Canadian National Railway (CNI) reported its second-quarter 2025 financial and operating results on July 22, 2025. The company announced a 1% decrease in total revenues to C$4,272 million, primarily due to weaker market fundamentals and ongoing U.S. trade and tariff actions. Adjusted EPS grew by 2% year-over-year.
The operating ratio improved by 50 basis points to 61.7%, driven by proactive operating plan adjustments and tight cost management. Fuel expense decreased by 25% due to the elimination of the Canadian carbon tax surcharge and a 23% decrease in price per gallon, though other costs rose by approximately $40 million.
CN revised its 2025 adjusted diluted EPS growth guidance to mid- to high single-digit, down from the earlier 10%-15% expectation, based on a low single-digit RTM growth assumption. The company also removed its multi-year guidance for 2024-2026 due to high macroeconomic volatility and tariff uncertainty. Free cash flow through June 2025 was over $1.5 billion, a 5% increase year-over-year, with leverage at 2.5x.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.