Financial Data and Key Metrics Changes - The company reported adjusted EPS growth of 2% for Q2 2025, reaching $1.87 compared to $1.84 in the previous year [41] - Revenues decreased by 1% year over year, attributed to a 1% reduction in RTMs and flat carloads [29][41] - Operating ratio improved by 50 basis points to 61.7% from 62.2% in the previous year [41] Business Line Data and Key Metrics Changes - Bulk volumes showed strong performance, while merchandise and intermodal segments faced challenges due to tariffs and a weaker industrial economy [8][12] - Petroleum and chemicals experienced lower volumes due to refinery turnarounds, impacting overall performance [31] - Grain and fertilizers were a bright spot, with revenues increasing by 12%, driven by higher grain shipments [34] Market Data and Key Metrics Changes - The company noted a shift in traffic mix, with less merchandise business impacting revenues and margins [8][30] - International intermodal traffic through Prince Rupert showed good progress, while Vancouver faced challenges [52] - The tariff environment has created uncertainty, particularly affecting forest products and metals [11][36] Company Strategy and Development Direction - The company is focused on leveraging its diversified book of business and maintaining strong partnerships with customers [12][15] - Efforts are underway to develop better access to global markets, particularly in the energy sector [12] - The company is adjusting its expectations for low single-digit RTM growth for the remainder of the year due to ongoing uncertainties [15][45] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over the tariff and trade environment, indicating that uncertainty may persist in the near term [11][15] - The company is proactively managing costs and resources to maintain margins amid changing volumes [19][41] - There is optimism about the potential for growth in the second half of the year, particularly in intermodal and bulk segments [36][47] Other Important Information - The Canadian carbon tax surcharge repeal impacted revenues by approximately $70 million in Q2 [30] - The company generated over $1.5 billion in free cash flow, up 5% year over year, primarily due to lower capital expenditures [43] - The company is revising its full-year volume assumption to low single-digit RTM growth due to the current macroeconomic environment [45] Q&A Session Summary Question: Progress on U.S.-bound international intermodal traffic through Prince Rupert - Management noted that overseas intermodal via Canada to the U.S. represents less than 5% of total revenues, with good progress at Prince Rupert but challenges at Vancouver [52] Question: Challenges or changes in optimism around company-specific initiatives - Management affirmed that company-specific initiatives remain intact, with growth fundamentals strong despite current tariff uncertainties [60][61] Question: RTM guidance for the second half of the year - Management expects volumes to accelerate as refinery outages resolve and anticipates a seasonal uptick in grain shipments [68][69] Question: Proactive changes in response to mix - Management highlighted strong bulk volumes and the need to manage costs tightly in response to volume shifts, with a focus on maintaining operational efficiency [73][78] Question: CapEx management and competitive access in potential mergers - Management is closely monitoring CapEx, reducing it by $50 million, while ensuring competitive access is defended in any merger discussions [82][84]

Financial Data and Key Metrics Changes - The company reported a 2% adjusted EPS growth for Q2 2025, with revenues down 1% year over year on a 1% decrease in RTMs and flat carloads [4][27][40] - Operating ratio improved by 50 basis points to 61.7% compared to last year's adjusted operating ratio of 62.2% [40] - Free cash flow generated was over $1.5 billion, up 5% year over year, primarily due to lower capital expenditures [42] Business Line Data and Key Metrics Changes - Bulk volumes were strong, reflecting the company's advantage in the agricultural sector, while merchandise and intermodal segments faced challenges due to tariffs and a weaker industrial economy [5][12] - Petroleum and chemicals experienced lower volumes due to refinery turnarounds, while grain and fertilizers saw a 12% increase in revenues, with grain volumes up 6% in Canada and nearly 30% in the U.S. [32][28] - Intermodal volumes were mixed, with a 4% decline in units through Vancouver but a 14% increase in Prince Rupert units [33] Market Data and Key Metrics Changes - The company noted ongoing uncertainty in the tariff and trade environment, particularly affecting forest products, metals, and automotive sectors [8][10] - The Canadian carbon tax repeal impacted revenues by approximately $70 million in Q2, expected to continue affecting the next three quarters [28] - Foreign exchange provided a slight tailwind to revenue of less than 1% [28] Company Strategy and Development Direction - The company is focused on leveraging its diversified book of business and maintaining strong partnerships with customers to navigate the uncertain environment [10][11] - Efforts are underway to enhance access to global markets, particularly in the energy sector, and to mitigate tariff impacts by finding alternative routes for affected commodities [11][12] - The company is adjusting its expectations for the remainder of the year to low single-digit RTM growth due to the current economic environment [13][44] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the second half of the year, citing broader ranges of outcomes and persistent softness in certain sectors [10][13] - The company remains committed to controlling costs and maintaining operational efficiency despite external challenges [15][22] - Management believes that the fundamentals of growth remain intact, with expectations for a rebound in volumes as tariff situations stabilize [59][85] Other Important Information - The company ended the quarter with 8,000 system cars in storage, which is double the amount at the end of Q1, allowing for flexibility in response to volume changes [22] - Locomotive availability improved to 92.5%, with an 8% reduction in locomotive unit costs year over year [23] - The company is revising its guidance for mid to high single-digit EPS growth in 2025, reflecting the impact of tariffs and economic conditions [44] Q&A Session Summary Question: Progress on U.S.-bound international intermodal traffic through Prince Rupert - Management noted that overseas intermodal via Canada to the U.S. represents less than 5% of total revenues, with good progress at Prince Rupert but challenges at Vancouver due to tariff deadlines [51][52] Question: Challenges or changes in optimism around company-specific initiatives - Management affirmed that company-specific initiatives remain intact, with a focus on leveraging network advantages despite current tariff uncertainties [58] Question: RTM guidance for the second half of the year - Management expects volumes to accelerate as refinery outages resolve and anticipates a ramp-up in grain crop shipments in September [66] Question: Proactive changes in response to volume mix - Management highlighted strong bulk volumes and the need to manage costs tightly, with a focus on maintaining operational efficiency [70][72] Question: CapEx and competitive access in potential merger scenarios - Management is closely monitoring CapEx and has reduced the budget while ensuring investments are aligned with growth opportunities [78][80] Question: Confidence in achieving volume growth in 2026 - Management expressed uncertainty regarding tariff resolutions but remains focused on maintaining strong growth fundamentals [85]

