CN on Jan. 30 released its fourth-quarter and full-year 2024 financial report, in which Robinson attributed the railroad’s ability to “quickly recover” from supply chain shocks—West Coast and Montreal port labor disruptions and prolonged cold weather in the Western Region—to its team and its operating model “strength.” She said CN has “good momentum as 2025 begins, and we are well positioned to drive growth with our customers and operating leverage across our system.” According to the Canadian Class I railroad, there has been “strong volume” to start the year, with 12% growth in RTMs (revenue ton miles).
Among the CN’s quarterly highlights:
- RTMs came in at 59,305 (millions), a decrease of 3% from fourth-quarter 2023.
- Revenues were C$4.358 billion, a decrease of C$113 million, or 3%, from the same period in 2023.
- Operating income was C$1.628 billion, down 10% or C$190 million from the prior-year period.
- Operating ratio, defined as operating expenses as a percentage of revenues, came in at 62.6%, an increase of 3.3 points from fourth-quarter 2023.
- Diluted earnings per share (EPS) were C$1.82, a decrease of 45%, or a decrease of 10% on an adjusted basis, vs. fourth-quarter 2023.
On the Operations side, CN said “winter operating conditions came early,” and car velocity (miles per day) was down 2%; through dwell (hours) was up 3%; and local service commitment was up 1% from fourth-quarter 2023.
CN provided the following full-year 2024 highlights:
- RTMs of 235,538 (millions), up 1% from full-year 2023.
- Revenues of C$17.046 billion, up 1% or C$218 million from full-year 2023.
- Operating income of C$6.247 billion, down 5%, or C$350 million, from the previous year.
- Operating ratio of 63.4%, up 2.6 points, and adjusted operating ratio of 62.9%, up 2.1 points, from full-year 2023.
- Diluted EPS of C$7.01, a decrease of 18%, and adjusted diluted EPS of C$7.10, a decrease of 2% from 2023.
- Return on invested capital (ROIC) of 12.9%, down 3.9 points, and adjusted ROIC of 13.1%, down 1.4-points, from full-year 2023.
2025 Outlook
In 2025, CN said it expects to deliver 10%-15% adjusted diluted EPS growth and plans to invest approximately C$3.4 billion in its capital program, “net of amounts reimbursed by customers.”
For more financial details, visit the CN Investors website.
