for year ended December 31: | ||||
| Discount rate | 4.68% | 4.64% | 5.01% | |
| Expected rate of return on fund assets | 6.70% | 6.70% | 6.90% | |
| Projected future salary increases | 2.75% | 2.75% | 2.75% | |
| Health care cost trend rate | 5.00% | 5.00% | 5.00% | |
| Forecast | ||||
| Benefit cost for year ended December 31: | ||||
| Expected rate of return on fund assets | 6.70% | |||
Pensions and other benefits - Estimated Future Benefit Payments (Details) $ in Millions |
Dec. 31, 2025
CAD ($)
|
|---|---|
| Pensions | |
| Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |
| 2026 | $ 679 |
| 2027 | 672 |
| 2028 | 676 |
| 2029 | 666 |
| 2030 | 663 |
| 2031-2035 | 3,279 |
| Other benefits | |
| Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |
| 2026 | 39 |
| 2027 | 33 |
| 2028 | 33 |
| 2029 | 32 |
| 2030 | 32 |
| 2031-2035 | $ 159 |
Stock-based compensation - Weighted-Average Fair Value Assumptions (Details) - Stock Option Plan - $ / shares |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Expected option life (years) | 4 years 9 months | 4 years 9 months | 4 years 9 months |
| Risk-free interest rate | 3.62% | 3.88% | 3.35% |
| Expected stock price volatility | 25.43% | 28.38% | 28.44% |
| Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.79% | 0.67% | 0.72% |
| Estimated forfeiture rate | 3.08% | 3.12% | 3.18% |
| Weighted average grant date fair value of options granted during the year (cad per share) | $ 28.81 | $ 33.27 | $ 29.79 |
Stock-based compensation - Schedule of Options Exercised (Details) - Stock Option Plan - CAD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Total intrinsic value | $ 78 | $ 92 | $ 101 |
| Cash received by the Company upon exercise of options | $ 73 | $ 69 | $ 69 |
Stock-based compensation - Summary of Performance Share Units Plan (Details) - PSUs and PDSUs - shares |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] (in shares) | ||
| Outstanding, January 1 (in shares) | 1,743,733 | 1,678,553 |
| Granted (in shares) | 635,665 | 593,748 |
| Issued in lieu of dividends (in shares) | 15,950 | 12,843 |
| Settled (in shares) | (384,486) | (401,182) |
| PDSUs converted into DSUs (in shares) | (8,426) | (11,461) |
| Forfeited (in shares) | (60,702) | (128,768) |
| Outstanding, December 31 (in shares) | 1,941,734 | 1,743,733 |
Stock-based compensation - Summary of Deferred Share Units Plan (Details) - DSUs - shares |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] (in shares) | ||
| Outstanding, January 1 (in shares) | 903,054 | 899,818 |
| Granted (in shares) | 91,071 | 71,082 |
| PDSUs converted into DSUs (in shares) | 12,572 | 14,079 |
| Issued in lieu of dividends (in shares) | 7,758 | 6,253 |
| Settled (in shares) | (41,005) | (82,624) |
| Forfeited (in shares) | (3,095) | (5,554) |
| Outstanding, December 31 (in shares) | 970,355 | 903,054 |
Stock-based compensation - Summary of Total Share Based Liabilities (Details) - CAD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Share-based liabilities paid | $ 64 | $ 64 | $ 89 |
| PSUs | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Share-based liabilities paid | 48 | 54 | 86 |
| DSUs | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Share-based liabilities paid | 4 | 9 | 2 |
| Other | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Share-based liabilities paid | $ 12 | $ 1 | $ 1 |
Variable interest entities - Narrative (Details) $ in Millions |
12 Months Ended |
|---|---|
|
Dec. 31, 2025
CAD ($)
| |
| Variable Interest Entity [Line Items] | |
| Future minimum lease payments before tax | $ 488 |
| Variable Interest Entity, Not Primary Beneficiary | |
| Variable Interest Entity [Line Items] | |
| Lease payments before tax | 12 |
| Future minimum lease payments before tax | $ 41 |
Guarantees (Details) - CAD ($) $ in Millions |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Guarantees [Abstract] | ||
| Accrued guarantees | $ 16 | $ 8 |
Segmented and geographic information - Narrative (Details) |
12 Months Ended |
|---|---|
|
Dec. 31, 2025
segment
| |
| Segment Reporting [Abstract] | |
| Number of operating segments | 1 |
Segmented and geographic information - Geographic Information (Details) - CAD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Revenues from External Customers and Long-Lived Assets [Line Items] | |||
| Revenues | $ 15,078 | $ 14,546 | $ 12,555 |
| Long-lived assets: Properties and Operating lease ROU assets | 55,745 | 56,388 | |
| Canada | |||
| Revenues from External Customers and Long-Lived Assets [Line Items] | |||
| Revenues | 7,243 | 6,936 | 6,651 |
| Long-lived assets: Properties and Operating lease ROU assets | 17,559 | 16,536 | |
| U.S. | |||
| Revenues from External Customers and Long-Lived Assets [Line Items] | |||
| Revenues | 5,124 | 4,988 | 4,257 |
| Long-lived assets: Properties and Operating lease ROU assets | 26,860 | 27,897 | |
| Mexico | |||
| Revenues from External Customers and Long-Lived Assets [Line Items] | |||
| Revenues | 2,711 | 2,622 | $ 1,647 |
| Long-lived assets: Properties and Operating lease ROU assets | $ 11,326 | $ 11,955 | |
Subsequent events (Details) - Senior Notes - 3.700% 10.5-year Notes $ in Millions, $ in Millions |
1 Months Ended | 12 Months Ended | |
|---|---|---|---|
|
Feb. 28, 2026
USD ($)
|
Feb. 28, 2026
CAD ($)
|
Dec. 31, 2025 |
|
| Subsequent Event [Line Items] | |||
| Interest rate | 3.70% | ||
| Debt term | 10 years 6 months | ||
| Subsequent Event | |||
| Subsequent Event [Line Items] | |||
| Extinguishment of debt, amount | $ 250 | $ 339 | |
Schedule II – Valuation and Qualifying Accounts (Details) - Provisions for contingent liabilities(1) - CAD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
| Balance as at January 1 | $ 360 | $ 314 | $ 130 |
| Impact of KCS Acquisition | 0 | 44 | 215 |
| Additions charged to expenses | 136 | 171 | 191 |
| Payments and other reductions | (144) | (194) | (218) |
| Impact of FX | (16) | 25 | (4) |
| Balance as at December 31 | $ 336 | $ 360 | $ 314 |