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Canadian National Stock Rises 2.8% Since Q4 Earnings Release
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Key Takeaways
Canadian National delivered Q4 earnings of $1.49 per share and revenues of $3.20B, both above estimates.
CNI saw RTMs rise 4% and carloads 2.9% year over year, even as freight revenues per RTM slipped 0.85%.
Canadian National improved its operating ratio by 140 bps to 61.2% as operating income climbed 6% Y/Y.
Canadian National Railway Company (CNI - Free Report) reported impressive fourth-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
The better-than-expected results and the announcement of a dividend hike had a positive impact on the market as the stock has gained 2.8% since the earnings release on Jan. 30.
Earnings of $1.49 per share (C$2.03) outpaced the Zacks Consensus Estimate by 4.2% and increased 14.6% year over year. Revenues amounted to $3.20 billion (C$4.46 billion), which surpassed the Zacks Consensus Estimate by 0.5% and rose 2.8% year over year.
Canadian National Railway Company Price, Consensus and EPS Surprise
Revenue ton-miles (RTMs or a measure of volumes) increased 4% year over year. Carloads rose 2.9% on a year-over-year basis. Freight revenues per RTM fell 0.85% year over year.
Operating expenses for the fourth quarter of 2025 remained flat at $2.73 billion year over year. This was mainly due to prudent cost-cutting efforts.
The operating income grew 6% from fourth-quarter 2024 actuals. The operating ratio, defined as operating expenses as a percentage of revenues on an adjusted basis, improved by 140 basis points to 61.2% in the fourth quarter of 2025.
CNI’s Q4 Segmental Highlights
Freight revenues, which contributed 97% to the top line, increased 3% year over year. Freight revenues in petroleum and chemicals, grain and fertilizers, intermodal and automotive rose 4%, 6%, 10% and 4%, year over year, respectively. Metals and minerals, forest products and coal fell 4%, 8% and 1% on a year-over-year basis.
Segment-wise, carloads in petroleum and chemicals, coal, grain and fertilizers, and intermodal segments increased 2%, 4%, 4% and 10% on a year-over-year basis.
Carloads in the metals and minerals and forest products segments decreased 9% and 7%, respectively, on a year-over-year basis. The same in the automotive segment remained flat on a year-over-year basis.
CNI’s Liquidity
Canadian National ended the fourth quarter of 2025 with cash and cash equivalents of C$350 million compared with C$389 million at the end of the fourth quarter of 2024. CNI exited the September-end quarter with a long-term debt of C$20.3 billion compared with C$19.7 billion at the close of the December quarter of 2024.
CNI generated C$2.23 billion of cash from operating activities. Free cash flow was C$995 million.
Dividend Hiked
Highlighting its shareholder-friendly stance, the Canadian railroad operator’s board of directors approved a 3% increase in the 2026 dividend on the company's outstanding common shares. Following the increase, a quarterly dividend of C$0.9150 per share will be paid on Mar.31, 2026, to shareholders of record at the close of business on Mar. 10. The earlier quarterly dividend was C$0.887. This is the 30th consecutive year of dividend increase
CNI’s board also approved a new normal course issuer bid that permits the railroad to purchase, for cancellation, up to 24 million common shares, between Feb. 4, 2026, and Feb. 3, 2027.
CNI’s Outlook
For full-year 2026, CNI anticipates adjusted earnings per share (EPS) growth to slightly exceed volume growth and plans to invest approximately C$2.8 billion in its capital program, net of amounts reimbursed by customers. Volume growth in terms of RTMs is anticipated to remain flat.
Delta Air Lines (DAL - Free Report) reported fourth-quarter 2025 earnings (excluding 31 cents from non-recurring items) of $1.55 per share, which beat the Zacks Consensus Estimate of $1.53. Earnings decreased 16.22% on a year-over-year basis due to high labor costs.
Revenues in the December-end quarter were $16 billion, beating the Zacks Consensus Estimate of $15.63 billion and increasing 2.9% on a year-over-year basis.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported fourth-quarter 2025 earnings of $1.90 per share, which surpassed the Zacks Consensus Estimate of $1.81 and improved 24.2% year over year.
Total operating revenues of $3.09 billion lagged the Zacks Consensus Estimate of $3.12 billion and were down 1.6% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported solid fourth-quarter 2025 results, wherein the company’s earnings and revenues beat the Zacks Consensus Estimate.
UAL's fourth-quarter 2025 adjusted EPS (excluding 9 cents from non-recurring items) of $3.10 surpassed the Zacks Consensus Estimate of $2.98 but declined 4.9% on a year-over-year basis. The reported figure lies within the guided range of $3.00-$3.50.
