CN Announces Fourth Quarter and Year-End Results

Core Insights - CN expects to achieve 10%-15% adjusted diluted EPS growth in 2025, supported by a capital investment of approximately C$3.4 billion [3][4] - The company reported a decrease in both quarterly and annual revenues, with Q4 2024 revenues at C$4,358 million, down 3% from Q4 2023, and full-year revenues at C$17,046 million, an increase of 1$1,628 million, a decrease of 10% year-over-year, while full-year operating income was C$6,247 million, down 5$1.82, a decrease of 45% from Q4 2023, while adjusted diluted EPS was C$1.82, down 10$7.01, a decrease of 18%, and adjusted diluted EPS was C$7.10, down 2% [9][19] - The operating ratio for Q4 2024 was 62.6%, an increase of 3.3 points from the previous year, while the full-year operating ratio was 63.4%, up 2.6 points [9][19] Shareholder Returns - The Board of Directors approved a 5% increase in the quarterly cash dividend for 2025, marking the 29th consecutive year of dividend increases [4] - CN plans to repurchase up to 20 million common shares over a 12-month period starting February 4, 2025 [4] Long-term Financial Outlook - CN targets compounded annual adjusted diluted EPS growth in the high single-digit range from 2024 to 2026 [3] - Key assumptions for 2025 include a 1% growth in North American industrial production and RTM growth in the low to mid single-digit range [11][12] Operational Performance - Revenue ton miles (RTMs) for Q4 2024 were 59,305 million, a decrease of 3%, while full-year RTMs were 235,538 million, an increase of 1% [9][19] - The company reported a return on invested capital (ROIC) of 12.9% for the full year, down 3.9 points from the previous year [9][19]