Q1 2026 Canadian Pacific Kansas City Ltd Earnings Call Transcript
Key Points
- Canadian Pacific Kansas City Ltd (CP) reported strong revenue of $3.7 billion with a 2% volume growth on an RTM basis.
- The company achieved a record quarter for grain shipments, supported by a record harvest and efficient network connections across North America.
- CP announced a new share buyback program to repurchase up to 45 million shares, reflecting strong cash flow and a robust balance sheet.
- The company reached long-term tentative agreements with key labor unions, enhancing operational stability and improving quality of life for employees.
- CP increased its quarterly dividend by 17.5%, demonstrating a commitment to returning cash to shareholders amidst a volatile market.
- The company faced headwinds from volatile fuel and foreign exchange markets, impacting yields in the first quarter.
- Train accident frequency increased year-over-year, although it followed an all-time record low in Q1 of 2025.
- Coal revenue declined due to unexpected production-related issues at customer mines, impacting shipments and reducing Q1 RTMs by over 1%.
- The merchandise business saw declines in Energy, Chemicals, and Plastics revenue due to lower refined fuel volumes and a plastics plant closure.
- Forest Products revenue declined due to tariffs on Canadian lumber exports to the US and broader macroeconomic softness in housing and pulp and paper markets.
Please stand by, your meeting is about to begin.
Good afternoon, everyone. My name is Beau and I will be your conference operator today. At this time, I would like to welcome everyone to CPKC's first quarter 2026 conference call. The slides accompanying today's call are available at Investor.cpkcr.com. (Operator Instructions)
I would now like to introduce Mr. Chris de Bruyn, Vice President, Capital Markets. Please go ahead, sir.
Thank you, Beau. 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. 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 filed with Canadian and US 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
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