CN posts five per cent profit gain, trims 2026 capital spending by $600M

Canadian National Railway Co. (CN) reported a stronger third quarter, posting higher revenue, profit and efficiency gains while pledging tighter spending to weather economic headwinds.

CN said Oct. 31 it earned net income of $1.14 billion, up five per cent from a year earlier, on revenue of $4.17 billion, a one per cent increase. Operating income rose six per cent to $1.61 billion, with an improved operating ratio of 61.4 per cent, a 170-basis-point gain.

“I want to thank the entire CN team for delivering a strong quarter that combined solid performance with excellent customer service,” said president and CEO Tracy Robinson. “Our seasoned team of railroaders continues to run a safe, on time, and efficient operation focused on service, and capturing every freight movement opportunity across our unique network and diversified portfolio.”

Robinson said the company is reducing its 2026 capital spending to $2.8 billion, nearly $600 million less than this year, to boost free cash flow and position for future growth.

“We are taking decisive actions to navigate a challenging macro environment including doubling down on productivity efforts…ensuring everything we do enhances our customers and shareholders long term value,” she said.

Free cash flow for the first nine months of 2025 climbed 14 per cent to $2.34 billion, while CN repurchased nearly eight million shares in the quarter for about $1 billion.

The railway maintained its full-year guidance of mid-to-high single-digit adjusted earnings growth.