Canadian National Railway lowered its earnings guidance for 2025 and removed its outlook for next year entirely as the trade war rattles key economic sectors https://t.co/SP8RAEkUfU ...

Financial Performance - Q2 Total Revenues were $4.3 billion, a decrease of 1%[15] - Adjusted diluted EPS grew by 2% to $1.87, while reported diluted EPS increased by 7%[14, 15] - Operating Ratio increased by 50 bps to 61.7% compared to adjusted, and increased by 230 bps compared to reported[15] - Year-to-date Free Cash Flow increased by 5% to $1.5 billion[48] Operational Efficiency - RTMs decreased by 1%[14, 15] - Car Velocity increased from 210 to 213 car miles per day[21] - Through Dwell decreased slightly from 6.9 to 6.8 hours[21] - Train delays caused by work blocks decreased by 4% year-to-date 2025 vs year-to-date 2024[26] - GTMS/T&E employee increased by 11% in Q2 2025 vs Q2 2024[30] - Tie installation efficiency increased by 7% in Q2 2025 vs Q2 2024[32] Revenue Breakdown - Overall carloads remained flat[36] - Grain & Fertilizers revenue increased by 12%, while Automotive, Forest products, Metals & Minerals, and Petroleum & Chemicals decreased by 6%, 9%, 7%, and 6% respectively[36] Outlook - The company now assumes low single-digit RTM growth for the year[43] - The company expects mid to high single-digit adjusted diluted EPS growth[58]

Core Viewpoint - CN has announced a quarterly dividend of C$0.8875 per common share for Q3 2025, reflecting the company's commitment to returning value to shareholders [1]. Group 1: Dividend Announcement - The Board of Directors approved a quarterly dividend of C$0.8875 per common share [1] - The dividend will be paid on September 29, 2025, to shareholders of record as of September 8, 2025 [1]. Group 2: Company Overview - CN transports over 300 million tons of natural resources, manufactured products, and finished goods across North America annually [2] - The company operates a nearly 20,000-mile rail network, connecting Canada's coasts with the U.S. Midwest and Gulf Coast [2] - CN has been contributing to sustainable trade and community prosperity since its establishment in 1919 [2].

Core Viewpoint - CN reported strong financial results for Q2 2025, demonstrating resilience in a challenging external environment, with a focus on cost control and customer service [2][4]. Financial Performance - Total revenues for Q2 2025 were C$4,272 million, a decrease of C$57 million or 1% compared to Q2 2024 [10][11]. - Freight revenues decreased by C$63 million or 2% to C$4,090 million [10][12]. - Operating income increased by C$80 million or 5% to C$1,638 million, while adjusted operating income remained flat [10][11]. - Net income for Q2 2025 was C$1,172 million, an increase of C$58 million or 5% compared to Q2 2024 [10][19]. - Diluted earnings per share (EPS) rose to C$1.87, a 7% increase from C$1.75 in Q2 2024 [10][19]. Operational Metrics - Revenue ton miles (RTMs) decreased by 1% to 59,215 million [10][12]. - Operating ratio improved to 61.7%, a 2.3-point improvement from 64.0% in Q2 2024 [10][11]. - Free cash flow for Q2 2025 was C$922 million, down from C$947 million in Q2 2024 [10][25]. Updated Guidance - CN revised its 2025 guidance, now expecting adjusted diluted EPS growth in the mid to high single-digit range, down from the previous expectation of 10%-15% [4][5]. - The company has removed its financial outlook for 2024-2026 due to ongoing macroeconomic uncertainty related to trade and tariff policies [5][4]. Sector Impact - CN plays a crucial role in powering the North American economy by transporting over 300 million tons of goods annually, contributing to sustainable trade [8].

