Canadian National Railway Company · TSX:CNR
Canadian National Railway — FY2025 Earnings Presentation
25 slides from Canadian National Railway's earnings presentation, Jan 30, 2026
Slide 1: Fourth Quarter and Full Year 2025 Financial and Operating Results
Fourth Quarter and Full Year 2025 Financial and Operating Results January 30th, 2026
Slide 2: Forward-looking statements
Q4 Introduction Forward-looking statements Certain statements included in this presentation constitute "forward-looking statements" within the meaning detailed from time to time in reports filed by CN with securities regulators in Canada and the United States. of the United States Private Securities
Slide 3: Tracy Robinson, President and Chief Executive Officer
Tracy Robinson President and Chief Executive Officer 3
Slide 4: Good momentum to finish the year
Q4 Overview Good momentum to finish the year Performance highlights Q4 Q4 Operating Ratio Diluted EPS Reported Adjusted (1) Reported Adjusted (1) Strong earnings growth and margin improvement in the quarter 61.2% 60.1% $2.03 $2.08 140 bps 250 bps 12% 14% 2% revenue growth in Q4 on industry-l
Slide 5: Pat Whitehead, Chief Operating Officer
Pat Whitehead Chief Operating Officer 5
Slide 6: Disciplined scheduled railroading in action
Q4 Operations Disciplined scheduled railroading in action Key operating measures Car Velocity (1) Through Dwell (1) Local Service (car miles per day) (entire railroad, hours) Commitment (1) (2) 215 Continued to run lean and drove 210 7.1 7.0 94% 94% incremental productivity gains Delivered four cons
Slide 7: Update on key efficiency initiatives
Q4 Operations Update on key efficiency initiatives Network operations Plan Discipline Right-sized Resources Driving Efficiencies Adherence to the Plan underpinning fluid Resource alignment enabling the right Improvement of locomotive productivity, movement of trains across the network tension betwee
Slide 8: Janet Drysdale, Chief Commercial Officer
Janet Drysdale Chief Commercial Officer 8
Slide 9: Relentless focus on helping our customers win
Q4 Markets Relentless focus on helping our customers win Revenue highlights Q4 Q4 Q4 Revenue Variance on a Constant Currency Basis (1) Revenues RTMs (2) (Q4 2025 vs Q4 2024) Volume growth driven by strong grain Petroleum & Chemicals 4% demand and intermodal gains Growth across all petroleum & $4.5B
Slide 10: Measured volume expectations for 2026
Q4 Markets Measured volume expectations for 2026 2026 outlook versus 2025 Merchandise Bulk Products Consumer Products Petroleum & Chemicals Grain International Intermodal • NGL export growth through Rupert • CDN – Record crop with upside mainly in • Challenging near-term outlook for North • Refined
Slide 11: Ghislain Houle, Chief Financial Officer
Ghislain Houle Chief Financial Officer 11
Slide 12: Meaningful earnings growth
Q4 Financials Meaningful earnings growth Fourth Quarter highlights Q4 Q4 Diluted EPS Diluted Number of Shares Reported Adjusted (1) Strong earnings driven by better-than-expected $2.03 $2.08 616M cost management, with volumes and revenues on plan 12% 14% 2% Material improvement in operating ra
Slide 13: Operating expense review
Q4 Financials Operating expense review Constant currency Q4 OPEX variance on a constant currency basis (1) (Q4 2025 vs Q4 2024, in $M) Labor & Fringe +4% 31 Labor up on workforce reduction charge, wage inflation and higher incentives, partly offset by 4% lower headcount Purch Svcs & Material -1% -3
Slide 14: Earnings growth solidly in line with guidance
Q4 Financials Earnings growth solidly in line with guidance Full Year highlights 2025 2025 Diluted EPS Cash Flow Free Net cash provided Net cash used Reported Adjusted (1) cash flow (1) by operating in investing activities activities $7.57 $7.63 $3.3B $7.0B ($3.7B) 8% 7% $0.2B $0.3B $0.1Bx
Slide 15: 2026 financial outlook
Q4 Financials 2026 financial outlook (1) 2026 Earnings Guidance 2026 Capex Guidance Assuming flattish Disciplined investment Macro environment still uncertain; assuming flattish revenue ton year-over-year RTMs miles for 2026 versus 2025 Within a weaker macro backdrop, expecting adjusted diluted EPS
Slide 16: Tracy Robinson, President and Chief Executive Officer
Tracy Robinson President and Chief Executive Officer 16
Slide 17: A leaner, more resilient railroad
Q4 Summary A leaner, more resilient railroad Closing remarks Delivering for our customers in a challenging environment Taking meaningful action to reshape our cost structure Driving strong free cash flow and disciplined shareholder returns Built to lead and deliver long-term value CN | Fourth Quarte
Slide 18: Appendix
Appendix a5 a : nig ae Pa)
Slide 19: Non-GAAP measures
Q4 Appendix Non-GAAP measures This presentation makes reference to non-GAAP measures that do not have any standardized meaning prescribed by GAAP, including adjusted net income, adjusted earnings per share, adjusted operating income, adjusted operating expense, adjusted operation ratio, free cash fl
Slide 20: Non-GAAP measures: Adjusted Net Income and EPS
Q4 Appendix Non-GAAP measures Adjusted Net Income and Earnings per Share Adjusted net income is defined as Net income in accordance with GAAP adjusted for certain significant items. Management believes that adjusted net income provides additional insight to management and investors into the Company'
Slide 21: Non-GAAP measures: Adjusted Operating Income and Ratio
Q4 Appendix Non-GAAP measures Adjusted Operating Income, Operating Expenses and Operating Ratio Adjusted operating income is defined as Operating income in accordance with GAAP adjusted for certain significant operating expense items that are not reflective of CN's underlying business operations. Th
Slide 22: Non-GAAP measures: Constant Currency
Q4 Appendix Non-GAAP measures Constant Currency Three months ended December 31 Year ended December 31 % Change at % Change at Constant constant Constant constant Financial results at constant currency allow results to currency currency currency currency unaudited be viewed without the impact of fluc
Slide 23: Non-GAAP measures: Free Cash Flow
Q4 Appendix Non-GAAP measures Free Cash Flow Free cash flow is a useful measure of liquidity as it demonstrates the Company's ability to generate cash for debt obligations and for discretionary uses such as payment of dividends, share repurchases and strategic opportunities. The Company defines its
Slide 24: Non-GAAP measures: Adjusted Debt-to-Adjusted EBITDA
Q4 Appendix Non-GAAP measures Adjusted Debt-to-Adjusted EBITDA Multiple Management believes that the adjusted debt-to-adjusted EBITDA multiple is a useful credit measure because it reflects the Company's ability to service its debt and other long-term obligations. The Company calculates the adjusted
Slide 25: Non-GAAP measures: ROIC and Adjusted ROIC
Q4 Appendix Non-GAAP measures ROIC and Adjusted ROIC ROIC and adjusted ROIC are useful measures for management and investors to evaluate the efficiency of the Company's use of capital funds and allow investors to assess the operating and investment decisions made by management. The Company calculate
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