Operating revenues of $15.4 billion outpaced the Zacks Consensus Estimate marginally by 0.1% and increased 4.8% year over year.
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Canadian National Stock Rises 2.8% Since Q4 Earnings Release
Key Takeaways
Canadian National Railway Company (CNI - Free Report) reported impressive fourth-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
The better-than-expected results and the announcement of a dividend hike had a positive impact on the market as the stock has gained 2.8% since the earnings release on Jan. 30.
Earnings of $1.49 per share (C$2.03) outpaced the Zacks Consensus Estimate by 4.2% and increased 14.6% year over year. Revenues amounted to $3.20 billion (C$4.46 billion), which surpassed the Zacks Consensus Estimate by 0.5% and rose 2.8% year over year.
Canadian National Railway Company Price, Consensus and EPS Surprise
Canadian National Railway Company price-consensus-eps-surprise-chart | Canadian National Railway Company Quote
Revenue ton-miles (RTMs or a measure of volumes) increased 4% year over year. Carloads rose 2.9% on a year-over-year basis. Freight revenues per RTM fell 0.85% year over year.
Operating expenses for the fourth quarter of 2025 remained flat at $2.73 billion year over year. This was mainly due to prudent cost-cutting efforts.
The operating income grew 6% from fourth-quarter 2024 actuals. The operating ratio, defined as operating expenses as a percentage of revenues on an adjusted basis, improved by 140 basis points to 61.2% in the fourth quarter of 2025.
CNI’s Q4 Segmental Highlights
Freight revenues, which contributed 97% to the top line, increased 3% year over year. Freight revenues in petroleum and chemicals, grain and fertilizers, intermodal and automotive rose 4%, 6%, 10% and 4%, year over year, respectively. Metals and minerals, forest products and coal fell 4%, 8% and 1% on a year-over-year basis.
Segment-wise, carloads in petroleum and chemicals, coal, grain and fertilizers, and intermodal segments increased 2%, 4%, 4% and 10% on a year-over-year basis.
Carloads in the metals and minerals and forest products segments decreased 9% and 7%, respectively, on a year-over-year basis. The same in the automotive segment remained flat on a year-over-year basis.
CNI’s Liquidity
Canadian National ended the fourth quarter of 2025 with cash and cash equivalents of C$350 million compared with C$389 million at the end of the fourth quarter of 2024. CNI exited the September-end quarter with a long-term debt of C$20.3 billion compared with C$19.7 billion at the close of the December quarter of 2024.
CNI generated C$2.23 billion of cash from operating activities. Free cash flow was C$995 million.
Dividend Hiked
Highlighting its shareholder-friendly stance, the Canadian railroad operator’s board of directors approved a 3% increase in the 2026 dividend on the company's outstanding common shares. Following the increase, a quarterly dividend of C$0.9150 per share will be paid on Mar.31, 2026, to shareholders of record at the close of business on Mar. 10. The earlier quarterly dividend was C$0.887. This is the 30th consecutive year of dividend increase
CNI’s board also approved a new normal course issuer bid that permits the railroad to purchase, for cancellation, up to 24 million common shares, between Feb. 4, 2026, and Feb. 3, 2027.
CNI’s Outlook
For full-year 2026, CNI anticipates adjusted earnings per share (EPS) growth to slightly exceed volume growth and plans to invest approximately C$2.8 billion in its capital program, net of amounts reimbursed by customers. Volume growth in terms of RTMs is anticipated to remain flat.
CNI’s Zacks Rank
Currently, CNI has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q4 Performances of Some Other Airline Companies
Delta Air Lines (DAL - Free Report) reported fourth-quarter 2025 earnings (excluding 31 cents from non-recurring items) of $1.55 per share, which beat the Zacks Consensus Estimate of $1.53. Earnings decreased 16.22% on a year-over-year basis due to high labor costs.
Revenues in the December-end quarter were $16 billion, beating the Zacks Consensus Estimate of $15.63 billion and increasing 2.9% on a year-over-year basis.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported fourth-quarter 2025 earnings of $1.90 per share, which surpassed the Zacks Consensus Estimate of $1.81 and improved 24.2% year over year.
Total operating revenues of $3.09 billion lagged the Zacks Consensus Estimate of $3.12 billion and were down 1.6% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported solid fourth-quarter 2025 results, wherein the company’s earnings and revenues beat the Zacks Consensus Estimate.
UAL's fourth-quarter 2025 adjusted EPS (excluding 9 cents from non-recurring items) of $3.10 surpassed the Zacks Consensus Estimate of $2.98 but declined 4.9% on a year-over-year basis. The reported figure lies within the guided range of $3.00-$3.50.
Operating revenues of $15.4 billion outpaced the Zacks Consensus Estimate marginally by 0.1% and increased 4.8% year over year.