Union Pacific (UNP) 23 Jan 252024 Q4 Earnings call transcript

Company Profile

Participants

Vincenzo Vena	executive
Jennifer Hamann	executive
Kenny Rocker	executive
Eric Gehringer	executive
Scott Group	analyst
Jonathan Chappell	analyst
Brian Ossenbeck	analyst
Jason Seidl	analyst
Christian Wetherbee	analyst
Christyne McGarvey	analyst
Ariel Rosa	analyst
Bascome Majors	analyst
Ken Hoexter	analyst
David Vernon	analyst
Jordan Alliger	analyst
Daniel Imbro	analyst
Walter Spracklin	analyst
Jeffrey Kauffman	analyst
Thomas Wadewitz	analyst
Oliver Holmes	analyst
Brandon Oglenski	analyst

Call transcript

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Operator

Greetings. Welcome to Union Pacific's Fourth Quarter 2024 Earnings Conference Call.

As a reminder, this conference is being recorded, and the slides for today's presentation are available on Union Pacific's website. At this time, it's my pleasure to introduce your host, Mr. Jim Vena, Chief Executive Officer for Union Pacific. Mr. you, Thank now may Vena, begin. you

Vincenzo Vena

parts Thank you the are the Pleased bit southeast shape good even operating some everyone. better part, we but the has Rob, have much, of of you way in in little team and and to A with morning, morning. worked in company, it, love very way us snow our of I already. winter lots this through

men this the women lots get Financial of Vice Omaha Executive So Pacific. and of of our hard why of by Eric Vice great Hamann; recovery everybody, But Executive Marketing by President Operations, Union Sales, by started? So but work I'm morning Chief and don't Rocker; we Kenny our Ger. President Jennifer joined Officer, here in and

was impact regional XX% lead XXXX. It year the operating that finished and executing really very fourth to strategy quarter removing work. up a brakeperson our and the in for to team a safety, shows excellent note the successful the really the operational team, industry Pacific the service in It into ratio, put dig adjusted is is agreement of excellence. new Let's Union we on high a year an

Fourth and Now billion starting earnings why fourth income per XXXX revenue, reported grew move of This the quarter discuss morning, X%. Pacific excluding fuel $X.X quarter surcharge, to share on both the don't we over results, Union X. impact net improvements. X% Slide fourth of of $X.XX, quarter

fuel income the safer, to is X% network. strong led result the of year-over-year improved commitment team's more to and X% employees This offset that a utilizing growth prices outcome the more more growth Our lower X% and move to the I mentioned durable earlier. ability efficient This expenses unfavorable of pricing an fewer generate business volume. ratio and build operating gains operating core while way, productivity, mix. Reported team the led than volume strong demonstrated to X%, more

Just see way end the to we year, and momentum XXXX. Throughout in you we financial that fantastic results built strategy, a the behind our delivered.

page to improvements need already While goal in the set we'll the when confident We the be. industry-leading a celebrate where settles, And to internally, XXXX. results. team's I'm turned work XXXX, we've achieve in success on pause we dust to and that's further

walk all So with the come and that, fourth then year more before the We'll and the with for full wrap-up I'll Q&A. in yours. a let the through team year quarter quarter you go and Jennifer, it's back to start financials. we detail

Jennifer Hamann

good All everyone. Thank you, and morning, Jim, right.

mix, Fuel million that Slide reducing basis our inflation added Let's exceeding quarter revenue commitment our basis revenue, basis points. $X.X quarter statement begin the second decreased volume of reduced our XXX volume growth flat from declined Wrapping freight while decreased business fuel finished Breaking drivers fourth in Of ratio. intermodal result freight XX% mix being fourth income ongoing up and points. Similar at the down dollars versus revenue revenue offset sale points intermodal were quarter gains $X.X accretive a as million accessorial line, revenue third operations. Metro lower to also quarter quarter driving increased billion. on long-term our $XXX as operating transfer revenue the of fourth the revenue of of revenue with growth, results, pricing strong top price $XXX by our against other X% equipment while more the than strong the met reduced from significance, XXX billion dollars dynamic. X. Operating lower with XXX quarter X% freight to core revenue freight XXXX year-over-year of surcharge of prices

slides appendix in X% to reminder, operating against some declined as expenses, offsets provide more expense me highlights operating a quarterly As of $X.X let see decline against control strong revenue this our total Switching But cost we detail. billion a our X% expense. volume. share in to increase

at years handling. Quarterly increased break million person quarter the This that the XXXX, the compared second last efficient fourth expense and X%. car couple more which X% Looking which inflation. decreased closer reached driven of mentioned have workforce by expense benefits to Compensation break have is enabled person buyout the Jim wage line, $XX agreement, in we levels and agreement of both

our growth delivering demonstrating flat record we other in was productivity, All handle volume effectively focus workforce Our additional areas efforts against the train excellence. workforce decreased on service operational volume. resulted the as employee strategic These workforce X% X%.

employee we $X.XX expect ways XX% we XXXX, with continue improvements, process decreased to For be investment. Fuel year-over-year XX% as through a workforce X% fuel productive to per to our more find and per around all-in on $X.XX our be in technology expense prices cost from falloff to gallon.

impact Our moving and Equipment mix. Intermodal inflation expense of in other fuel X% fuel-efficient our less rate quarter consumption improved as volume-related than increased due the to a the business. more and we offset in business rents growth X%

XX%. Finally, other declined expense

$X.XX, a quarter record. share on expense fourth decreased income lower a average Altogether, Operating Below X% net you'll income to real levels. case the or XXXX. $X.X earnings billion income fourth results these as both $XX In of total million while of debt elevated we X% fourth million debt XXXX, billion declined the casualty from up lower backlogs. lower of estate gains, result record line, quarter quarter $X.X other X% of benefited $XX versus quarter per fourth a of highlighted interest as well the and a improved reduction catch-up was recall, of we the expense. to As in in expenses XXXX, as and due casualty bad costs

we ratio came person Jim agreement, a as team improved of outcome, quarterly you XX.X% great basis to by the strong reflecting points Our break serve fourth operating customers. safely and work adjust as quarterly And at and quarter when year-over-year. efficiently for XX%, our OR in performance our UP very the XXX noted,

X. Moving to Slide

business of full recap revenue partially gains, revenue mix. lower X% Operating quickly $XX.X increase, a pricing me on billion fuel grew XXXX. and year volume by X% core surcharge offset Let

leverage surcharge, versus fuel revenue points billion, control. our solid XXX indicators XXXX. increase year freight good and of share X% both invested X% X% Earnings produces how our capital our while income XX.X%. and of on totaled basis full improved per operating XX.X%, a points, grew of XXXX, basis return cost $X.X great operating railroading $XX.XX ratio improved Operating increased XX Excluding versus to

then on to XXXX. X. turn balance almost $X the shareholder cash $X.X up year billion, from XXXX on Slide Let's totaled Full from billion operations returns sheet

increased $X.X rewarded billion. These billion and in change the XXXX reflect conversion to flow year-over-year in from $X.X free billion flow returning improvements year-over-year cash as labor Our shareholders, rate $X.X through our payments to improved and our income. We in as XX% dividends share growth operating well cash the repurchases. agreement

continue X.Xx turn our excellence, the for sheet agencies. generate that, we at service strategy strong and of to also and that growth rated Our adjusted by finished over Kenny. a it debt-to-EBITDA maintain be X leading credit operational shareholders. With safety, let me our as ratio balance returns to A year to strong XXXX proves our cash

