Canadian National Railway (CN) reported steady financial and operational results for the third quarter ended Sept. 30, 2025, demonstrating resilience amid a challenging macroeconomic environment. The company posted revenues of C$4.165 billion, up 1% from the prior year, and operating income rose 6% to C$1.606 billion. Net income increased 5% to C$1.139 billion, while diluted earnings per share grew 6% to C$1.83.
CN improved its operating ratio—a key efficiency measure—by 170 basis points to 61.4%, reflecting disciplined cost management and productivity gains. Gross ton miles and revenue ton miles each increased 1%, supported by a 2% rise in network train speed and a 2% improvement in fuel efficiency. Train length grew 3%, and operating expenses per gross ton mile fell 3%, underscoring operational progress.
“We are taking decisive actions to navigate a challenging macro environment,” said CN President and CEO Tracy Robinson. “We are doubling down on productivity efforts and setting our 2026 capital spend at C$2.8 billion, down nearly C$600 million from this year’s levels, driving increased free cash flow on a go-forward basis.”
Free cash flow for the first nine months of 2025 rose 14% to C$2.341 billion. The company repurchased nearly 8 million shares in the quarter for about C$1 billion, reflecting confidence in its financial position.
Looking ahead, CN maintains its 2025 guidance for mid-to-high single-digit adjusted diluted earnings per share growth. The company expects to invest approximately C$3.35 billion in capital projects this year, net of customer reimbursements.
CN’s outlook assumes slightly positive North American industrial production growth and above-average grain crops in Canada and the U.S. The company also anticipates low single-digit growth in revenue ton miles and stable fuel prices between US$60 and US$70 per barrel.
The board approved a quarterly dividend of C$0.8875 per share, payable Dec. 30 to shareholders of record Dec. 9.
CN will hold a conference call on Oct. 31 to review results and outlook. Robinson emphasized the company’s focus on safety, service, and capturing freight opportunities to enhance long-term value for customers and shareholders.
