Core Points - CN and Iowa Northern Railway Company officially merged operations on March 1, 2025, enhancing service capabilities and economic contributions in Iowa [1][2] - The merger integrates Iowa Northern's 175 route miles with CN's nearly 20,000-mile rail network, providing single-line service for various markets including grain, fertilizer, renewable fuels, and industrial sectors [2] Company Overview - CN transports over 300 million tons of natural resources, manufactured products, and finished goods across North America annually, connecting Canada's coasts with the U.S. Midwest and Gulf Coast [4] - The company has been operational since 1919, focusing on sustainable trade and community prosperity [4] Leadership Statements - Tracy Robinson, President and CEO of CN, emphasized the commitment to outstanding rail service and economic growth through this merger [2] - Derek Taylor, Executive Vice-President and Chief Field Operating Officer, highlighted the importance of safety and innovative transportation solutions in the integration process [2]

Group 1 - The author is a long-term oriented investor with a law degree and a doctorate in law, actively engaging in investment discussions and research [1] - The articles published represent personal opinions and do not constitute professional investment advice, emphasizing the importance of due diligence by readers [1] - There is no current stock or derivative position in any mentioned companies, and no plans to initiate such positions in the near future [1] Group 2 - Seeking Alpha clarifies that past performance does not guarantee future results and does not provide recommendations for specific investments [2] - The views expressed by analysts may not reflect the overall opinions of Seeking Alpha, highlighting the diversity of perspectives among contributors [2] - Analysts contributing to Seeking Alpha may include both professional and individual investors, some of whom may not be licensed or certified [2]

Core Viewpoint - CN has been recognized as a top sustainability performer in the transportation industry by the 2025 S&P Global Yearbook, reflecting its commitment to sustainability practices and corporate responsibility [1][2]. Sustainability Rankings - CN has achieved notable rankings in various sustainability assessments: - Listed on the Dow Jones Best-in-Class World Index for 13 consecutive years and the North American Index for 16 straight years [2]. - Received an AA rating from MSCI ESG Ratings, indicating resilience to long-term ESG risks [2]. - Scored a B from CDP for corporate transparency and climate change efforts [2]. - Ranked 1st among 215 companies on the S&P/TSX Composite Index with a score of 99 out of 100 based on governance criteria [2]. - Recognized as one of the Best 50 Corporate Citizens in Canada for 16 consecutive years, ranking 1st out of 99 in its industry [2]. - Awarded a Silver Medal by EcoVadis for being in the Top 15% of rated companies [2]. Future Plans - CN plans to publish its biennial Delivering Responsibly Sustainability Report and annual Data Supplement Report in 2025, which will highlight key performance indicators related to sustainability [3]. Company Overview - CN operates a nearly 20,000-mile rail network, transporting over 300 million tons of natural resources, manufactured products, and finished goods across North America annually, contributing to sustainable trade and community prosperity since 1919 [4].

Core Points - CN and Tree Canada have awarded $500,000 in grants to ten Canadian communities for tree planting and greening projects through the CN EcoConnexions program [1][2] - The program has funded 263 projects since 2012, resulting in the planting of approximately 149,190 trees and shrubs along the CN network [2] - CN and Tree Canada aim to plant a total of 3 million trees by 2030, having already planted over 2.4 million trees through various initiatives [2] Group 1: Grant Details - Ten communities received $50,000 grants each for their greening projects, totaling $500,000 [1] - Additionally, CN has funded 45 $10,000 grants through Tree Canada's Community Tree Grants program [1] Group 2: Program Impact - The From the Ground Up program enhances natural environments, improves social well-being, and engages residents in valuing green spaces [2][3] - Community involvement is encouraged in planting activities to celebrate the importance of trees and green spaces [3] Group 3: Organizational Commitment - CN emphasizes its commitment to enhancing community quality of life through environmental initiatives [4] - Tree Canada highlights the tangible environmental and social benefits generated by these grants, such as reducing urban heat and restoring local parks [4]

Core Points - Tracy Robinson, President and CEO of CN, will speak at the Barclays 2025 Industrial Select Conference on February 19, 2025, at 8:05 a.m. ET [1] - CN will provide a live webcast of the event, with a replay available afterward [1] 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 the Gulf of Mexico [2] - CN has been contributing to sustainable trade and community prosperity since its establishment in 1919 [2]

Core Points - CN has filed its 2024 Annual Financial Statements and related documents with Canadian and U.S. securities regulators, now available on its website [1] - Printed copies of the 2024 Annual Financial Statements will be provided to shareholders free of charge upon request [2] - CN operates a nearly 20,000-mile rail network, transporting over 300 million tons of goods annually, contributing to sustainable trade and community prosperity since 1919 [3]

