Core Insights - Analysts at the Bank of Nova Scotia have expanded their list of stock recommendations following the announcement of six new major infrastructure projects by Prime Minister Mark Carney, adding to an initial five projects [1] Group 1: New Infrastructure Projects - The new projects include an electricity transmission corridor, a floating liquefied natural gas (LNG) terminal in northern British Columbia, a critical mineral mine in New Brunswick, a nickel mine in Ontario, a graphite mine in Quebec, and a hydro line to the Arctic [1] Group 2: Beneficiary Companies - Snowline Gold Corp. (TSX:SGD) may benefit from lower energy costs due to the B.C. electricity project [1] - Enbridge Inc. (TSX:ENB) is expected to play a role in the LNG terminal, potentially assisting in building a pipeline for the project [1] - Alberta gas companies such as AltaGas Ltd. (TSX:ALA), Keyera Corp. (TSX:KEY), and Pembina Pipeline Corp. (TSX:PPL) could also benefit from the LNG terminal [1] - TC Energy Corp. (TSX:TCL) may be involved in further large-scale pipeline investments in the region [1] Group 3: Engineering and Construction Stocks - Several engineering and construction companies have been highlighted, including AtkinsRealis Group Inc. (TSX:ATRL), Stantec Inc. (TSX:STN), and WSP Global Inc. (TSX:WSP) [1] - Equipment dealers such as Finning International Inc. (TSX:FTT) and Toromont Industries Ltd. (TSX:TIH) are also noted as potential beneficiaries [1] Group 4: Transportation Companies - Transportation companies like Canadian National Railway Co. (TSX:CNR) and Canadian Pacific Kansas City Ltd. (TSX:CP) may see upside from these infrastructure developments [1]

Core Insights - Canadian Pacific Kansas City Limited (NYSE:CP) is recognized as one of the best Canadian dividend stocks for long-term investment [1] - Bernstein has lowered its price target for CP from $87.12 to $82.08, citing revenue pressure in Q3 despite stable operating expenses [2] - In Q3 2025, CP reported revenues of C$3.7 billion, a 3% increase from C$3.5 billion year-over-year, with an improved operating ratio of 60.7% and an 11% rise in earnings per share to $1.10 [3] - The merger with Kansas City Southern has positioned CP uniquely with a direct route linking Canada, the U.S., and Mexico, covering approximately 32,000 kilometers of track [4] Financial Performance - CP's Q3 2025 revenue reached C$3.7 billion, reflecting a 3% increase from the previous year [3] - The operating ratio improved by 220 basis points to 60.7%, indicating enhanced operational efficiency [3] - Earnings per share increased by 11% to $1.10, supporting management's full-year earnings growth outlook of 10% to 14% [3] Strategic Advantages - CP's extensive network, established through the merger with Kansas City Southern, provides a competitive edge by connecting key agricultural, industrial, and energy regions across North America [4] - The company maintains manageable debt levels and strong free cash flow, allowing for continued investment in network upgrades while sustaining dividends and share buybacks [4]

Core Insights - Canadian Pacific Kansas City (CPKC) will participate in the 2025 UBS Global Industrials and Transportation Conference on December 2, 2025, at 9:40 a.m. ET, with President and CEO Keith Creel and Senior Vice President Ian Gray addressing the audience [1][2]. Company Overview - CPKC is the first and only single-line transnational railway connecting Canada, the United States, and Mexico, providing access to major ports from Vancouver to Atlantic Canada, the Gulf Coast, and Lázaro Cárdenas, Mexico [2]. - The railway spans approximately 20,000 route miles and employs around 20,000 railroaders, offering extensive rail service and network reach to key markets across North America [2]. - CPKC is focused on growth alongside its customers, providing a range of freight transportation services, logistics solutions, and supply chain expertise [2].

