CN Delivers Strong Third Quarter Financial and Operating Results

Executive Summary

• CN reported financial and operating results for the third quarter ended September 30, 2025, delivering 6% earnings growth and an improved operating ratio of 61.4%.
• The company repurchased approximately 8 million shares for C$1 billion in the quarter and guided for 2026 capital expenditures of C$2.8 billion, a reduction of nearly C$600 million from 2025 levels.
• Operational efficiency improved significantly, with labor cost reductions of C$75 million, increased car velocity, and higher fuel efficiency, while gross ton miles and revenue ton miles both grew by 1%.

Key Details

• Financial Performance (Q3 2025):
  • Revenues: C$4,165 million (up 1% or C$55 million).
  • Operating Income: C$1,606 million (up 6% or C$91 million).
  • Net Income: C$1,139 million (up 5% or C$54 million).
  • Diluted EPS: C$1.83 (up 6%).
  • Adjusted EBITDA (TTM): C$8,612 million (up 1%).
  • Operating Ratio: 61.4% (improvement of 170 basis points).
• Capital Allocation & Balance Sheet:
  • Share Repurchases: ~8 million shares repurchased in Q3 for approximately C$1 billion.
  • Dividend: Board approved a Q4 2025 dividend of C$0.8875 per share, payable December 30, 2025.
  • Free Cash Flow (First 9 Months 2025): C$2,341 million (up 14% or C$281 million).
  • Adjusted Debt-to-Adjusted EBITDA: 2.54 times.
• 2026 Guidance & Strategy:
  • 2026 Capital Expenditures: Guided to C$2.8 billion (net of customer reimbursements), down nearly C$600 million from 2025 levels.
  • 2025 Guidance Maintained: Mid-to-high single-digit adjusted diluted EPS growth; capital program of approximately C$3.35 billion.
  • Productivity: Additional C$75 million in labor cost reductions achieved.
• Operational Statistics (Q3 2025 vs Q3 2024):
  • Gross Ton Miles (GTMs): 111,901 million (up 1%).
  • Revenue Ton Miles (RTMs): 57,188 million (up 1%).
  • Carloads: 1,368 thousand (up 5%).
  • Through Dwell: 7.0 hours (decreased by 1%).
  • Car Velocity: 211 car miles per day (increased by 1%).
  • Train Speed: 19.5 mph (increased by 2%).
  • Fuel Efficiency: 0.833 US gallons per 1,000 GTMs (2% more efficient).
  • Train Length: 8,049 feet (increased by 3%).
  • Productivity: GTMs per average employee increased 6% to 4,585 thousand.
  • Operating Expenses per GTM: Decreased 3% to 2.29 cents.
• Segment Revenue Performance (Q3 2025 vs Q3 2024):
  • Intermodal: C$980 million (up 11%).
  • Petroleum and Chemicals: C$854 million (up 2%).
  • Grain and Fertilizers: C$775 million (down 1%).
  • Forest Products: C$451 million (down 3%).
  • Metals and Minerals: C$477 million (down 5%).
  • Coal: C$237 million (up 3%).
  • Automotive: C$217 million (flat).

Notable Quotes

• “I want to thank the entire CN team for delivering a strong quarter that combined solid performance with excellent customer service. Our seasoned team of railroaders continues to run a safe, on time, and efficient operation focused on service, and capturing every freight movement opportunity across our unique network and diversified portfolio.” – Tracy Robinson, President and CEO
• “We are taking decisive actions to navigate a challenging macro environment including doubling down on productivity efforts, setting our 2026 capital spend at C$2.8 billion*, down nearly C$600 million from this year’s levels, driving increased free cash flow on a go-forward basis. We are positioning this business to benefit from higher future volumes and ensuring everything we do enhances our customers and shareholders long term value.” – Tracy Robinson, President and CEO