Canadian National Railway Company posted fourth-quarter revenue of C$3.9 billion, a 5 percent increase compared with Q4 2024, driven by higher volumes in intermodal and automotive shipments. The company reported net income of C$820 million, up 12 percent year-over-year, translating into diluted earnings per share of C$1.45. Key contributors included a 7 percent rise in intermodal carloads to 380,000 units and a 4 percent gain in merchandise volumes, notably in forestry and consumer goods segments.

CN achieved a fourth-quarter operating ratio of 57.3 percent, a 1.2 percentage-point improvement from the prior year. This progress reflects disciplined fuel purchasing, targeted headcount reductions amounting to 3 percent of workforce, and the implementation of precision scheduled railroading initiatives across major corridors. Fuel costs per gross ton–mile declined by 3 percent despite higher diesel prices, while maintenance expense intensity was reduced by 8 percent through strategic asset utilization.

The railway generated free cash flow of C$1.2 billion in Q4, up from C$950 million a year earlier, bolstered by working capital improvements and deferred capital spending on non-critical projects. During the quarter, CN returned C$500 million to shareholders via dividends and C$400 million through share repurchases, representing 70 percent of free cash flow. The Board approved a 6 percent increase in the quarterly dividend for fiscal 2026, underscoring confidence in sustained cash generation.

For fiscal 2026, CN projects mid‐single-digit volume growth, anchored by anticipated gains in intermodal and energy products. Capital expenditures are guided to C$3.6 billion, focused on network capacity expansion and terminal enhancements in Vancouver and Chicago. Management reiterated an operating ratio target below 57 percent for full-year 2026, with annual free cash flow expected to exceed C$4 billion, supporting continued investment in service quality and shareholder distributions.