CN Delivers Strong Third Quarter Financial and Operating Results

Core Insights - CN reported strong financial results for Q3 2025, with a 6% increase in earnings and an operating ratio improvement of 170 basis points to 61.4% [5][6][19] - The company is focusing on productivity and has set a capital expenditure budget of C$2.8 billion for 2026, a reduction of nearly C$600 million from 2025 [2][5] - CN's net income for Q3 2025 was C$1,139 million, a 5% increase from the previous year, with diluted EPS rising to C$1.83, also a 6% increase [6][19] Financial Performance - Total revenues for Q3 2025 were C$4,165 million, up C$55 million or 1% from Q3 2024 [6][12] - Operating income increased by C$91 million or 6% to C$1,606 million [6][12] - Free cash flow for the first nine months of 2025 was C$2,341 million, a 14% increase from the same period in 2024 [6][27] Operational Metrics - Gross ton miles (GTMs) increased by 1% to 111,901 million, while revenue ton miles (RTMs) also rose by 1% to 57,188 million [6][12] - The company achieved a 2% improvement in fuel efficiency, consuming 0.833 US gallons of fuel per 1,000 GTMs [6][12] - Car velocity improved by 1% to 211 car miles per day, and train length increased by 3% to 8,049 feet [6][12] Shareholder Returns - CN repurchased close to 8 million shares for approximately C$1 billion during the quarter [5][12] - The Board of Directors approved a quarterly dividend of C$0.8875 per common share, payable on December 30, 2025 [7][12] Future Guidance - The company maintains its guidance for 2025, expecting mid-to-high single-digit adjusted diluted EPS growth [8][12] - CN is positioning itself to benefit from higher future volumes while enhancing long-term value for customers and shareholders [2][5]