Canadian National Railway Company (CNR) Q1 2026 earnings summary

Executive summary

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

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

• Volume growth led by grain, potash, NGLs, and intermodal, with a record for grain movement in Q1.

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

• Maintained reliable service and operational performance despite macroeconomic and geopolitical volatility.

Financial highlights

• Q1 reported diluted EPS was $1.87, up 1% year-over-year; adjusted diluted EPS was $1.80, down 3%.

• Free cash flow increased 44% to $900 million; net cash provided by operating activities rose 9% to $1,265 million.

• Revenues declined 1% to $4,379 million, but rose 2% at constant currency; adjusted net income was $1,102 million.

• Operating ratio increased to 64.6% (reported), 64.2% (adjusted), up 120 bps and 80 bps respectively.

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

Outlook and guidance

• Maintaining guidance for flattish volumes with adjusted diluted EPS growth slightly exceeding volume growth for 2026.

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

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

• Cautious outlook due to limited visibility, volatile macroeconomic and geopolitical environment.