Free cash flow for the first quarter was C$900 million, an increase of 44%, consisting of net cash provided by operating activities of C$1,265 million and net cash used in investing activities of C$365 million (1)
Best first quarter employee productivity in the last five years
Record fuel efficiency performance in a first quarter
First quarter diluted earnings per share (EPS) growth of 1%, or a decrease of 3% on an adjusted basis and a decrease of 1% on an adjusted basis at constant currency (1)
Repurchased approximately 6 million shares in the first quarter for C$869 million
MONTREAL, April 29, 2026 (GLOBE NEWSWIRE) -- CN (TSX:CNR) (NYSE:CNI) today reported its financial and operating results for the first quarter ended March 31, 2026.
"I want to thank the entire CN team for delivering on our plan, despite ongoing uncertainty in the macro environment. Our strong commercial and operating performance allow us to fully leverage the strength of our network, enabling us to capture incremental volume. We remain firmly focused on safety, tight execution, cost control and capital discipline." - Tracy Robinson, President and Chief Executive Officer, CN
First-Quarter 2026 Results HighlightsIn the first quarter, CN saw improvements across operating metrics, with strong commercial and service performance. Gross ton miles (GTMs) increased by 3% to 118,389 (millions), while revenue ton miles (RTMs) increased by 3% to 61,834 (millions) setting a new first quarter record. The Company delivered diluted earnings per share (EPS) of C$1.87, an increase of 1%, and adjusted diluted EPS of C$1.80, a decrease of 3%, or C$1.83 on an adjusted basis at constant currency, a decrease of 1%. (1)The quarter's operating performance reflects the Company's continued priority on improving network execution and reliability as well as its ability to capture demand in markets that remain resilient amid an uncertain macro-economic environment. Financial performance in the quarter was negatively impacted by higher year-over-year costs related to winter conditions, incidents and a higher effective tax rate.
Quarterly Financial Results HighlightsFirst-quarter 2026 compared to first-quarter 2025
Revenues of C$4,379 million, a decrease of C$24 million, or 1%.
Operating income of C$1,549 million, a decrease of C$61 million, or 4%, and adjusted operating income of C$1,566 million, a decrease of C$44 million, or 3%. (1)
Operating ratio, defined as operating expenses as a percentage of revenues, of 64.6%, an increase of 120 basis points, and adjusted operating ratio of 64.2%, an increase of 80 basis points. (1)
Net income of C$1,146 million, a decrease of C$15 million, or 1%, and adjusted net income of C$1,102 million, a decrease of C$59 million, or 5%. (1)
Diluted EPS of C$1.87, an increase of 1% and adjusted diluted EPS of C$1.80, a decrease of 3%, or C$1.83 on an adjusted basis at constant currency, a decrease of 1%. (1)
Free cash flow for the first quarter of 2026 was C$900 million, an increase of C$274 million, or 44%, consisting of net cash provided by operating activities of C$1,265 million and net cash used in investing activities of C$365 million. (1)
Adjusted EBITDA reported for the twelve months ended March 31, 2026 of C$8,679 million, an increase of 3%. (1)
Adjusted debt-to-adjusted EBITDA of 2.65 times as at and for the twelve months ended March 31, 2026. (1)
The Company repurchased close to 6 million shares in the first quarter of 2026 for C$869 million.
"Our focus is on strong execution. That means getting the fundamentals right every day and delivering consistently for our customers. The discipline the team is bringing to how we run the network and deploy our assets drove productivity gains and a new first quarter record for fuel efficiency. It's helping us build a more efficient operation that better supports our customers' needs." - Patrick Whitehead, Executive Vice-President and Chief Operating Officer, CN
Quarterly Operating Performance Highlights *First-quarter 2026 compared to first-quarter 2025
Gross ton miles (GTMs) increased 3% to 118,389 (millions).
Revenue ton miles (RTMs) increased 3% to 61,834 (millions), a new first quarter record.