Kenny Rocker

Thank you, good morning. Jennifer, and

which our also increased focus deliberate we core price. was mentioned, to This maximizing totaled billion the revenues fuel volume. due up on strong excluding reflected $X.X result had Jennifer gains strong pricing Freight As quarter, fourth quarter. for of surcharges as a X% a

quarter remained talk of in while even business for quarter for there and year, UP export with the last high demand volumes flat right to to Let's harvest. challenges bulk segment, the grain with strength inventory groups. Starting in competition experience year, during our car natural from remained was for throughout X% Mexico, the our prices. the the about key revenue Grain decrease low soft coupled compared per each Coal on and same a was continued the during average with the volume, UP drivers -- service fuel levels down surcharges. X% revenue to to decreased seen strong due service gas jump in increased as

plants with and dividends the more assessable grew plants this that bringing expected we with one locate count in continue renewable of work current of fourth it's Lastly, and our new to that the came in as expect in online form facilities, increased startup the to XX, our Nebraska demand growth railroad, to UP products grain fourth the on feedstocks, for in diesel quarter Kansas in of year. two the one quarter, paying

quarter Business Demand commodity business segments both to up the X% for core Turning flat. were mostly as for markets. our plastics remained -- export and improved mix in surcharges volume plastics gains in and petrochemical Revenue lower by domestic and a growth. fuel Industrial. petroleum development in drove pricing our Strong was offset for negative volume.

a were volumes downtime, team people, the and was with revenue imports business X% ] growth and wins partially development chain. fluidity up Automotive Coast by car, volumes maintain these Volkswagon demand softer by offset and which However, utilizing were quarter, both of domestic resources, reflecting unplanned Coast West international surcharges. development by [ and growth XX% lower Motors. the in to International volume in Intermodal increase West due volumes intermodal locomotives our were up and and traffic operating to a efforts. the for shipments revenue the outpacing the offset for our average on fuel XX% positive due increased and X% in in supply rate quarter driven demand per rock. Premium flat business the includes buffer by efficiently railcars, move import metals, decrease gains remained strong sand General

Now let's XXXX. focus on

slows in year while of Here starts not closely industrial picture at challenged, from Housing And which Global's than we're watching in back for forecast the These indicators are to slight January sharp a shared September that GDP we key growth what are from this for the shows remain situation. we expected but on mixed Day that uptick, production with their forecast it macroeconomic shows watching December report. a Dallas. The S&P XXXX. XX. are Investor materially you'll different increase, notice are our some Slide XXXX, is

XX. Slide Now turning to

we with Pacific's though is XXXX. today markets Here we've Union continue in bulk, the Starting see serve. decline, coal the to outlook to it for anticipate levels seen to we key as XXXX not we

coal from expect inventory demand be high We existing levels. met will

However, will a contract Authority, co-retirements. with LCRA, help new XXXX from known win Colorado as also losses River offset [indiscernible]

in XXXX domestic remain through steady a XXXX, good expanding and the to While expected as new our well facilities. demand, from grain both to efforts yields harvest is grain half first to export strong driven as by it's serve demand predict of premature

the intense development and continued expanding for driven Lastly, we grain strength in business and products, markets renewable expect by fuels associated feedstocks. the

changes We to potential and incentives will monitor depot tax continue credits. in renewable

Moving Industrial. on to

industrial market in mix, to remain expected some forecast strong markets. in production is soft. service XXXX our us metals remains robust help and franchise the muted, for will diverse While grow business The

intermodal strong focus and plant industrial business strong expansions franchise on are us. the to And mix strong favorable up in in multiple the what's remain plastics unleashing international with Strong by customers wrapping we leveraging over-the-road with continues development. premium comparison our XXXX our our This on based the on year-over-year creates for about remain year. the side, all Gulf However, possible domestic They chemicals markets strong and is service Coast international tough with start expect intermodal win. And intermodal experienced as at team. volumes strategic of volume conversions. focus empowering the issue and commercial will growth

seeing are keeping inventory. curtail we we better changes tariff though high to production further we are year, OEM on are in a potential the early impact that watchful Additionally, eye manage volumes. Even could automotive

and increasing a and Global's positive comps and with we we face expect in volume the consistent year XXXX, across incremental the soft will difficult as with S&P multiple facilities progresses. encouraged about economic business a expanding However, output I'm excited gain we LCRA, the environment our outlook trend onboarding earlier, new Overall, customer with mentioned conversations anticipate and but customers, new by I'm from segments. coal

a In track it this $X.X our last XXX is ] of development business was with projects pipeline have construction we in just currently as billion, year. over and time fact, revenue progress as [ strong potential

We continue to invest on. in intermodal, touch which Eric will

operational of mix customers. we unit projects and added our maintain will and are Gulf on posture and proud our performance. with I'm continue of the team. with XXXX. And train facilities to pricing to You I'll turn the it heard industrial network, our hustle in discuss to me that, development over large we Coast, review Eric bullish in commercial small a They strong new to

Eric Gehringer

good and morning. Kenny, you, Thank

XX. Slide Moving to

witnessed diving I Before for to work. want express significantly vast those disrupt appreciation team the our we such operations. hard in Historically, their to my surges results, volumes, XXXX, into as in rail

excited operational we team bucked excellence the also our efficiency. continues working, that I'm is to while be service into at However, forefront of in on to also XXXX. Safety was trend and are and improve we do. and the growth driving and product, everything able focus It's momentum relentless our carrying proof network that XXXX improved

our step committed both to the to railroad. injury safety safest We employee rates improved For strive safe becoming personal remain we strong year, a the derailment towards day. significantly, as home send well every and enhancing as each

which quarter. a improvement meaningful Notably, a through fluidity reduces for for to year, car continue Moving work capacity terminal fundamentals types. Freight terminal improved favorable performance. by improved our improvements record terminal continued coupled and XXXX dwell, in with business team the versus velocity mix, growth. our is fleet Exceptional drive service, an customers' all-time the cycle costs results focus this on they future our to the last drove marked X% dwell in

On the service front.

second the improved December The team year our the Intermodal through quarter X in of intermodal level buffer performance of declined XX%. resources international specifically XX% service month-by-month X continued deploy Our as to adjust manifest year-over-year, while and trip with improved intermodal minimize plans SPI quarter's highest the impact shipments. to the ended at points. index points surge

Now efficiency on Slide key let's our XX. metrics review

productivity, Our a quarter volume deployment X% buffer XXXX. all full drove Workforce handle the locomotive quarter in our fourth decline and of full includes to the while fourth levels improved both higher for full year productivity in a versus fourth XXXX, workforce versus quarter marked improved and employees, X% record year metric productivity. X% Further, XXXX year resources results. which

automate length remove improved how ]. safety all-time sixth in, improving record All X% consecutive XXXX, quarter operations to ] the of Train versus and train We XXXX work. [ our continue we year-over-year improvement. [ marking set unneeded work an while for link

great made have We strides this in area.

