Canada's CN Q2 revenue misses estimates, removes 2024-2026 financial outlook due to volatility

Canadian National Railway Co

22/07/2025 21:15

Overview

CN Q2 revenue falls 1% to C$4.272 bln, missing analyst estimates

Adjusted EPS meets expectations at C$1.87, adjusted net income misses

Co lowers 2025 adjusted EPS growth forecast due to economic uncertainty

Outlook

CN expects 2025 EPS growth in mid to high single-digit range

Company plans C$3.4 bln capital investment in 2025

CN removes 2024-2026 financial outlook due to volatility

Company assumes 2025 RTM growth in low single-digit range

Result Drivers

COST CONTROL - CN attributes strong operating income growth to tight cost control despite revenue decline

TRADE ISSUES - Company working closely with customers impacted by trade issues to provide necessary services

ECONOMIC UNCERTAINTY - CN lowers 2025 adjusted EPS growth forecast due to persistent trade and tariff volatility

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
C$4.27 bln
C$4.34 bln (19 Analysts)
Q2 Adjusted EPS
Meet
C$1.87
C$1.87 (21 Analysts)
Q2 EPS
C$1.87
Q2 Adjusted Net Income
Miss
C$1.17 bln
C$1.18 bln (15 Analysts)
Q2 Net Income
C$1.17 bln
Q2 Adjusted Operating Income
Miss
C$1.64 bln
C$1.66 bln (18 Analysts)
Q2 Operating Income
C$1.64 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the ground freight & logistics peer group is "buy"

Wall Street's median 12-month price target for Canadian National Railway Co is C$159.00, about 14.3% above its July 21 closing price of C$136.26

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nGNX6B4mdf

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)