Canadian Pacific Kansas City

Good afternoon. My name is Margo, and I'll be your conference operator today. At this time, I'd like to welcome everyone to CPKC's second quarter 2025 conference call. The slides accompanying today's call are available at investor.cpkcr.com. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question, simply press star, then the number one on your telephone keypad. If you would like to throw your question, press star then two. I would like to introduce Chris DeBruin, Vice President, Capital Markets, to begin the conference call.

Thank you, Margo. Good afternoon, everyone, and thank you for joining us today. Before we begin, I want to remind you this presentation contains forward-looking information. Actual results may differ materially. The risks, uncertainties, and other factors that could influence actual results are described on slide 2 in the press release and in the MD&A file of Canadian and U.S. regulators. This presentation also contains non-GAAP measures outlined on slide 3. With me here today is Keith Creel, our President and Chief Executive Officer, Nadeem Vellani, our Executive Vice President and Chief Financial Officer, John Brooks, our Executive Vice President and Chief Marketing Officer, and Mark Redd, our Executive Vice President and Chief Operating Officer. The formal remarks will be followed by Q&A. In the interest of time, we would appreciate if you would limit your questions to one. It is now my pleasure to introduce our President and CEO, Mr. Keith Creel. Thanks, Chris.

I want to thank everyone for joining us here today. As I always do, let me start by thanking the 20,000 strong family of railroaders we have across our three-nation network that delivered the results that we get the honor to share with you today. As a leader, it's always my honor with these folks that I work and serve with on behalf of their body of work to represent that. So speaking to the results, for the quarter, the team delivered volume growth of 7%. Revenues were up 3%, $3.7 billion. 110 basis point improvement on our operating ratio to a 60.7% and earnings of $1.12, which is an increase of 7% versus last year. From an outlook on the balance of the year perspective, I'm very pleased with where we stand midway through the year. Certainly see a clear line of path to our year-end guidance with opportunities before the second half of 2025. So despite all the headlines, all these evolving trade policies, The challenges that we've all faced as an industry, we continue to drive differentiated, sustainable, and profitable growth at CPKC. And as you all know, this is not just a 2025 story. This franchise continues to be positioned to deliver a unique outcome for years to come. That said, let me share a couple of exciting developments in the quarter that underpin some of that forward-looking thinking. Continued ramp-up of our Gemini partnership, something we're extremely excited about that's creating meaningful international growth for us. 180-181, premium domestic intermodal service, which again grew 40% versus last year. Continued increase in our traffic flows between Canada and Mexico via our CPKC land bridge that we have spoken to, uniquely enabled by this North American network. And then lately, Southeast Mexico Express service, which is our partnership with the CSX over the Meridian Speedway through our new gateway to the Southeast, again creates an unraveled network, bringing new solutions to the market. So now, maybe a couple of comments on maybe the proverbial elephant in the room, or maybe better said, the one that wants to come into the room. Obviously, there have been some recent developments in our industry. with yesterday's announcements of this proposed combination between UP and NS. Let me start by saying this team remains focused, as it always has been, on our fiduciary responsibility to maximize our shareholders' value. Our value proposition is unchanged from yesterday's news. This is a unique and powerful network, the only network that connects all three nations in U.S., Canada, and Mexico, a network that will continue to drive differentiated growth, and a management team that certainly has the track record of execution to back up our actions with our words. The value and the position and strength of this network that we've created puts us in a very unique position that's allowed us to produce what we've produced the last two years. That does not change. And similarly, our multi-year outlook and the value proposition is unchanged. The team and the network will continue to deliver differentiated results. On the regulatory front, We'll be actively engaged, as you can imagine, in the regulatory process to ensure, number one, that our customers and our industry interests are protected in this proposed combination. Number two, that the high standards that have been set around mergers is defined in these new untested 2001 merger rules, which require the applicants to demonstrate enhanced competition in and consider downstream effects, that standard is met. Rest assured, we'll be a loud voice in the room to ensure that the facts are known, the facts are understood, fully understood and weighed on by the SDB when they come to their conclusions and their decisions. The other part, in the meantime, when it comes to the regulator, I can say this from experience. We're dealing with a regulator that they take their job very seriously. They will be pragmatic. They will be diligent. They will be fact-based. They will base their decisions, I believe, on the facts that are developed, the truths that are represented and presented, and debated and discussed in a very fulsome way to lead to the right outcomes. That said, in the meantime, outside of that process, you can imagine, this network is uniquely positioned, as I've said in the past, to compete, or to partner with any class one. We literally, we're two and a half years old, we've been working hard to develop these alliances and to create these new revenue streams and these new customer solutions, not only uniquely in our network, but also uniquely in the partnerships, as evidenced in what we've done with the CSX less than a year after we came into existence. I can tell you in this world, that list of opportunities is not exhausted. The list of potential partners still exists, and I can tell you those other partners not involved in this combination are more motivated than ever to have those discussions. And rest assured, we're well into having those discussions. This isn't something we just started. This is something that will only enhance and gain momentum. So in closing, let me say this. While there are short-term and continued uncertainties from the macro trade policies, We're going to continue to deliver a differentiated outcome. The network, the team, the opportunity is unique. We'll continue to deliver value for our stakeholders. So with that, let me hand it over to Mark. He's going to speak to the operations. John will bring a little color on the markets. Nadine will elaborate on the numbers, and we look forward to the Q&A.