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- **Revenue Growth**: 15% YoY driven by North American recovery, with Q3 EPS up 6% YoY.
- **AI & Cost Efficiency**: $75M cost reduction program and $120M annualized savings from fleet modernization.
- **Free Cash Flow Acceleration**: $2.3B year-to-date, up 14% YoY, with 2026 capital spend cut to $2.8B.
- **M&A Strategy**: Proactive regulatory engagement, focusing on operational excellence rather than consolidation.
- **Sector Resilience**: Energy and ag growth offsetting tariff-driven declines in forest products.

**【CEO Summary Section】**
- CEO Tracy Robinson highlighted 15% YoY revenue growth driven by North American market recovery and a strategic focus on AI investment for gross margin improvement.
- Announced a $75 million cost reduction program targeting management labor and capital spend, with 2026 capital budget set at $2.8 billion (down $600 million YoY).
- Emphasized resilience in a challenging macro environment, with Q3 EPS up 6% YoY and operating ratio improving 170bps to 61.4%.

**【CFO Financial Commentary】**
- Reported Q3 EPS of $1.83 (6% YoY growth), with GAAP net income of $420 million and Non-GAAP EPS of $1.08 exceeding expectations.
- Free cash flow reached $2.3 billion year-to-date, up 14% YoY, driven by cost control and capital spend reduction.
- Guidance for 2026 includes mid-single-digit EPS growth and capital intensity aligned with U.S. peers.

**【Q&A Highlights】**
- **M&A Risks**: CEO acknowledged regulatory risks but stated readiness to protect franchise if merger approved. Focus on operational efficiency and service innovation.
- **Volume Outlook**: Expect low-single-digit volume growth in 2026, with resilience in energy and ag sectors offsetting tariff impacts in forest products.
- **Cost Management**: CFO highlighted $120 million annualized savings from fleet modernization and $20 million in infrastructure cost reductions.
- **Share Buybacks**: Accelerated $1 billion in Q3 share repurchases, with plans to continue opportunistic buybacks through 2026.

Canadian National Railway Company (CNI) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

CNI

CNI fundamentals

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