Canadian National Railway Company (NYSE: CNI, TSX: CNR) Q2 2025 Earnings | 07/23/2025

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Canadian National Railway Company reported its Q2 2025 results on July 23, 2025, delivering modest earnings growth amid revenue headwinds and lowering its full-year outlook due to persistent tariff challenges and currency pressures. Revenues for the quarter were C$4.27 billion, down 1% from the prior year, largely reflecting mixed segment performance and a shift in traffic mix. Net income rose 5% year-over-year to C$1.17 billion, delivering diluted earnings per share (EPS) of C$1.87, up from C$1.75 in Q2 2024. The company’s profit margin increased to 27% due to strong cost management and lower fuel expenses, even as traffic volumes (measured by revenue ton miles) dipped 1%. Operational Highlights Revenue ton miles (RTMs): 59,215 million, down 1% from Q2 2024. Gross revenues: C$4.27 billion, down from C$4.33 billion in the prior year. Net income: C$1.17 billion, up from C$1.11 billion in Q2 2024. Diluted EPS: C$1.87, a 2% increase year-over-year. Operating ratio: 61.7%, a 50 basis point improvement over last year, reflecting enhanced efficiency. Free cash flow: Year-to-date, rose 5% to C$1.5 billion. Cost Discipline & Efficiency: Operating expenses fell by 5%, driven primarily by a 25% reduction in fuel costs. Car velocity, through dwell times, and service commitment all improved modestly year-over-year. Notable enhancements included a 4% year-to-date drop in train delay incidents and gains in tie installation productivity. Segment Performance Grain & Fertilizers: Revenue grew by 12% (constant currency), outperforming all other segments. Forest Products: Revenue declined 9%, facing headwinds from weaker demand and US trade measures. Petroleum & Chemicals: Down 6%. Metals & Minerals: Down 7%. Automotive: Down 6%, reflecting the impact of shifting tariffs on production and flows. Intermodal: Revenue fell 3% on softer North American imports and tariff effects. Coal: Flat year-over-year. Other Segment Revenues: Posted a slight 2% gain. The overall revenue decline was also affected by a shift toward lower-yield bulk commodities at the expense of higher-yield merchandise segments. Guidance & Outlook CN revised its full-year 2025 guidance, now targeting mid- to high-single-digit adjusted diluted EPS growth (down from 10–15%), citing U.S. tariff uncertainty, a stronger Canadian dollar, and subdued market conditions—especially in forest products, automotive, and intermodal. The company expects low single-digit RTM growth for the year, trimming earlier “low- to mid-single-digit” guidance. Capex is expected to be slightly reduced as the company remains focused on cost control and margin protection. Management stressed the company’s readiness to adapt resources and maintain close customer engagement in a volatile trading and macro environment. Dividend CN declared a third-quarter dividend of $0.8875 per common share, payable September 29, 2025. Executive Commentary President and CEO Tracy Robinson emphasized CN’s focus on driving shareholder value through responsiveness, efficiency, and service quality amid trade and macroeconomic uncertainties. Management underscored ongoing cost discipline and operational flexibility as the cornerstones for navigating a challenging year ahead. #CanadianNationalRailway #CNI #CNR #Q22025 #Earnings #Railways #FinancialResults #Revenue #EPS #Dividend #OperationalEfficiency #CostControl #Guidance #Tariffs #SupplyChain #2025Outlook #InsideTicker