Canadian National Railway Company · TSX:CNR

Canadian National Railway — Q3 2024 Earnings Presentation

17 slides from Canadian National Railway's earnings presentation, Oct 22, 2024

  1. Slide 1: Third Quarter 2024 Financial and Operating Results

    Third Quarter 2024 Financial and Operating Results October 22, 2024 TSX: CNR NYSE: CNI

  2. Slide 2: Forward-looking statements

    Forward-looking statements Certain statements included in this presentation constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws, including statements based on management’s assessment and a

  3. Slide 3: On the call today

    On the call today Tracy Robinson President and CEO Derek Taylor Chief Field Operating Officer Pat Whitehead Chief Network Operating Officer Remi G. Lalonde Chief Commercial Officer Ghislain Houle Chief Financial Officer 3

  4. Slide 4: Tracy Robinson

    Tracy Robinson President and Chief Executive Officer

  5. Slide 5: Looking beyond the third quarter and getting back on track

    Looking beyond the third quarter and getting back on track  Railroad operations are fully recovered following the August work stoppage  Arbitration process underway and proceeding as expected  CN-specific initiatives providing growth in a weaker than expected macro environment  Thoughtfully pull

  6. Slide 6: Derek Taylor

    Derek Taylor Chief Field Operating Officer

  7. Slide 7: Operations quick to snap back following significant disruptions

    Operations quick to snap back following significant disruptions  Car velocity and through dwell impacted by Canadian network shutdown and Jasper wildfires  Notably September posted the best monthly velocity and dwell performance since 2018, demonstrating the strength of the scheduled operating pla

  8. Slide 8: Pat Whitehead

    Pat Whitehead Chief Network Operating Officer

  9. Slide 9: Charting a roadmap for the long-term

    Charting a roadmap for the long-term  Behavior-based training – a key pillar in our Journey to zero serious injuries and fatalities  The scheduled operating plan is our North Star, enabling the network to recover quickly following disruptions  Aligning resource requirements to evolving customer d

  10. Slide 10: Remi G. Lalonde

    Remi G. Lalonde Chief Commercial Officer

  11. Slide 11: Volume growth in the quarter tempered by labor uncertainty

    Volume growth in the quarter tempered by labor uncertainty  Prolonged labor uncertainty leading to work stoppage, as well as a softer macro, tempered volume growth (RTMs) to 2% in the quarter  RTM increase driven by CN-specific long-haul opportunities in refined petroleum products, gains in intern

  12. Slide 12: Canadian Grain driving Q4 upside

    Canadian Grain driving Q4 upside Merchandise Petroleum Products Metals and Minerals • Continued strong Eastern Canada demand for refined • Early seasonal slowdown in frac sand and fuels offset by lower crude shipments & NGLs mix shift softer market demand for metals & minerals Chemicals and Plastics

  13. Slide 13: Ghislain Houle

    Ghislain Houle Chief Financial Officer

  14. Slide 14: Labor uncertainty and network disruptions weighed on earnings

    Labor uncertainty and network disruptions weighed on earnings  Q3 diluted EPS of $1.72, up 2% versus 2023  Work stoppage and Jasper wildfires impacted our ability to deliver margin expansion in the quarter  Volume growth and resource alignment key for margin improvement in Q4 Q3 Operating Income

  15. Slide 15: Reaffirming 2024 financial outlook

    Reaffirming 2024 financial outlook (1)  Reaffirming 2024 adjusted diluted EPS (2) growth in the low single-digit range versus 2023  Assumes RTM growth at the low end of the of 3%-5% range  CAPEX on track with guidance, adjusted ROIC (2) in the range of 13%-15% 2024 Adjusted Diluted EPS (2) Growth

  16. Slide 16: Tracy Robinson

    Tracy Robinson President and Chief Executive Officer

  17. Slide 17: Momentum heading into 2025

    Momentum heading into 2025  The railroad is running very well  CN-specific growth initiatives providing growth in a weaker than expected macro environment  Aligning resources to the demand we see ahead of us  Aiming for operating margin improvement Focused on delivering shareholder value creatio

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