CPKC investing US$800 million in American manufacturing with Tier 4 locomotives

Canadian Pacific Kansas City (TSX: CP, NYSE: CP) is continuing a multi-year locomotive renewal with a >US$800 million investment in American manufacturing.

Rhea-AI Summary

Canadian Pacific Kansas City (TSX: CP, NYSE: CP) is continuing a multi-year locomotive renewal with a >US$800 million investment in American manufacturing. CPKC completed 100 Wabtec Tier 4 locomotives built in Texas in 2025, expects delivery of 70 more Wabtec ET44AC Tier 4 units in 2026 (first two arriving in January) and will add 30 EMD SD70ACe-T4 Tier 4 locomotives from Progress Rail to be built in Muncie, Indiana in the second half of 2026. The orders (including a 65-unit Progress Rail order) are part of CPKC's ongoing capital plan to improve fleet reliability and fuel efficiency and support growth and service across North America.

Positive

• Committed >US$800 million to US locomotive manufacturing
• Completed purchase of 100 Wabtec Tier 4 locomotives in 2025
• Planned deliveries of 70 more Wabtec units in 2026 and 30 Progress Rail units in H2 2026
• Stated improvements in fleet reliability and fuel efficiency

Negative

• Capital expenditure exceeding US$800 million increases near-term cash outlay

Argus Jan 22 session

+0.58% close to close 0.9x rel. volume Open Argus

Details

News Market Reaction – CP

On Jan 22, the first trading day after this news, CP closed 0.58% above the previous close.

Data tracked by StockTitan Argus for the Jan 22 session.

Key Figures

Locomotive investment: US$800 million Wabtec locomotives 2025: 100 locomotives Progress Rail 2026 order: 30 locomotives +4 more

Locomotive investment

US$800 million

Multi-year investment in American manufacturing and locomotive renewal

Wabtec locomotives 2025

100 locomotives

Completed purchase of Wabtec Tier 4 units built in Texas in 2025

Progress Rail 2026 order

30 locomotives

Additional Tier 4 locomotives to be built in Indiana in 2026

Additional Wabtec 2026

70 locomotives

Texas-built Tier 4 units expected for delivery in 2026

Initial January delivery

2 locomotives

First two of 70 Wabtec ET44AC Tier 4 units expected in January

Second-half 2026 EMD units

30 locomotives

EMD SD70ACe-T4 Tier 4 freight units from Progress Rail in late 2026

Total Progress Rail order

65 locomotives

Part of broader Tier 4 locomotive order with Progress Rail

Historical Context

5 past events · Latest: Jan 15

5 events

1. Jan 15

   Labor agreements

   24h Move

   +0.4%

   Ratification of 16 five-year U.S. collective bargaining agreements.

2. Dec 29

   Earnings date set

   24h Move

   +0.0%

   Scheduled Q4 and full-year 2025 results for Jan. 28, 2026.

3. Dec 23

   Community initiative

   24h Move

   -0.0%

   Holiday Train raised funds and food donations across North America.

4. Dec 19

   Industry merger update

   24h Move

   -0.0%

   Response to UP–NS merger application and STB review process.

5. Nov 19

   Conference appearance

   24h Move

   -0.3%

   CEO and SVP speaking at UBS Global Industrials and Transportation Conference.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

tier 4 locomotives, emd sd70ace-t4

2 terms

tier 4 locomotives technical

"the renewal of its locomotive fleet with the world's two leading locomotive manufactures as part of an ongoing multi-year US$800 million investment in American industry.Having completed the purchase of 100 Wabtec Tier 4 locomotives"

Tier 4 locomotives are diesel-powered trains built to meet the strictest government limits on harmful exhaust pollution, using cleaner engines and after-treatment equipment to sharply reduce soot and smog-forming emissions. For investors, the designation matters because meeting those rules changes manufacturing costs, maintenance needs, resale value and compliance risk for rail operators—similar to how a car that meets top safety and emissions ratings can cost more up front but avoid fines and attract buyers.

emd sd70ace-t4 technical

"delivery of 30 new EMD® SD70ACe-T4 Tier 4 freight locomotives to be manufactured"

A model of heavy-duty diesel freight locomotive built to meet modern emissions rules, combining a powerful engine, revised electronics and exhaust controls to reduce pollution and improve fuel efficiency. For investors, that matters because buying, leasing or upgrading to such locomotives affects a rail operator’s capital spending, operating costs, regulatory compliance and long-term asset value — similar to a trucking fleet replacing older rigs with cleaner, more efficient models.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

CALGARY, AB, Jan. 21, 2026 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) this year is continuing the renewal of its locomotive fleet with the world's two leading locomotive manufactures as part of an ongoing multi-year US$800 million investment in American industry.

Having completed the purchase of 100 Wabtec Tier 4 locomotives built in Texas in 2025, today CPKC said it will add 30 additional Tier 4 locomotives from Progress Rail in 2026 to be built in Indiana. This year, CPKC also expects delivery of 70 more Texas-built Tier 4 units from Wabtec.   

"Our purchase of additional new Tier 4 locomotives, proudly made in the USA, continues CPKC's commitment to renew our locomotive fleet through a more than US$800 million investment in American manufacturing capacity," said Mark Redd, CPKC Executive Vice President and Chief Operating Officer. "We are investing in our road locomotive fleet for growth and to maintain our industry-leading service for our customers and the North American economy, powered by a fleet with improved reliability and fuel efficiency."  

In January, CPKC expects to receive the first two of 70 Wabtec Evolution Series ET44AC Tier 4 locomotives being built this year for CPKC at the company's manufacturing facility in Dallas, Texas.

In the second half of 2026, CPKC expects to take delivery of 30 new EMD® SD70ACe-T4 Tier 4 freight locomotives to be manufactured at Progress Rail's facility in Muncie, Indiana. These locomotives are part of an order for 65 new Tier 4 locomotives to be built by Progress Rail.

These locomotive investments continue CPKC's locomotive renewal program and are part of CPKC's previously announced multi-year capital plan.

About CPKC

With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and México, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf Coast to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpkcr.com to learn more about the rail advantages of CPKC. CP-IR

View original content to download multimedia:https://www.prnewswire.com/news-releases/cpkc-investing-us800-million-in-american-manufacturing-with-tier-4-locomotives-302667204.html

SOURCE CPKC

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What locomotive investment did CPKC (CP) announce on January 21, 2026?

CPKC announced a continuation of a multi-year locomotive renewal with a more than US$800 million investment in U.S. manufacturing.

How many Wabtec Tier 4 locomotives will CPKC (CP) receive in 2026?

CPKC expects delivery of 70 Wabtec Evolution Series ET44AC Tier 4 locomotives during 2026, with the first two arriving in January.

What Progress Rail locomotives did CPKC (CP) order and when will they be delivered?

CPKC will add 30 EMD SD70ACe-T4 Tier 4 locomotives built by Progress Rail in Muncie, Indiana, expected in the second half of 2026.

How many locomotives did CPKC (CP) complete purchasing from Wabtec in 2025?

CPKC completed the purchase of 100 Wabtec Tier 4 locomotives built in Texas in 2025.

Are the Progress Rail locomotives part of a larger order for CPKC (CP)?

Yes; the 30 Progress Rail units are part of an order for 65 new Tier 4 locomotives to be built by Progress Rail.