Financial Performance - Q3 2025 total revenues reached $4.2 billion, a 1% increase compared to Q3 2024 [16, 38] - Diluted EPS grew by 6% to $1.83 in Q3 2025 [15, 16, 52] - The operating ratio improved by 170 bps to 61.4% in Q3 2025 [16, 52] - The company executed $1 billion in share repurchases [54] Operational Efficiency - RTMs (Revenue Ton Miles) increased by 1% in Q3 2025 [15, 16, 38, 54] - Carloads increased by 5% in Q3 2025 [38, 54] - Train length increased by 3% in Q3 2025 compared to Q3 2024 [25] - GTMS/T&E (Train and Engine) employee decreased by 20% in Q3 2025 compared to Q3 2024 [27] Outlook and Strategy - The company reaffirms its full-year EPS guidance, expecting mid-to-high single-digit adjusted diluted EPS growth compared to 2024 [61] - The outlook for 2025 capital expenditures is $3.35 billion, and the 2026 outlook is $2.8 billion, a $550 million reduction [61]

Core Insights - Canadian National Railway reported an increase in third-quarter profit and revenue driven by higher freight volumes transported [1] Financial Performance - The company experienced a rise in profit and revenue in the third quarter [1] - The increase in freight volumes contributed significantly to the financial performance [1]

Financial Performance - Revenues of $4,165 million, an increase of $55 million, or 1% compared to Q3 2024[12] - Operating income of $1,606 million, an increase of $91 million, or 6% compared to Q3 2024[12] - Net income for Q3 2025 was $1,139 million, a 5% increase from $1,085 million in Q3 2024, with diluted earnings per share rising by 6% to $1.83[28] - Free cash flow for Q3 2025 was $793 million, a significant increase of 36% from $584 million in Q3 2024[26] - Total revenues for Q3 2025 were $4,165 million, a 1% increase from $4,110 million in Q3 2024, while total revenues for the nine months ended September 30, 2025 were $12,840 million, also a 1% increase from $12,688 million in the same period of 2024[48] Operating Metrics - Operating ratio improved by 1.7 points to 61.4%[12] - The operating ratio improved to 61.4% in Q3 2025 from 63.1% in Q3 2024, reflecting better cost management[27] - The operating ratio for Q3 2025 improved to 61.4%, down from 63.1% in Q3 2024, and for the nine months ended September 30, 2025, it was 62.2%, compared to 63.6% in the same period of 2024[43] - The company expects continued improvements in operating metrics due to fewer network disruptions and a focus on scheduled operating plans[32] Revenue Breakdown - Revenues for Q3 2025 were $4,165 million, a 1% increase from $4,110 million in Q3 2024, driven by higher volumes and freight revenue per RTM[26] - Freight revenues for Q3 2025 were $3,991 million, a 2% increase from $3,922 million in Q3 2024, while for the nine months ended September 30, 2025, freight revenues were $12,369 million, up 1% from $12,212 million in the same period of 2024[48] - Petroleum and chemicals revenues increased by $15 million, or 2%, in Q3 2025, while revenues for the first nine months increased by $31 million, or 1%[54] - Metals and minerals revenues decreased by $25 million, or 5%, in Q3 2025, and by $64 million, or 4%, in the first nine months of 2025, primarily due to lower volumes[55][58] - Coal revenues increased by $8 million, or 3%, in Q3 2025, and by $34 million, or 5%, in the first nine months of 2025, mainly due to higher volumes[63] Expenses and Costs - Operating expenses for Q3 2025 were $2,559 million, a decrease of $36 million, or 1%, compared to Q3 2024, attributed to lower fuel prices[73] - Fuel expenses decreased by $101 million, or 19%, in Q3 2025, primarily due to lower fuel prices and the elimination of the Canadian federal carbon tax program[77] - The company reported a 20% decrease in fuel expenses for Q3 2025, amounting to $418 million, compared to $519 million in Q3 2024[47] Capital and Investments - The company expects to invest approximately $3.35 billion in its capital program in 2025[21] - Capital expenditures for Q3 2025 totaled $1,105 million, a decrease from $1,176 million in Q3 2024[111] Shareholder Returns - The company repurchased 7.7 million common shares for $1,041 million at a weighted-average price of $134.77 per share in Q3 2025, compared to 2.5 million shares for $427 million at $165.40 per share in Q3 2024[119] - Total dividends paid amounted to $550 million in Q3 2025, up from $532 million in Q3 2024, reflecting an increase in the quarterly dividend rate from $0.8450 to $0.8875 per share[122] Debt and Obligations - As of September 30, 2025, the company had total contractual obligations of $38,943 million, including $21,114 million in debt obligations[123] - The adjusted debt-to-adjusted EBITDA multiple was 2.54 times for the twelve months ended September 30, 2025, compared to 2.51 times for the same period in 2024[128] Risk Factors - The imposition of tariffs by the U.S. administration on imports and retaliatory tariffs by other countries presents significant risks to global trade, potentially impacting demand for rail services[170] Internal Controls and Compliance - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of September 30, 2025[172] - There were no changes in the Company's internal control over financial reporting that materially affected its effectiveness during the third quarter ended September 30, 2025[173]

