CN delivers on commitments with strong second quarter results

CN reported its financial and operating results for the second quarter ended June 30, 2026.

“I want to thank the CN team for the strong results this quarter, which reflect their discipline, focus, and execution. We delivered on our key commitments, with solid operational and commercial performance, improved productivity, strong cash flow generation, and continued financial discipline. We are raising our full-year guidance, supported by sustained business momentum and our continued ability to deliver results for our customers,” says Tracy Robinson, President and Chief Executive Officer, CN.

Second-quarter 2026 results highlights

CN saw improvements across operating metrics, with strong commercial and service performance. Gross ton miles (GTMs) increased by 3% to 121,082 (millions), while RTMs increased by 5% to 62,250 (millions). The Company delivered diluted EPS of C$2.06, an increase of 10%, and adjusted diluted EPS of C$2.08, an increase of 11%, or C$2.09 on an adjusted basis at constant currency, an increase of 12%.

The quarter’s operating performance reflects the Company’s continued priority on operational execution as well as its ability to provide solid service to customers, allowing it to capture demand in grain and in other markets.

Quarterly financial results highlights

• Second-quarter 2026 compared to second-quarter 2025:
• Revenues of C$4,753 million, an increase of C$481 million, or 11%.
• Operating income of C$1,781 million, an increase of C$143 million, or 9%, and adjusted operating income of C$1,798 million, an increase of C$160 million, or 10%.
• Operating ratio, defined as operating expenses as a percentage of revenues, of 62.5%, an increase of 80 basis points, and adjusted operating ratio of 62.2%, an increase of 50 basis points.
• Net income of C$1,249 million, an increase of C$77 million, or 7%, and adjusted net income of C$1,261 million, an increase of C$89 million, or 8%.
• Diluted EPS of C$2.06, an increase of 10% and adjusted diluted EPS of C$2.08, an increase of 11%, or C$2.09 on an adjusted basis at constant currency, an increase of 12%.
• Net cash provided by operating activities of C$2,876 million and net cash used in investing activities of C$1,034 million for the first half of 2026.
• Free cash flow for the first half of 2026 was C$1,842 million, an increase of C$294 million, or 19%.
• Adjusted EBITDA reported for the twelve months ended June 30, 2026 of C$8,832 million, an increase of 4%.
• Adjusted debt-to-adjusted EBITDA of 2.61 times as at and for the twelve months ended June 30, 2026.
• Repurchased approximately 2.9 million shares in the second quarter of 2026 for C$454 million.

Quarterly operating performance highlights

Second-quarter 2026 compared to second-quarter 2025:

• GTMs increased 3% to 121,082 (millions).
• RTMs increased 5% to 62,250 (millions).
• Through dwell increased by 4% to 7.1 (entire railroad, hours).
• Car velocity decreased by 1% to 211 (car miles per day).
• Through network train speed increased by 1% to 19.1 (mph).
• Fuel efficiency of 0.836 (US gallons of locomotive fuel consumed per 1,000 GTMs), was 3% more efficient.
• Train length increased by 1% to 8,084 (feet).
• GTMs per average number of employees increased 9% to 5,105 (thousands).
• Operating expenses per GTM increased 9% to 2.45 (cents).

Dividends

CN's Board of Directors has approved a third-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 September 29, 2026, to shareholders of record at the close of business on September 8, 2026.

Revised 2026 financial guidance

Based on strong volume and solid operational execution in the first half of the year, the Company now assumes to deliver low single-digit RTM growth in 2026 (compared to its January 30, 2026 assumption of flattish growth). The Company now expects adjusted diluted EPS growth in the mid-to-high single-digit range (compared to its January 30, 2026 expectation of slightly exceeding RTM growth).

In 2026, CN continues to plan 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.