Canadian National (NYSE: CNI) achieved notable improvements across key performance metrics during the first quarter as revenue and profits were higher year on year despite challenging winter conditions.
For the three months ending March 31, revenue ton-miles (RTMs) saw a 1% increase to 60 billion, while total revenues grew by $111 million to reach $3.18 billion, a 4% increase. Operating income also showed positive momentum, rising by $46 million to $1.2 billion, a 4% improvement.
All freight showed carload gains save for flat intermodal and automotive, off 1% y/y.
The company’s operating ratio, an indicator of efficiency, improved by 0.2 points to 63.4%. Shareholders benefited from an 8% increase in diluted earnings per share, which reached $1.34.
Free cash flow improved from $382 million to $452 million.
Average car velocity slowed to 189 miles from 205 miles per day, while dwell increased to 7.8 hours from 7.1 hours in 2024. Average train speed slipped from 18.7 mph to 17.7 mph.
The injury frequency rate per 200,000 employee hours was unchanged at 1.11. The accident rate climbed to 2.09 from 1.73 per million train miles.
“Our team delivered a strong performance this quarter through tight cost control and disciplined adherence to our plan, mitigating the impact of winter conditions,” said Tracy Robinson, president and chief executive of Montreal-based CN, in a release. “In the context of a volatile macroeconomic and geopolitical environment, we will remain focused on agility and customer collaboration.”
Looking ahead to the remainder of 2025, CN maintained its guidance for adjusted diluted EPS growth of 10%-15%. The company has allocated approximately $2.46 billion for its capital investment program, net of customer reimbursements, for network enhancement and service improvement.
The carrier said it expects 2025 North American industrial production to be flat y/y.
The long-term outlook for 2024-2026 remains steady, with a target of high-single-digit compounded annual adjusted diluted EPS growth. While the company’s guidance and financial outlook remain unchanged, CN acknowledges heightened recessionary risks related to international trade tensions and tariff actions.
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Find more articles by Stuart Chirls here.
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