Core Viewpoint - CN is set to release its second-quarter 2025 financial and operational results, with a conference call scheduled to discuss the outcomes and future outlook led by the President and CEO, Tracy Robinson [1]. Group 1: Financial Results Announcement - CN will issue its second-quarter 2025 financial and operating results after the market closes [1]. - A conference call will take place at 4:30 p.m. Eastern Time to review the results and outlook [1]. Group 2: Participation Details - Interested parties can join the call by dialing 1-800-715-9871 (Canada/U.S.) or 1-647-932-3411 (International), using the passcode 7456934 [2]. - Participants are encouraged to connect 10 minutes prior to the call [2]. - The presentation will be webcast live, with supporting slides available on CN's investor website [2]. Group 3: Company Overview - CN transports over 300 million tons of natural resources, manufactured products, and finished goods across North America annually [3]. - The company operates a nearly 20,000-mile rail network, linking Canada's coasts with the U.S. Midwest and Gulf Coast, contributing to sustainable trade since 1919 [3].

Core Points - CN announced the appointment of Janet Drysdale as interim Chief Commercial Officer following the departure of Remi G. Lalonde [1][3] - Janet Drysdale has nearly 30 years of experience at CN, with a strong background in Sales and Marketing, and has held various executive roles [2][4] - The Chief Commercial Officer position is critical for overseeing CN's sales and marketing team, and the company prioritizes finding a permanent replacement [3] Company Background - CN is a major player in the transportation sector, moving over 300 million tons of natural resources, manufactured products, and finished goods across North America annually [5] - The company operates a nearly 20,000-mile rail network, connecting Canada's coasts with the U.S. Midwest and Gulf Coast, contributing to sustainable trade [5]

Core Viewpoint - Canadian National (CNI) is expected to report quarterly earnings of $1.37 per share, a 1.5% increase year-over-year, with revenues projected at $3.15 billion, reflecting a 0.4% decrease compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised down by 0.2% in the last 30 days, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Key Metrics - Analysts project the 'Operating Ratio' to be 61.6%, down from 64.0% a year ago [4]. - 'Carloads - Coal' are expected to reach 118.19 thousand, up from 115.00 thousand year-over-year [5]. - Total 'Carloads' are estimated at 1.39 million, down from 1.42 million in the previous year [5]. - 'Carloads - Metals & Minerals' are projected at 235.00 thousand, down from 247.00 thousand [5]. - 'Carloads - Petroleum & Chemicals' are expected to be 159.84 thousand, down from 162.00 thousand [6]. - 'Carloads - Automotive' are estimated at 56.21 thousand, down from 59.00 thousand [6]. - 'Carloads - Intermodal' are projected at 578.85 thousand, down from 597.00 thousand [6]. - 'Carloads - Forest Products' are expected to be 73.81 thousand, down from 77.00 thousand [7]. - 'Carloads - Grain & Fertilizers' are projected at 170.25 thousand, up from 162.00 thousand [7]. Revenue Ton Miles - 'Revenue Ton Miles - Grain & Fertilizers' are expected to reach 15.67 billion, up from 14.59 billion year-over-year [8]. - 'Revenue Ton Miles - Coal' are projected at 5.42 billion, up from 5.29 billion [8]. - 'Revenue Ton Miles - Forest Products' are estimated at 5.62 billion, down from 5.75 billion [8]. Stock Performance - Over the past month, CNI shares have returned +1%, compared to the S&P 500 composite's +4.2% change [10]. - CNI currently holds a Zacks Rank 3 (Hold), suggesting performance may align with the overall market in the near future [10].

Company Overview - Canadian National (CNI) is based in Montreal, Quebec, and operates in the Transportation sector, specifically in railroads. The company's shares have experienced a price change of 1.51% this year [3]. Dividend Information - CNI currently pays a dividend of $0.65 per share, resulting in a dividend yield of 2.52%, which is higher than the Transportation - Rail industry's yield of 1.52% and the S&P 500's yield of 1.55% [3]. - The annualized dividend of CNI is $2.59, reflecting a 5.7% increase from the previous year. Over the past five years, the company has raised its dividend five times, achieving an average annual increase of 7.31% [4]. Earnings Growth and Future Outlook - For the fiscal year, CNI anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $5.65 per share, indicating a year-over-year earnings growth rate of 9.07% [5]. - The future growth of dividends will depend on earnings growth and the payout ratio, which is currently at 47%, meaning CNI pays out 47% of its trailing 12-month earnings per share as dividends [4]. Investment Considerations - CNI is considered a compelling investment opportunity due to its strong dividend profile. The stock currently holds a Zacks Rank of 3 (Hold) [6].