Canadian National Railway Company (CNR) investor relations material

Executive summary

• Delivered a solid first quarter with record RTMs up 3% year-over-year, best employee productivity and fuel efficiency in five years, and improved commercial intensity despite a volatile macroeconomic environment.

• Generated strong free cash flow and returned cash to shareholders, maintaining operational discipline and a robust balance sheet.

• Maintained reliable service and operational performance, with improved car velocity (up 6%), train speed (up 6%), and through dwell (down 4%).

• Safety performance fell short of expectations in Q1, with injury and accident rates rising, but improvements are underway.

Financial highlights

• Q1 2026 revenues were $4.4B (up 1% year-over-year, $4.5B at constant currency); diluted EPS was $1.87 (up 1%), adjusted diluted EPS was $1.80 (down 3%), and free cash flow reached $900 million (up 44%).

• Operating ratio increased to 64.6% (reported, up 1.2 pts), adjusted operating ratio at 64.2% (up 0.8 pts); operating income dropped 4% to $1,549 million.

• Net cash provided by operating activities rose 9% to $1,265 million; net cash used in investing activities fell 32% to $365 million.

• Share repurchases totaled approximately 6 million shares for $869 million in Q1 2026.

• Adjusted net income for Q1 2026 was $1,102 million, or $1.80 per diluted share, excluding non-recurring items.

Outlook and guidance

• Reaffirmed full-year adjusted diluted EPS growth guidance, with RTM growth expected to remain flattish and earnings to grow above volumes.

• 2026 capital program investment of approximately $2.8 billion planned, with disciplined investment focus.

• Assumptions revised to a spot FX rate of $0.73 CAD/USD and WTI oil price range of $80–$110 per barrel.

• Macro uncertainty remains elevated due to volatile economic and geopolitical conditions, with cautious outlook and limited visibility.

• Fuel price volatility expected to impact EPS and operating ratio; potential CAD 0.10 EPS tailwind in H2 if prices remain high.