Canadian National Railway Company (CNR) Q1 2026 earnings summary

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 strong service performance supporting commercial success.

• Generated solid free cash flow, returned cash to shareholders, and maintained operational discipline despite a volatile macroeconomic environment.

• 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.

Financial highlights

• Q1 2026 revenues were $4.4B, up 1% year-over-year; at constant currency, $4.5B, up 2%; net income decreased 1% to $1,146 million.

• Diluted EPS was $1.87 (up 1%), adjusted diluted EPS was $1.80 (down 3%), and adjusted net income was $1,102M.

• Free cash flow increased 44% to $900 million; net cash provided by operating activities rose 9% to $1.3B.

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

• Repurchased approximately 6 million shares for $869 million in Q1 2026.

Outlook and guidance

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

• 2026 capex guidance set at $2.8B, with disciplined investment focus and improved free cash flow conversion expected.

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

• Macro uncertainty remains elevated due to volatile economic and geopolitical conditions.

• Bullish on agriculture and energy, with several projects and expansions scheduled for later in the year.