Canadian National Railway Raises 2026 Guidance After Revenue Growth
The transportation company reported second-quarter revenues of C$4,753 million, an 11% increase over the prior year
Canadian National Railway Company (CNI), the North American rail transporter, raised its full-year 2026 financial guidance following a second quarter characterized by volume growth in grain and energy products.
Revenues for the second quarter reached C$4,753 million, an increase of C$481 million compared to the second quarter of 2025. Operating income rose 9% to C$1,781 million, while adjusted operating income grew 10% to C$1,798 million. Net income for the period was C$1,249 million, up 7% from the previous year.
Diluted earnings per share were C$2.06, a 10% increase. On an adjusted basis, diluted EPS rose 11% to C$2.08, and reached C$2.09 when measured at constant currency.
Operational volume showed a positive trajectory, with revenue ton miles (RTMs) increasing 5% to 62,250 million. Gross ton miles (GTMs) rose 3% to 121,082 million. The company reported that fuel efficiency improved by 3%, while GTMs per average number of employees increased 9% to 5,105 thousand. However, operating expenses per GTM rose 9% to 2.45 cents.
Freight revenue per carload rose across several categories. Automotive saw the highest increase at 14%, followed by intermodal at 13% and forest products at 9%. Metals and minerals also rose 9%, while grain and fertilizers increased 7%. Petroleum and chemicals rose 5%.
Cash flow and capital management remained active in the first half of 2026. Free cash flow for the six-month period was C$1,842 million, a 19% increase. The company used C$454 million to repurchase approximately 2.9 million shares during the second quarter. For the twelve months ended June 30, 2026, adjusted EBITDA was C$8,832 million, up 4%.
Based on first-half performance, the company now assumes low single-digit RTM growth for 2026, shifting from a previous assumption of flattish growth. Adjusted diluted EPS growth is now expected in the mid-to-high single-digit range. The company continues to plan for approximately C$2.8 billion in capital program investments for 2026, net of customer reimbursements.