Fourth Quarter and Full Year 2025 Financial and Operating Results January 30th, 2026 Q4 Introduction CN reports its financial results in accordance with United States generally accepted accounting principles (GAAP). CN may also use non-GAAP measures in this presentation that do not have any standardized meaning prescribed by GAAP. These non-GAAP measures may not be comparable to similar measures presented by other companies. Forward-looking statements Certain statements included in this presentation constit ...

Key TakeawaysCanadian National Railway (CNR) exceeded analyst expectations with a Q4 adjusted EPS of C$2.08, outperforming estimates of C$1.98, while revenue met forecasts at C$4.46 billion.Panamanian President José Raúl Mulino has instructed maritime authorities to immediately meet with Panama Ports Company, signaling a significant operational shift for the country's port terminals.APM Terminals Panama, a subsidiary of A.P. Møller – Mærsk (MAERSK-B), has expressed willingness to temporarily take over the o ...

PRESS RELEASE CN Announces Solid Fourth Quarter and Year-End Results MONTREAL, January 30, 2026 — CN (TSX: CNR) (NYSE: CNI) today reported its financial and operating results for the fourth quarter and year ended December 31, 2025. "Our team delivered a strong fourth quarter and closed 2025 with disciplined execution and a relentless focus on capturing opportunities for our customers. I thank our railroaders for their commitment to running the railroad safely and efficiently. In a challenging demand environ ...

Core Viewpoint - CN has announced a 3% increase in its 2026 dividend and a new share repurchase program, reflecting strong cash flow and a disciplined capital management approach [1][2]. Dividend Announcement - The Board of Directors approved a quarterly dividend of C$0.9150 per common share, to be paid on March 31, 2026, to shareholders of record by March 10, 2026 [6]. Share Repurchase Program - The new normal course issuer bid (Bid) allows CN to repurchase up to 24 million common shares, representing 3.9% of the total shares outstanding as of January 22, 2026 [2][4]. - The Bid will run from February 4, 2026, to February 3, 2027, and will include various methods of share acquisition, subject to regulatory approvals [3][4]. - The previous share repurchase program, which allowed for the purchase of up to 20 million shares, is set to expire on February 3, 2026, with 15,250,222 shares repurchased at an average price of C$134.44 [5].

Core Insights - CN reported strong financial and operational results for Q4 and the full year 2025, demonstrating disciplined execution and a focus on customer opportunities [2][3] - The company anticipates continued macroeconomic uncertainty and geopolitical risks in 2026, emphasizing disciplined capital allocation and cost management to enhance free cash flow [3] Quarterly Financial Results Highlights - Q4 2025 diluted EPS grew by 12%, or 14% on an adjusted basis, with an operating ratio of 61.2%, improving by 1.4 points [6][7] - Revenues for Q4 2025 reached C$4,464 million, a 2% increase from Q4 2024, while operating income rose by 6% to C$1,733 million [7] - Net income for Q4 2025 was C$1,248 million, a 9% increase compared to the previous year [7] Full-Year Financial Highlights - For the full year 2025, diluted EPS increased by 8%, or 7% on an adjusted basis, with an operating ratio of 61.9%, improving by 1.5 points [6][8] - Total revenues for 2025 were C$17,304 million, up 2% from 2024, with operating income increasing by 5% to C$6,587 million [7] - Net income for 2025 was C$4,720 million, a 6% increase from 2024 [7] Operating Performance Highlights - Gross ton miles (GTMs) increased by 5% to 118,923 million in Q4 2025, while revenue ton miles (RTMs) rose by 4% to 61,707 million [7] - The operating expenses per GTM decreased by 4% to 2.30 cents in Q4 2025 [7] - Full-year GTMs increased by 1% to 463,002 million, and RTMs also rose by 1% to 238,159 million [14] Shareholder Returns - The Board of Directors approved a 3% increase in the quarterly cash dividend for 2026, marking the 30th consecutive year of dividend increases [11] - CN plans to repurchase up to 24 million common shares over a 12-month period starting February 4, 2026 [11] 2026 Financial Guidance - CN expects volume growth in RTMs to be flat in 2026, with adjusted diluted EPS growth anticipated to slightly exceed volume growth [10] - The capital program spending for 2026 is set at C$2.8 billion, a decrease of C$500 million from 2025 [6][10]

Canadian National reported fourth-quarter revenue and operating income improved as it moved higher volumes of freight more efficiently from the same period a year ago. Revenues of US$3.30 billion increased 2% while operating income of $1.28 billion was higher by 6%, the company said in a release prior to market openings. Adjusted operating income increased 9% to $1.32 billion. Net income of $920 million also was 9% higher, and adjusted net income of $1.28 million grew 12%. Diluted earnings per share inc ...

