Canadian Pacific Kansas City Limited

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 fourth quarter and full year 2024 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 withdraw your question, press the pound key. or star 2. I would now 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 and in the earnings press release file of the Canadian and U.S. regulators. This presentation also contains non-GAAP measures outlined on slide three. Please note, in addition to our regular quarterly financials, there's supplemental Q4 and full-year combined revenue and offering performance data available at investor.cpkcr.com. With me here today is Keith Creel, our President and Chief Executive Officer. Nadine Villani, 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 appreciate if you limit your questions to one. It is now my pleasure to introduce our President and CEO, Mr. Keith Krill.

Okay, thanks, Chris, and thanks, everyone, for joining us this afternoon to review our fourth quarter and full year results, as well as what our views are and what we see as an exciting year ahead in 2025. As always, I want to start by thanking the 20,000 strong world-class railroaders we call our CPKC family for their efforts to produce these results over the course of what was a historic first year as a combined company. And I can tell you as a leader, it remains my honor to represent these results that we're going to cover on behalf of the entire CPKC family. So for the quarter, the team delivered revenues of $3.9 billion. That was up 3%. We had volume growth of 2% in the quarter. An operating ratio of 57.1, which is 160 basis points improved with core EPS, a dollar 29 up nine percent versus last year for the full year total revenues of 14.5 billion which is up five percent volume goes to three percent an industry best an operating ratio of 61.3 70 basis point improvement core ps of 425 up 11 versus last year and i can say all that despite a number of challenges we delivered on the guidance that we set out at the start of the year to produce double-digit earnings growth. And we did it safely. I can tell you Mark will elaborate on the points, but I'm extremely proud that CPTKC continues to improve on our personal injury frequency ratio. And again, this year we lead the industry with the lowest train accident frequency. Looking at the year ahead, there's certainly no shortage of uncertainties that are out there from the macro to trade policies, but we're focused on controlling what we can control. From a guidance standpoint, With the opportunities that we have in front of us, opportunities that this network uniquely enables, we expect to deliver another strong year of growth. As outlined in the press release, in 2025, we expect to deliver mid-single-digit volume growth and earnings growth of 12% to 18%, which is in line with the multi-year guidance that we set out at our 23 Investor Day. On the initiative side, we continue to invest in safety and service to support the growth. In the fourth quarter, I'm extremely happy to say we completed it. the construction of the second stand of the Laredo Bridge. Next week, I'm excited to go to Laredo to host an opening ceremony where we'll christen the Patrick J. Ottensmeyer International Rail Bridge. As many of you know, Pat's vision and leadership were instrumental, not only in this project, but also the creation of CPKC. We carry on his legacy in the work that we do every day at this company. That investment, as well as others that we're making across our network, will continue to support the growth we're bringing into the network in a safe and efficient manner growth that's uniquely enabled by this network growth like mmx 180 181 again the fastest and most reliable single line rail service from chicago to mexico in the industry connecting new origins and destinations across our ecp mmc and grain portfolios and automotive utilizing our closed loop service solution, which is creating tremendous value for our suppliers in CPKC. In fact, I'm very happy to share with a group that CPKC was just recently, last week, named GM Supplier of the Year for Finished Vehicles in 2024. Some would say, is that impactful? I would suggest yes. I've been at this for 34 years. It has never occurred in any of my service in the industry. And just to order magnitude, out of 20,000 suppliers, only 100 are picked on an annual basis. So that's a meaningful recognition from a voice of a customer that means a tremendous amount to our team and certainly illustrates the strategic value of strategic partnerships. Credit to the commercial team and the operating team that have marketed and executed this industry-changing solution, delivering the service that's unparalleled in the industry. Again, the award is just an example of the many service benefits that our customers are enjoying from this year. new, unique network. So in closing, I'm going to say short-term things are out there, certainly uncertainties from the macro to the trade policies we've entered into 2025 with a tremendous amount of momentum that we fully expect to build on as we move throughout the year. The long-term fundamentals of the North American economy and trade between the three countries this network uniquely connects remain unchanged. CPKC's value proposition is as strong as it ever was. We're extremely proud of the results we produced in 24, and we're excited about those that lie ahead of us in 25 and beyond. So with that said, I'm going to turn it over to Mark. He'll elaborate a bit on the ops. John will bring some color to the markets, and Nadim will bring it back to me after he elaborates on the numbers.