Canadian Pacific Kansas City Limited

Strong Q2 operating + financial performance (good) - Volume +4%, revenue +13%, operating ratio 61.6% (core adjusted), earnings $1.27 (+13%). - Freight metrics: CP set new records in key productivity measures (e.g., asset utilization, train velocity, terminal fluidity), indicating more freight moved safely with improved efficiency/capacity. - Earnings per share: reported diluted $1.15, core adjusted $1.20 (+13%).

Growth engine: pricing discipline + “3-nation” network + franchise wins (good/opportunity) - John Brooks highlighted record freight revenues excluding fuel and record GTMs; cents per RTM +9%, driven by fuel surcharge revenue, sustained pricing strength, and some mix headwinds. - Volume records across major franchises: grain, energy, chemicals, plastics, automotive; also Mexico/land bridge traffic momentum. - Intermodal: revenue +11% on flat volumes; domestic +3%; early traction on SMX with CSX (volumes up >30% vs Q1). - Pipeline remains “robust”; management confidence in continued growth initiatives tied to Canada–U.S.–Mexico connectivity.

Synergies and forward momentum (good, key forecast) - Management framed ongoing synergy realization as central to the story: - Investor/pipeline discussion suggested a path to ~$1.4–$1.5B synergies by year-end 2026, implying a step-up from prior expectations. - Synergies were described as broad-based, especially intermodal and grain (growth in land bridge flows). - Longer-term emphasis from CEO/John: expect cross-border traffic growth and new supply chains enabled by CP’s single-line network.