CN Announces Second Quarter Results

Core Viewpoint - CN reported strong financial results for Q2 2025, demonstrating resilience in a challenging external environment, with a focus on cost control and customer service [2][4]. Financial Performance - Total revenues for Q2 2025 were C$4,272 million, a decrease of C$57 million or 1% compared to Q2 2024 [10][11]. - Freight revenues decreased by C$63 million or 2% to C$4,090 million [10][12]. - Operating income increased by C$80 million or 5% to C$1,638 million, while adjusted operating income remained flat [10][11]. - Net income for Q2 2025 was C$1,172 million, an increase of C$58 million or 5% compared to Q2 2024 [10][19]. - Diluted earnings per share (EPS) rose to C$1.87, a 7% increase from C$1.75 in Q2 2024 [10][19]. Operational Metrics - Revenue ton miles (RTMs) decreased by 1% to 59,215 million [10][12]. - Operating ratio improved to 61.7%, a 2.3-point improvement from 64.0% in Q2 2024 [10][11]. - Free cash flow for Q2 2025 was C$922 million, down from C$947 million in Q2 2024 [10][25]. Updated Guidance - CN revised its 2025 guidance, now expecting adjusted diluted EPS growth in the mid to high single-digit range, down from the previous expectation of 10%-15% [4][5]. - The company has removed its financial outlook for 2024-2026 due to ongoing macroeconomic uncertainty related to trade and tariff policies [5][4]. Sector Impact - CN plays a crucial role in powering the North American economy by transporting over 300 million tons of goods annually, contributing to sustainable trade [8].