Canadian National Railway Company (CNR) Scotiabank 24th Annual Transportation & Industrials Conference summary

Market and volume environment

• Labor disruptions and terminal outages impacted operations, but grain and coal shipments remained steady.

• October was the only month since May with clear operations, leading to strong performance.

• Economic conditions remain soft, with muted expectations for growth into next year.

• Housing and consumer demand are weaker than anticipated, affecting related freight volumes.

• Export commodities like grain, fertilizers, and energy products are performing strongly.

Growth initiatives and operational strategy

• Over 50% of growth is now driven by company-specific initiatives, exceeding initial expectations.

• International intermodal program reconfiguration boosted Q2 volumes; normalization expected next year.

• Record levels of frac sand and propane shipments, with new facilities and export markets expanding.

• Canola crush investments and fuel facility expansions are progressing on plan.

• EV-related business is slower, but the growth pipeline is being replenished.

U.S. political and trade outlook

• Close attention is being paid to the incoming U.S. administration, with both risks and opportunities anticipated.

• Economic growth, consumer strength, and energy policy are seen as potential positives.

• Trade policy changes, including USMCA renegotiation, are being monitored; company remains nimble.