“Our team delivered a strong fourth quarter and closed 2025 with disciplined execution and a relentless focus on capturing opportunities for our customers,” CN President and CEO Tracy Robinson said during a fourth-quarter and full-year 2025 financial report. “I thank our railroaders for their commitment to running the railroad safely and efficiently. In a challenging demand environment, their focus on service, cost control and productivity drove solid performance.”
Among CN’s quarterly financial highlights:
- Revenues of C$4.464 million, an increase of C$106 million, or 2%.
- Operating income of C$1.733 million, an increase of C$105 million, or 6%, and adjusted operating income of C$1.782 million, an increase of C$154 million, or 9%.
- Operating ratio of 61.2%, an improvement of 1.4-points, and adjusted operating ratio of 60.1%, an improvement of 2.5 points.
- Net income of C$1.248 million, an increase of C$102 million, or 9%, and adjusted net income of C$1.284 million, an increase of C$138 million, or 12%.
- Diluted EPS of C$2.03, an increase of 12% and adjusted diluted EPS of C$2.08, an increase of 14%.
- The Company repurchased close to 4.4 million shares in the fourth quarter for approximately C$600 million.
Among CN’s quarterly performance highlights:
- Gross ton miles (GTMs) increased 5% to 118,923 (millions).
- Revenue ton miles (RTMs) increased 4% to 61,707 (millions).
- Through dwell decreased 1% to 7.0 (entire railroad hours).
- Car velocity increased 2% to 215 (car miles per day).
- Through network train speed of 19.2 (mph) was in line with prior year.
- Fuel efficiency of 0.875 (US gallons of locomotive fuel consumed per 1,000 GTMs), was 1% more efficient.
- Train length increased 3% to 7,868 (feet).
- GTMs per average number of employees increased 8% to 4,957 (thousands).
- Operating expenses per GTM decreased 4% to 2.30 (cents).
Among CN’s full-year financial highlights:
- Revenues of C$17.304 million, an increase of C$258 million, or 2%.
- Operating income of C$6.587 million, an increase of C$340 million, or 5%, and adjusted operating income of C$6.636 million, an increase of C$311 million, or 5%.
- Operating ratio of 61.9%, an improvement of 1.5 points, and adjusted operating ratio of 61.7%, an improvement of 1.2 points.
- Net income of C$4.720 million, an increase of C$272 million, or 6%, and adjusted net income of C$4.756 million, an increase of C$250 million, or 6%.
- Diluted EPS of C$7.57, an increase of 8% and adjusted diluted EPS of C$7.63, an increase of 7%.
- Free cash flow of C$3.336 million, an increase of C$244 million, or 8%.
- Net cash provided by operating activities of C$7.049 million, an increase of C$350 million, or 5%, and net cash used in investing activities of C$3.713 million, an increase of C$106 million, or 3%.
- Adjusted EBITDA of C$8.734 million, an increase of 4%.
- Adjusted debt-to-adjusted EBITDA of 2.51 times as at and for the year ended December 31, 2025.
- Return on invested capital (ROIC) of 12.9% was in line with prior year, and adjusted ROIC of 13.0%, a decrease of 0.1-point.
- The Company repurchased approximately 15 million shares in the year for approximately C$2 billion.
Among CN’s full-year performance highlights:
- GTMs increased 1% to 463,002 (millions).
- RTMs increased 1% to 238,159 (millions).
- Through dwell increased 1% to 7.1 (entire railroad hours).
- Car velocity decreased 1% to 206 (car miles per day).
- Through network train speed decreased 1% to 18.8 (mph).
- Fuel efficiency of 0.873 (US gallons of locomotive fuel consumed per 1,000 GTMs), was in line with prior year.
- Train length increased 1% to 7,909 (feet).
- GTMs per average number of employees increased 4% to 18,893 (thousands).
- Operating expenses per GTM decreased 2% to 2.31 (cents).
2026 Outlook
CN says it assumes that volume growth in terms of RTMs will be “flattish.” The Class I expects that adjusted diluted EPS growth will “slightly exceed volume growth.”
In 2026, CN says it plans to invest approximately C$2.8 billion in its capital program, “net of amounts reimbursed by customers.” The Class I says it also “expects to continue improving its free cash flow conversion throughout 2026.”
“As we enter 2026, we expect continued macroeconomic uncertainty and elevated geopolitical risk. We are managing through this environment by focusing on what we can control: disciplined capital allocation, rigorous cost management and strengthening free cash flow. This approach positions CN to respond quickly as volumes shift and to deliver sustainable long-term value for shareholders,” said Robinson.
For more financial details, visit the CN Investors website.
