Industrial End Markets Remain Soft, but Canadian Pacific's New Business Wins Drive Growth

Following the appointment of railroading legend Hunter Harrison as CEO in 2012, Canadian Pacific embarked on a successful profitability turnaround. Harrison and his successor—operations expert Keith Creel (who worked alongside Harrison for decades)—took CP from ranking as one of the worst Class I margin performers to among the best. We like that Creel has infused the firm's culture with precision-scheduled railroading principles, which stand behind much of the rail's progress. In 2018, profitability caught up with PSR pioneer and historical margin leader Canadian National and surpassed CN in 2019 with a 60% operating ratio.