Canadian National Railway Co.

Canadian National Railway Co.

CNI

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Market Cap$76.95B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Canadian National Railway Co.Canadian National Railway Co.22.92.02%20%4.71

Earnings Call Q2 2026

July 24, 2026 - AI Summary

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).

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$120.67

Target Price by Analysts

5.1% downsideCanadian National Railway Target Price DetailsTarget Price
$42.11

Current Fair Value

66.9% downside

Overvalued by 66.9% based on the discounted cash flow analysis.

Share Statistics

Market cap$76.95 Billion
Enterprise Value$99.28 Billion
Dividend Yield$2.61 (2.02%)
Earnings per Share$7.57
Beta1.01
Outstanding Shares606,500,000

Return

Return on Equity20.37%ROE
Return on Assets7.42%
Return on Invested Capital11.10%

Valuation & Multiples

P/E Ratio22.88P/E Ratio
PEG345.85PEG
Price to Sales4.71Price to Sales
Price to Book Ratio3.53Price to Book Ratio
Enterprise Value to Revenue5.98
Enterprise Value to EBIT15.73
Enterprise Value to Net Income22
Total Debt to Enterprise0.23
Debt to Equity1.03Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
July 28, 2026
EPS Estimate
$1.40
Average shareholder expectation
Revenue Estimate
$3.27 B
Average shareholder expectation

Next Earnings Call

Expected Date
October 30, 2026
EPS Estimate
$1.48
Average shareholder expectation
Revenue Estimate
$3.27 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.0000▼ 71.55%
Total Calls-▼ 100.00%
Total Puts-▼ 100.00%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %4.00%▼ 60.34%
Total Invested$3.27B▼ 92.21%
Investors Holding310▼ 542.00%

ESG Score

No data

About Canadian National Railway Co.

CEO: Claude Mongeau

Relevant Senate Committees

Finance

This is a powerful committee that controls taxation and trade policy. Changes to corporate tax rates, depreciation schedules, or international trade agreements (tariffs, cross-border flows) directly impact CNI's profitability, investment decisions, and freight volumes.

Appropriations

This committee directly allocates federal discretionary spending. Its subcommittees can determine specific funding for rail infrastructure projects, grants for freight mobility, or projects in industries CNI serves, directly affecting CNI's operating environment and potential for expansion.

Agriculture, Nutrition, and Forestry

Agricultural products are a significant component of freight transported by railroads. This committee's influence on the Farm Bill and agricultural policies directly impacts the volume, types, and geographic distribution of commodities available for CNI to haul.

Health, Education, Labor, and Pensions

This committee has direct oversight of federal labor laws and union regulations, which are extremely critical for the heavily unionized railroad industry. Changes to labor policy, wages, or benefits directly impact CNI's operating costs and workforce management.

Judiciary

This committee oversees antitrust laws and the Department of Justice. As the railroad industry is an oligopoly, any potential mega-mergers (or anti-competitive practices) involving CNI would fall under its scrutiny, directly impacting the company's strategic growth.

Commerce, Science, and Transportation

This committee has direct and significant oversight over interstate commerce, which explicitly includes railroads. It influences regulations regarding safety, competition, and economic operations for the railroad industry via agencies like the Surface Transportation Board (STB).

Energy and Natural Resources

This committee directly impacts energy policy, influencing fuel costs (a major expense for CNI). It also oversees sectors like oil, gas, and mining, which are key sources of freight for line-haul railroads like CNI.

Environment and Public Works

This committee regulates the EPA, impacting environmental compliance costs for railroads. More critically, it influences federal infrastructure spending, which can directly benefit railroad networks and the industries CNI serves by improving transportation pathways and demand for hauled materials.