Canadian Pacific Kansas City (CP) JPMorgan Industrials Conference 2026 summary

Operational performance and momentum

• Entered 2024 with strong operational momentum, maintaining improvements in terminal dwell, network fluidity, car cycles, and cost control into Q1.

• Continued to experience growth despite macroeconomic headwinds, challenging year-over-year comparisons, and weather-related disruptions.

• Fuel price increases created a temporary earnings headwind, but fuel surcharges are expected to offset this in the next quarter.

• Emphasized a proactive, solution-oriented approach to operational challenges, particularly regarding weather events.

• Remain on track to meet full-year guidance, with the year unfolding as anticipated.

Strategic network integration and growth

• Successfully integrated operations across Canada, the U.S., and Mexico, enabling unique cross-border growth opportunities.

• Land bridge services connecting Canada and Mexico have driven incremental revenue and diversified trade flows.

• Lázaro Cárdenas port reliability has improved, leading to increased volumes and customer trust, with 15% growth last year and continued ramp-up.

• Southeast Mexico Express service is set to launch next quarter, offering three-day service from Atlanta to Monterrey and four days to central Mexico.

• Investments in infrastructure and partnerships, such as with CSX, are creating competitive, truck-like rail services.

Trade, regulatory, and competitive landscape

• USMCA renegotiations are progressing, with Mexico leading and Canada expected to join trilateral talks later; certainty is expected to unlock further investment.

• The company is positioned to benefit from increased North American trade due to its unique tri-national network.

• STB's recent ruling on the Meridian Speedway affirmed current operations and regulatory independence, supporting business continuity.

• Expressed skepticism about the proposed UP/NS merger, citing concerns over market power, competition, and the high regulatory bar for approval.

• Truck-to-rail conversion targets are progressing, with 40% of the five-year goal achieved, but large-scale conversion is seen as a complex, long-term challenge.