Canadian National Railway slightly beats Q4 revenue estimates

Overview

• Canada railway's Q4 revenue slightly beat analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company repurchased 4.4 mln shares for C$600 mln in Q4

Outlook

• Canadian National Railway plans C$2.8 bln capital spending in 2026, down C$500 mln from 2025

• Company expects 2026 adjusted diluted EPS growth to slightly exceed volume growth

• Canadian National Railway increases quarterly cash dividend by 3% for 2026

Result Drivers

• COST MANAGEMENT - Improved cost efficiency with a 4% decrease in operating expenses per GTM

• INCREASED EFFICIENCY - Gross ton miles increased 5% and revenue ton miles increased 4%, contributing to revenue growth

• DISCIPLINED EXECUTION - Focus on service, cost control, and productivity drove solid performance in a challenging demand environment

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the ground freight & logistics peer group is "buy"

• Wall Street's median 12-month price target for Canadian National Railway Co is C$157.00, about 15.3% above its January 29 closing price of C$136.17

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nGNX6c3CGT

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