“Our scheduled operating plan demonstrated its resilience in the third quarter, allowing us to adapt our operations to challenges posed by [Jasper] wildfires and prolonged labor issues,” CN President and CEO Tracy Robinson said during a third-quarter 2024 financial and operating report on Oct. 22. “Our operations recovered quickly and the railroad is running well. As we close 2024, we will continue to focus on recovering volumes, growth, and ensuring our resources are aligned to demand.”
Among the Class I railroad’s quarterly highlights:
- Revenue ton miles (RTMs) of 56.548 billion were up 2% over the prior-year period. According to CN, the volume growth was “tempered by labor uncertainty.”
- Revenues of C$4.110 billion were up C$123 million, or 3%.
- Operating income of C$1.515 billion was in line with the prior year, according to CN.
- Operating ratio, defined as operating expenses as a percentage of revenues, came in at 63.1%, an increase of 1.1-points.
- Diluted earnings per share (EPS) of C$1.72 was up 2%.
2024 Guidance, Long-Term Financial Outlook
CN reaffirmed its 2024 financial outlook. It continues to expect to deliver adjusted diluted EPS growth in the low single-digit range and to invest approximately C$3.5 billion in its capital program, net of amounts reimbursed by customers. Additionally, the railroad said it continues to expect adjusted return on invested capital (ROIC) to be in the 13%-15% range. Over the 2024-2026 period, the railroad continues to target compounded annual adjusted diluted EPS growth in the high single-digit range.
