Canadian National Railway Co.

Strong Q2 performance + guidance raised (what’s good / investors’ baseline) - EPS: reported diluted EPS $2.06 (+10% YoY); adjusted diluted EPS $2.08 (+11% YoY); FX-adjusted +12%. - Operating ratio (OR) 62.2%, +50 bps YoY (worse than last year largely due to fuel), but still strong given operational execution. - Revenue +11% YoY on +5% RTM volume growth, showing volume growth translating to the bottom line. - Full-year 2026 outlook raised: now expects mid- to high-single digit adjusted EPS growth, assuming low single-digit RTM volume growth (previously assumed flattish volumes). - Free cash flow up ~20% (~$300M) YTD, driven by earnings strength + disciplined capex + working capital focus.

Productivity and service execution drove earnings leverage (what’s good / key drivers) - Productivity improvements: moved +3% gross ton-miles with existing assets; locomotive productivity ~+6%, employee productivity ~+9% (and train/engine productivity ~+13%); train length +~1%. - Fuel efficiency: delivered best Q2 and best first-half fuel efficiency in CN’s history, driving direct operating savings and record performance through the first half. - Fast Track initiative: ~$100M realized benefits YTD (continuous improvement on terminals/network operations), with ongoing work beyond initial terminal reviews. - Service reliability: car velocity and train speed largely flat YoY while handling more volume; dwell improved after late-winter effects in April. - Western region proof point: handled record grain volumes plus higher refined products, potash, NGLs; despite that, car velocity/train speed/dwell improved ~3%.

Energy & ag/carload mix: growth remains broad, but overseas intermodal weaker later (what’s good + where investors should watch) - Commercial performance: metals +11% RTMs despite steel/aluminum tariffs (routing/market shifts). - Energy franchise strength: - Petroleum & Chemicals RTMs +11% - Refined products: increased long-haul Eastern Canada + ~30% RTM growth to the GTA fuel terminal (ramping benefits expected to continue). - NGL RTMs +15%+, supported by Prince Rupert export supply chain and new fractionation capacity coming online in 2H 2026. - Grain: continued records; management expects grain to be a key 3Q RTM driver, but Q4 comps will be harder (laps record performance). - Guidance risk by segment: overseas intermodal expected to be weak in 2H 2026 (tough comps + demarketing of some low-profit shipments through Port of Vancouver).