Through dwell decreased by 4% to 7.5 (entire railroad, hours).
Car velocity increased by 6% to 201 (car miles per day).
Through network train speed increased by 6% to 18.7 (mph).
Record first quarter fuel efficiency of 0.892 (US gallons of locomotive fuel consumed per 1,000 gross ton miles (GTMs)), was 3% more efficient.
Train length increased by 2% to 7,873 (feet).
GTMs per average number of employees increased 8% to 5,026 (thousands), the best employee productivity in the last five years.
Operating expenses per GTM decreased 2% to 2.39 (cents).
* Statistical operating data and key operating measures are unaudited and based on estimated data available at such time and are subject to change as more complete information becomes available.
DividendsCN's Board of Directors has approved a second-quarter 2026 dividend on the Company's common shares outstanding. A quarterly dividend of ninety-one and a half cents (C$0.9150) per common share will be paid on June 30, 2026, to shareholders of record at the close of business on June 9, 2026.
2026 financial guidance (1)(2)CN continues to assume that volume growth in terms of RTMs will be flattish. The Company continues to expect that adjusted diluted EPS growth will slightly exceed volume growth.
In 2026, CN still plans to invest approximately C$2.8 billion in its capital program, net of amounts reimbursed by customers. The Company also expects to continue improving its free cash flow conversion throughout 2026.
CONFERENCE CALL DETAILSCN's senior officers will review the results and the railway's outlook in a conference call starting at 8:30 a.m. Eastern Time on April 29. Tracy Robinson, CN President and Chief Executive Officer, will lead the call. Parties wishing to participate via telephone may dial 1-800-715-9871 (Canada/U.S.), or 1-647-932-3411 (International), using 9281112 as the passcode. Participants are advised to dial in 10 minutes prior to the call.
(1) Non-GAAP MeasuresCN reports its financial results in accordance with United States generally accepted accounting principles (GAAP). CN may also use non-GAAP measures in this news release that do not have any standardized meaning prescribed by GAAP. These non-GAAP measures may not be comparable to similar measures presented by other companies. For further details of these non-GAAP measures, including a reconciliation to the most directly comparable GAAP financial measures, refer to the attached supplementary schedule, Non-GAAP Measures.
CN's outlook, guidance or targets (2) exclude certain adjustments, which are expected to be comparable to adjustments made in prior years. However, management cannot individually quantify on a forward-looking basis the impact of these adjustments, which could be significant, are difficult to predict and may be highly variable. As a result, CN does not provide a corresponding GAAP measure for, or reconciliation to, its outlook, guidance or targets.
(2) Forward-Looking StatementsCertain statements included in this news release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws, including statements based on management's assessment and assumptions and publicly available information with respect to CN. By their nature, forward-looking statements involve risks, uncertainties and assumptions. CN cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as "believes," "expects," "anticipates," "assumes," "outlook," "plans," "targets," "goals," or other similar words.
2026 key assumptionsCN has made a number of economic and market assumptions in preparing its 2026 outlook. The 2025/2026 grain crops in Canada and the U.S. were above their respective five-year averages. The Company continues to assume that the 2026/2027 grain crops in Canada and the U.S. will be in line with their respective five-year averages. CN continues to assume RTM growth will be flattish. CN now assumes that in 2026, the value of the Canadian dollar in U.S. currency will be $0.73 (compared to its January 30, 2026 assumption of $0.715), and now assumes that in 2026 the average price of crude oil (West Texas Intermediate) will be in the range of US$80 - US$110 per barrel (compared to its January 30, 2026 assumption in the range of US$60-US$70 per barrel). The Company notes there is a heightened demand risk as a result of volatile macroeconomic conditions, geopolitical conflicts and global trade tensions.
Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors which may cause actual results, performance or achievements of CN to be materially different from the outlook or any future results, performance or achievements implied by such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. Important risk factors that could affect the forward-looking statements in this news release include, but are not limited to, general economic and business conditions, including factors impacting global supply chains such as pandemics and geopolitical conflicts or tensions; trade restrictions, trade barriers, or the imposition of tariffs or other changes to international trade arrangements; industry competition; inflation, currency and interest rate fluctuations; changes in fuel prices; legislative and/or regulatory developments; compliance with environmental laws and regulations; actions by regulators and other regulatory claims or proceedings; increases in maintenance and operating costs; security threats; reliance on technology and related cybersecurity risk; transportation of hazardous materials; various events which could disrupt operations, including illegal blockades of rail networks, and natural events such as severe weather, droughts, fires, floods and earthquakes; climate change; labor negotiations and disruptions; environmental claims; uncertainties of investigations, proceedings and other types of claims and litigation; risks and liabilities arising from derailments; timing and completion of capital programs; the availability of and cost competitiveness of renewable fuels and the development of new locomotive propulsion technology; reputational risks; supplier concentration; pension funding requirements and volatility; and other risks detailed from time to time in reports filed by CN with securities regulators in Canada and the United States. Reference should also be made to Management's Discussion and Analysis (MD&A) in CN's annual and interim reports, Annual Information Form and Form 40-F, filed with Canadian and U.S. securities regulators and available on CN's website, for a description of major risk factors relating to CN.
The achievement of CN's climate goals is subject to several risks and uncertainties, including those disclosed in the MD&A in CN's annual and interim reports. There can be no certainty that the Company will achieve any or all of these goals within the stated timeframe, or that achieving any of these goals will meet all of the expectations of its stakeholders or applicable legal requirements.
Forward-looking statements reflect information as of the date on which they are made. CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking statement. Information contained on, or accessible through, our website is not incorporated by reference into this news release.
This earnings news release, as well as additional information, including the Financial Statements, Notes thereto and MD&A, is contained in CN's Quarterly Review available on the Company's website at www.cn.ca/financial-results and on SEDAR+ at www.sedarplus.ca as well as on the U.S. Securities and Exchange Commission's website at www.sec.gov through EDGAR.
About CNCN powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year for its customers. With its nearly 20,000-mile rail network and related transportation services, CN connects Canada's Eastern and Western coasts with the U.S. Midwest and the U.S. Gulf Coast, contributing to sustainable trade and the prosperity of the communities in which it operates since 1919.
Contacts:
Media
Investment Community
Ashley Michnowski
Jamie Lockwood
Senior Manager
Vice-President, Investor Relations
Media Relations
and Special Projects
(438) 596-4329
(514) 399-0052
[email protected]
[email protected]
SELECTED RAILROAD STATISTICS, UNAUDITED
Three months ended March 31
2026
2025
Financial measures
Key financial performance indicators (1)
Total revenues ($ millions)
4,379
4,403
Freight revenues ($ millions)
4,267
4,288
Operating income ($ millions)
1,549
1,610
Adjusted operating income ($ millions) (2)(3)
1,566
1,610
Net income ($ millions)
1,146
1,161
