Canadian National Railway 4Q Profit, Revenue Rise

By Adriano Marchese

Canadian National Railway reported higher profit and revenue for the fourth quarter thanks to better freight volumes and improved operational efficiency.

The Canadian railroad on Friday posted an increase in net income to 1.25 billion Canadian dollars ($926.6 million), or C$2.03 a share, up from C$1.15 billion, or C$1.82 a share, in the comparable quarter a year earlier.

Adjusted earnings were C$2.08 a share. According to FactSet, analysts were expecting C$1.98 a share.

Revenue rose 2% to C$4.46 billion, in line with forecasts.

Operating ratio, a key measure of a railroad's efficiency, improved 1.4 points to 61.2%, and adjusted operating ratio improved by 2.5 points to 60.1%. A lower operating ratio means the railroad is more efficient, spending less to generate each dollar of revenue.

Gross ton miles, a metric that measures how much freight a railroad moves and how far it is moved, increased 5% to 118.9 million. Revenue ton miles, which tracks freight actually sold to customers, increased 4% to 61.7 million.

Chief Executive Tracy Robinson said that as the company enters 2026, it expects ongoing macroeconomic uncertainty and heightened geopolitical risk. She said the company will navigate the backdrop by concentrating on what it can control: careful capital spending, tight cost discipline and a focus on strengthening free cash flow. Robinson said the strategy should give CN Rail the flexibility to adapt quickly to shifting volumes.

For 2026, CN Rail expects volume growth in terms of revenue ton miles to be flattish, while adjusted earnings-per-share growth is forecast to slightly exceed volume growth.

The company also plans to invest about C$2.8 billion in its capital program, net of what is reimbursed by customers, and said it expects to continue improving its free-cash-flow conversion throughout 2026.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

January 30, 2026 08:29 ET (13:29 GMT)