CN’s Q3 2025: Revenue, Efficiency & 2026 Rail Capital Plans

Introduction

CN reported its third-quarter 2025 financial and operating results, revealing a 6% increase in earnings and a 1% rise in revenue compared to the third quarter of 2024. The Class I railroad’s performance included revenue of C$4.2 billion for the quarter.

Financial Performance

CN’s revenue for the quarter was C$4.2 billion, marking a 1% increase. Operating income reached C$1.1 billion, reflecting a 6% growth. Net income also rose to C$1.1 billion, a 5% increase, with diluted earnings per share at C$1.83, up 6%.

Operating Efficiency

The company’s operating ratio for Q3 2024 was 61.4%, which improved compared to 63.1% a year earlier. The operating ratio is defined as operating expenses as a percentage of revenue.

Productivity and Share Repurchase

Productivity improvements during the quarter included C$75 million in labor cost reductions. CN repurchased 8 million shares during the quarter, with a value of C$1 billion.

Future Outlook

Tracy Robinson, CN President and CEO, characterized the Q3 results as strong. Looking ahead to 2026, CN plans to allocate C$2.8 billion for capital expenditures, a decrease of nearly C$600 million compared to the 2025 levels.

Conclusion

CN’s third-quarter 2025 results showed revenue growth, improved operating income, and a reduced operating ratio. The company is planning for a lower capital spend in 2026.

Company Summary

CN: A Class I railroad.