Canadian National Railway (CY2) Q3 2026 Earnings Report
DE:CY2 Q3 2026 EPS Results
- Actual EPS
- EUR 1.38
- Consensus EPS
- EUR 1.34
- Beat/Miss
- Beat by +EUR 0.05
- One Year Ago EPS
- EUR 1.17
DE:CY2 Q3 2026 Revenue Results
- Actual Revenue
- EUR 3.06B
- Expected Revenue
- EUR 2.99B
- Beat/Miss
- Beat by +EUR 71.04M
- YoY Revenue Growth
- +14.55%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/30/2026
- Time
- Before Open
- Conference Call
- Friday, October 30, 2026
Canadian National Railway's next earnings date is estimated for January 26, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was strongly positive. CN reported solid volume, revenue, adjusted EPS, operating-ratio, productivity, free-cash-flow, and safety improvements, while highlighting realized Fast Track benefits, available capacity, commercial wins, and multiple long-term growth opportunities. The company also reaffirmed full-year guidance and said it is tracking toward the upper end of the range. The main challenges were segment-specific volume declines, disruptions at Prince Rupert and from wildfires, higher fuel and operating costs, technology project execution issues, trade uncertainty, and upcoming labor negotiations, but management characterized several of these as short-term or manageable.
CN reaffirmed guidance for mid-to-high single-digit growth in adjusted diluted EPS based on the low single-digit RTM growth, with results currently tracking more towards the upper end of that range, and continues to expect approximately CAD 2.8 billion of capital investment in 2026, net of customer reimbursements. If fuel prices remain at current spot rates, Q4 EPS is expected to receive a tailwind of approximately $0.10, with a 100 to 150 basis point headwind to the operating ratio. The adjusted debt-to-adjusted EBITDA ratio is expected to come back to around 2.5 times by the end of the year instead of in 2027. For Q4, grain and fertilizers growth is expected to moderate, domestic intermodal performance is expected to strengthen, overseas volumes are expected to be weaker than prior year levels, and the trend towards higher offshore imports in automotive is expected to continue; for 2027, energy is expected to deliver a steady pace of growth, with ACE Terminal coming online in mid-2028 and Dow Path2Zero in late 2029.
- Strong Third-Quarter Earnings and Volume GrowthCN moved 4% more volume in Q3 and adjusted diluted EPS increased 18% year over year to CAD 2.16, or CAD 2.14 on an exchange-adjusted basis. Reported diluted EPS was CAD 2, up 9% from last year.
- Guidance Reaffirmed Near Upper EndCN reaffirmed guidance for mid-to-high single-digit adjusted diluted EPS growth based on low single-digit RTM growth and said it is currently tracking more toward the upper end of that range.
- Revenue Growth and Pricing DisciplineQ3 revenue increased 15% and revenue ton miles increased 4%. Same-store pricing continued to come in ahead of rail cost inflation, although the benefit was partly offset by mix and lower pricing on regulated grain.
- Improved Operating Ratio and Operating LeverageAdjusted operating ratio improved 40 basis points to 61%. Management said the result reflected solid volume growth, pricing discipline, and productivity improvements, demonstrating the company's ability to generate operating leverage as volumes grow.
- Best Third-Quarter Safety Performance in a DecadeCN delivered its best third-quarter accident and injury ratios in the last 10 years while handling more volume and maintaining reliable service across the network.
- Productivity Gains Across the NetworkLocomotive productivity improved 5% in the quarter and employee productivity improved 7%, marking the seventh consecutive quarter of year-over-year improvement. Cost per gross ton mile was down 3% for the year.
- Record Fuel Efficiency and SavingsCN achieved record third-quarter fuel efficiency, including its best month ever in September. The company reported approximately CAD 15 million in fuel savings during the quarter and said it remains the most fuel-efficient railroad in the industry.
- Fast Track Benefits RealizedFast Track has generated approximately CAD 120 million in realized benefits year to date, up CAD 20 million from the prior quarter. Management said the initiative is a continuous-improvement discipline embedded in the scheduled operating model and that the run rate carries into next year.
- Higher Free Cash Flow and Shareholder ReturnsFree cash flow for the first nine months was CAD 2.9 billion, up 25% year over year, with free cash flow conversion at 80% year to date. CN repurchased close to 4 million shares for approximately CAD 675 million during the quarter and plans to continue repurchases through the end of the current program.
- Improved Balance-Sheet OutlookAdjusted debt-to-adjusted EBITDA was approximately 2.6 times at the end of Q3, and CN now expects the leverage ratio to return to around 2.5 times by year-end instead of in 2027.
