Disputes in trade negatively impact Container National's (CN) volumes, leading to a reduced forecast by the railway company.

Disputes in trade negatively impact Container National's (CN) volumes, leading to a reduced forecast by the railway company.

Canadian National Railway (CN) has revised its 2025 financial outlook, scaling back expectations for earnings per share (EPS) growth due to ongoing trade and tariff-related economic uncertainty. The company now anticipates mid to high single-digit growth, down from a previously projected 10% to 15% range [1][3][4].

Despite this cautious outlook, CN delivered a resilient financial performance in Q2 2025. The company's revenue slightly declined by about 1% to approximately C$4.27 billion, and revenue ton-miles fell 1%, indicating some reductions in freight volume potentially linked to trade disruptions. However, CN achieved a 5% increase in operating income to C$1,638 million and improved its operating ratio to 61.7%, reflecting strong cost control and operational efficiency. Diluted EPS rose 7% to C$1.87, and net income increased slightly to about C$1.17 billion [1][2][3][4].

CN's management emphasized operational agility and tight cost control as key factors enabling strong Q2 results despite the challenging external environment shaped by trade and tariff volatility. The company continued to invest heavily in infrastructure, with a capital program of C$3.4 billion planned for 2025 to support long-term service capabilities and economic contribution [3][1].

However, the railway faced challenges in certain sectors. Grain and potash volumes increased, but declines in international intermodal and merchandise volume could not be offset. Trade disputes and softening economic conditions have negatively impacted CN's forest products, metals, international intermodal, and automotive traffic [1].

To manage costs, CN took steps such as furloughing train crews and storing locomotives, and trimmed its $2.5 billion capital budget by $36.7 million [1]. The company's railway continued to run well, with car-miles per day, dwell, and local service all improving over last year's second quarter [1].

CEO Tracy Robinson attributed the downgrade to ongoing trade- and tariff-related economic uncertainty, while Derek Taylor, CN's chief field operations officer, stated that costs were reduced as merchandise volume declined [1]. Unfavorable exchange rates are also expected to have a negative impact on earnings per share [1].

Subscribing to CN's Rail e-newsletter provides the latest insights on rail freight [2]. For more information, visit Canadian National Railway's official website.

References: [1] Canadian National Railway Company. (2025). Second-quarter financial results news release. Retrieved from https://www.cn.ca/en/investors/news-and-events/news-releases/2025/q2/q2-2025-results [2] Canadian National Railway Company. (2025). Rail e-newsletter subscription. Retrieved from https://www.cn.ca/en/investors/news-and-events/email-alerts [3] Canadian National Railway Company. (2025). 2025-2026 outlook withdrawn. Retrieved from https://www.cn.ca/en/investors/news-and-events/news-releases/2025/q2/2025-2026-outlook-withdrawn [4] Canadian Press. (2025, August 5). CN lowers outlook for 2025 amid trade uncertainty. Retrieved from https://www.theglobeandmail.com/business/article-cn-lowers-outlook-for-2025-amid-trade-uncertainty/

The ongoing trade and tariff-related economic uncertainty has led Canadian National Railway (CN) to revise its 2025 financial outlook, expecting mid to high single-digit growth in earnings per share (EPS), a decline from the previously projected 10% to 15% range. Despite this, the company demonstrated operational agility and tight cost control in Q2 2025, achieving a 5% increase in operating income and improving its operating ratio, while also investing heavily in infrastructure to support long-term service capabilities. However, declines in international intermodal and merchandise volume have negatively impacted CN's business, highlighting the challenges faced by the industry in navigating the volatile trade and tariff environment.

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