Q1 2025 Canadian National Railway Co Earnings Call Transcript
Key Points
- Canadian National Railway Co (CNI) reported an 8% earnings growth and a 20 basis point improvement in the operating ratio for the first quarter.
- The company successfully concluded an arbitration process with Canadian conductors and locomotive engineers, resulting in a 3-year deal with annual wage increases of 3%.
- CNI has reached ratified agreements with nine unions in the US, representing roughly half of its US workforce.
- The company is well-positioned to enable global trade with available capacity at all three coasts of North America, providing customers with gateway options.
- CNI reported strong operational performance in March, with car velocity improving to nearly 200 miles per day and a record amount of Canadian grain moved.
- There is increased uncertainty around tariffs and trade, with a heightened risk of recession in both Canada and the US.
- The company experienced a more normalized Q1 weather pattern, which resulted in tougher comparisons versus last year, especially in February.
- CNI faced significant impacts across its network due to extreme cold and record snowfall, particularly in February, which limited network fluidity.
- The company observed a decrease in iron ore shipments due to softer export demand and production issues at mines.
- CNI's intermodal revenue slipped by 3%, largely reflecting more Canadian cargo as the company works to rebuild US-destined business following 2024 labor disruptions.
Good afternoon. My name is Christa, and I will be your operator today. (Operator Instructions)
At this time, I would like to turn the call over to Stacy Alderson, CN's Assistant Vice President of Investor Relations. Ladies and gentlemen, Ms. Alderson.
Thank you, Christa. Welcome, everyone. Thank you for joining us for CN's first quarter financial and operating results conference call. Of note, we have forward-looking statements and non-GAAP definitions for your view on Page 2 of our presentation. These forward-looking statements include estimates, goals and predictions about the future based on current information and educated assumptions.
These come with risks and uncertainties. And with that, there is always the possibility that the outcomes may differ from the expectations. That being said, forward-looking statements aren't guarantees and factors like economic conditions, competition, fuel prices and regulatory changes could affect actual results.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