Core Points - CN has filed its 2024 Annual Financial Statements and related documents with Canadian and U.S. securities regulators, available on its website [1] - Printed copies of the 2024 Annual Financial Statements will be provided to shareholders free of charge upon request [2] - CN operates a nearly 20,000-mile rail network, transporting over 300 million tons of goods annually, contributing to sustainable trade and community prosperity since 1919 [3]

Internal Control and Audit - The Company assessed the effectiveness of its internal control over financial reporting as of December 31, 2024, and determined it was effective[2]. - KPMG LLP issued an unqualified audit opinion on the Company's 2024 consolidated financial statements and internal control over financial reporting[3]. - The Company maintained effective internal control over financial reporting as of December 31, 2024, based on established criteria[17]. - The audit included evaluating the design and operating effectiveness of internal controls related to the Company's capital additions process[15]. - The internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting[21]. - The Company has been audited by KPMG LLP since 1992, ensuring continuity and expertise in the audit process[16]. Financial Performance - Revenues for 2024 reached $17,046 million, a slight increase of 1.3% compared to $16,828 million in 2023[26]. - Operating income decreased to $6,247 million in 2024 from $6,597 million in 2023, reflecting a decline of 5.3%[26]. - Net income for 2024 was $4,448 million, down 20.9% from $5,625 million in 2023[26]. - Basic earnings per share decreased to $7.02 in 2024 from $8.55 in 2023, a decline of 17.9%[26]. - Total operating expenses increased to $10,799 million in 2024, up from $10,231 million in 2023, representing a rise of 5.6%[26]. - Labor and fringe benefits rose to $3,422 million in 2024, compared to $3,150 million in 2023, an increase of 8.6%[26]. - Interest expense increased to $891 million in 2024 from $722 million in 2023, a rise of 23.4%[26]. - Other income (loss) was $42 million in 2024, down from $134 million in 2023[26]. - Income tax expense increased to $1,404 million in 2024 from $863 million in 2023, an increase of 62.5%[26]. - Comprehensive income for 2024 increased to $5,707 million, compared to $5,315 million in 2023, reflecting a rise of 7.4%[27]. Assets and Liabilities - Total assets as of December 31, 2024, reached $57,067 million, an increase of 8.5% from $52,666 million in 2023[29]. - Current liabilities decreased to $3,976 million in 2024, down 21% from $5,035 million in 2023[29]. - Long-term debt increased to $19,728 million in 2024, up 22% from $16,133 million in 2023[29]. - Shareholders' equity rose to $21,051 million in 2024, an increase of 4.6% from $20,117 million in 2023[29]. - The pension asset increased to $4,541 million in 2024, up from $3,140 million in 2023[29]. Cash Flow and Investments - Net cash provided by operating activities was $6,699 million, slightly down from $6,965 million in 2023[33]. - Total cash, cash equivalents, and restricted cash at the end of 2024 was $401 million, down from $924 million in 2023[33]. - Cash used in investing activities increased to $3,607 million in 2024 from $3,468 million in 2023[33]. - Issuance of debt rose to $3,483 million in 2024, compared to $2,554 million in 2023[33]. - Repurchase of common shares decreased to $2,600 million in 2024 from $4,551 million in 2023[33]. - Dividends paid increased to $2,138 million in 2024, compared to $2,071 million in 2023[33]. Taxation - The Company operates in various tax jurisdictions, requiring significant judgments and estimates regarding its tax positions[10]. - The audit procedures involved assessing the Company's interpretation of relevant tax regulations and evaluating the reasonability of its tax positions[12]. - The effective income tax expense for 2024 was C$1,404 million, compared to C$863 million in 2023, influenced by provincial and foreign income taxes[122]. - The company had net deferred income taxes of $(10,185) million as of December 31, 2024, an increase from $(9,384) million in 2023[125]. - The total amount of gross unrecognized tax benefits was $41 million as of December 31, 2024, down from $46 million in 2023[128]. Capital Expenditures - Capital additions, net of finance leases, amounted to $3,549 million for the year ended December 31, 2024, including $1,564 million for track and railway infrastructure maintenance[13]. - The Company capitalizes all costs necessary to make purchased assets ready for intended use, including direct material, labor, and contracted services[62]. - The service life of rail assets is extended through rail grinding, which is capitalized as it allows for additional gross tons to be carried over the rail[63]. - Expenditures related to shoulder ballast undercutting are capitalized as they represent the addition of a new asset, replacing deteriorated ballast[64]. - The Company uses approximately 40 different depreciable asset classes, with depreciation rates based on estimated service lives[67]. Debt and Financing - The Company has a total debt of $20,894 million as of December 31, 2024, which includes finance lease liabilities of $7 million[170]. - The Company extended the maturity date of its committed bilateral letter of credit facilities to April 28, 2027, with outstanding letters of credit totaling $329 million[167]. - The Company issued a total of $1,242 million in notes in May 2024, including $700 million 4.60% Notes due 2029 and $550 million 5.10% Notes due in 2054[158]. - The Company had total commercial paper borrowings of $721 million as of December 31, 2024, compared to $1,801 million in 2023, reflecting a decrease of 60%[160]. Pension and Investment Strategy - The Company expects total cash contributions of approximately $80 million for all other pension plans in 2025, with no contributions anticipated for the CN Pension Plan due to its fully funded status[180]. - The actual asset allocation for 2024 shows a 30% allocation to equities, up from 25% in 2023, while bonds decreased to 47% from 41%[183]. - As of December 31, 2024, the total fair value of plan assets is $18,435 million, a rise from $17,533 million in 2023[187]. - The funded status of the Company's pension plans is significantly influenced by overall capital market returns and interest rate levels[185]. - The fair value of total derivatives included in investments for 2024 was $8,359 million, with an unrealized gain of $86 million and an unrealized loss of $183 million, compared to $7,569 million, $504 million gain, and $257 million loss in 2023[198].

