Q4 2025 Canadian National Railway Co Earnings Call Transcript
Key Points
- Canadian National Railway Co (CNI) delivered a 14% EPS growth in Q4 and 7% for the full year, aligning with their guidance.
- The company achieved a record operating ratio of 60.1% in Q4, marking a 250 basis points improvement over the previous year.
- Free cash flow increased by 8% to $3.3 billion, driven by cash from operations and disciplined capital spending.
- Significant improvements were noted in key operating measures, including car velocity, terminal dwell, train and locomotive productivity, and labor productivity.
- The company set records in grain shipments and saw strong performance in intermodal services, benefiting from improved service and commercial execution.
- The macroeconomic environment remains uncertain, with muted economic growth and ongoing trade uncertainties impacting visibility.
- Tariff and trade uncertainties negatively impacted 2025 revenues by over $350 million, particularly affecting forest products and metals.
- The company faces headwinds in 2026, including unfavorable mix impacts, lower capital credits, and a higher effective tax rate.
- Forest products and metals continue to face pressure due to weak demand and increased tariffs, impacting overall revenue growth.
- The company anticipates flat volume growth in 2026, with Q1 expected to be the toughest quarter due to year-over-year comparables.
Good morning. 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 third quarter financial and operating results conference call. Joining us on the call today are Tracy Robinson, our President and CEO; Pat Whitehead, our Chief Operations Officer; Janet Drysdale, our Chief Commercial Officer; and Ghislain Houle, our Chief Financial Officer.
You can turn to page 2 of the presentation, which includes our forward-looking statements and non-GAAP definitions for your reference. These forward-looking statements reflect our current information and educated assumptions and include estimates, goals, and expectations about the future. These involve risks and uncertainties and actual results may differ from what
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