CN Q1 Profit Slips to $1.15 Billion on Higher Costs

MONTREAL - Canadian National Railway Co. reported a first-quarter profit of $1.15 billion for the period ended March 31, down slightly from $1.16 billion in the same quarter a year earlier.

The Montreal-based railway operator said the profit amounted to $1.87 per diluted share, compared with $1.85 per diluted share last year, when it had more shares outstanding. On an adjusted basis, which excludes one-time items, CN earned $1.80 per diluted share, a decline from $1.85 per diluted share in the first quarter of 2025.

Revenue totaled $4.38 billion, a small decrease from $4.40 billion in the prior-year period. Company officials attributed the overall dip to higher operating costs, even as freight volumes grew. Gross ton miles, a measure of total freight volume including locomotives and empty cars, increased 3 percent year over year. Revenue ton miles, which track paying cargo, also rose 3 percent.

CN's operating ratio, calculated as operating expenses as a percentage of revenue, stood at 64.6 percent, up from 63.4 percent a year ago. The higher ratio reflects increased expenses outpacing the modest revenue growth and volume gains.

The results come amid a challenging environment for...