Adjusted net income ($ millions) (2)(3)
1,102
1,161
Diluted earnings per share ($)
1.87
1.85
Adjusted diluted earnings per share ($) (2)(3)
1.80
1.85
Net cash provided by operating activities ($ millions)
1,265
1,164
Net cash used in investing activities ($ millions)
365
538
Free cash flow ($ millions) (2)(4)
900
626
Gross property additions ($ millions)
439
519
Share repurchases ($ millions)
869
101
Dividends per share ($)
0.9150
0.8875
Financial ratio
Operating ratio (%) (5)
64.6
63.4
Adjusted operating ratio (%) (2)(3)
64.2
63.4
Operational measures (6)
Statistical operating data
Gross ton miles (GTMs) (millions)
118,389
114,843
Revenue ton miles (RTMs) (millions)
61,834
60,049
Carloads (thousands)
1,336
1,313
Route miles (includes Canada and the U.S., end of period)
18,900
18,900
Employees (end of period)
23,541
24,911
Employees (average for the period)
23,554
24,627
Key operating measures
Freight revenue per RTM (cents)
6.90
7.14
Freight revenue per carload ($)
3,194
3,266
GTMs per average number of employees (thousands)
5,026
4,663
Operating expenses per GTM (cents)
2.39
2.43
Labor and fringe benefits expense per GTM (cents)
0.77
0.80
Diesel fuel consumed (US gallons in millions)
105.6
105.3
Average fuel price ($ per US gallon)
4.19
4.39
Fuel efficiency (US gallons of locomotive fuel consumed per 1,000 GTMs)
0.892
0.917
Train weight (tons)
9,296
9,078
Train length (feet)
7,873
7,708
Car velocity (car miles per day)
201
189
Through dwell (entire railroad, hours)
7.5
7.8
Through network train speed (miles per hour)
18.7
17.7
Locomotive utilization (trailing GTMs per total horsepower)
197
183
Safety indicators (7)
Injury frequency rate (per 200,000 person hours)
1.24
1.11
Accident rate (per million train miles)
2.27
2.04
(1)
Amounts expressed in Canadian dollars and prepared in accordance with United States generally accepted accounting principles (GAAP), unless otherwise noted.
(2)
These non-GAAP measures do not have any standardized meaning prescribed by GAAP and therefore, may not be comparable to similar measures presented by other companies.
(3)
See the supplementary schedule entitled Non-GAAP Measures, Adjusted performance measures for an explanation of these non-GAAP measures.
(4)
See the supplementary schedule entitled Non-GAAP Measures, Free cash flow for an explanation of this non-GAAP measure.
(5)
Operating ratio is defined as operating expenses as a percentage of revenues.
(6)
Statistical operating data, key operating measures and safety indicators are unaudited and based on estimated data available at such time and are subject to change as more complete information becomes available. Definitions of gross ton miles, revenue ton miles, freight revenue per RTM, fuel efficiency, train weight, train length, car velocity, through dwell and through network train speed are included within the Company's Management's Discussion and Analysis. Definitions of all other indicators are provided on CN's website, www.cn.ca/glossary.
(7)
Based on Federal Railroad Administration (FRA) reporting criteria.
SUPPLEMENTARY INFORMATION, UNAUDITED
Three months ended March 31
2026
2025
% ChangeFav (Unfav)
% Change atconstantcurrency (1)Fav (Unfav)
Revenues ($ millions) (2)
Petroleum and chemicals
928
915
1
%
4
%
Metals and minerals
468
523
(11
%)
(7
%)
Forest products
434
494
(12
%)
(9
%)
Coal
219
246
(11
%)
(9
%)
Grain and fertilizers
1,049
951
10
%
13
%
Intermodal
962
940
2
%
4
%
Automotive
207
219
(5
%)
(2
%)
Total freight revenues
4,267
4,288
—
%
2
%
Other revenues
112
115
(3
%)
—
%
Total revenues
4,379
4,403
(1
%)
2
%
Revenue ton miles (RTMs) (millions) (3)
Petroleum and chemicals
12,684
11,836
7
%
7
%
Metals and minerals
6,056
6,752
(10
%)
(10
%)
Forest products
4,912
5,387
(9
%)
(9
%)
Coal
4,827
5,446
(11
%)
(11
%)
Grain and fertilizers
19,525
17,250
13
%
13
%
Intermodal
13,063
12,586
4
%
4
%
Automotive
767
792
(3
%)
(3
%)
Total RTMs
61,834
60,049
3
%
3
%
Freight revenue / RTM (cents) (2)(3)
Petroleum and chemicals
7.32
7.73
(5
%)
(3
%)
Metals and minerals
7.73
7.75
—
%
3
%
Forest products
8.84
9.17
(4
%)
—
%
Coal
4.54
4.52
—
%
2
%
Grain and fertilizers
5.37
5.51
(3
%)
—
%
Intermodal
7.36
7.47
(1
