Summary of Canadian National Railway Company (CNI) Conference Call - November 24, 2025 Company Overview - **Company**: Canadian National Railway Company (NYSE:CNI) - **Event**: Digital Day Conference - **Date**: November 24, 2025 Key Points Financial Performance - **Q3 Results**: The third quarter results were well received, with volumes up 1% year-to-date and 6% in Q4 to date, with November volumes up 15% [3][5] - **Cost Management**: Operating ratio improved by 170 basis points, indicating effective cost management [7] - **Cost Reduction Initiative**: A $75 million cost reduction initiative focused on management positions, protecting frontline supervisors [11][12] Volume and Sector Performance - **Volume Trends**: The company has experienced a freight recession for a few years, but anticipates capturing a rebound at low incremental costs when the economy improves [9] - **Sector Performance**: - **Strong Sectors**: Petroleum, chemicals, and grain sectors performing well [5] - **Challenging Sectors**: Lumber sector facing difficulties due to 45% tariffs and low prices [6] Capital Expenditure and Growth - **CapEx Reduction**: A $550 million cut in capital expenditures for 2026, aiming for capital efficiency [16] - **Sustainable Growth**: The company is positioned for sustainable growth with a focus on capital efficiency and capacity management [17][19] Leadership Changes - **New COO Appointment**: Pat Whiteside appointed as COO, transitioning from a co-COO model to a single COO for better focus on long-term engineering and mechanical functions [23][25] - **New CMO Appointment**: Janet Drysdale appointed as EVP and Chief Marketing Officer, emphasizing urgency and intensity in the marketing strategy [28][30] Sustainability Initiatives - **Biofuels Usage**: Increased biofuels to nearly 10% of overall locomotive fuel, achieved without additional costs [33][35] - **Pilot Programs**: Three pilots for battery electric and hybrid locomotives announced, with testing in various conditions [21][22] M&A Outlook - **Transcon Merger**: The company is not in favor of the Transcon Merger, believing it does not solve existing problems and that customer service is adequate in North America [37][38] - **Regulatory Challenges**: Anticipates a tough regulatory environment for any merger approval, emphasizing the need for enhanced competition [39] Capital Deployment Strategy - **Leverage Target**: The company targets a leverage ratio of 2.5 times, maintaining a strong balance sheet while being opportunistic in share buybacks [40][41][42] Additional Insights - **Employee Management**: Over 700 employees currently on furlough, with a successful recall rate of over 90% for those called back [13][15] - **Operational Efficiency**: Significant improvements in capital efficiency and cost reductions in engineering contracting services [26][27] This summary encapsulates the key discussions and insights from the conference call, highlighting the company's performance, strategic initiatives, and outlook for the future.

Core Insights - Petrobras is evaluating a reduction in capital expenditures (capex) for the 2026-2030 period to $106 billion, reflecting a cautious outlook amid volatile oil prices [1][2] - The proposed capex represents a 4.5% decrease from the previous allocation of $111 billion for 2025-2029, indicating a shift in financial strategy due to expectations of continued weakness in crude oil prices [2][3] - The company is recalibrating its oil price assumptions, considering a range of $60-$65 per barrel for the upcoming period, down from an initial assumption of $83 per barrel [3] Capital Spending Strategy - Petrobras' capital spending decisions are influenced by Brazil's political landscape, especially with upcoming presidential elections, which may increase pressure to enhance investments in infrastructure projects [4][5] - The company remains committed to focusing on the strategic development of exploration and production assets, particularly in the pre-salt fields off Brazil's coast [6][10] - Most of the proposed capex, approximately $91 billion, is earmarked for already approved projects, with $15 billion allocated for early-stage assets and exploration [12] Financial Management and Dividends - The reduction in capex may impact Petrobras' ability to pay dividends, but the company aims to balance financial health with shareholder expectations [7][8] - Petrobras has stated it will not raise its debt ceiling, currently set at $75 billion, reflecting a commitment to maintaining a stable financial structure while investing in critical energy infrastructure [13][14] - The cautious approach to capex and dividend policy positions Petrobras as a more resilient entity amid market volatility [8][14] Future Outlook - As Petrobras moves forward with its revised capital expenditure plans, it must remain agile in response to changing market dynamics, political pressures, and shareholder demands [15][16] - The company's strategic decisions will significantly impact both the Brazilian economy and global energy markets in the coming years [17]