Canadian National Railway reported improved financial results for the fourth quarter and full year ended Dec. 31, driven by higher revenues, higher operating income and continued efficiency gains.
For the fourth quarter of 2025, CN reported revenues of C$4.46 billion, up 2% from the same period a year earlier. Operating income rose 6% to more than C$1.7 billion, while adjusted operating income increased 9% to nearly C$1.8 billion. The operating ratio improved to 61.2%, a 1.4-point improvement, and the adjusted operating ratio improved 2.5 points to 60.1%.
Net income totaled C$1.25 billion, up 9%, with adjusted net income rising 12% to C$1.28 billion. Diluted earnings per share increased 12% to C$2.03, while adjusted diluted EPS rose 14% to C$2.08. CN also repurchased about 4.4 million shares during the quarter for approximately C$600 million.
Operating performance in the quarter showed gross ton-miles increased 5% to 118.9 billion and revenue ton-miles rose 4% to 61.7 billion. Through dwell declined 1% to 7.0 hours, while car velocity improved 2% to 215 miles per day. Fuel efficiency improved 1%, train length increased 3%, and operating expenses per gross ton-mile fell 4%.
For the full-year 2025, CN reported revenues of C$17.3 billion, up 2% from 2024. Operating income increased 5% to nearly C$6.6 billion, while net income rose 6% to more than C$4.7 billion.
Diluted EPS climbed 8% to C$7.57. Free cash flow increased 8% to C$3.34 billion, and the company repurchased about 15 million shares for roughly C$2 billion.
Full-year operating results showed modest traffic growth, continued productivity improvements and lower operating expenses per gross ton-mile, which officials said reflected CN’s focus on efficiency and cost control.
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