Canadian National Railway Company (CNR) investor relations material

Executive summary

• Delivered strong Q2 performance with 12% FX-adjusted EPS growth, 11% revenue growth to C$4,753 million, and 5% volume growth, driven by operational discipline and commercial execution.

• Productivity initiatives, including Fast Track, and record fuel efficiency yielded significant realized benefits and supported long-term value creation.

• Strategic agreements and settlements with Union Pacific expanded network reach into Kansas City and Mexico, monetized surplus capacity, and mitigated merger-related risks.

• Repurchased approximately 3 million shares for C$454 million and maintained strong free cash flow, supporting shareholder returns.

• Maintained consistent network performance and service levels while advancing productivity and operational initiatives.

Financial highlights

• Q2 reported diluted EPS was C$2.06, up 10% year-over-year; adjusted diluted EPS was C$2.08, up 11%, or 12% FX-adjusted.

• Revenues increased 11% year-over-year to C$4,753 million on 5% RTM growth.

• Adjusted operating ratio was 62.2%, up 50 bps from last year, mainly due to higher fuel prices.

• Free cash flow for the quarter was C$942 million, up from C$922 million in Q2 2025; year-to-date free cash flow up 19% to C$1,842 million.

• Adjusted net income for Q2 was C$1,261 million; adjusted EBITDA for the twelve months ended June 30, 2026 was C$8,832 million, up 4%.

Outlook and guidance

• Raised 2026 guidance to mid- to high single-digit adjusted diluted EPS growth, assuming low single-digit RTM growth.

• Full-year capex guidance set at C$2.8 billion, with continued disciplined investment.

• Assumes Canadian dollar at US$0.71 and WTI oil price between US$80–US$110 per barrel.

• Effective tax rate expected at 25%-26%.

• Expects continued improvement in free cash flow conversion.