Core Viewpoint - CN has announced a quarterly dividend of C$0.8875 per common share, which will be paid on December 30, 2025, to shareholders of record as of December 9, 2025 [1] Group 1: Dividend Announcement - The Board of Directors of CN approved a fourth-quarter 2025 dividend [1] - The dividend amount is eighty-eight and three-quarter cents (C$0.8875) per common share [1] - Payment date for the dividend is set for December 30, 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 Eastern and Western 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 Insights - CN reported strong financial results for Q3 2025, with a 6% increase in earnings and an operating ratio improvement of 170 basis points to 61.4% [5][6][19] - The company is focusing on productivity and has set a capital expenditure budget of C$2.8 billion for 2026, a reduction of nearly C$600 million from 2025 [2][5] - CN's net income for Q3 2025 was C$1,139 million, a 5% increase from the previous year, with diluted EPS rising to C$1.83, also a 6% increase [6][19] Financial Performance - Total revenues for Q3 2025 were C$4,165 million, up C$55 million or 1% from Q3 2024 [6][12] - Operating income increased by C$91 million or 6% to C$1,606 million [6][12] - Free cash flow for the first nine months of 2025 was C$2,341 million, a 14% increase from the same period in 2024 [6][27] Operational Metrics - Gross ton miles (GTMs) increased by 1% to 111,901 million, while revenue ton miles (RTMs) also rose by 1% to 57,188 million [6][12] - The company achieved a 2% improvement in fuel efficiency, consuming 0.833 US gallons of fuel per 1,000 GTMs [6][12] - Car velocity improved by 1% to 211 car miles per day, and train length increased by 3% to 8,049 feet [6][12] Shareholder Returns - CN repurchased close to 8 million shares for approximately C$1 billion during the quarter [5][12] - The Board of Directors approved a quarterly dividend of C$0.8875 per common share, payable on December 30, 2025 [7][12] Future Guidance - The company maintains its guidance for 2025, expecting mid-to-high single-digit adjusted diluted EPS growth [8][12] - CN is positioning itself to benefit from higher future volumes while enhancing long-term value for customers and shareholders [2][5]

Core Viewpoint - CN will release its third-quarter 2025 financial and operational results on October 31, 2025, at 7:30 a.m. Eastern Time, followed by a conference call to discuss the results and outlook [1] Group 1: Financial Results Announcement - The financial results will be available at 7:30 a.m. Eastern Time on October 31, 2025 [1] - A conference call will be held at 8:30 a.m. Eastern Time on the same day, led by Tracy Robinson, CN's President and CEO [1] Group 2: Participation Details - Participants can join the call by dialing 1-800-715-9871 (Canada/U.S.) or 1-647-932-3411 (International) with the passcode 4715336 [2] - It is recommended that participants dial in 10 minutes prior to the call [2] - A live webcast of the presentation will be available on CN's investor website, along with supporting slides [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, connecting Canada's coasts with the U.S. Midwest and Gulf Coast [3] - CN has been contributing to sustainable trade and community prosperity since its establishment in 1919 [3]