Summary of Canadian Pacific Kansas City (CPKC) Conference Call Company Overview - **Company**: Canadian Pacific Kansas City (CPKC) - **Date**: November 18, 2025 - **Key Speaker**: Nadeem Velani, EVP and CFO Core Points and Arguments Growth and Performance - CPKC has experienced a **5% increase in revenue ton miles (RTM)** this year, leading the industry in volume growth [3][4] - The company achieved **double-digit earnings per share (EPS) growth** for the second consecutive year [4] - CPKC has maintained its position as the **industry leader in safety**, reducing train accident frequency and personal injury rates [4] Shareholder Returns - CPKC increased its dividend by **20%** earlier this year, marking the first increase since the acquisition of Kansas City Southern [4] - The company repurchased **4% of its outstanding shares**, demonstrating a commitment to returning cash to shareholders [4][30] Future Outlook - For 2026, CPKC anticipates **low double to mid-teen EPS growth**, despite a challenging macroeconomic environment [9][10] - The company is optimistic about **Canadian grain volumes**, with expectations of a potentially record crop, which will positively impact future performance [7][11] Synergies and Integration - CPKC expects to achieve approximately **$1.1 billion in revenue synergies** from the KCS acquisition by the end of the year, with an additional **$200 million to $250 million** expected in 2026 [16][19] - The integration process has faced challenges, particularly in IT, but recovery has been swift, with operations returning to normal within **30 days** [25] Capital Expenditure and Financial Health - CPKC's capital expenditure for the year is projected to be **CAD 2.9 billion**, the highest in the company's history, with a focus on upgrading locomotives and infrastructure [26][27] - The company aims to maintain a leverage ratio below **3**, allowing for continued share buybacks and dividend increases [29][30] Industry Landscape and Opportunities - CPKC is prepared to allocate capital for potential opportunities arising from concessions in the U.S. rail industry [31] - The company is exploring the use of **AI** for operational improvements, including safety and efficiency enhancements [33][34] Return on Invested Capital (ROIC) - CPKC plans to reintroduce ROIC as a key performance metric, aiming to return to **double-digit ROIC** in the coming years [36][37] Additional Important Content - The company has successfully implemented **self-help initiatives** to gain market share and improve performance despite a prolonged freight recession [9][10] - CPKC's approach to capital allocation is flexible, allowing for adjustments based on market conditions and opportunities [31][32] - The integration of new technologies and AI is seen as a critical area for future growth and operational efficiency [34][35]

Core Insights - Canadian Pacific Kansas City Limited (CP) is experiencing increased expenses and tariff-related challenges, making it less attractive for investors [1][9] Financial Performance - The Zacks Consensus Estimate for CP's earnings has been revised downward by 2.33% for 2025 and 2.53% for 2026 over the past 60 days, indicating a lack of confidence from brokers [2] - CP's shares have declined by 4.7% over the past year, compared to a 3.7% decline in the Transportation - Rail industry [3][9] - Total operating expenses for CP in Q3 2025 were $2.33 billion, although they fell, they remained at a high level [6] Industry Context - CP currently holds a Zacks Rank of 4 (Sell), and the industry rank is 207 out of 243, placing it in the bottom 14% of Zacks Industries [5] - The performance of CP is significantly influenced by the overall industry, as studies indicate that 50% of a stock's price movement is related to its industry group [5][6] Challenges - CP is facing significant headwinds due to elevated expenses and a volatile macroeconomic environment characterized by economic uncertainty, shifting tariff regulations, and geopolitical tensions [7][9]

Core Insights - Canadian Pacific Kansas City Limited (CP) has reached a tentative five-year collective agreement with the Brotherhood of Locomotive Engineers and Trainmen, enhancing labor stability across its U.S. network [1][6] - The agreement includes wage increases and more flexible work rules for approximately 300 locomotive engineers operating in key Midwest states [1][6] - CP has also secured 13 additional tentative five-year agreements with various U.S. unions, positioning the company for stronger workforce certainty and improved service performance [2][6] Labor Strategy - The new agreements are expected to strengthen CP's ability to deliver safe and efficient service, contributing to long-term business and economic growth [2] - The company is focused on maintaining network fluidity and service performance, which are essential for competitive supply-chain operations [2] Network Expansion - CP continues to enhance its role as the first single-line transnational railway connecting Canada, the United States, and Mexico, building long-term labor stability to support ongoing growth [3] - The expansion of network reach and service offerings is aimed at enhancing productivity and contributing to economic activity across North America [3] Share Price Performance - Despite positive developments, CP shares have underperformed by 4.4% over the past year, compared to a 3.3% decline in the Transportation - Rail industry [4]

