Canadian National Railway pany(US:CNI)2026-01-30 12:36Financial Performance - Total revenues for Q4 2025 reached $4,464 million, a 2.4% increase from $4,358 million in Q4 2024[24] - Freight revenues for the year 2025 were $16,681 million, up from $16,395 million in 2024, reflecting a 1.7% growth[24] - Operating income for Q4 2025 was $1,733 million, compared to $1,628 million in Q4 2024, marking a 6.4% increase[24] - Net income for the year 2025 was $4,720 million, an increase from $4,448 million in 2024, representing a 6.1% growth[24] - Adjusted diluted earnings per share for Q4 2025 were $2.08, up from $1.82 in Q4 2024, indicating a 14.3% increase[24] - Adjusted net income for Q4 2025 was $1,284 million, or $2.08 per diluted share, compared to $1,146 million, or $1.82 per diluted share in Q4 2024[33] - Adjusted diluted earnings per share for the year ended December 31, 2025, were $7.63, up from $7.10 in 2024[33] - Net income for 2025 was $4,720 million, an increase from $4,448 million in 2024, representing a growth of 6.1%[51] - Adjusted net income for 2025 was $4,756 million, compared to $4,506 million in 2024, indicating a 5.5% increase[51] Operational Efficiency - The operating ratio improved to 61.2% in Q4 2025 from 62.6% in Q4 2024, indicating enhanced operational efficiency[24] - The adjusted operating ratio for the year ended December 31, 2025, improved, reflecting effective cost management[37] - Operating income for Q4 2025 was $1,733 million, a 6% increase from $1,628 million in Q4 2024[38] - Adjusted operating income for the year 2025 reached $6,636 million, up from $6,325 million in 2024, reflecting a 5% growth[38] - Operating expense adjustments included $34 million related to a workforce reduction program in Q4 2025[35] - The company incurred $49 million in total adjustments for Q4 2025, primarily due to workforce reduction and advisory costs[38] Revenue Growth - Total freight revenues increased by 3% to $4,312 million in Q4 2025 from $4,183 million in Q4 2024[28] - The company reported a 6% increase in grain and fertilizers revenues for the year, totaling $3,658 million compared to $3,422 million in 2024[28] - The company experienced a 5% decrease in metals and minerals revenues for the year, totaling $1,962 million compared to $2,048 million in 2024[28] - Revenue ton miles (RTMs) for intermodal increased by 10% to 12,780 million in Q4 2025 from 11,652 million in Q4 2024[28] - The company's total carloads increased by 3% to 1,363 thousand in Q4 2025 from 1,324 thousand in Q4 2024[28] Cash Flow and Investments - Free cash flow for the year 2025 was $3,336 million, compared to $3,092 million in 2024, reflecting an 7.9% increase[24] - Free cash flow for Q4 2025 was $995 million, slightly down from $1,032 million in Q4 2024[43] - Average invested capital increased to $41,978 million in 2025 from $39,605 million in 2024, marking a growth of 6.0%[51] - The average long-term debt increased to $20,014 million in 2025 from $17,931 million in 2024, reflecting a growth of 11.5%[51] Tax and Return Metrics - The effective tax rate for 2025 was 24.6%, up from 24.0% in 2024, indicating a slight increase in tax burden[51] - The company's return, defined as net income plus after-tax interest expense, was $5,408 million for 2025, up from $5,125 million in 2024, reflecting a 5.5% increase[51] - The Return on Invested Capital (ROIC) remained stable at 12.9% for both 2025 and 2024[51] - The adjusted ROIC for 2025 was 13.0%, slightly down from 13.1% in 2024[51] - Adjusted return, which includes adjusted net income and after-tax interest expense, was $5,443 million in 2025, up from $5,183 million in 2024, a growth of 5.0%[51] Safety and Efficiency - The injury frequency rate improved to 0.73 per 200,000 person hours in Q4 2025, down from 1.17 in Q4 2024, indicating better safety performance[24] - The average fuel price per US gallon decreased to $3.85 in Q4 2025 from $4.15 in Q4 2024, reflecting a 7.2% reduction[24] - On a constant currency basis, net income for Q4 2025 would have been lower by $4 million compared to the previous year[40] - The average foreign exchange rate for Q4 2025 was $1.395 per US$1.00, compared to $1.399 in Q4 2024[40]