Railroads: Q2/26 carload and operating performance review

Research evidence excerpt

Railroads: Q2/26 carload and operating performance review

RBC Dominion Securities Inc.

Walter Spracklin, CFA (Co-Head of Global Industrials

Research)

(416) 842-7877, walter.spracklin@rbccm.com

James McGarragle, CFA, CPA (Analyst)

(416) 842-7862, james.mcgarragle@rbccm.com

July 8, 2026

Railroads: Q2/26 carload andRESEARCH operating performance review

RBC Compass

In this week’s Feature Commentary, we analyze carload trends and service

metrics for Q2, and outline our volume expectations for 2026. This

report provides an analysis of carload trends and evaluates operating

performance on an absolute and relative basis.EQUITY Class 1 carloads up in Q2

North American Class 1 Railroad carloads were up +4% in Q2 y/y, driven

by higher Intermodal carloads resulting from over-the-road conversion on

the back of increasing truck prices. That said, we believe International

strength is in part being driven by retailers pulling inventory forward to get

ahead of potential tariffs, a trend we will be monitoring looking ahead.

• Canadian Rails (CN and CPKC): Cdn rail RTMs were higher in Q2, with

RTMs at CN up +5% and at CPKC up +4%. Volumes at both rails benefited

from higher Grain volumes on the back of a record Cdn Grain crop;

although volumes at CP were negatively affected by Coal headwinds.

• Eastern US Rails (CSX and NSC): Carloads were strong in the East, with

CSX up +6% and NSC up +5%. CSX led the group (ex. BNSF), but both

Eastern rails benefited from strong Intermodal volumes.

• Western US Rails (BNSF and UNP): At BNSF, carloads are up +7% Q2

QTD. At UNP, RTMs were up +3% in the quarter (carloads +3%), driven

by solid Grain volumes.

Class 1 performance metrics. Performance metrics improved slightly in

Q2, with Class 1 train velocity up +1% and terminal dwell down -2%. CPKC