Canadian National Railway Company · TSX:CNR
Canadian National Railway — Q1 2025 Earnings Presentation
20 slides from Canadian National Railway's earnings presentation, May 1, 2025
Slide 1: First Quarter 2025 Financial and Operating Results
First Quarter 2025 Financial and Operating Results May 1, 2025
Slide 2: Forward-looking Statements
Q1 Introduction Forward-looking Statements Certain statements included in this presentation constitute "forward-looking statements" within the meaning of the United global supply chains such as pandemics and geopolitical conflicts and tensions; trade restrictions, trade barriers, or the States Priva
Slide 3: Tracy Robinson, President and Chief Executive Officer
Tracy Robinson President and Chief Executive Officer 3
Slide 4: Strong start to the year
Q1 Overview Strong start to the year Performance highlights Q1 Q1 RTMs (1) Total Revenues Across the board improvement in key financial measures 60.0B $4.4B Volume growth coupled with strong same- 1% 4% store pricing produced revenue growth Right-sized resources / tight cost control Q1 Q1 Operat
Slide 5: Derek Taylor, Chief Field Operating Officer
Derek Taylor Chief Field Operating Officer 5
Slide 6: Operating metrics reflect more normal winter
Q1 Operations Operating metrics reflect more normal winter Key operating measures Car Velocity (1) Through Dwell (1) Local Service (car miles per day) (entire railroad, hours) Commitment (1) (2) 205 92% Train length restrictions due to 189 7.8 90% 7.1 extreme cold constrained car velocity and networ
Slide 7: Pat Whitehead, Chief Network Operating Officer
Pat Whitehead Chief Network Operating Officer 7
Slide 8: Update on key efficiency initiatives
Q1 Operations Update on key efficiency initiatives Network operations Plan Discipline Right-sized Resources Driving Efficiencies Adherence to the Plan allows for swift Resource alignment enabling the right Improving locomotive reliability and recovery of operations following any tension between volu
Slide 9: Remi G. Lalonde, Chief Commercial Officer
Remi G. Lalonde Chief Commercial Officer 9
Slide 10: Solid underlying demand in the first quarter
Q1 Markets Solid underlying demand in the first quarter Revenue highlights Q1 Revenues Q1 Revenues at Q1 Revenue Variance on a Constant Currency Basis (1) Constant Currency (1) (Q1 2025 vs Q1 2024) Year over year fuel surcharge Petroleum & Chemicals 3% $4.4B $4.3B headwind mostly offset by exchange
Slide 11: Full year growth driven by CN-specific initiatives
Q1 Markets Full year growth driven by CN-specific initiatives Balance of year outlook Merchandise Bulk Products Consumer Products Petroleum Grain International Intermodal • CN-specific NGLs/refined fuels initiatives • CDN - Q2/Q3 difficult comps • Leveraging our service offering, • Lower demand for
Slide 12: Ghislain Houle, Chief Financial Officer
Ghislain Houle Chief Financial Officer 12
Slide 13: Solid financial results
Q1 Financials Solid financial results First quarter highlights Q1 Q1 Diluted EPS Free Cash Flow (1) 8% diluted EPS growth Foreign exchange tailwind of $0.05 more than $1.85 $626M offset by fuel price headwind $0.07 8% 18% Free cashflow increased 18% on higher income from operations and lower cap
Slide 14: Operating expenses
Q1 Financials Operating expenses Exchange-adjusted Q1 Operating Expense Variance on a Constant Currency Basis (1) ($ millions) Labor up due to general wage increase, partly offset by lower average headcount $2,703 $5 $13 $2,706 $19 -$4 -$5 Purchased Services and Materials down due to -$25 lower cont
Slide 15: Good momentum to start the year
Q1 Financials Good momentum to start the year 2025 Financial outlook (1) Bringing Top Line Growth Disciplined Investment to the Bottom Line in the Business Expect to deliver 10%-15% adjusted diluted EPS (2) growth Expect to deliver On track to invest compared to 2024 Volume assumption of low to mid
Slide 16: Tracy Robinson, President and Chief Executive Officer
Tracy Robinson President and Chief Executive Officer 16
Slide 17: Staying the course
Q1 Summary Staying the course Closing remarks Good 2025 footing with solid Q1 results Continue to assume low to mid- single digit RTM growth Earnings growth expected to accelerate in the back half Staying close to our customers Balancing operational and service excellence Remain focused on driving s
Slide 18: Appendix
Appendix 18
Slide 19: 2024–2026 Financial Outlook
Q1 Appendix 2024–2026 Financial Outlook Bringing Top Line Growth Consistent Approach to to the Bottom Line Capital Allocation Growing faster than the economy and Reinvesting in the business pricing ahead of rail inflation Shareholder value creation through Incremental efficiency improvements dividen
Slide 20: Contacts
Contacts Stacy Alderson Assistant Vice President, Investor Relations Stacy.Alderson@cn.ca Greg Hamilton Senior Manager, Investor Relations Greg.Hamilton@cn.ca Nicole Smith Expert, Investor Relations Nicole.Smith@cn.ca www.cn.ca/en/investors
Canadian National Railway Company — Q1 2025 Earnings Presentation on 6ix