Core Viewpoint - Canadian National Railway Company (CNI) reported a decline in earnings and revenues for the fourth quarter of 2024, missing consensus estimates while facing challenges in volume and operating expenses [1][2][3]. Financial Performance - CNI's fourth-quarter 2024 earnings were $1.30 per share (C$1.82), missing the Zacks Consensus Estimate of $1.37 and declining 12.1% year-over-year [1]. - Revenues for the fourth quarter were $3.11 billion (C$4.35 billion), surpassing the Zacks Consensus Estimate of $3.07 billion but still declining year-over-year [1]. - Operating income decreased by 11% compared to the fourth quarter of 2023, with an operating ratio worsening to 62.6% from 59.3% [3]. Volume and Revenue Metrics - Revenue ton-miles (RTMs) decreased by 3% year-over-year, with carloads down by 5% [2]. - Freight revenue per RTM saw a slight increase of 0.1% year-over-year [2]. - Freight revenues, which accounted for 95.9% of total revenues, decreased by 3% year-over-year, with notable declines in several segments including coal (down 8%) and automotive (down 20%) [4]. Segment Performance - Carloads in various segments showed mixed results, with petroleum and chemicals up by 4% while automotive fell by 18% [5]. - Specific segment revenues included a 1% increase in petroleum and chemicals and a 4% increase in grain and fertilizers, contrasting with declines in metals and minerals, forest products, and coal [4][5]. Liquidity and Capital Management - CNI ended the fourth quarter with cash and cash equivalents of C$389 million, up from C$273 million in the previous quarter [6]. - Long-term debt increased to C$19.7 billion from C$18.6 billion [6]. - The company generated C$1.99 billion from operating activities, with free cash flow at C$1.03 billion [6]. Dividend and Share Buyback - The board approved a 5% increase in the quarterly cash dividend, marking the 29th consecutive year of dividend increases [7]. - A new Normal Course Issuer Bid was approved, allowing the purchase of up to 20 million common shares for cancellation over a 12-month period starting February 4, 2025 [7]. Future Outlook - For 2025, CNI anticipates adjusted earnings per share (EPS) growth of 10%-15% and plans to invest approximately C$3.4 billion in its capital program [8]. - The company expects low to mid-single-digit growth in RTMs and a 1% growth in North American industrial production [9]. - CNI aims for compounded annual adjusted diluted EPS growth in the high single-digit range from 2024 to 2026 [9].

Core Viewpoint - Canadian National Railway Company (CNI) is a significant player in North America's railroad industry, impacting nearly every business and consumer [1] Group 1: Company Overview - CNI has been a long-term investment choice for many due to its essential role in the transportation sector [1] - The company is recognized for its strong growth potential and is considered undervalued in the market [1] Group 2: Investment Philosophy - The investment approach focuses on long-term value and identifying opportunities that can yield strong returns [1] - The strategy is based on thorough industry insights and rigorous analysis to uncover potential investments [1]