The Montreal-based firm mentioned in a launch Tuesday that it’s eradicating its beforehand issued 2024-26 monetary outlook given continued uncertainty surrounding commerce and tariffs.
“We’re certainly in unsure instances and whereas we will’t predict precisely the place tariffs and commerce and the financial system will go, we’re very intensely centered on doing the issues that we will do each with our clients and in controlling our prices to guarantee that we defend our margins and are properly positioned to execute our progress technique as we go ahead,” Tracy Robinson, CN’s president and CEO, advised analysts on a convention name.
CN trims outlook for cargo volumes, revenue progress, and spending
Janet Drysdale, the interim chief business officer for CN, mentioned the on-again, off-again tariffs have been inflicting clients to re-evaluate their provide chains. “Primarily based on what we noticed in Q2 and what we’re listening to from clients, we have now decreased our quantity outlook for the again half of the yr, and consequently up to date our full yr quantity assumption to low single-digit RTM (income ton miles) progress versus 2024,” she mentioned on the identical name.
Cargo volumes as measured in income ton miles—a key metric gauging what number of tons of freight are hauled in a mile—decreased by 1% throughout the quarter in contrast with the earlier yr.
CN additionally lowered its 2025 forecast for adjusted diluted earnings per share progress, saying it now expects progress within the mid to excessive single-digit vary. A earlier estimate from CN anticipated adjusted diluted earnings per share to extend between 10% and 15% for 2025.
“With a revised quantity assumption and corresponding combined affect, in addition to a better Canadian greenback assumption for the steadiness of yr, we’re revising our steering to mid to excessive single-digit EPS progress in 2025,” Ghislain Houle, chief monetary officer of CN, mentioned on the earnings name. He additionally mentioned the corporate is barely lowering its capex for the yr. “Tariff insurance policies have had a significant affect on visitors volumes and blend. We’re staying near our clients and proceed to handle our prices and assets tightly,” Houle mentioned.
Income slips however earnings rise in CN’s second quarter
CN reported its internet earnings inched as much as $1.17 billion throughout its second quarter in contrast with final yr. The Montreal-based firm says income fell about 1%, to $4.27 billion in contrast with $4.33 billion a yr earlier. Diluted earnings per share for the quarter got here in at $1.87, up from $1.75 a yr earlier. CN additionally introduced it declared a 3rd quarter dividend of 88.75 cents per frequent share, which will probably be paid on Sept. 29.
