Canadian Pacific Kansas City (CP) RBC Capital Markets Canadian Industrials Conference summary

Market and demand environment

• Achieved 2% volume growth in Q1 2026, with record volumes each month despite tough comps early in the year.

• Strong Canadian grain crop and robust potash and fertilizer demand are driving momentum.

• Intermodal business is benefiting from new trucking regulations and higher fuel prices, creating growth opportunities.

• Carload business is recovering, with volumes up over 5% year-to-date excluding coal.

Pricing, guidance, and macro factors

• Pricing discipline remains strong, with expectations to be at the upper end of the 3%-4% guidance range.

• Yield improved by about 10% month-to-date versus Q1, aided by a better business mix and fewer headwinds.

• Confident in double-digit growth guidance for Q2 and the full year, supported by operational strength and integration progress.

• Anticipates that USMCA/CUSMA negotiations may cause volatility but expects fundamentals of cross-border trade to remain strong.

Strategic initiatives and network expansion

• Revenue synergy pipeline from the KCS deal is ahead of schedule, targeting a CAD 1.5 billion exit rate this year.

• Significant long-term growth expected from Mexico, with early-stage development and ongoing customer education.

• New single-line services, such as MMX and SMX, enable faster, safer, and more efficient cross-border freight movement.

• Partnership with CSX opens new markets between Mexico/Dallas and the southeast U.S., with promising early results.