CN Reports Fourth Quarter and Full-Year 2024 Financial Results

Navigating Supply Chain Disruptions and Driving Growth

Canadian National Railway (CN) announced its financial and operating performance for the fourth quarter and full year of 2024, showcasing resilience in the face of supply chain challenges and optimism for future growth.

“Our team’s dedication and the robustness of our operating model allowed us to quickly rebound from various supply chain disruptions in 2024," stated Tracy Robinson, CN's President and Chief Executive Officer. "We are entering 2025 with strong momentum and are primed to drive growth alongside our customers, leveraging operational efficiencies throughout our network.”

Key Financial Highlights of Q4 2024

Compared to Q4 2023, CN experienced a 3% decrease in revenue ton miles (RTMs) to 59,305 million. Revenues dipped by C$113 million (3%) to C$4,358 million, while operating income fell by C$190 million (10%) to C$1,628 million. The operating ratio climbed 3.3 points to 62.6%. Diluted earnings per share (EPS) saw a significant drop of 45% to C$1.82, or a 10% decrease on an adjusted basis.

A Look at the Full-Year 2024 Performance

For the full year, RTMs registered a 1% increase to 235,538 million compared to 2023. Revenues edged up by C$218 million (1%) reaching C$17,046 million. Operating income, however, declined by C$350 million (5%) to C$6,247 million. The operating ratio increased 2.6 points to 63.4%, with an adjusted operating ratio of 62.9%, a 2.1-point rise. Diluted EPS was down 18% to C$7.01, with adjusted diluted EPS decreasing 2% to C$7.10. Return on invested capital (ROIC) decreased by 3.9 points to 12.9%, with an adjusted ROIC decrease of 1.4 points to 13.1%.

2025 Guidance and Long-Term Outlook

CN projects adjusted diluted EPS growth of 10%-15% in 2025 and has earmarked approximately C$3.4 billion for its capital program, net of customer reimbursements. Furthermore, CN maintains its target of high single-digit compounded annual adjusted diluted EPS growth for the 2024-2026 period.

Rewarding Shareholders

Demonstrating confidence in the company's long-term financial strength, CN's Board of Directors authorized a 5% increase in the quarterly cash dividend for 2025, effective in the first quarter. This marks the 29th consecutive year of dividend increases. The Board also approved a Normal Course Issuer Bid (NCIB) enabling CN to repurchase up to 20 million common shares for cancellation beginning February 4, 2025. CN remains committed to its adjusted debt-to-adjusted EBITDA target of 2.5x.

Additional Information and Forward-Looking Statements

For a comprehensive breakdown of financial results, including non-GAAP measures, detailed assumptions, and risk factors, please refer to CN's official news release available on their website and SEDAR+.

CN's forward-looking statements involve inherent risks and uncertainties. Actual results may differ materially due to various economic, market, and industry factors.