CN Railway reports Q4 2025 gains with net income up 9% to $920M, despite tariff impacts on traffic and expectations for flat volumes in 2026.
Canadian National Railway reported higher traffic, revenue, and operating income in the fourth quarter of 2025, with net income rising nine per cent to US$920 million. The company stated that results were aided by comparisons to a weaker 2024 quarter, which was impacted by Canadian port stoppages, as reported by Milwaukee's Trains journal.
Revenue rose two per cent to $3.3 billion, while operating income increased six per cent to $1.28 billion. Adjusted net income was $940 million, reflecting a 12 per cent increase. Chief Executive Tracy Robinson noted that productivity and a strong commercial focus helped CN navigate a challenging year and positioned the company for future growth.
The operating ratio improved to 61.2 per cent, while the adjusted operating ratio was 60.1 per cent. Diluted earnings per share rose 12 per cent to $1.50. Operating metrics showed gains in gross ton-miles and car velocity, with train length increasing three per cent to 7,868 feet. Chief Operating Officer Patrick Whitehead stated that CN handled more volume despite winter constraints.
Tariffs continued to weigh on traffic in forest products, steel, and aluminum, with an estimated $350 million impact in 2025, according to Chief Commercial Officer Janet Drysdale. CN anticipates flat volumes in 2026, with earnings per share slightly ahead of volume, citing uncertainty surrounding the United States-Mexico-Canada Agreement.
Full-year revenue rose two per cent to $12.76 billion, with net income up six per cent to $3.48 billion. Operating income was $4.86 billion, reflecting a five per cent increase. CN plans to invest $2.07 billion in capital spending in 2026, down from the previous year, after adding capacity in Vancouver and Prince Rupert and modernizing its locomotive fleet.
Ms. Robinson expressed that CN is poised for growth but noted that the proposed Union Pacific-Norfolk Southern merger faces significant hurdles. She mentioned that the Surface Transportation Board rejected the initial application and that concessions will be required to address competition concerns.
