Description
Canadian National Railway Company: Is This the Cleanest Operating Leverage Story in Rail Right Now?
Canadian National Railway Company reported solid fourth quarter and full year 2025 results that reflected strong operational execution, disciplined cost control, and resilient cash generation amid a volatile macroeconomic and trade environment. The company delivered full year earnings per share growth of 7% and fourth quarter growth of 14%, supported by a materially improved operating ratio and higher free cash flow. These outcomes were achieved despite significant tariff-related disruptions, unfavorable traffic mix, and uneven demand across several end markets, underscoring the effectiveness of recent productivity and efficiency initiatives. Operational performance was a notable positive. Network fluidity improved across key metrics including car velocity, terminal dwell, labor productivity, locomotive availability, and fuel efficiency, even under challenging winter conditions. The company handled higher workloads without sacrificing service reliability, particularly in Grain, where record shipments were achieved for Western Canada.
