Canadian Pacific Kansas City Ltd.

Strong Q3 financial + operational performance (good news): - Revenues: $4.2B in Q3. - Volume: +6% YoY (noted as demonstrating “quality and diversity” of growth). - Operating ratio (core adjusted): 61.9% (+120 bps improvement YoY; reported OR 64.8%). - Earnings: Adjusted EPS +16% YoY; they also cited 16% adjusted EPS growth in the CEO summary.

Productivity improving, but safety and fuel are key negatives (mixed/bad): - Operational improvements: train speed +8%, dwell -7%, car miles per car day +10%, locomotive productivity +4%, fuel efficiency +3% (supports their PSR model). - Safety: Personal injury frequency = 1.12, +20% YoY (worse)—explicitly called out as not meeting standards. Train accidents improved 60% to 0.46. - Fuel headwind: Fuel expense +56% YoY driven by +53% average fuel price; fuel price was a 190 bps headwind to the core adjusted OR (with only a modest earnings benefit).

Capex and cash flow look disciplined; shareholder returns continuing (good news): - Adjusted free cash flow (YTD): +59% to $2.4B. - Capex (full year expected): ~$2.65B, ~15% reduction vs last year (YTD capex $2.0B, -12% YoY). - Shareholder returns: >$4B of shareholder returns year-to-date via share repurchases + dividends (first 3 quarters). - Capex guidance range (long-term): reiterated $2.6B–$2.8B.