CN Announces Second Quarter Results
MONTREAL, July 22, 2025 (GLOBE NEWSWIRE) -- CN (TSX:CNR) (NYSE:CNI) today reported its financial and operating results for the second quarter ended June 30, 2025.
"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." – Tracy Robinson, President and Chief Executive Officer, CN
Quarterly highlights
Revenue ton miles (RTMs) decreased 1% to 59,215 (millions).
Revenues of C$4,272 million, a decrease of C$57 million, or 1%.
Operating income of C$1,638 million, an increase of $80 million, or 5%; operating income was flat on an adjusted basis. (1)
Operating ratio, defined as operating expenses as a percentage of revenues, of 61.7%, an improvement of 2.3 points; operating ratio improved 0.5 points on an adjusted basis. (1)
Diluted earnings per share (EPS) of C$1.87, an increase of 7%; EPS increased 2% on an adjusted basis. (1)
Updated 2025 guidance and 2024-2026 financial outlook (1)(2)Due to economic uncertainty, attributable to persistent trade and tariff volatility in key economic sectors, CN now expects to deliver adjusted diluted EPS growth in the mid to high single-digit range in 2025 (compared to its January 30, 2025 expectation of 10%-15%). CN continues to plan to invest approximately C$3.4 billion in its capital program, net of amounts reimbursed by customers.
Given the Company's updated guidance for 2025, and the continued high level of macroeconomic uncertainty and volatility related to evolving trade and tariff policies, CN is removing its 2024-2026 financial outlook.
CONFERENCE CALL DETAILSCN's senior officers will review the results and the railway's outlook in a conference call starting at 4:30 p.m. Eastern Time on July 22. Tracy Robinson, CN President and Chief Executive Officer, will lead the call. Parties wishing to participate via telephone may dial 1-800-715-9871 (Canada/U.S.), or 1-647-932-3411 (International), using 7456934 as the passcode. Participants are advised to dial in 10 minutes prior to the call.
(1) Non-GAAP MeasuresCN reports its financial results in accordance with United States generally accepted accounting principles (GAAP). CN also uses non-GAAP measures in this news release that do not have any standardized meaning prescribed by GAAP. These non-GAAP measures may not be comparable to similar measures presented by other companies. For further details of these non-GAAP measures, including a reconciliation to the most directly comparable GAAP financial measures, refer to the attached supplementary schedule, Non-GAAP Measures.
CN's outlook, guidance, or targets (2) exclude certain adjustments, which are expected to be comparable to adjustments made in prior years. However, management cannot individually quantify on a forward-looking basis the impact of these adjustments, which could be significant, are difficult to predict and may be highly variable. As a result, CN does not provide a corresponding GAAP measure for, or reconciliation to, its outlook, guidance or targets.
(2) Forward-Looking StatementsCertain statements included in this news release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws, including statements based on management's assessment and assumptions and publicly available information with respect to CN. By their nature, forward-looking statements involve risks, uncertainties and assumptions. CN cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as "believes," "expects," "anticipates," "assumes," "outlook," "plans," "targets", or other similar words.
2025 key assumptionsCN has made a number of economic and market assumptions in preparing its 2025 outlook. The Company continues to assume slightly positive growth in North American industrial production in 2025. For the 2024/2025 crop year, the grain crop in Canada was in line with its five-year average and the U.S. grain crop was above its five-year average. The Company continues to assume that the 2025/2026 grain crop in Canada will be in line with its five-year average and that the U.S. grain crop will be above its five-year average. CN now assumes RTM growth will be in the low single-digit range (compared to its January 30, 2025 assumption of low to mid single digit range). CN now assumes that in 2025, the value of the Canadian dollar in U.S. currency will be in the range of $0.70 to $0.75 (compared to its January 30, 2025 assumption of approximately $0.70), and continues to assume that in 2025 the average price of crude oil (West Texas Intermediate) will be in the range of US$60 - US$70 per barrel. The Company notes there is a heightened demand risk as a result of the volatile macroeconomic conditions and global trade tensions.
Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors which may cause actual results, performance or achievements of CN to be materially different from the outlook or any future results, performance or achievements implied by such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. Important risk factors that could affect the forward-looking statements in this news release include, but are not limited to, general economic and business conditions, including factors impacting global supply chains such as pandemics and geopolitical conflicts and tensions; trade restrictions, trade barriers, or the imposition of tariffs or other changes to international trade arrangements; industry competition; inflation, currency and interest rate fluctuations; changes in fuel prices; legislative and/or regulatory developments; compliance with environmental laws and regulations; actions by regulators; increases in maintenance and operating costs; security threats; reliance on technology and related cybersecurity risk; transportation of hazardous materials; various events which could disrupt operations, including illegal blockades of rail networks, and natural events such as severe weather, droughts, fires, floods and earthquakes; climate change; labor negotiations and disruptions; environmental claims; uncertainties of investigations, proceedings and other types of claims and litigation; risks and liabilities arising from derailments; timing and completion of capital programs; the availability of and cost competitiveness of renewable fuels and the development of new locomotive propulsion technology; reputational risks; supplier concentration; pension funding requirements and volatility; and other risks detailed from time to time in reports filed by CN with securities regulators in Canada and the United States. Reference should also be made to Management's Discussion and Analysis (MD&A) in CN's annual and interim reports, Annual Information Form and Form 40-F, filed with Canadian and U.S. securities regulators and available on CN's website, for a description of major risk factors relating to CN.
The achievement of CN's climate goals is subject to several risks and uncertainties, including those disclosed in the MD&A in CN's annual and interim reports. There can be no certainty that the Company will achieve any or all of these goals within the stated timeframe, or that achieving any of these goals will meet all of the expectations of its stakeholders or applicable legal requirements.
Forward-looking statements reflect information as of the date on which they are made. CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking statement. Information contained on, or accessible through, our website is not incorporated by reference into this news release.
This earnings news release, as well as additional information, including the Financial Statements, Notes thereto and MD&A, is contained in CN's Quarterly Review available on the Company's website at www.cn.ca/financial-results and on SEDAR+ at www.sedarplus.ca as well as on the U.S. Securities and Exchange Commission's website at www.sec.gov through EDGAR.
About CNCN powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year for its customers. With its nearly 20,000-mile rail network and related transportation services, CN connects Canada's Eastern and Western coasts with the U.S. Midwest and the U.S. Gulf Coast, contributing to sustainable trade and the prosperity of the communities in which it operates since 1919.
Contacts:
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(514) 399-0052
SELECTED RAILROAD STATISTICS, UNAUDITED
Three months ended June 30
Six months ended June 30
2025
2024
2025
2024
Financial measures
Key financial performance indicators (1)
Total revenues ($ millions)
4,272
4,329
8,675
8,578
Freight revenues ($ millions)
4,090
4,153
8,378
8,290
Operating income ($ millions)
1,638
1,558
3,248
3,104
Adjusted operating income ($ millions) (2)(3)
1,638
1,636
3,248
3,182
Net income ($ millions)
1,172
1,114
2,333
2,217
Adjusted net income ($ millions) (2)(3)
1,172
1,172
2,333
2,275
Diluted earnings per share ($)
1.87
1.75
3.71
3.47
Adjusted diluted earnings per share ($) (2)(3)
1.87
1.84
3.71
3.56
