CN 3Q profit rises 6% as freight revenue climbs

Canadian National Railway (CN) reported a 6% increase in profit for the third quarter, driven by stronger freight revenue growth and higher fuel costs and a technology write-down impacting margins. The Montreal-based railway maintained its full-year earnings outlook, stating growth was on track with expectations. CN earned C$1.209 billion, or $866 million, in the quarter, up from $816 million a year earlier.

Revenue rose 15% to $3.42 billion, with freight revenue climbing 15% to $3.28 billion. Grain and fertilizer revenue increased 19% while automotive revenue jumped 31%. Adjusted diluted earnings per share rose 18% to $1.55 a share, beating expectations. Despite higher operating expenses, CN's operating ratio worsened to 63.7% but improved to 61.0% when excluding the impairment and advisory costs.

CN forecasted low-single-digit revenue ton-mile growth for 2026 and mid-to-high-single-digit adjusted diluted earnings per share growth, with earnings tracking toward the higher end. The railway highlighted service execution and productivity improvements as key factors in the results, warning of continued risks from volatile economic conditions and geopolitical tensions.