Canadian National Railway Company (CNR) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenues declined 1% year-over-year to $4,272 million, with flat carloads and a 1% drop in RTMs, but adjusted EPS grew 2% to $1.87, supported by strong cost control and margin improvement.

• Bulk, especially grain and fertilizers, outperformed with double-digit revenue growth, offsetting declines in merchandise and intermodal segments due to tariffs and macroeconomic headwinds.

• Operating metrics improved, including car velocity at 213 miles/day and local service commitment at 95%.

• Ongoing uncertainty from tariffs, trade policy, and macroeconomic conditions continued to impact volumes and outlook.

• Cost management actions, including headcount reductions and productivity initiatives, supported earnings resilience.

Financial highlights

• Q2 2025 revenues were $4,272 million, down 1% year-over-year; operating income rose 5% to $1,638 million.

• Adjusted diluted EPS grew 2% to $1.87; reported EPS up 7% year-over-year.

• Operating ratio improved by 50 basis points to 61.7%.

• Free cash flow for H1 2025 was $1,548 million, up 5% year-over-year, driven by lower CapEx.

• Fuel expense decreased 25% due to carbon tax elimination and lower fuel prices.

Outlook and guidance

• 2025 adjusted EPS growth guidance revised to mid to high single digits; prior 2024–2026 outlook withdrawn due to volatility.

• Full-year RTM growth now expected in the low single digits.

• Capital plan for 2025 reduced by about $50 million to $3.35–$3.4 billion, with further tightening possible.

• Multi-year guidance withdrawn due to short runway and persistent uncertainty.

• Volume growth expected in H2 as prior labor disruptions are lapped.