to to adjust as for review transportation leverage In still outlook However, capacity let's pursuit up, growth. To billion XX. invested XXXX, push of the billion, capital to Slide generate intensity targeted the $X.X investments while we still across and we capital there roughly XXXX In opportunities XXXX, value approximately in plan our reduce are last on railroad year. capital wrap targeting as versus we are delivering mainline we of the $X.X continue to shareholders. our flat spending

our This our in to invest in This dollars safe includes will we extension in the our as growth those we initiatives capacity increase our As improve productive continue projects invest region, as such Pacific Southwest first infrastructure, while support construction to Furthermore, operations assets. support opportunities. Also, our the and renew freight Sunset modernizing Coast enhancing those cars Northwest our along manifest support capacity. and and always, productivity. capital to projects and in and locomotive includes and and network, acquiring and supporting will fleet older Houston replacement that as route. siding fluidity Gulf our such around terminal aimed investments growth

right At [ the I'm focus innovative fundamentals done. our on leveraging progress but we ensuring and place resources to growth growth we side, City, will to a in not support the build more name On of invest yet the product our to Kansas and encouraged drive service areas right have for efficient it's few. will Empire new the Continuing intermodal we made Inland in in and continue like about day, beyond. and improve we the by to efficiencies. Wrapping ] further Lathrop the end the work technologies, XXXX, and railroading of up. a is XXXX resilient, network and

it out that, So our for Jennifer over initial I'll lay with to turn thoughts back financial XXXX. to

Jennifer Hamann

Thanks, Eric.

to assumptions to modeling contains have by the our the X-year pointing do a framing in that several at Day XX, turn year, the slide helpful that of within the Investor out should I you in appendix, all context that If XXXX Slide want be start we talk targets our is And provided we about September. current guidance expectations. in our of as we

performance understands focused step. commitments, on XXXX the we them team those are achieving Our our first and is

around you challenging. rates, cetera, changes, that only and outlook, from more mixed, our to interest for muted year to some As gets this tariffs, are indicators heard ability Add bit et contraction. economic questions Kenny, a forecast some growth, and possible regulatory

we volume there As positives ahead, are see year front. the on the

that has meeting Kenny commitments. bang. the as XXXX, the couple a growing strong customer the product that on is you of we entire year helped a focus us our Volume couple talk heard new And as service business starting taken with and running likely our for has about well shots fire how and more, our secure pipeline but Mother network portfolio. First, of is a continuing certainly is span resiliency nature early well. we'll as opportunities we're

acknowledge as are second turns namely and international tough the XXXX a demand the face there spots will comparison mix into coal also half in intermodal We from impact challenge. reduced volume year-over-year some today's of

are that improvement operational in while XXXX. we takes and puts we and confident volume will So side, there drive are on to financial continue the

continuing by that to We our UP and through productivity to dollars achieve that by drive will efficiency. technology control operating goal to employee further asset controllables, the empowering every by generating pricing ratio, are technology, gaining accretive

of deliver our year growth. low to activities for expect consistent combination will full attaining per of We is the volume, that and Investor to with our single X-year growth drive productivity the double-digit Day price high CAGR share earnings

Finally, the capital allocation. with

during to we excess The billion position and plan cash payout year. from $X to to to has job year. industry-leading heard railroad. year, this to our this into committed for billion XX% an We you the ratio invest dividend remain face ourselves we around back of through team whatever the plan $X.X of return As done earnings, of environment $X.X shareholders share billion excellent to repurchases Eric, we

target We our our are maintaining long-term goals to position. while achieve on industry-leading

to ready that, we're to this it Jim. deliver. With excited new back and are We for turn year, I'll

Vincenzo Vena

Jennifer. Thanks,

the heard. summarize and get I'm I'd questions, what your looking like questions, we to forward to to Before you've

network profile fourth from volume strong Jennifer quarter, growth handle the business heard the to mix a quarter, quarterly to Similar leveraged presented First, margin the third headwind. we and results. in drive our you

but for it was pricing strong impact, to of unknowns, we thoughts question of without railroading, offset is that did. Kenny a my fourth what quarter there it So year a XXXX. we in productivity and mark. some volumes economic exactly entered out years is. Look, lot that's generated and It initial laid that what gave an imperative are XX and never of I've overview

the team pricing heard value Kenny, will and generating provide. outperforming our our from you for we focus As markets on strong

XXXX connect to our believe paying a customer closely direct update on and customers a both buffer provided improve meeting operate great do. to have strategy an safety more I our and terms commitments, strides, result, our to is winning Importantly, dividends, progress that new a From business. Eric performance with made demonstrates our service perspective, to as in our and we still operational but we safety, work excellence. of

service know customers what's we're for our at improvements the driving ahead, while are XXXX. the in time, I further productivity. we're is and have of we done. exciting front, On possible sight drive me we showing not how that clear of a opportunities more There What's same line

to what's value team as it that possible understands Lastly, with to opportunities. that as the September. rail from raising comes our target and is from industry network you an we keeps America upcoming the drive the to leader achieve North in The we're bar out for that for laid We at do in We on and for Key that operate our intend deliver me largest, the the goal complex expectations most Investor heard Day Jennifer, year. this franchise. shareholders. long-term our we challenges guidance is

do are deliver, with to you, you finish fundamental that, what start that's of with it Union ]. from and to commit me let's and And questions. my it we a back Pacific. Rob, mentor at I'll It's turn over and the who [ say [indiscernible], and the Let quotes favorite one

Operator

[Operator Group first question today Research. Instructions] is And with Scott from Wolfe our

Scott Group

The chosen I with guidance. just long-term attaining want to start comment the That on seems carefully the consistent CAGR. language.

this that I you any Is all to single-digit that to sort Just understand to we're same earnings pricing also, just high don't mean accretive that Like know start does I you year? And Jennifer, that -- expect away there's us? give does want want be margin. page. right range color to become if the in of low on in QX? so to -- to on the double-digit then starting QX just

Vincenzo Vena

like clear So do? the to with to and we let that XXXX we my commit, this I the And happen favorite But mentor regulatory of the Scott, exactly year. where showed X% going the question from We never me from in. think be. had as early, our said, to -- where are. is is, we going that administration were you what's we quote changes put start, when X-year a a goal we increase, What to What going going with just in are tariffs committed. we just are that that's we're that know

going low to high are digit. We be double digit, single

win outside a high Now control, harder. what I the we of have going year we that double But to that's low for things expect would if then from deliver change every work not we're us. there's this and digits, our single to digit is before, to said

what look that's we on to that's piece? committed to, the we what delivering. Jennifer, So accretive forward and

Jennifer Hamann

Scott. Yes,

So just a second. for back going

quarter, So accretive. we fourth were

did but we So little outperformed say, bit think the achieve I in there in we did ourselves XXXX, fourth quarter. we not here that because actually, would we a would

I XXXX, parse step to we're taking back, going to not I'm see accretive throughout be so out XXXX. but the a and going in quarters don't And us

Operator

question next of the ISI. is Our from with Jon Evercore Chappell line

Jonathan Chappell

per in to X% of productive. comments find continue 'XX also at productivity, cost workforce you ways all-in be the the Eric, employee start, as Jennifer's said you noted in record to more

maintain of a a productivity? a manage still lot of looking inflation? volume done cost some lot labor are a kind what Or of other 'XX the resources. Is at or that initiatives with to less you're You've it

