Canadian National Railway (CN), a key player in North American freight logistics, has reported second-quarter earnings that highlight its operational resilience despite a turbulent macroeconomic backdrop.
Revenue slipped 1% year-over-year to C$4.27 billion, while revenue per ton miles (RTMs) — a key volume metric — also declined 1%. Yet CN’s operating income rose 5% to C$1.64 billion, and its operating ratio improved to 61.7%, reflecting tighter cost controls and improved efficiency. Diluted earnings per share climbed 7% to C$1.87 (up from $1.75 a year earlier), underscoring the company’s ability to protect margins even as trade headwinds persist.
"Our team's ability to be nimble and our focus on tight cost control allowed us to adjust our operations and deliver strong results despite a challenging external environment. We are working closely with customers, including those impacted by trade issues, to provide them with the services they need to win in their markets. We remain focused on powering the North American economy and delivering for shareholders," CEO Tracy Robinson said.
However, CN revised its full-year guidance downward, now expecting adjusted EPS growth in the mid- to high single-digit range — below its earlier forecasts of 10%–15%. The downgrade reflects ongoing uncertainty tied to tariffs and global supply chain disruptions. These disruptions have pressured volumes and altered the traffic mix across key segments like intermodal, forest products, and automotive.
Despite the softer outlook, CN reaffirmed its commitment to long-term infrastructure investment, maintaining its C$3.4 billion capital program for 2025. The railway also withdrew their 2024–2026 financial outlook, citing heightened trade and tariff volatility.
Canadian National Railway Co (NYSE: CNI) stock closed at $96.27, down $4.10 (4.08%) today. It has a market cap of around $62.96 billion.
All financials are in Canadian dollars.