- Available Network Capacity Supports GrowthCN said it has available capacity across the network, including in the West, and more than 200 stored locomotives, later described as over 220 stored locomotives. Management said the network can accommodate additional volume without adding resources at the same rate as volume.
- Western Corridor Capacity Expansion Delivering ResultsCN increased Western Corridor capacity by 25% and double-tracked two-thirds of the Edson subdivision. The company moved record grain volumes in the Western Corridor with improved speed and velocity, fewer locomotives, and additional capacity to grow.
- Commercial Growth and New Revenue GenerationCN's boots-on-the-ground commercial efforts contributed approximately CAD 300 million in new revenues so far this year. Management also said the every-carload-counts approach has been producing close to CAD 100 million per quarter.
- Broad-Based Segment GrowthGrain and fertilizer RTMs increased 12%, supported by record crop production and robust export demand. Petroleum and chemicals RTMs increased 5%, driven by refined products and crude shipments to the Gulf Coast. Automotive performance benefited from continued share gains and a shift toward longer-haul import traffic.
- Commercial and Transload ExpansionCN increased NGL exports through Prince Rupert, moved the first cars from the new Wolf Midstream fractionator, continued ramp-up of Phase II of its GTA fuel terminal, added canola crush capacity, shipped the first unit train from an expanded grain elevator in Illinois, and opened the CANXPORT transload facility at Prince Rupert. It also started service at a new New Brunswick facility, began a Nova Scotia expansion, and increased transload capacity in Wisconsin.
- Energy Growth PipelineManagement cited continued growth in refined products, NGLs, plastics, and incremental crude business. New or expanding capacity includes Pembina and Wolf fractionators, the ACE Terminal expected in mid-2028, and Dow's Path2Zero project expected in late 2029.
- Mexico and Canadian Resource OpportunitiesCN's soon-to-be-finalized agreement with Union Pacific is expected to extend its reach into Mexico and provide access to approximately USD 45 billion in annual Canada-to-Mexico trade. Management also highlighted the positive final investment decisions for Phase II of LNG Canada and Coastal GasLink, as well as approximately CAD 2 billion of federal and provincial investment in Ontario's critical minerals and the Ring of Fire.
- Capital Intensity NormalizedCN said capital intensity is normalized to a range in line with North American peers and expects approximately CAD 2.8 billion of 2026 capital investment net of customer reimbursements. Management said future growth is manageable within a more industry-normalized level of capital.
- Positive Policy and Labor Environment CommentaryManagement viewed Canadian permitting changes, including the one-project, one-review, one-year approach, and the government's focus on natural-resource investment as constructive for industrial and resource growth. CN also said it supports the labor provisions and the collective-bargaining process in Bill C-39.
- Leadership Transition with Internal SuccessorCFO Ghislain Houle will remain CFO through February 1 and an advisor through the end of March. Jamie Lockwood, who has been with CN for nearly 20 years and has worked across finance, strategy, supply chain, and operations, will succeed him as CFO.
- Intermodal Recovery OpportunitiesCN expects domestic intermodal performance to strengthen in Q4 through commercial gains and truck-to-rail conversion. Management highlighted the CANXPORT facility and the upcoming IntermodeX capability at Prince Rupert, and said it remains optimistic about intermodal over the nearer term, though not necessarily in the first half of next year.
DE:CY2 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 26, 2027 | 2026 (Q4) | 1.40- | 1.33 | ― | ― |
| Oct 30, 2026 | 2026 (Q3) | 1.341.38 | 1.17 | 18.03% (+0.21) | |
| Jul 24, 2026 | 2026 (Q2) | 1.261.33 | 1.2 | 11.23% (+0.13) | |
| Apr 29, 2026 | 2026 (Q1) | 1.151.15 | 1.19 | -2.70% (-0.03) | |
| Jan 30, 2026 | 2025 (Q4) | 1.271.33 | 1.17 | 14.29% (+0.17) | |
| Nov 06, 2025 | 2025 (Q3) | 1.131.17 | 1.1 | 6.40% (+0.07) | |
| Jul 22, 2025 | 2025 (Q2) | 1.191.20 | 1.18 | 1.63% (+0.02) | |
| May 01, 2025 | 2025 (Q1) | 1.141.19 | 1.1 | 7.56% (+0.08) | |
| Jan 30, 2025 | 2024 (Q4) | 1.231.17 | 1.29 | -9.90% (-0.13) | |
| Oct 22, 2024 | 2024 (Q3) | 1.091.10 | 1.08 | 1.78% (+0.02) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
