CN Railway reported a 5% increase in operating income for the second quarter despite a slight revenue decline, as the company’s cost-control measures helped offset challenging economic conditions.
The Montreal-based rail carrier posted operating income of C$1,638 million for the quarter ended June 30, up from C$1,558 million in the same period last year. Revenue decreased 1% to C$4,272 million, while diluted earnings per share rose 7% to C$1.87.
“Our team’s ability to be nimble and our focus on tight cost control allowed us to adjust our operations and deliver strong results despite a challenging external environment,” said Tracy Robinson, president and chief executive officer of CN. “We are working closely with customers, including those impacted by trade issues, to provide them with the services they need to win in their markets.”
The company’s operating ratio, a key efficiency metric that measures operating expenses as a percentage of revenues, improved to 61.7%, a 2.3-point enhancement from the previous year. Lower figures indicate better efficiency.
Revenue ton miles, a measure of freight volume, decreased 1% to 59,215 million. The grain and fertilizers segment showed the strongest performance with a 13% revenue increase, while forest products experienced the largest decline at 8%.
Citing persistent trade and tariff volatility in key economic sectors, CN revised its 2025 guidance downward. The company now expects adjusted diluted earnings per share growth in the mid to high single-digit range, compared to its January forecast of 10-15%.
CN also withdrew its 2024-2026 financial outlook due to “continued high level of macroeconomic uncertainty and volatility related to evolving trade and tariff policies.”
Despite these challenges, the company maintained its capital investment plan of approximately C$3.4 billion for the year. Free cash flow for the quarter was C$922 million, slightly below the C$947 million reported in the same period last year.
CN operates a nearly 20,000-mile rail network connecting Canada’s eastern and western coasts with the U.S. Midwest and Gulf Coast, transporting more than 300 million tons of goods annually.