Core Points - Canadian Pacific Kansas City (CPKC) has awarded G3 Canada Limited and Bartlett Grain Company as the Elevator of the Year for the 2024-2025 crop year, recognizing their performance in safety and efficiency within the grain industry [1][4] - The G3 elevator in Colonsay, Saskatchewan, and the Bartlett elevator in Jacksonville, Illinois, excelled in railcar loading processes and safety practices, enhancing grain movement across North America [2][6] - G3 Canada Limited has previously won the award multiple times, with its latest win in the 2021-2022 crop year, showcasing its commitment to operational excellence [3][4] Company Achievements - G3 Canada Limited's CEO, Don Chapman, emphasized that winning the award for the fourth time in seven years reflects the company's dedication to transforming grain movement in Canada and highlights the strength of its network [4] - Bartlett Grain Company received the award for the first time, indicating significant improvements in its operational performance [4][5] - Joe Griffith, President of Bartlett Grain Company, expressed gratitude for the recognition and highlighted the collaboration with CPKC in ensuring safe and efficient operations [5] Industry Impact - The awards underscore the critical role that grain elevators play in the agricultural sector, facilitating the efficient movement of grain from farms to global markets [6] - CPKC, as a transnational railway, provides extensive rail service and network reach across North America, supporting the agricultural supply chain [7]

Core Points - The Brotherhood of Locomotive Engineers and Trainmen has reached a five-year collective agreement [1] - The agreement includes provisions for increased wages and more flexible working hours [1] Summary by Category Agreement Details - The collective agreement spans five years [1] - It provides for increased wages for the members [1] - The agreement also introduces more flexible working hours [1]

Core Points - Canadian Pacific Kansas City (CPKC) has reached a tentative five-year collective agreement with the Brotherhood of Locomotive Engineers and Trainmen (BLET) for approximately 300 locomotive engineers operating in the United States [2][4] - The agreement includes increased wages and more flexible work rules, contributing to the company's commitment to safely and efficiently support American business and economic growth [2][3] - CPKC has also announced a total of 13 tentative five-year collective agreements with various unions, covering around 360 employees across the United States, all pending ratification [2][4] Company Overview - CPKC is the first and only single-line transnational railway linking Canada, the United States, and Mexico, with approximately 20,000 route miles and a workforce of 20,000 railroaders [3] - The company provides extensive rail service and network reach to key markets across North America, supporting freight transportation services, logistics solutions, and supply chain expertise [3]

Core Insights - Canadian Pacific Kansas City (CP) reported disappointing third-quarter 2025 results, with both earnings and revenues falling short of the Zacks Consensus Estimate [1][9] Financial Performance - The quarterly earnings, excluding 7 cents from non-recurring items, were 80 cents per share, missing the Zacks Consensus Estimate by a penny, but improved 9.5% year-over-year [2] - Operating revenues totaled $2.65 billion, lagging behind the Zacks Consensus Estimate of $2.67 billion, yet showing a 2.2% year-over-year increase [2] - Total Freight revenues per revenue ton miles decreased by 1% year-over-year, while total Freight revenues per carload also saw a marginal decline [3] - Operating income increased by 11%, and total operating expenses fell by 1% year-over-year, resulting in an operating ratio improvement of 260 basis points to 63.5% [3] Segment Performance - Freight revenues, which constituted 98% of total revenues, increased by 4% year-over-year, with notable growth in Potash (up 15%), Fertilizers and Sulphur (up 11%), and Coal (up 3%) [4] - Other revenues decreased by 18% year-over-year in the third quarter of 2025 [4] Liquidity Position - At the end of the third quarter, CP had cash and cash equivalents of C$411 million, down from C$799 million in the previous quarter, while long-term debt rose to C$21.59 billion from C$21.22 billion [5] Future Outlook - CP anticipates core adjusted earnings per share to grow in the range of 10%-14% from 2024 actuals to C$4.25 per share in 2025 [6] - The company expects mid-single-digit growth in revenue ton miles (RTMs) for 2025 compared to 2024 [6] - Capital expenditures are projected to be C$2.9 billion for the full year, with an expected effective tax rate of 24.5% for 2025 [6]