Canadian National Railway Co. delivered a strong set of results for the fourth quarter of 2025, highlighting resilience in earnings despite ongoing challenges in freight volumes and trade uncertainty. The Montreal-based rail operator reported a robust profit and revenues that grew modestly year-over-year, reinforcing its position as a cornerstone of North America’s transportation infrastructure.

For the quarter ended December 31, CN recorded net income of approximately $895 million — representing double-digit growth compared with the same period in the prior year. On a per-share basis, adjusted earnings came in ahead of consensus expectations, driven by productivity gains and cost control measures across operations. Efficiency improvements were reflected in one of the best operating ratios of the year, underscoring CN’s focus on operational discipline.

Revenue for the quarter rose modestly, supported by diversified freight traffic across key commodities, though uncertainties tied to tariff policies and cross-border trade continued to weigh on overall volumes. Segment performance varied, with some industrial areas like grain and fertilizer showing resilience, while others such as metals and forest products faced headwinds. Despite these mixed trends, the broader revenue picture demonstrated that CN’s diversified freight portfolio helps cushion the impact of individual sector weaknesses.

Management’s commentary emphasized both the achievements and the challenges ahead. While the company has delivered solid earnings results and continues to generate significant free cash flow, near-term growth is expected to be tempered by ongoing uncertainty around trade policy, particularly with the United States. Tariffs and broader economic conditions have prompted CN to maintain a cautious outlook on volume growth for the coming year, even as pricing and productivity remain priorities.

Also Read: Top Canadian tech AI stocks

Looking ahead, capital allocation remains a key focus. CN plans to invest several billion dollars in its capital program for 2026, aimed at enhancing network capacity and improving service reliability. At the same time, the company has maintained shareholder returns through dividends and share repurchase authorizations.

Also Read: Best long term Canadian stocks

Overall, CN’s fourth-quarter performance illustrates resilience in a complex freight environment. While earnings and revenue gains provide confidence in the company’s core business model, external pressures — especially related to trade and tariffs — underscore the challenges that could shape performance in the year ahead.