Eric Gehringer

for Jon. Yes. question, you the Thank

clear, is we're to more be capitalize opportunity, that. me working and there Let on

and our that back kind from to of Let's Day level perspective. go set Investor

will markets, productivity the grow at was and focus on that be always and I'd best thing team said First still position in we puts and it the Investor the in true. Day that's because to Kenny

perpetually mindset with our focused to that here thing is was dissatisfied it comes keep second to additional The on to find Pacific, Union our when at pushing to be productivity, ourselves culture, which opportunities. we

regarding those to stay be new of true. your opportunities, that point our and in productivity our recrew yards Even The That's Those of about going moving [indiscernible], the we a things rate. and quarter. excited past approximately technology that things has fundamentals, us. The able past about starts are specifically The we a and fourth productive question what the even being work in it's lot just you've continue for in to X% significant the heard driver to that on. things in with the it. about. I'm improvements the X%, be are quarter So yards always to the single reduce made same respectively, we're in we a did that people the fourth some and the they to in focus more putting our

when capitalized when in great work terminals And on the and our start the terminals to couple you technology the that. that continue whole for and services, we inspections, they to and of improvement get system meaningful materials. pushing bucket a the XX% to in continue automation and we of outside team And maintenance do, of have you of you a continued more. When them, then, and year, in and [indiscernible]. using the course, see across do, of front, engineering starts Then tasks, is automate On those opportunities the distribution as really technology have to of do, hundreds mentioned vans there's XXXX, thousands transportation our of we us. but the purchased to will I the think about some van to work of per you on the and you're reduce that side, automate to have of

the think go company. as company. results just those be here's really very It's not I'm more I telling in against There's do that bottom encouraged across confident through we'll and And our about So XX about we the how we plan mean operating. 'XX, you 'XX. initiatives up across driving line. I'm productivity than about this

Operator

the Our with next Stephanie is question Moore from Jefferies. line of

Unknown Analyst

maybe Congrats Sorry, for last months I This Joe consistent you the burden. regulatory talk is the was of the I And Hafling of over on you've couple things on [ a Moore. results. reduction on here. What maybe ] benefit you second what question helpful. mute. do one you are particularly specific very mentioned that things Day, some areas if sort tape? lot examples, areas of regulatory so you've Investor guys guys think there's to wanted on could would of the you that maybe what I the be reduced a particular? [indiscernible] additional talked in with about, red in guys seen been has mentioned on about you burden specific had on Or Stephanie know

Vincenzo Vena

that customers. I provide page out Well, course, improvements the we've federal are being productive. for applied is how with that about better the turning a help of things at the we've that to our level, allow we talked able and with that be will service us that to make waivers thing of largest those are the the we would hope there are regulations and, think technology be more get the implemented to efficient, Those to of the lot railroad more provide service better

So for And applied that a are waivers being to are few. years a there's just those name that looking lot now we've outstanding it. of forward that to for we're

those the for So is things that more that would make a we've industry for provide applied us safer be way productive. that's waivers I and number the here to last think service years. about look XX could at good over minutes But on it of help go I regulation-wise, on better

Operator

The of is line the next Brian question from Ossenbeck with JPMorgan.

Brian Ossenbeck

there's person rule. second I a -- I wanted break come to the to guess, back

was wanted I you to mentioned because hear one about there little that So a more earlier. bit

then for year schedules So employee out still Jennifer for thanks year, out per work also, some engineers. the last the comp of the predictable heard for pointing on rolling that storing full out. And you're the

some As on going understand there's negotiation with the for something still similar. that conductors I

or maybe a the one? And expect conductors there? us different X of you this year first [indiscernible] you for the how break this the to So for out engineers factors then can just give agreements, do numbers the and you How's rolling in and I guess, of what see agreement, rest terms the little context other other in

Jennifer Hamann

I'll one let and But that there. about as that second region does. now and agreement more quarter Eric on one XXXX we're in person working and the of fourth here actually have we really the a one quarter, the what talk just we break did in this reminder,

Smart In an terms the of work made TV that on with rollout And statement we engineer we per roll all-in to the about mix in of about agreement. to conductor terms and of we Rest employee Work comp the continue XXXX. [ our all side really I coming that's part the ], to X% as the continue of think out in

Eric Gehringer

And Brian, that. add Yes. to I'll just

you on If about of XX hubs XX XX the over. engineer side, across Pacific already and the cut there's the think Union --

XX% we're over. So nearly cut

brake is bit. it little Now thinking person the of going to a ], you're [ about about the think in time to kind go way back really

breakperson So you think you on had [ about the in And go deal. to context back the this single days ] that's when X train. every got people

we've At for to you our including has person, of the regional we're single person most every brake have he technology That have over that's in right? the and it it. crew that the prepared agreement, is third some technology because of just X. referred Pacific parts comments, last brake X Union years, to this less today the as day, improved those area has that a Jennifer's person not demand has the we some railroad. In people, and As the demonstrated of that, XX still implementing

is regard. to service So the this to break the in crew our positions provide right. similar reached that as is same, every we in single those was to utilize base our first goal and be And we exact person almost who able conductors It's agreement very still that sold to the normal to the customers.

Vincenzo Vena

ways that are nowhere also to we degradation, as we much thing to we and way made here, really comfortable first And on union the time employee, is out add and only The very XX was I'm to implementing workforce when committed few ]. going BLET work said to And the Smart starts the you always they weeks or per was have ago. Brian, that -- to end still but of that scheduling, ahead end very people also XX, the up of work with is X.X%. is at hubs, the company to what, we that those on hard work, wanted is a important. it the the I'm XX it neutral like when where them a and down what you And move that to they and that results I'd find we've But that per provide because sat are a week the succeed unions understand surprised to and they expected always whole detail. works, start and off [ weekly months there. far us what with right What we near things make had discussion provide the back about cost schedules and have with is we sure I that's you just have XX [ as day, do sure leaders be to agreed those Eric we came the so with that that implemented. to I that for add about goal that found basis. And same little some to a we number -- still went to that you but be do make figured up us sense up, set this of people ] had we out so want we've And about. write write wages incremental neutral, what have don't that do without things the when cost

the your to and are actually important have we'll that's ground worked conductor, that industry demands balance So employees. one everything me. agreed is really good you that your else, the right the a and it that get We I'm we've locomotive for we're way But wages employees to. have also to that's to the this in ] you the on wages the everything can of very help is of family and that's as life else Smart ], look and to engineer place ships with want [ CEO a is the guys [ comfortable. And plan working our our at so that to regular who schedules

also how the smart to being about get right but So we're place, we we'll it. come to

have that's a You can't deal one-sided. all

with they forward and more used run. even not I'm a us it's and us is. [ work will positive the working their people off with But as have. it last both they deal implement to for help once Smart working take I Because much real looking as schedules will what become long of to time the the the finalize -- with that did So get will to to to BLET schedule ] X terminals think in before efficient become we

the us, just because noise to long sorry sort okay. clarify needed the there for of I out I about but what for there's know is some answer, So effect

Operator

TD from next Our Cowen. Jason Seidl line the of question with is

Jason Seidl

Nice job with quarter. the

[indiscernible] lot largest obviously tariffs of touched about the briefly Mexican interchanges the potentially you well with partners because been as big access if Mexico we if February a [ of trading with of expectations ownership guess, have sort unknowns X, your do would decline I ]. I that in have talk And guys some guess impact what to You out on that? of as that with a There's then, potential cross-border on of tariff Clearly, a our could FeraMAX position an of what partial are business two Mexico. volume? are there. get the guys you about