Financial Results Announcement - CN will issue its fourth-quarter and full-year 2025 financial and operating results on January 30, 2026, at 7:30 a.m. Eastern Time [1] - A conference call to review the results and the railway's outlook will start at 8:30 a.m. Eastern Time, led by Tracy Robinson, CN President and CEO [1] Participation Details - Interested parties can participate via telephone by dialing 1-800-715-9871 (Canada/U.S.) or 1-647-932-3411 (International), using passcode 4883669 [2] - Participants are advised to join the call 10 minutes early, and a live webcast will be available on CN's investor website [2] 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, connecting Canada's Eastern and Western coasts with the U.S. Midwest and Gulf Coast, contributing to sustainable trade since 1919 [3]

Industry Overview - The Zacks Transportation sector is diverse, including airlines, railroads, package delivery companies, and truckers, with S&P 500 members expected to see a 7.2% year-over-year decline in fourth-quarter 2025 earnings, while revenues are estimated to increase by 1.9% [1] Earnings Expectations - Several companies in the sector, such as Canadian National Railway, Expeditors International of Washington, and GXO Logistics, are anticipated to report better-than-expected earnings despite challenges like weak freight demand, tariff-related uncertainty, inflation, and supply-chain disruptions [2] Positive Factors Influencing Performance - A decline in oil prices, which fell by 7% during the October-December period, is beneficial for the transportation sector as fuel is a major operating expense, supporting margin expansion [3] - Ongoing cost-control measures amid soft freight demand are expected to enhance profitability, while the strength of e-commerce continues to be a significant tailwind for the sector [4] - U.S. airlines are experiencing steady air travel demand, which is encouraging despite economic headwinds, with increased passenger volumes during the Thanksgiving holiday likely boosting top-line performance [4] Company-Specific Insights - Canadian National Railway has an Earnings ESP of +0.49% and is scheduled to report on January 30, with strong performance expected from its Grain & Fertilizers segment [9][10] - Expeditors International has an Earnings ESP of +0.34% and is set to report on February 24, with cost-cutting efforts likely mitigating the impact of weak volumes [11][12] - GXO Logistics holds an Earnings ESP of +0.67% and will report on February 10, with increased e-commerce and cost-cutting measures expected to positively influence results [13][14]

Core Viewpoint - Scotiabank has raised its price target for Canadian National Railway Company (CNI) to C$163 from C$160, maintaining an Outperform rating, reflecting long-term confidence in the company's positioning rather than short-term catalysts [1] Group 1: Network Scale and Strategic Advantage - Canadian National Railway operates a vast network of approximately 32,000 kilometers, providing coast-to-coast service across Canada and extending into the US Midwest and Gulf regions, which is a significant competitive advantage [2] - The network functions as essential infrastructure, akin to a toll bridge, with high barriers to entry due to the time and capital required to replicate such a system, estimated to take decades and hundreds of billions [3] - The company has secured exclusive port access and invested in intermodal hubs, enhancing efficiency and customer integration into its network, which contributes to maintaining volume stability [3] Group 2: Operational Efficiency - Canadian National Railway boasts operating ratios around 62%, positioning it among the most efficient rail operators in North America, which is a critical aspect of its competitive moat [4]

Core Viewpoint - The Surface Transportation Board (STB) rejected the UP-NS merger application as incomplete, emphasizing the need for full and transparent disclosure in such significant transactions [1][2]. Group 1: Merger Application Details - The STB found that UP and NS did not meet basic requirements by failing to provide necessary information in their initial filing, indicating that the application was missing critical components [1][2]. - A stronger record is essential for the STB to assess whether the proposed merger serves the public interest and enhances competition, as the applicants withheld information crucial for understanding potential competitive harms [2]. Group 2: Company Position and Future Participation - CN expressed appreciation for the STB's thorough review and looks forward to robust participation once UP and NS submit a complete application, encouraging customers to stay informed and participate in the process [2][3]. - The company has been a key player in the transportation sector, moving over 300 million tons of goods annually across a nearly 20,000-mile rail network, contributing to sustainable trade and community prosperity since 1919 [4].