Canadian National Railway Company (CNR) Q2 2026 earnings summary

Executive summary

• Delivered strong Q2 performance with 11% revenue growth to $4.8B (C$4,753 million), driven by grain, energy, and automotive segments, and 10% diluted EPS growth (11% adjusted, 12% FX-adjusted).

• Productivity and operational efficiency gains included record fuel efficiency, improved crew productivity, and disciplined resource alignment.

• Strategic agreements with Union Pacific expand network reach into Kansas City and Mexico, densifying the southern U.S. network.

• Free cash flow increased 19% to C$1,842 million for the first half, supporting share buybacks and dividends.

• Maintained consistent network performance and service levels while advancing productivity initiatives.

Financial highlights

• Q2 reported diluted EPS was CAD 2.06, up 10% year-over-year; adjusted diluted EPS was CAD 2.08, up 11%, and CAD 2.09 at constant currency.

• Revenues increased 11% year-over-year to $4.8B (C$4,753 million) on 5% RTM growth.

• Adjusted operating ratio was 62.2%, up 50 bps; reported operating ratio was 62.5%, up 80 bps.

• Free cash flow for Q2 was $942M, up from $922M in Q2 2025; year-to-date free cash flow up ~20%.

• Adjusted net income for Q2 was $1,261M; adjusted EBITDA for the twelve months ended June 30, 2026 was C$8,832 million, up 4%.

Outlook and guidance

• Raised 2026 guidance: low single-digit RTM growth and mid- to high single-digit adjusted diluted EPS growth expected.

• Full-year capex guidance set at $2.8B (C$2.8 billion), reflecting disciplined investment.

• Assumes FX rate of CAD 0.71/USD and WTI oil price between $80–$110 per barrel.

• Effective tax rate expected in the 25%-26% range.

• Expects continued improvement in free cash flow conversion.