Vincenzo Vena

all it's been the call this I than years and bought day, and going the have of be talk -- have over I south the happened I then roading on is to always to way have I it have railroading this longer U.S. business there's way me most out to -- in something pass say in Listen, of the I different because our I've that leave mix just business border. this to and end the I'm the people that been general -- the it. is, us origination see of let more think at I've me it rail what Kenny. the hate give think Does But never Kenny, would start about I'll who something, let and markets number for knows I been alive. But

to have strong We package. tariffs, what of balance If And entire to I we operations good, thrown more is get President, tax that's regulatory tax look how to on how changes us. get by marketing work the the were react but that and about lot capability the sheet, Union team, that's positive. Good and at real corporate focused changes efficient. works, at depreciation we anything Pacific be looking be with get a also capital going that of talked rate we the the our could to

the a plan. I handle something that. for That's sure to don't bad expect good worst. We of plan make happens, any really that are that. Now we If position what not we in

I of consumers U.S. So think takes the the think increase to reason we as how because we'll don't the just on where a security But forward, what there's comfortable overall, we're happening. the see position prices would things President country. be that to in going and hoping and our dispute deal very we're of needs react position in to with in we and business with it, move that anybody, President, by good some do that that puts negotiating for happened. I'm we'll see I'm a have Kenny? it's and the of strategic the unless to waiting I is, love actually because that

Kenny Rocker

tell I'll you a you, covered lot. Jim,

that and say before, is, and what half in. team year from generally and when and Mexico this prepared happens is saw it happen But We really is where we telling it's demonstrated especially tariff feel prepared. Regardless, -- the And humming to to priced this side on perspective, Canada, regardless P&W service or critical of about maybe go the that, second exports. true is operating saw Same with So have we're commodity [indiscernible] the the from of that seen happens. to being is Asia or I that about all being and preparedness I'll origin the and along I'm West and priced, good about location what shift you, it's Mexico. thing. Eric going our here from that posture is his we've in an all as grain shifts on the Coast. may Gulf

Operator

with next the Chris is of from Our Wells Fargo. line question Wetherbee

Christian Wetherbee

got some second the customers? about Coast I I guess maybe international you and you some into agreement the shifts sort Kenny, seeing think wanted the pick have pretty on know those Coast. we comps, to perspective the challenging of I may tentative real get up Maybe particularly can half of on a year. But has of perspective time East how any the I West give your move know shifts. about what from of as sort how of occur? intermodal you you're kind any

the over How sort a there accretive potentially, So be in we the pricing. think move in about get could of forward a around that? across bit. And into market back terms outside cap the is the we've opportunity transportation maybe terms want know of the and I inflation broader service the we we're sort year, of Just as your to some that do moving piece. sort longer, how into just of that business pricing course then of plays getting in network the seen or in try the opportunity recovery maybe to little maybe to next ultimately, of out. what pricing the of of sense maybe

Kenny Rocker

see into But of out tell are as and some are our you whether strong of that Those Yes. Chris, taking side, January strikes we international of go and intermodal idea what on that. in East the happen numbers we plays on the they're seeing are to Coast about it's and strong there. can the see a that's from the forecast hangover will tariff, it's ahead the the will whether or walking some you I've second and quarter sitting place the pretty how the I talked We'll make on out comps for the January. here here half. what the just really tough before premature XX, rest the got about can happen. We've thing pull

we and and product. Jennifer be just of said, done to a really were accretive the thing expect I in what this around service have in price price job on Eric reiterate to we providing want and pricing. strong accretive great Now XXXX. a XXXX, team whole

that laying providing to team sells commercial sharing our that sold the the support out hard. to to I we've service growth. we're want investment customers. Our and it, hit the that we're We're

sold Our on some take commercial in acceptable but maximizing With it's sold. based clear price. going with we've the going all risk, that is about service to aligning what's on we've team service pricing we're standpoint crystal that, the from a

Operator

Our next Stanley. question is Shanker Morgan Ravi from the of line with

Christyne McGarvey

McGarvey on for Christyne Ravi. is This

Just confidence you on the a pretty guys the a much do there more better the that? And currently environment maybe service disruptions kind than capacity back you context sounds but I to volumes of some have wanted into how that little snap if you about guys feel aggressively, like to the It touch customers? of back without a what's going kind is bit to thinking of underpinning good are or meet XXXX, to guys comments. perhaps circle service in of particularly

Vincenzo Vena

the business. I question if Well, says that love have what happens more we

efficiently, stays think us. strong for that railroad the a on the at like a look the the have the large great outcome -- the grows demand of our would a we we operate can't need think for into showed keep be buffer, assets operating increase all want them especially and quick talking us. We we we about in and with but assets If question. buffer, to that place, I U.S. inbound we and in it. way in manner. I I That company it a international. consumer them we And We that's carry that if

we the network, to operate from do we had part we So railroad, on southeast the to have because railroad our we buffer. in like capacity recover our of locomotives, just a the we events need railcars, need with that. Capacity

our run we release drop down, with buffer the customers So There's and capacity, up capacity X week. days goes don't big a business our in to cars XX% a -- because XX% on weekends. rail a

So that could we buffer. a it. Listen, XX% board. the volume That's the we is look in the across best thing that at happen have increase way

able to people very up I onboard to manner. the in think set and handle we'd a we're quick to be that, handle that

very you be question. would best I would that the So for in XXXX. the much have problem Thank

Operator

line Rosa question next Our the of from Citigroup. is with Ari

Ariel Rosa

Congrats the the quarter. in nice on fourth here results

I operating ask ratio. wanted about to the So

You ratio. expectation mentioned operating this of industry-leading

fourth gives little of that And the relative quarter some Just target? intermodal if in of perceive to having could some ] kind given how some your understand confidence BN that you What wanted of you of challenges the more. a UP especially advantage of in bit competitors, talk maybe partners. structural maybe their the you to about the context held [ up

could more color should give evolution? OR you term if little and on just how the that short longer term, both a about we So outlook, kind think that, of

Vincenzo Vena

to Ari, I going about any don't comment -- I'm railroad. not other

the control in important good win with do marketplace. about customers be faster can as when change that figured we I at been be We have to people? a able to complicated. and able will a It's important operate service to we best is. us. And the do our as I'm is, number provide first delivering. and position be it leaders what grow look to comes we ever everything And technology? fundamentally we've the plan way it efficient the that have. -- quickly And the we've not maximize the not assets, really And want other outcome it's operationally, -- operate a operating we we linear. railroad the It's operate possible. We than run we're do It think we -- ratio. can like because use of we that That to of our piece truly so But excited complicated do to network what to do an operating That's how that what more so our that's up. do. I'm going railroads That's have going we're Ari, price, is triangle net we're sure how we're we for before operating we efficiently. to and are ratio. assuming do to That's out

best. And don't thought ]. going wants able be the and were to some I stay else say when operate and probably say Nobody again, We little CEOs watch at Thanks But might smart. notes the the Are volume. reason you when anybody ] okay? on little have on us. We day, And and Xs from some text. no going a it deliver [ railroads I'd the see end and personally up efficiently. for XX.X%? going [ But -- other tuned, No, always the hang up best XX.X% we're XX we ratio. some and to go should to the the -- the we to very to us win want those be to get I to that. I'll know end can call of be, after or conditions we anything with happens So it anything with of what a in bit, ] at appreciate of be Class the a the to I wanted a market for position. go. things, There's are. think the We That's all that railroad the for the price we [ be and depending further? else bit what drive comment I said close operating all we Anybody this be question. I'll publicly not comes to to