Free cash flow ($ millions) (2)(4)
922
947
1,548
1,476
Gross property additions ($ millions)
805
853
1,324
1,429
Share repurchases ($ millions)
306
1,116
407
2,071
Dividends per share ($)
0.8875
0.8450
1.7750
1.6900
Financial ratio
Operating ratio (%) (5)
61.7
64.0
62.6
63.8
Adjusted operating ratio (%) (2)(3)
61.7
62.2
62.6
62.9
Operational measures (6)
Statistical operating data
Gross ton miles (GTMs) (millions)
117,335
117,852
232,178
233,479
Revenue ton miles (RTMs) (millions)
59,215
59,936
119,264
119,685
Carloads (thousands)
1,414
1,419
2,727
2,762
Route miles (includes Canada and the U.S., end of period)
18,900
18,800
18,900
18,800
Employees (end of period)
24,912
25,656
24,912
25,656
Employees (average for the period)
25,003
25,570
24,815
25,381
Key operating measures
Freight revenue per RTM (cents)
6.91
6.93
7.02
6.93
Freight revenue per carload ($)
2,893
2,927
3,072
3,001
GTMs per average number of employees (thousands)
4,693
4,609
9,356
9,199
Operating expenses per GTM (cents)
2.24
2.35
2.34
2.34
Labor and fringe benefits expense per GTM (cents)
0.73
0.72
0.77
0.75
Diesel fuel consumed (US gallons in millions)
101.5
103.0
206.8
206.6
Average fuel price ($ per US gallon)
3.55
4.57
3.98
4.54
Fuel efficiency (US gallons of locomotive fuel consumed per 1,000 GTMs)
0.865
0.874
0.891
0.885
Train weight (tons)
9,125
9,097
9,101
9,092
Train length (feet)
8,016
8,015
7,863
7,902
Car velocity (car miles per day)
213
210
200
208
Through dwell (entire railroad, hours)
6.8
6.9
7.3
7.0
Through network train speed (miles per hour)
18.9
18.3
18.3
18.5
Locomotive utilization (trailing GTMs per total horsepower)
190
188
187
188
Safety indicators (7)
Injury frequency rate (per 200,000 person hours)
0.86
1.02
0.98
1.06
Accident rate (per million train miles)
1.78
1.70
1.91
1.72
(1)
Amounts expressed in Canadian dollars and prepared in accordance with United States generally accepted accounting principles (GAAP), unless otherwise noted.
(2)
These non-GAAP measures do not have any standardized meaning prescribed by GAAP and therefore, may not be comparable to similar measures presented by other companies.
(3)
See the supplementary schedule entitled Non-GAAP Measures, Adjusted performance measures for an explanation of these non-GAAP measures.
(4)
See the supplementary schedule entitled Non-GAAP Measures, Free cash flow for an explanation of this non-GAAP measure.
(5)
Operating ratio is defined as operating expenses as a percentage of revenues.
(6)
Statistical operating data, key operating measures and safety indicators are unaudited and based on estimated data available at such time and are subject to change as more complete information becomes available. Definitions of gross ton miles, revenue ton miles, freight revenue per RTM, fuel efficiency, train weight, train length, car velocity, through dwell and through network train speed are included within the Company's Management's Discussion and Analysis. Definitions of all other indicators are provided on CN's website, www.cn.ca/glossary.
(7)
Based on Federal Railroad Administration (FRA) reporting criteria.
SUPPLEMENTARY INFORMATION, UNAUDITED
Three months ended June 30
Six months ended June 30
2025
2024
% Change Fav (Unfav)
% Change at constant currency (1) Fav (Unfav)
2025
2024
% Change Fav (Unfav)
% Change at constant currency (1) Fav (Unfav)
Revenues ($ millions) (2)
Petroleum and chemicals
808
850
(5
%)
(6
%)
1,723
1,707
1
%
(1
%)
Metals and minerals
496
528
(6
%)
(7
%)
1,019
1,058
(4
%)
(7
%)
Forest products
461
501
(8
%)
(9
%)
955
995
(4
%)
(7
%)
Coal
242
241
—
%
—
%
488
462
6
%
4
%
Grain and fertilizers
834
738
13
%
12
%
1,785
1,598
12
%
10
%
Intermodal
1,008
1,040
(3
%)
(3
%)
1,948
1,999
(3
%)
(3
%)
Automotive
241
255
(5
%)
(6
%)
460
471
(2
%)
(5
%)
Total freight revenues
4,090
4,153
(2
%)
(2
%)
8,378
8,290
1
%
(1
%)
Other revenues
182
176
3
%
2
%
297
288
3
%
1
%
Total revenues
4,272
4,329
(1
%)
(2
%)
8,675
8,578
1
%
(1
%)
Revenue ton miles (RTMs) (millions) (3)
Petroleum and chemicals
10,740
11,651
(8
%)
(8
%)
22,576
23,365
(3
%)
(3
%)
Metals and minerals
7,074
7,558
(6
%)
(6
%)
13,826
14,908
(7
%)
(7
%)
Forest products
5,113
5,751
(11
%)
(11
%)
10,500
11,520
(9
%)
(9
%)
Coal
5,058
5,293
(4
%)
(4
%)
10,504
9,931
6
%
6
