Canadian National Railway Co (CNI) Q3 2024 Earnings Call Highlights: Navigating Challenges with Resilience

Canadian National Railway Co (CNI) reported its Q3 2024 financial results, demonstrating resilience despite challenges from wildfires and labor issues. The company's revenue ton miles increased by 2% to 56,548 million, while revenues grew by 3% to C$4,110 million. Diluted EPS also increased by 2% to C$1.72. CN maintained its 2024 guidance, expecting low single-digit adjusted diluted EPS growth and a C$3.5 billion capital investment.


CN's operating ratio increased by 1.1 points to 63.1%, indicating slightly increased costs. However, the company's revenue ton miles rose by 2%, suggesting improved efficiency. CN has implemented strategies to mitigate the effects of wildfires and labor issues on its operations. The company's cost management strategy has evolved to address these challenges, and technological advancements have played a role in maintaining the operating ratio amidst increased costs.


CN's capital investment strategy has also contributed to its ability to maintain its operating ratio despite challenges. The company targets high single-digit compounded annual adjusted diluted EPS growth for 2024-2026, demonstrating its commitment to long-term growth.

In conclusion, CN's Q3 2024 earnings call highlights the company's resilience in navigating challenges. Despite increased costs and operating ratio, CN has demonstrated improved efficiency and maintained its growth projections. The company's strategies to mitigate the effects of wildfires and labor issues, along with its capital investment strategy, have contributed to its ability to maintain its operating ratio and achieve long-term growth.