Operator

with from Bascome Susquehanna. is next of question Our Majors the line

Bascome Majors

this have What over waiver talked you take questions, talk earlier or have years, been leadership? last not what potentially him as is FRA you about the up on Hughes Chairman. the about Overman's with to several Can ] [ we and next the some also some working that fence? efficiency. table over beginning had have opportunities week, of you industry the ] with a side [ as that one learned regulatory opening under UP STB clear In years? And X over might from the the But Patrick backlog Board member of opportunity [indiscernible] the

Vincenzo Vena

the changes leads the and very is Yes. very Board in Listen, who And number with okay, always and of I've [indiscernible], there's meetings individual. strong. had a Mr. rest of smart

way look and things. I of same to those provide if the marketplace service customers. to good we both We STB have we in with win is And our the it can to the end good goal. win the service customers, the the day, we provide and at at our deals want they So

Anybody will we'll and day, and other that any on end a look regulators everybody, I'm does. quick that what's And of met have to STB, further? I'm they any about all very Kenny? with at have continue what and Pacific. comfortable position on we'll be Because have with Union doing with strong strong transparent there. is we're There regulators. There work that need, else a to them relationship you've the railroads a relationship very be and all is movement there's of They STB the And the comments hoping things STB the But lot at we Now mergers, would at the that quicker I'm the very a sure I'm the comfortable move like decisions, that happening. that's acquisitions. look the that, ahead. absolutely at how

Kenny Rocker

one. we're can mean, so leader, as I commercial outcomes quicker service forward Not looking we we to the that marketplace. it the want

encouraging. it's So

Vincenzo Vena

Eric, lots? them from deal anything -- with you

Eric Gehringer

faster. them has I about I on even on right, I engagements with in how we good continuing the think know perspective move that's the service. the exact to Patrick we've even service that things, mean had past same a comment. had in think really

So them. looking forward to working with

Vincenzo Vena

them you've as don't add? but got more we should maybe, me, a get often, anything personality maybe you it to you Jennifer, for than there meet with but know, often I because better

Jennifer Hamann

No.

best with I being security, customers. important point that I a national we wants. It's fulfill the want economy, the purpose think goals one. our your what and want And for everybody nation about to the aligned They our is franchise. is together strong grow our thing working think to rail or

Vincenzo Vena

Perfect. very Great much. you question. Thank

Operator

the next America. Our Ken line is of from question of Hoexter Bank with

Ken Hoexter

talk Jen, of results, you that, quarter? Congrats scale the delve Maybe of in in on the quarter? guess cadence I'm expense. ultimately you we trying the see $XXX first to scale bounce expense here [ we I expense back? And happened the specific, you think appendix, on to seasonality, to should the seasonality but casualty at in that maybe should know guided little about you quarter. I given move maybe $XXX you maybe talk about in into a OR Can a other we just fourth the quarterly into million historical I the delve and about ]. but the performance mentioned -- should Can you million, or think the the think improved one-timer, solid normal digging getting the about fourth in what how don't what debt bad just can bit

Jennifer Hamann

look expense, because but we at mean, come on the about was casualty I other the we're of Yes. I XXXX, performance slower well in bad there. to when Eric as and for starting quarter, expense you looking we heard to a we're it have the I debt casualty, XXXX. through terms a pretty was fact safety better as fourth some big out see fourth bigger talked here drive quarter the that in expense That's continuing fact both of better driver to performance. really did side, little both but piece mean the the step-up in the did year-over-year call at that Jim the

So of fourth in, where really I'd terms quarter. in for that's focus the driver

component looking some do In it's And like biggest and the within terms fun like taxes probably you out the things taxes, the local debt, the those category, of least all of we frankly. that. quite State things. seasonal XXXX then of state travel, casualty and of bad one have have, categories that into other is

So seasonality expense of lot line. a I that on about think that of wouldn't terms in

Ken Hoexter

picture cadence normally on did you given you that in would deterioration. XXX way? I that about mean, OR, that of see talking expense see into the the on the point basis Is a first backdrop big you're just quarter of all kind

Jennifer Hamann

difference. payroll obviously, you mean, of year have the the But railroad. our some seasonality, out think you if it, to start When Ken, some business the you you I of is not for I'm in give that beginning understand a you think in for back I Yes. going of about taxes terms there us, year, guide, a costs, quarter. a is kick

in quarter. And lowest year in have tend the bit. but a of volumes paying first I'm You to I generally used expenses. see year of going think some mean, New more to you then little I'm to snow this removal the not I Orleans, weather the for some

happening. So things you have those some of

see unusual and a So perspective, seasonality for anything in way the wouldn't the started pleased there. to railroad volume of But terms I look the fluidity. the from demand

Operator

line David Vernon the is of question from next with Our Bernstein.

David Vernon

of a I questions you. couple got So for Kenny,

this kind recent with just right side your owned then on some of uptick in pricing now seeing in may utility the equipment? And through natural is, contracts? gas railroad coal of on guys intermodal you benefit Obviously, inventory right a marketing is running taking the First sense prices second is channel there's where box now? a pandemic intermodal wondering that be by where question business, can your fleet lot too up in utilization the the been the I'm we're have boxes. would whether many give for that's you built some us for pool for utilization you companies the of

Kenny Rocker

Yes.

in in first about We talking our When really half. saw thanks. really second So ]. fleet question, the deploy do the our the private I'm did portfolio and fleet. [ say asset well portfolio, We certainly I rail it both the grow IMC

It saw we there. So wasn't deployed. shrink fully

So there's upside there.

natural I've natural to prices line, direct of going a to gotten some and happens if trying But game asked question. gas absolutely. things see I've to of move and X this do, now that what's throughout to as the benefit increase, most been one years, And I'll of see happen what we you tell the you. gas. bottom volatile so We role should with out in we'll forecast year. Switching natural It's gas

David Vernon

you boxes And had have quantify stacked Right. many any more pre-COVID? today kind are of maybe versus is to how normally there would way

Kenny Rocker

just should if overall No, upside. it not where that be. I market again, There's mean, look still you would market, say at the overall the is I still

still feel so about And back. deploying market good as those the we boxes comes

Operator

Sachs. Goldman the next with of Jordan Alliger from is The line question

Jordan Alliger

margin, terms trends the the intermodal back Can Just those year. to tough positive Does that in favorable half hold down? volumes coming grow of maybe perhaps domestic tough volumes of provide if in that a the international offset up facing mix, to back EBIT be If net even intermodal. the cetera? comps, provide are can that dollars, et

Kenny Rocker

want You to start?

