Canadian National Railway Company (CNR) investor relations material

Leadership and organizational updates

• Jamie Lockwood appointed as VP of IR and special projects, succeeding Stacy Alderson, who is retiring.

• Jamie has held roles in accounting, internal audit, strategy, finance, and engineering, leading a 6,000-employee group.

• COO role consolidated under Pat Whitehead for improved decision speed and operational discipline.

• New CIO from Enbridge and new Chief Marketing Officer, Janet, both highlighted as strong additions.

• Leadership team praised for resilience and operational improvements during challenging years.

Financial performance and guidance

• Q4 EPS grew 14% with OR improvement of 250 bps; full-year EPS up 7% on 1% volume growth.

• 2026 guidance assumes flattish volumes and EPS slightly exceeding volume growth.

• Headwinds include mix, tariffs, reduced capital envelope, higher tax rate, and lower other income.

• FX is a headwind, with every CAD appreciation cent reducing EPS by $0.05 annually.

• CapEx reduced by CAD 500 million, aligning with U.S. peers and boosting free cash flow.

Market and operational environment

• Macroeconomic outlook remains weak, with industrial production flattish and tariff uncertainty.

• Energy and agriculture sectors performing well; record Canadian grain crop supports volumes.

• Forest products and metals/minerals face significant tariff headwinds, impacting profitability.

• Intermodal International volumes at Rupert recovering but below peak; capacity for growth remains.

• Automotive and housing-related sectors remain muted due to weak housing starts.