CANADIAN PACIFIC KANSAS CITY LTD/CNCP
CANADIAN PACIFIC KANSAS CITY LTD/CN Debt Disclosure
Debt
The following table outlines the Company's outstanding long-term debt as at December 31, 2025:
| (in millions of Canadian dollars except percentages) | Maturity | Currency in which payable | 2025 | 2024 | ||||||||||||||||
| 2.90% | 10-year Notes | (A) | Feb 2025 | U.S.$ | $ | — | $ | 924 | ||||||||||||
| 3.70% | 10.5-year Notes | (A) | Feb 2026 | U.S.$ | 343 | 360 | ||||||||||||||
| 3.125% | 10-year Notes | (A) | Jun 2026 | U.S.$ | 309 | 320 | ||||||||||||||
| 1.75% | 5-year Notes | (A) | Dec 2026 | U.S.$ | 1,370 | 1,438 | ||||||||||||||
| 2.54% | 6.3-year Notes | (A) | Feb 2028 | CDN$ | 1,200 | 1,200 | ||||||||||||||
| 4.00% | 10-year Notes | (A) | Jun 2028 | U.S.$ | 685 | 719 | ||||||||||||||
| 3.15% | 10-year Notes | (A) | Mar 2029 | CDN$ | 400 | 400 | ||||||||||||||
| 2.875% | 10-year Notes | (A) | Nov 2029 | U.S.$ | 533 | 551 | ||||||||||||||
| 2.05% | 10-year Notes | (A) | Mar 2030 | U.S.$ | 685 | 719 | ||||||||||||||
| 4.80% | 5-year Notes | (A) | Mar 2030 | U.S.$ | 821 | — | ||||||||||||||
| 7.125% | 30-year Debentures | (A) | Oct 2031 | U.S.$ | 480 | 503 | ||||||||||||||
| 2.45% | 10-year Notes | (A) | Dec 2031 | U.S.$ | 1,918 | 2,014 | ||||||||||||||
| 4.00% | 7-year Notes | (A) | Jun 2032 | CDN$ | 500 | — | ||||||||||||||
| 5.75% | 30-year Debentures | (A) | Mar 2033 | U.S.$ | 339 | 355 | ||||||||||||||
| 5.20% | 10-year Notes | (A) | Mar 2035 | U.S.$ | 818 | — | ||||||||||||||
| 4.80% | 20-year Notes | (A) | Sep 2035 | U.S.$ | 410 | 431 | ||||||||||||||
| 4.40% | 10.5-year Notes | (A) | Jan 2036 | CDN$ | 600 | — | ||||||||||||||
| 5.95% | 30-year Notes | (A) | May 2037 | U.S.$ | 612 | 642 | ||||||||||||||
| 6.45% | 30-year Notes | (A) | Nov 2039 | CDN$ | 400 | 400 | ||||||||||||||
| 3.00% | 20-year Notes | (A) | Dec 2041 | U.S.$ | 1,365 | 1,433 | ||||||||||||||
| 5.75% | 30-year Notes | (A) | Jan 2042 | U.S.$ | 338 | 355 | ||||||||||||||
| 4.30% | 30-year Notes | (A) | May 2043 | U.S.$ | 539 | 563 | ||||||||||||||
| 4.80% | 30-year Notes | (A) | Aug 2045 | U.S.$ | 752 | 790 | ||||||||||||||
| 4.95% | 30-year Notes | (A) | Aug 2045 | U.S.$ | 597 | 626 | ||||||||||||||
| 4.70% | 30-year Notes | (A) | May 2048 | U.S.$ | 623 | 653 | ||||||||||||||
| 3.05% | 30-year Notes | (A) | Mar 2050 | CDN$ | 298 | 298 | ||||||||||||||
| 3.50% | 30-year Notes | (A) | May 2050 | U.S.$ | 566 | 591 | ||||||||||||||
| 3.10% | 30-year Notes | (A) | Dec 2051 | U.S.$ | 2,388 | 2,507 | ||||||||||||||
| 4.80% | 30-year Notes | (A) | Jun 2055 | CDN$ | 298 | — | ||||||||||||||
| 4.20% | 50-year Notes | (A) | Nov 2069 | U.S.$ | 461 | 484 | ||||||||||||||
| 6.125% | 100-year Notes | (A) | Sep 2115 | U.S.$ | 1,234 | 1,295 | ||||||||||||||
2.875% - 4.95% | Other Senior Notes | (A) | up to Nov 2069 | U.S.$ | 110 | 114 | ||||||||||||||
2.96% - 4.29% | RRIF Loans | (B) | up to Feb 2037 | U.S.$ | 60 | 69 | ||||||||||||||
| Obligations under finance leases: | ||||||||||||||||||||
| Various | (C) | Various | CDN$/U.S.$ | 7 | 6 | |||||||||||||||
| 2.32% | (C) | Sep 2026 | U.S.$ | 2 | 6 | |||||||||||||||
| 6.57% | (C) | Dec 2026 | U.S.$ | 8 | 16 | |||||||||||||||
| 2.91% | (C) | Mar 2027 | CDN$ | 3 | — | |||||||||||||||
| 12.77% | (C) | Jan 2031 | CDN$ | 3 | 3 | |||||||||||||||
| 1.93% | (C) | Feb 2041 | U.S.$ | 4 | 4 | |||||||||||||||
| Commercial Paper | U.S.$ | 1,165 | 1,586 | |||||||||||||||||
| Short-term Borrowing | U.S.$ | — | 288 | |||||||||||||||||
| 23,244 | 22,663 | |||||||||||||||||||
Perpetual 4% Consolidated Debenture Stock | (D) | U.S.$ | 41 | 44 | ||||||||||||||||
Perpetual 4% Consolidated Debenture Stock | (D) | £ | 6 | 6 | ||||||||||||||||
| 23,291 | 22,713 | |||||||||||||||||||
| Unamortized fees on long-term debt | (103) | (90) | ||||||||||||||||||
| 23,188 | 22,623 | |||||||||||||||||||
| Less: Long-term debt maturing within one year | 3,240 | 2,819 | ||||||||||||||||||
| Total long-term debt | $ | 19,948 | $ | 19,804 | ||||||||||||||||
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.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 15, 2019 | |
| 2017 | Feb 16, 2018 | |
| 2016 | Feb 16, 2017 | |
| 2015 | Feb 29, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.