Financial Data and Key Metrics Changes - For Q4 2025, revenue was CAD 3.9 billion, up 1% year-over-year, with an operating ratio of 55.9, reflecting a 120 basis points improvement. Earnings per share (EPS) was CAD 1.33, up 3% compared to the previous year [6][29] - For the full year 2025, revenue reached CAD 15.1 billion, an increase of 4%, with a volume growth of 4%. The operating ratio improved by 140 basis points to 59.9, and core EPS was CAD 4.61, up 8% [7][30] Business Line Data and Key Metrics Changes - In the bulk segment, grain revenues increased by 4% on 2% volume growth, driven by a record Canadian grain harvest of 85 million metric tons, up 20% from the previous year [20][22] - Potash revenues decreased by 2% despite a 2% volume growth, while coal revenue increased by 2% with a 1% decline in volumes [22][23] - The merchandise segment saw energy, chemicals, and plastics revenue down 3% on a 5% volume decline, while forest products revenue declined by 13% on a 12% decrease in volumes [23][24] Market Data and Key Metrics Changes - The intermodal segment experienced a revenue increase of 3% with a 4% volume growth, supported by strong performance from international intermodal volumes [26] - The automotive franchise reported a revenue decline of 3% despite a 1% volume growth, impacted by production slowdowns and supply chain challenges [25] Company Strategy and Development Direction - The company aims for mid-single-digit volume growth in 2026, driven by strong bulk business and unique growth drivers, including record grain harvests [8][10] - Continued investment in capital, including the addition of 100 new locomotives in 2026, is planned to support growth and improve operational efficiency [11][17] - The company is focused on executing its Precision Scheduled Railroading (PSR) model to maintain competitive advantages and improve margins [8][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth outlook for 2026, emphasizing the strength of the grain harvest and the company's ability to control costs and execute its operational model [8][34] - The management acknowledged potential headwinds from macroeconomic conditions and trade policies but remains focused on what can be controlled [34] Other Important Information - The company announced a new 5% share repurchase program for 2026, reflecting confidence in its share price and commitment to returning cash to shareholders [33][34] - The company achieved record safety performance, with a train accident frequency of 0.91, which is 12% better than the previous year [15][16] Q&A Session Summary Question: Volume growth assumptions for 2026 - Management acknowledged challenges in Q1 but expressed confidence in mid-single-digit growth driven by grain and intermodal sectors, with synergies from previous wins contributing to this outlook [38][39] Question: Impact of reciprocal switching proposals - Management indicated that if service quality is maintained, there should be no concern regarding reciprocal switching proposals, emphasizing the importance of providing good service [46][47] Question: Operating ratio potential with mid-single-digit RTM growth - Management discussed the goal of achieving continuous improvement in operating ratio, targeting around 100 basis points improvement per year, supported by strong pricing and volume growth [51][56] Question: Revenue and volume mix for 2026 - Management highlighted potential headwinds in early 2026 due to tariffs and macroeconomic factors but expects stabilization and growth as the year progresses [60][62]

Canadian Pacific Kansas City (NYSE:CP) Q4 2025 Earnings call January 28, 2026 04:30 PM ET Company ParticipantsChris Wetherbee - Managing Director and Head of Transportation and Shipping ResearchChris de Bruyn - VP of Capital MarketsJohn Brooks - EVP and CMOJonathan Chappell - Senior Managing DirectorKeith Creel - President and CEOKen Hoexter - Managing DirectorKonark Gupta - Director of Equity ResearchMark Redd - EVP and COONadeem Velani - EVP and CFORavi Shanker - Managing DirectorWalter Spracklin - Direct ...