Jennifer Hamann

everything mean, right, depends Jordan. I magnitude, Yes. on

line really So focus of to kind like on in I international think one it's unfair commodity intermodal.

are financial in right, You're going really lot what tough a into going other our play the ultimately the comps what's we will to be move, extremely back half. of businesses to and there's But that's be. results that

those. some that of So maybe intermodal domestic and that, business to going maximize going to a lines try of move, but got we've offset lot we're we're to other

that now want get game know don't back into a of we I how prediction then. happen trying and There's lot about looks. to So between to actually a make the half the to

Kenny Rocker

is domestic line confident the market But key. bullish we're the on bottom went into That's intermodal feel and the XXXX. we

Jennifer Hamann

had there great wins that haven't franchise We've still benefit some from. we seen full the

Operator

with from of Stephens. Daniel next question is the Our Imbro line

Daniel Imbro

up on Maybe outlook. the to follow volume

any per visibility on should headline, the back about think mix Slide the on want of the should how aware pluses color helpful. given in guess, comparisons? than But grow be understand about these impact expectation? changes we You market the should each growth I year mix Can but within Just that revenue through don't that into each kind be talked a of base intermodal of we within there how wins? And difficult you quarter, when On mix to just half be XX. outlook there's previous the volume we more you think categories think look case I the quarter? about minuses. But on any would guide share a that volume we Jennifer, we about more Would question. carload? If

Jennifer Hamann

for the Yes, Daniel, question. thanks

basis. giving aren't we full guidance volume mean, I So for year on either specifically quarterly or a

out, of laid the I year. as kind we are out, puts the think you've through laid of what takes and some

new I The business. out well his good. very Kenny thing the important are positioned. and think is, product that we're there is winning service team is

look point And that and so a push playing we perspective, see the in we're plays half to from going just when say to expect pressure will of did year I and out that had we'll XXXX. curve alleviate that back I also the that there in the to ultimately all do to out. From against, how that going my all market happen mix we're that we there's forces upward. But intermodal, half kind my with depend How international of we of the It's be can mix comments, along the this that strong. I of to a anything with back the about Certainly, what know, of business the to components that part answer what just here, what Jordan, on to you're doing I to else? is those matter rest will Ken, thinking challenge correctly. least in year to think stays international out, we of don't will as different at mix you else continue if shapes a want go at similar the ahead. as be Intermodal layers in in first add time. But

Kenny Rocker

revenue the credo management the to expect Again, for is outpace we're to the here volume. outpaced You've going all. have volume the team market, hit it and we

Vincenzo Vena

I of our actually broad play we in. business guess is is mix we've this, the would only say of that markets range range thing in a is, a I broad customers got

all maximize it's that can of makes our at level. them fits want course, smart our So service our of customers in we provide to win network, way we a that and

products the day products, move for We we the goods every Whether you needs sand across. economy. is we customers types the part to and don't go to takes. stay able So for to as Pacific early being the see products, Union whether about nobody as much railroads Nobody that's part did. the different we our international America of back inputs -- and Intermodal consumer name, puts that. of XXXX, going International at have industrial that nice handle. but to and it's it's it I finished if it But it that the for in for thought fracking franchise did, grow also was Western products

great very of was people lot that by Pacific. happy. to this franchise I'm a came So before built to It's Union I have

do department, question. way you Kenny. year, forward great the of the much job marketing Otherwise, I'm another why look we have right? a And it. it. maximize Thank that's Kenny's for So course, to looking you So very at to is

Operator

with Our from of line Spracklin RBC question is Capital Markets. next the Walter

Vincenzo Vena

in it Canada? Walter, how is

Walter Spracklin

mentor It's it [indiscernible] like I quote, pretty shape, from good my That but cold, is Jim. right? in sounds quote Hunter, backyard it am was a

Vincenzo Vena

a little but it have think said a in earlier, Well, might -- would I different way. it have Hunter was

called You don't can't have fundamentals. It's said -- the [indiscernible] control. these would It's worry the But might at of end have you all something not yes, he that the about very things similar. day,

you If a operate strong railroad.

on If make costs, you end you're of winning side sight you look your efficient. up of you the very important, at the game. what's sure lose Don't

game, end good, side Stanley [indiscernible] person winning and that in core the that Walter, the always strong Cup. defense, make a the wins up hockey You front, on in difference of a right, the hockey, defenseman goal. strong strong

So we're all that's what about.

Walter Spracklin

to happy for be hear that will son my comment Well, sure.

where you analysis few the fundamentals, spoken improvement like the look pretty of we trucking know in economy. scenario of And potential mixed for of a kind upside, that those Speaking outlook. I about you that peers an a predicated and bit today talked on a Jim, I know guidance, about constructively it's here and at economic your

of end do works double-digit that for do here, this economy high low engineering that up is And a leverage most of type importantly, Just we that, this Or more macro? you. the is we you above see better see to if do get operating opportunity in we digits? the low that the hear curious out coming you're how where Is capture better leverage if So setting gets if double-digit sensitivity double band? than for you potentially the will Jim? for low

Vincenzo Vena

about job. Well, is But have call, what a we know often on hundred and But got something Walter, team what, day department. you operate from fantastic you line fantastic know say how [indiscernible] I strong a we And different. does I've always I need talk if didn't does people a hear so you the maybe few marketing about. but we I would every Kenny me. Eric a why a me, do job about with bottom

them that would operating customer talk move about have we I don't as they why let and mean. see leverage what and see what and ahead what we So what we leverage

Eric? or Kenny So

Kenny Rocker

bullish slide, structural. laid I'm out grain reasons. One off, take kick of but the our renewable from we're then you over. number area very bullish on I'm products in I'll and Eric, with we I And seeing look, a what is mean, diesel.

in these and to it's whether whether flexibility And service anywhere to up. we've little -- going ends on given Mexico, the off. talked about a are that's question here, facilities got our to the we've world, coal that has [indiscernible] a going going the grain it's solid Eric got I started bit a we'll see It win the us whether coming You line. early. in PNW. it's where Gulf, side off coal product on move on

to in us year. see industrial of been then macro intermodal, from some We've side, of That it, wins. a at positive. high the impact see throughout investing we had automotive as in function on got the of business happen market And year. to and coming lot side, going some On has to I'll step improve been on on winning a strong. trying different commodities. And call of that this should it, the terms some I and year mentioned we've by [indiscernible]. I'd business and gone be to move we has retain out we Domestic us indicators, then to our a on tried minimize [indiscernible] that help area with what's really, be petrochem We've obviously. the of grow, we'll premium these all not portions on look those say expansions international comps should And side, other last it,

we'll how out. plays see that So

Eric Gehringer

[indiscernible] question that them about enough, talked then, as he's talked it can have, buffer there, exactly we that statements share. saw history hear if ago, were any a noise grain you about Walter, are some sitting think relationship one Kenny we then our Pacific's for that we've side think about we are strong pick grow Northwest away much becomes what if support the nobody have out just market. massive the the them. We But proof into Intermodal, Union be leverage expected in there shift use on us from market those and year we a the number resources as that. recent I to demonstrate here And of accomplishment of the there the in Instead, that there able from that do up didn't team. pivot with to International And a said you Mexico. about But can would you Pacific

project. that in see the comments Coast You Gulf about it also I mentioned in Houston prepared the example my

building strategic Sometimes and undertaking we be sure the it's that said. And we just tell Kenny's single and just think project do in is have on filling it many small make for for of say terminals capital one to to when and it very expansion investments say That just us. location, keeps think adjustments, most every different certainly we investments ones finally, then siding. you, me people where Empire, about a we small out. one make must Kenny support they all can exactly and undertaking, it's I projects, a of a collectively massive an do what team exciting we to

