Canadian National Railway reported adjusted fourth-quarter earnings per share of C$1.71, exceeding analyst consensus by C$0.07. Revenue climbed 4.2% year-over-year to C$3.96 billion, driven by higher intermodal and industrial products shipments. The company raised its quarterly dividend by 5% to C$0.42 per share, marking the 27th consecutive year of dividend growth. Since the Jan. 30 earnings release, the stock has rallied by 2.8%, reflecting investor confidence in CN’s pricing power and operational resilience.

Management guided for flat full-year 2026 volumes compared with 2025 levels of 300 million tons, but expects to grow earnings per share by 6%–8% and free cash flow by 10% through disciplined pricing initiatives and productivity programs. Capital expenditures are slated to decline by C$500 million to C$3.7 billion, as investments shift from capacity expansion to network optimization and reliability projects. The company maintains a strong balance sheet with a debt-to-EBITDA ratio of 2.2x, well below its peers’ average of 2.8x.

At current multiples, CN trades below its five-year historical average EV/EBITDA of 11.5x and below the North American rail sector average of 12.2x. The board has authorized C$1.2 billion in share repurchases for 2026, up from C$800 million in the prior year, and the dividend payout ratio remains conservative at 54%, leaving room for further increases. With a nearly 20,000-mile rail network and annual volume of over 300 million tons, CN continues to generate stable cash flows that support ongoing capital returns to shareholders.