Walter Spracklin

Mike said there are no structural capacity issues; aside from a few crew-tight locations the network handled the volume and can handle more, with ongoing work to improve capacity modeling.

Maryclare acknowledged closures offset some ID gains, confirmed net positive contribution but declined to quantify the growth split.

Mary Claire confirmed negative mix headwind from growth concentrated in lower-RPU segments like intermodal, minerals, and fertilizers. Chemical, forest products, and auto headwinds in higher-RPU areas. Coal RPU stabilizing with high-vol more stable than PLV.

Mike confirmed the railroad is already running very well with best metrics in years. Projects add capacity and resiliency. Noted the Q1 lesson on having backup routes and said the stable foundation enables continuous improvement.

Sean acknowledged strong 2026 growth needed to meet 3-year targets, said 2026 should be double digits from headwind reversal and industrial development pipeline alone before economy factors.

Kevin clarified it was not a specific new contract reference but a broad portfolio positioning comment. Emphasized East Coast advantages from China decoupling and inland port initiatives.

Sean firmly reiterated 3-year guidance, noting $10M/month construction costs fully reverse in 2026 as benefits. Assumption of commodity prices returning to 2024 averages by 2027 underpins the framework.

Vena said the merger enabled the CN deal but was noncommittal about further railroad agreements.

Kenny noted lumber and auto SARs still negative at roughly 3% and 2-3%. Business development wins offsetting market softness. Truck market tightening could provide uplift if sustained.

Jim noted multiple levers are needed including productivity, price, and cost management, acknowledging the 4% wage increase pressure. He expressed confidence in OR improvement while noting Jennifer is appropriately more conservative in her outlook.

Jennifer explicitly stated S-4 numbers are not guidance but directional unstressed financials that excluded merger costs, assumed continued share repurchases, and did not include detailed commercial or operational deep dives.

Jim acknowledged the competitive opportunity to win Canadian-routed US-bound traffic, while Kenny cited new products from Tacoma to Chicago and the Twin Cities ramp.

Kenny highlighted renewable diesel facilities, Gulf Coast industrial development, and Inland Empire intermodal as key growth levers in a stronger macro environment.

Ed cited 3 months of manufacturing above water and auto strength as green shoots but flagged housing, interest rates, and inflation as unresolved factors. Mark said calling an end to freight recession is premature but green shoots exist.

CFO confirmed $150M outsized land sales (Q3+Q4) are excluded from $216M productivity figure. CEO noted truck market recovery must be demand-led not supply-led, and hasn't seen a supply-side-led recovery in his career. Reduction in driver pool and truck count will help over time.

COO declined to single out one metric, emphasizing six network/asset/customer health indices working together like an 8-burner stove, with Zero-Based plan tightening standards across all dimensions.

COO emphatically stated nothing structural is holding back improvement, with disciplined continuous improvement approach across locomotive productivity, fuel, and purchase services while protecting customer service.