Kenny do that out statements have setting exactly we And say can in is XXXX. many support so to proof we what

Walter Spracklin

the I Kenny. color, appreciate Eric,

Vincenzo Vena

that's Stanley about very Walter, worry thank Canadian to Oilers And Don't in following teams the been are ] [ for time you been many okay. time, bad long that's Edmonton I've the suffering I've listen, of going as you to think win it. but and it. the much. do And Toronto, okay. I one as Walter. for a years, Not them for Cup,

Operator

Our line with the of Vertical Jeff next Kaufman from question Partners. Research is

Jeffrey Kauffman

answer with the side, a Congratulations about known I on unknowns. risk of want can. dive on want you, tariff if But be I'm what change tax Kenny, like just I in to a not prepared or to little execution terrific your Jason Seidl's about benefit. to deeper. When bit the talking could back quarter. I think come question to I at terms these dealing be regulatory I

obviously, would grain You think, export south.

beer think north. would imports You

that think might would not -- Mexican as on Intuit to obvious be your obviously of that us elements have as and import the might a we export or Canadian either mix auto outside? maybe a parts. You what see traffic not

Kenny Rocker

say I'm to different entry about why fluid, all one think all, about, where of and just not That's have specific different I different groups across there to great franchise I have preparedness commodity can first I that. to and able origin be aware commodities maybe points, we talk points it's commodity look is our when just capture a these of most Well, -- want I because destinations. but

through finished So finished finished it's Whether to the that vehicles that out of move vehicles have to come that vehicles Whether come PNW. whether it's it's in in have Gulf. through the we Mexico.

Pacific. is entry It out. harp points to destination I so have and more. pennies to different all They're going products. commercial going We just why move make The much to is and a few over this points how on get consume these preparedness. sure consume product. the it our be consumer to in moves And it's end to team It's may going That's Union there.

Jeffrey Kauffman

the to to the has it that is, to is we your find maybe the point, will if way maybe thinking feeling your where should be it's solution maybe that but thing changes, guess, So team be? going I about a gets

Kenny Rocker

That's I'm exactly I So hit point, it I thought that hit saying. I earlier. what hard

needs, these sure with team Eric's can with are, dialed make commercial in up then job, we team and where we're will Our our deliver. be coming we and changes and solutions on to

Vincenzo Vena

the for Yes, question. [indiscernible] that, to say thanks and

I think you summarized it well.

Operator

question Next UBS. is line Tom with the Wadewitz from of

Thomas Wadewitz

And pretty is well? in helps per meaningful truck, you increases think, drag think that surcharge that? And -- I How pretty I while. how revenue and just pretty -- in that's convicted just pricing and do big I been think unit is been views and the intermodal of per assumptions do on for we'll truckload which on about contract or wanted get your that from know everything. you some a help [indiscernible] you something But us. about you also on intermodal focus well, on How price, in to as unit, mix a some think little market? about you XXXX and And had modest do that's some think that a positive trucking a great. -- do drag. revenue

Kenny Rocker

And So -- goes. we the things talking years, looking that some that the and We let want that revenue as is where half, the resisted see and that on that last we're I data of of of position the number if it. terms there that whether at [ back improves, ], play market where private points as see forecasting DAC back going half. [ timing looking in based move we from tell out, points, yes, [indiscernible] see we'll and of our FTR the the we'll we to whether a improve IMCs We'll look extent same The data couple should you're will of you're to box. market it ], should per goes. it, folks have on uptick asset we how you at sentiment at throughout year. Customer

Jennifer Hamann

we there. mix how as Yes. We one of commodity has I what I our you think it's And have really haul. see lowest mean, you mix. Day within about unit terms of those the Analyst that of intermodal in international we any revenue categories at talked our it drivers our Tom, nailed where per

And group, And so course, you is when coming thing. that's within growing of fuel down that impact. another strong see that

well both those as of So environment. are really there, competitive what see the you as tougher happening

Vincenzo Vena

just difference velocity, team the we between have minute do we and at on against big a how for the put make terminal day, for on railroad able that price done how we well, that on works Tom, there's that commodity. the we structure And on it buts, some the more the on handle speed, our train in difference that able we and is add, can we've way or cost to so it. make we revenue that revenue movements. commodity the car offense I products way the be efficient thing only operate every side the Eric's can of because lowest The we same to the no that a end revenue to boxes make. And we've every the car optimize productivity the many see don't day, we the a move that's to us -- change lot work of been But we our of every

on business. at able a the not. think being we get, price little the to it it's more through in but -- an network. manner So maybe our are handle And we moves up. pretty and Kenny more good put the It's challenge. we've job of day, -- efficient love whole and of can on better efficient I I and guess They it Well, a less pressure And done it, end a the that of good us still for we

Operator

Atlantic. next from with The is question of line Homes the Oliver Redburn

Oliver Holmes

[indiscernible]

Vincenzo Vena

know breaking can? I can't understand Oliver else anybody I from if you're it. the table up. don't

Jennifer Hamann

No. CapEx. All I hear is about something

Vincenzo Vena

something can in can Can please? No, up, you Can we we go to us, question you if see maybe through or better then Oliver. down because and get if spot we're little just Oliver get different know Yes. to couple? a and next see still get I breaking last to the into a the spot

Operator

The Oglenski question Barclays. next from with Brandon is

Brandon Oglenski

Union it's growth. is other Jim I see a replicating long and at volume Pacific apologies finally I'm of been call, it, real guess, the And railroads think looking and know service. so I part what Kenny, if was something I for we've I off about heard or front for are to here. But investors better

the about the wins? volume And in on outpacing context made I this it are business guys of have the that service those development back gains year? is Kenny, driving So finally, that leveraging your incremental within service you of efforts this that product? the mean, comments market network, this? Is

Kenny Rocker

development in help from side network wins, development matter, our an business the it we're and we we The the renewable markets side, at look like the perspective structural that you market to automotive industrial markets are diesel in challenged, coal and and grow where a petrochem export in does that are emerging, if that on decline ahead and highlighted mean the especially market. wins have outpace expect absolutely. chemical I minus I markets of it in absolutely. business Yes, like us that

other then hit no really just to head say one So that they way that on.

Vincenzo Vena

not? back Operator, or much. the we very do Oliver get on you thank Brandon,

Operator

to turn for closing No, Mr. we not. I'll comments. it did over you Vena.

Vincenzo Vena

other of apologize listen, Well, in. are touching the question, proud of work willing to moving, of working very there I have team. the the people answer quarter. I'm -- and I'm proud very team in out first and to I the of every And so office, rest the didn't proud some always us us it appreciative. listen, that right for you, there the time and we today, I'm of out products great and XX,XXX of call move Brad, Okay. if to looking all sell. they're we working. Oliver focus. that now, or them, of at all for conference quarter out. But some warm nice be quarter can't at and a more are at to speaking the not Great the end forward

very and you Have forward. go Thank as much. and thank So day, enjoy the we great day a you. let's

Operator

you, us Vena and everyone to you today. for joining Thank thank Mr.

a We disconnect your lines participation, and your at now you have time. may You thank day. wonderful this for

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