Canadian National Railway (NYSE:CNI) reported fourth-quarter earnings that beat analyst expectations, as the Montreal-based carrier leveraged improved operating efficiency to navigate a sluggish freight environment.
The company, Canada’s largest railroad, also announced a 3% increase in its quarterly dividend, signaling confidence in its ability to generate cash even as volume growth remains tempered.
For the quarter ended Dec. 31, 2025, CN reported net income of $895.2 million, or $1.46 per share.
Excluding non-recurring costs, adjusted profit reached $1.49 per share, surpassing the $1.43 average estimate of eight analysts surveyed by Zacks Investment Research.
Revenue for the period totaled $3.2 billion, also edging past Street forecasts of $3.19 billion.
The results highlight a significant improvement in the railroad's operating ratio—a key measure of efficiency where a lower number is better—which fell to 61.2% from 62.6% a year earlier.
The gain was driven by a 5% increase in gross ton miles and a 4% rise in revenue ton miles, reflecting better network fluidity and higher volumes in certain bulk commodities like grain.
For the full year 2025, CN reported a profit of $3.38 billion on revenue of $12.38 billion.