“I want to thank the entire CN team for delivering on our plan, despite ongoing uncertainty in the macro environment,” CN President and CEO Tracy Robinson said in the railroad’s first-quarter 2026 financial and operational report on April 29. “Our strong commercial and operating performance allow us to fully leverage the strength of our network, enabling us to capture incremental volume. We remain firmly focused on safety, tight execution, cost control and capital discipline.”
For the first-quarter ended March 31, 2026, CN reported that gross ton miles (GTMs) increased by 3% to 118,389 (millions), while revenue ton miles (RTMs) increased by 3% to 61,834 (millions) vs. the prior-year quarter. This set “a new first-quarter record,” it noted. The railroad also said it delivered diluted earnings per share (EPS) of C$1.87, up 1% from first-quarter 2025; adjusted, they came in at C$1.80, down 3%, or C$1.83 “on an adjusted basis at constant currency, a decrease of 1%.”
1Q26 vs. 1Q25 Financial Highlights
- Revenues for first-quarter 2026 were C$4,379 million, a decrease of C$24 million, or 1% from the same quarter last year, CN reported.
- Operating income of C$1,549 million for first-quarter 2026 was down C$61 million, or 4%, and adjusted operating income for first-quarter 2026 came in at C$1,566 million, a decrease of C$44 million, or 3% from the same point last year.
- CN’s operating ratio (defined as operating expenses as a percentage of revenues) for the first three months of 2026 was 64.6%, an increase of 120 basis points, CN said, and adjusted operating ratio was 64.2%, an increase of 80 basis points—both compared to first-quarter 2025.
- For the three months ending March 31, 2026, net income was C$1,146 million, a decrease of C$15 million, or 1%, from the same point last year, and adjusted net income was C$1,102 million, down C$59 million, or 5%.
- Diluted EPS of C$1.87 for first-quarter 2026 was up 1% and adjusted diluted EPS of C$1.80 was down 3%, or C$1.83 “on an adjusted basis at constant currency, a decrease of 1%” compared to first-quarter 2025, according to CN.
- Free cash flow for first-quarter 2026 was C$900 million, up C$274 million, or 44%, from first-quarter 2025, “consisting of net cash provided by operating activities of C$1,265 million and net cash used in investing activities of C$365 million,” CN reported.
- Adjusted EBITDA reported for the twelve months ended March 31, 2026, was C$8,679 million, an increase of 3%, according to CN.
- Adjusted debt-to-adjusted EBITDA was 2.65 times as at and for the twelve months ended March 31, 2026, CN said.
- The railroad said it “repurchased close to 6 million shares in the first quarter of 2026 for C$869 million.”
1Q26 vs. 1Q25 Operating Performance Highlights:
- Through dwell for the three months ending March 31, 2026, dipped 4% to 7.5 (entire railroad, hours) vs. first-quarter 2025, according to CN.
- Car velocity for first-quarter 2026 increased by 6% to 201 (car miles per day) from the same quarter last year.
- Through network train speed increased by 6% to 18.7 (mph) in first-quarter 2026 vs. the prior-year quarter.
- CN reported “record” first-quarter fuel efficiency of 0.892 (U.S. gallons of locomotive fuel consumed per 1,000 GTMs), which is noted was 3% more efficient, vs. first-quarter 2025.
- Train length in first-quarter 2026 was up 2% to 7,873 (feet) vs. first-quarter 2025.
- In first-quarter 2026, GTMs per average number of employees increased 8% to 5,026 (thousands) vs. the same quarter last year. CN noted this was “the best employee productivity in the last five years.”
- Operating expenses per GTM decreased 2% to 2.39 (cents) in first-quarter 2026 vs. first-quarter 2025.
CN also reported that its Board of Directors has approved a second-quarter 2026 dividend on the company’s common shares outstanding. A quarterly dividend of ninety-one and a half cents (C$0.9150) per common share will be paid on June 30, 2026, to shareholders of record at the close of business on June 9, 2026, it said.
2026 Outlook
“Our focus is on strong execution,” said Patrick Whitehead, Executive Vice President and Chief Operating Officer of CN. “That means getting the fundamentals right every day and delivering consistently for our customers. The discipline the team is bringing to how we run the network and deploy our assets drove productivity gains and a new first quarter record for fuel efficiency. It’s helping us build a more efficient operation that better supports our customers’ needs.”
CN reported that it “continues to assume that volume growth in terms of RTMs will be flattish,” and “to expect that adjusted diluted EPS growth will slightly exceed volume growth.”
In 2026, CN said it “still plans to invest approximately C$2.8 billion in its capital program, net of amounts reimbursed by customers,” and “expects to continue improving its free cash flow conversion throughout 2026.”
The railroad also noted that it “has made a number of economic and market assumptions in preparing its 2026 outlook. The 2025/2026 grain crops in Canada and the U.S. were above their respective five-year averages.” CN said it “continues to assume that the 2026/2027 grain crops in Canada and the U.S. will be in line with their respective five-year averages,” and “to assume RTM growth will be flattish.” CN said it “now assumes that in 2026, the value of the Canadian dollar in U.S. currency will be $0.73 (compared to its January 30, 2026 assumption of $0.715), and now assumes that in 2026 the average price of crude oil (West Texas Intermediate) will be in the range of US$80 – US$110 per barrel (compared to its January 30, 2026 assumption in the range of US$60-US$70 per barrel).” The railroad noted that “there is a heightened demand risk as a result of volatile macroeconomic conditions, geopolitical conflicts and global trade tensions.”
Further Reading:
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