Canadian National Railway Company (CNR) Q4 2025 earnings summary

Executive summary

• Delivered strong Q4 and full-year 2025 results with disciplined execution, cost control, and productivity improvements amid significant macroeconomic volatility and tariff pressures.

• Achieved record grain movement and maintained efficient operations despite early winter onset.

• Focused on capital discipline, commercial intensity, and shareholder returns, including active share repurchases.

Financial highlights

• Q4 2025 revenues rose 2% year-over-year to C$4,464M; operating income up 6% to C$1,733M; net income up 9% to C$1,248M.

• Q4 adjusted EPS up 14% year-over-year to C$2.08; reported diluted EPS up 12% to C$2.03.

• Full-year adjusted diluted EPS reached C$7.63, up 7% from 2024, at the high end of guidance.

• Q4 operating ratio improved to 60.1% (adjusted), 61.2% (reported); full-year adjusted operating ratio at 61.7%.

• Free cash flow for 2025 was over C$3.3B, up 8% year-over-year.

Outlook and guidance

• 2026 adjusted diluted EPS growth expected to slightly exceed flattish RTM volume growth.

• Capital program spending set at C$2.8B for 2026, down C$500M from 2025.

• Board approved a 3% increase to the 2026 quarterly dividend and a new NCIB for up to 24M share repurchases.

• Guidance assumes current tariff levels persist and no major changes in trade policy, with headwinds from mix, lower capital credits, higher tax rate, and lack of prior year other income gains.

• Management highlights continued macroeconomic and geopolitical uncertainty, with a focus on cost control and free cash flow.