- CNI reported record revenues of $4.8 billion (up 11%) and adjusted diluted EPS of $2.08 (up 11% year-over-year), reflecting strong volume conversion to the bottom line.
- Management raised full-year 2026 guidance, now expecting mid- to high single-digit adjusted diluted EPS growth on low single-digit RTM growth.
- CN reached two strategic agreements with Union Pacific, securing trackage rights to Kansas City and use of the Neff Yard, and gaining direct access to Mexico via Memphis, positioning CN to compete on new business.
- Volume growth was led by grain and energy, with RTMs up 5% to 62.3 billion, including a near 30% increase in refined product shipments into the GTA fuel terminal.
- The Fast Track program delivered $100 million in realized savings year-to-date, while labor productivity improved 9% and train/engine employee productivity rose 13%.
- CNI repurchased $454 million in shares (approximately 3 million shares) and maintained a leverage ratio of 2.6x, slightly below the 2.7x target.
- Fuel prices had a 210 basis point dilutive impact on the operating ratio, but did not affect EPS in the quarter; however, broader macroeconomic volatility remains a risk.
Canadian National Railway achieved record revenues of $4.8 billion in Q2 2026, marking an 11% increase driven by strong performance in grain and energy products. The adjusted diluted EPS rose to $2.08, reflecting a similar 11% year-over-year growth and a 12% increase on a constant currency basis.67
The company reported 62.3 billion Revenue Ton Miles (RTMs), a 5% growth attributed to exceptional demand for Western Canadian grain and refined petroleum products. The energy segment saw a near 30% increase in RTMs for refined products, supported by the ramp-up of Phase 2 at the Greater Toronto Area fuel terminal.
In terms of productivity, CN achieved 5,105 gross ton miles per average employee, a 9% improvement due to higher volumes with a 5% lower average headcount. COO Whitehead noted that productivity gains were a result of a cross-functional effort that increased train/engine employee productivity by 13% while maintaining car velocity and network speed.
The company also announced $454 million in share repurchases during the quarter, representing approximately 3 million common shares. The adjusted operating ratio stood at 62.2%, impacted by higher fuel prices, which had a 210 basis point dilutive impact on the operating ratio. Despite this, fuel did not affect EPS in the quarter. Looking ahead, CN raised its full-year guidance to mid- to high single-digit growth, reflecting confidence in ongoing demand and operational efficiency.1112
“Volume growth was led by grain and energy with RTMs up 5% to 62.3 billion, while the Fast Track program delivered $100 million in savings. Additionally, CN reached strategic agreements with Union Pacific gaining trackage rights to Kansas City and direct access to Mexico.”
The Globe and Mail
