Canadian National Railway Company

Canadian National Railway posted a stronger-than-expected fourth quarter, with adjusted earnings per share of $2.08 beating the $1.98 consensus estimate by 5.05%, even as revenue of $4.46 billion trailed analyst expectations of $5.64 billion by 20.87%, despite rising 2.4% year over year. The profit beat was underpinned by meaningful operational improvement, with the adjusted operating ratio tightening 2.5 points to 60.1% as gross ton miles climbed 5% and productivity gains pushed GTMs per average employee up 8%, effectively squeezing more output from a leaner cost base. Intermodal volumes surging 10% and grain and fertilizer freight rising 6% provided the top-line lift, partially offsetting softness in coal, forest products, and metals. For the full year, CN generated $3.34 billion in free cash flow, up 8%, and rewarded shareholders with a 3% dividend increase, its 30th consecutive annual hike, alongside a new buyback authorization for up to 24 million shares. Looking ahead, management expects flattish volume growth in 2026, with adjusted EPS growth modestly exceeding that pace, while trimming the capital program by $500 million amid elevated trade and macroeconomic uncertainty.