CNI · Canadian National Railway Company

CN reported a mixed first quarter. Revenue declined 1% to C$4,379 million, driven by lower freight revenue per RTM, partially offset by higher volumes. Operating income fell 4% to C$1,549 million, with operating ratio worsening 120 bps to 64.6%, reflecting higher costs from winter conditions, incidents, and a higher effective tax rate. Adjusted operating income decreased 3% to C$1,566 million. Net income was down 1% to C$1,146 million, while GAAP diluted EPS increased 1% to C$1.87 due to share buybacks. Adjusted diluted EPS fell 3% to C$1.80. Free cash flow surged 44% to C$900 million, supported by higher operating cash flow and lower capital expenditures. The company repurchased approximately 6 million shares for C$869 million. Management highlighted record first-quarter RTMs, fuel efficiency, and employee productivity. CEO Tracy Robinson noted strong commercial and operating performance despite macro uncertainty. For 2026, CN expects flattish RTM growth and adjusted diluted EPS growth slightly exceeding volume growth, with capital investment of approximately C$2.8 billion. The company also declared a quarterly dividend of C$0.915 per share.