CN Announces First Quarter Results

Core Insights - CN reported a diluted EPS of C$1.85 for Q1 2025, reflecting an 8% increase compared to the previous year [1][10] - The company achieved total revenues of C$4,403 million, a 4% increase from C$4,249 million in Q1 2024 [10][20] - Operating income rose to C$1,610 million, also a 4% increase from C$1,546 million in the same quarter last year [10][20] Financial Performance - Revenue ton miles (RTMs) increased by 1% to 60,049 million [10][20] - Freight revenues reached C$4,288 million, up from C$4,137 million, marking a 4% increase [10][20] - Operating ratio improved to 63.4%, a slight enhancement from 63.6% in Q1 2024 [10][20] Operational Highlights - The company plans to invest approximately C$3.4 billion in its capital program for 2025 [4] - CN expects adjusted diluted EPS growth of 10%-15% for 2025 and targets high single-digit compounded annual adjusted diluted EPS growth from 2024 to 2026 [4][5] - The company noted a heightened recessionary risk due to tariffs and trade actions, which could impact demand for freight transportation [5][13] Market Assumptions - CN anticipates slightly positive growth in North American industrial production for 2025, adjusting its previous estimate from approximately 1% [9] - The company expects the U.S. grain crop for 2025/2026 to be above its five-year average, while the Canadian grain crop is expected to align with its five-year average [9] - The average price of crude oil is now projected to be in the range of US$60 - US$70 per barrel for 2025 [11][12]