Canadian National Railway Reports Strong Q2 Performance, Raises Full-Year Outlook
Canadian National Railway (CNI) reported strong second-quarter results and raised its full-year outlook for 2026. The company achieved a 12% increase in exchange-adjusted earnings per share alongside 5% volume growth. Management now expects low-single-digit revenue ton mile (RTM) growth and mid- to high-single-digit adjusted diluted EPS growth, up from previous guidance of flat volumes. Operating performance improved significantly with record fuel efficiency for the second quarter and first half of the year. Free cash flow increased by about 20% year-to-date, while leverage stood at 2.6x debt-to-adjusted EBITDA as of Q2-end. The company also highlighted strong commodity trends across key sectors such as grain, potash, petroleum, chemicals, and metals. CN announced new agreements with Union Pacific to expand market access through Canada-to-Mexico routing rights via Memphis and potential Kansas City access linked to the proposed merger process.