Canadian National Railway (CNI) reported fourth-quarter profit rose to C1.25 billion from C1.15 billion year-over-year, driving shares higher on strong operational performance.
The earnings beat reflects improved operational efficiency and pricing power, positioning the railroad operator for continued growth as North American freight demand remains resilient.
Key Takeaways
- Q4 profit jumped 9% to C1.25 billion
- Revenue increased 2.4% to C4.46 billion
- Company raised quarterly dividend amid strong performance
Market Reaction & Context
CN earned C2.03 per diluted share in the quarter ended Dec. 31, up from C1.82 per share a year earlier 1. On an adjusted basis, the company posted C2.08 per share, beating analyst estimates of C1.43 by 4% 2.
The results outpaced broader rail industry trends, with revenue growth of 2.4% exceeding many North American freight operators facing softer demand conditions.
Full-Year Performance
For 2025 overall, CN delivered revenue growth of 2% to C17.3 billion, with operating income rising 5% to C6.59 billion 3. Diluted earnings per share climbed 8% for the full year, demonstrating consistent operational leverage.
The company’s operating ratio improved throughout the year, reflecting management’s focus on efficiency initiatives and network optimization.
Dividend Increase & Capital Allocation
CN announced a dividend hike alongside the earnings report, signaling confidence in its cash generation capabilities 4. The move follows the company’s strategy of returning capital to shareholders while maintaining investment in network infrastructure.
Management also outlined plans to trim 2026 capital expenditure while preserving growth investments, balancing shareholder returns with operational needs.
Operational Highlights
Fourth-quarter revenue of C4.46 billion represented a solid increase from C4.36 billion in the prior-year period 5. The growth came despite challenging market conditions affecting some freight segments.
CN’s diversified traffic mix helped offset weakness in certain commodity categories, with intermodal and automotive segments showing particular strength during the quarter.
Outlook
The railroad’s solid Q4 performance positions it well for 2026, though management remains cautious about broader economic headwinds. CN’s operational efficiency improvements and pricing discipline should support margin expansion even if volume growth moderates.
Investors will watch for commentary on 2026 guidance and capital allocation priorities as the company navigates evolving freight demand patterns across North America.
Not investment advice. For informational purposes only.
References
1(2026). “CN reports Q4 profit and revenue up from year ago, raises quarterly”. Yahoo Finance Canada. Retrieved January 30, 2026.
2(2026). “Canadian National Railway Q4 Earnings Report”. Benzinga. Retrieved January 30, 2026.
3(2026). “CN Announces Solid Fourth Quarter and Year-End Results”. CN.ca. Retrieved January 30, 2026.
4(2026). “CN hikes dividend as fourth-quarter profit and revenue rise”. The Globe and Mail. Retrieved January 30, 2026.
5(2026). “Canadian National Railway Co Q4 Profit Advances”. Nasdaq. Retrieved January 30, 2026.