Core Insights - Canadian National Railway (CNI) is a significant entity in the North American rail industry, providing freight transportation services across Canada and the United States, and is a competitor to Canadian Pacific Kansas City and Union Pacific [1] - CNI is expected to release its quarterly earnings on October 31, 2025, with analysts estimating an earnings per share (EPS) of $1.28 and projected revenue of approximately $4.15 billion [1][5] - Despite anticipated lower revenues, CNI is expected to report a year-over-year increase in earnings for the quarter ending September 2025, with the consensus estimate aligning with expectations [2] Financial Metrics - CNI has a price-to-earnings (P/E) ratio of approximately 18.04, indicating market valuation of its earnings [3] - The price-to-sales ratio stands at about 4.78, reflecting the company's market value relative to its sales [3] - The enterprise value to sales ratio is around 5.98, suggesting how the company's total value compares to its sales [3] - The enterprise value to operating cash flow ratio is approximately 15.34, indicating the company's valuation in relation to its cash flow from operations [4] - The earnings yield is about 5.54%, providing insight into the return on investment for shareholders [4] - The debt-to-equity ratio is approximately 0.96, showing the proportion of debt used to finance the company's assets relative to shareholders' equity [4] - The current ratio is around 0.82, indicating the company's ability to cover its short-term liabilities with its short-term assets [4]

Core Thesis - Canadian National Railway Company (CNI) is positioned as a long-term compounder in the transportation sector, benefiting from structural advantages that create a natural monopoly and durable pricing power [2][3][5] Structural Advantages - High capital costs, regulatory hurdles, and land rights create significant barriers to entry for competitors, making it nearly impossible for new entrants to disrupt the market [2][3] - Rail transport is the most cost-effective and energy-efficient mode for long-distance freight, further enhancing CNI's competitive edge [2][3] Network and Diversification - CNI's unmatched network spans the Pacific, Atlantic, and Gulf of Mexico, providing a strategic geographic footprint that no other Class I railroad can replicate [3][4] - The company's diversified freight mix, including grain, petroleum, intermodal, and forestry products, reduces reliance on any single commodity, contributing to operational stability [3][4] Financial Performance and Capital Allocation - CNI reported net revenues of $4.27 billion, showcasing its financial strength and operational excellence [4] - The company maintains disciplined capital allocation, supported by robust free cash flow that funds dividends and share buybacks while allowing for reinvestment in infrastructure and technology [3][4][5] Long-term Growth Potential - Structural growth in cross-border trade among the U.S., Canada, and Mexico enhances CNI's long-term positioning in the freight rail sector [3][5] - The combination of pricing power, operational efficiency, strategic reach, and financial durability positions CNI as a resilient and high-quality business for long-term investors [4][5]

Core Insights - CN has appointed Patrick Whitehead as Executive Vice-President and Chief Operating Officer and Janet Drysdale as Executive Vice-President and Chief Commercial Officer, effective immediately [1][2] - The appointments are aimed at enhancing operational, commercial, and customer service excellence, with both executives having extensive experience in the railroad industry [2][3] Executive Profiles - Patrick Whitehead, 50, has over 30 years of railroad experience, with more than 25 years in management roles. He holds a Master of Science in Transportation Management and has completed advanced management programs at Wharton [2] - Janet Drysdale, 53, has nearly 30 years at CN, with significant roles in Sales, Marketing, Investor Relations, and Sustainability. She holds an Honours Bachelor of Science and an MBA [3] Company Overview - CN operates a nearly 20,000-mile rail network, transporting over 300 million tons of goods annually across North America, contributing to sustainable trade and community prosperity since 1919 [4]

Core Insights - CN has appointed Patrick Whitehead as Executive Vice-President and Chief Operating Officer and Janet Drysdale as Executive Vice-President and Chief Commercial Officer, effective immediately [1][2] - The appointments aim to enhance CN's operational, commercial, and customer service excellence, with both executives recognized for their cross-functional leadership [2] Executive Profiles - Patrick Whitehead, 50, has over 30 years of railroad experience, with more than 25 years in management roles. He previously served as Executive Vice President and Chief Network Operating Officer since October 2023 and holds a Master of Science in Transportation Management [2][3] - Janet Drysdale, 53, has nearly 30 years at CN, with significant roles in Sales, Marketing, Investor Relations, and Finance. She has been serving as Chief Commercial Officer on an interim basis since July 2025 and holds an Honours Bachelor of Science and an MBA [3] Company Overview - CN operates a nearly 20,000-mile rail network, transporting over 300 million tons of natural resources and goods annually across North America, contributing to sustainable trade and community prosperity since 1919 [4]