CN Raises 2026 Volume Outlook as 2Q Profit, Revenue Rise

By Adriano Marchese

Canadian National Railway boosted its full-year outlook, citing firmer freight demand and shifting economic conditions, as the railroad posted higher profit and revenue in the second quarter.

The Canadian railroad on Friday upgraded its forecasts for the year, noting shifts in freight expectations and broader economic conditions. CN Rail now expects low-single-digit growth in revenue ton miles, the rail industry's measure of freight volume, due to higher demand. That's up from a previous projection for flat volumes.

CN Rail also revised its currency outlook, assuming the Canadian dollar will average about 71 U.S. cents in 2026, weaker than the 73 U.S. cents it projected in April.

At the same time, the company cautioned that volatile macroeconomic conditions, geopolitical conflicts and global trade tensions pose heightened risks to freight demand.

For its second quarter, CN Rail posted a higher net income of 1.25 billion Canadian dollars ($887.4 million), or C$2.06 a share, up from C$1.17 billion, or C$1.87 a share, in the comparable quarter a year earlier.

Adjusted earnings, which excludes one-off costs and exceptional items, came to C$2.08 a share. According to FactSet, analysts were expecting C$1.96 a share.

Revenue rose 11% to C$4.75 billion, above analyst forecasts of C$4.63 billion. Freight revenue rose to C$4.56 billion from C$4.09 billion last year.

Revenue ton miles in the quarter increased 5% to 62.25 billion.

Operating ratio, which measures the railroad's efficiency, came to 62.5%, an increase of 80 basis points, and adjusted operating ratio of 62.2%, an increase of 50 basis points. Because a lower operating ratio indicates a more efficient and profitable operation, the increases signal higher costs relative to revenue.

Earlier in the week, CN struck two separate commercial agreements with Union Pacific aimed at expanding cross-border freight capacity and improving network fluidity across North America. The pacts are part of CN Rail's broader push to strengthen its north-south corridors and deepen partnerships with U.S. railroads. Under one of the deals, CN also agreed not to oppose the Union Pacific-Norfolk Southern merger.

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

(END) Dow Jones Newswires

July 24, 2026 08:29 ET (12:29 GMT)