Oct 30, 2026 earnings call — Operations, growth, and capital discipline
CN reaffirmed mid-to-high single-digit adjusted EPS growth while reporting adjusted diluted EPS of CAD 2.16, up 18%.
Revenue $3.4B (est $3.3B) · EPS $1.54 (est $1.49)
Key quotes
"We delivered our best third-quarter accident and injury performance in the last decade, while handling more volume and maintaining reliable service across the network."
"Our boots-on-the-ground efforts have contributed approximately CAD 300 million in new revenues so far this year."
"During the quarter, we repurchased close to 4 million shares for approximately CAD 675 million."
Analyst Q&A 12
Fast Track savings clarity
Q (Brian Ossenbeck · JPMorgan): Analyst asked whether the CAD 120 million Fast Track number is realized or just a run rate, and asked how the Elk Valley Resources agreement affects the rest of the year and operations.
A: Management said the Fast Track number is realized and not a one-time program. They described Fast Track as a continuous way of running the business to improve execution. They noted the Elk Valley change will shift some handoffs but Janet quantified the 2027 impact as about $0.03 of EPS and said the commercial team will backfill it.
"Okay. I will start with the Fast Track, and that is CAD 120 million realized." — Pat Whitehead
Energy and Mexico growth
Q (Fadi Chamoun · BMO): Analyst asked if non-grain volumes (energy, metals, sand) will accelerate in 2027 and what drives that growth. He also asked about the new Mexico opportunity.
A: Management said energy is a multi-commodity, multi-year growth area with several specific drivers: refined products to the GTA fuel terminal, NGLs into Prince Rupert backed by new fractionation, incremental crude, and strength in plastics. They expect automotive to recover as retooled plants restart, forest products steady, and highlighted a Mexican opportunity to extend length of haul, capture existing rail moves, and convert truck to rail.
"When we look ahead to 2027, we see continued strength in the refined products into our GTA fuel terminal." — Janet Drysdale
Next steps and investor day
Q (Ravi Shanker · Morgan Stanley): Analyst asked what the company will do next beyond operational fixes and whether management has considered an investor day in 2027 to outline multi-year plans.
A: Management said they completed major network and locomotive investments and are now focused on operational execution and productivity, which they call Fast Track. They are evaluating timing for the next investor day and want more clarity on tariffs and merger discussions first. They emphasized unique growth opportunities like energy and Mexico access while they continue improving productivity and execution.
"We are now executing that well, and you're seeing the results from the execution of that." — Tracy Robinson (CEO)
U.S.-Canada trade and tariffs
Q (Cherilyn Radbourne · TD Cowen): Analyst wanted perspective on U.S.-Canada trade negotiations, shifting trade patterns from the tariff regime, and whether those shifts will persist after a resolution.
A: Management said the tariff-driven changes created volatility and sector-specific impacts; many goods still cross tariff-free. They expect nimbleness and resilience to remain and said dialogues on a resolution are ongoing. They also noted Canadian policy changes that could boost resource investment and benefit CN's position.
"It appears that there are some dialogues going on again after there was a near miss in August on a USMCA extension or a deal." — Tracy Robinson (CEO)
Intermodal rebound and IT charge
Q (Ken Hoexter · BofA): Analyst asked about intermodal rebound opportunities, timing for win-backs and backfill, and which tech projects caused a large charge.
A: Management said the Prince Rupert labor issue affected coal terminals, not containers, and wildfire disruptions were mostly past. They see domestic truck-to-rail conversion continuing and expect intermodal improvement later this year and into next, though not necessarily early 2027. On IT, management said two vendor-related system failures (a dispatch system and SAP S/4HANA approach) required regrouping, vendor re-evaluation, and governance changes.
"There was a couple of systems that between us and the vendors that we had chosen, we had some failures." — Tracy Robinson (CEO)
Stickiness of 2026 share gains
Q (Walter Spracklin · RBC): Analyst asked how much of the volumes CN gained in 2026 from service increases (and CP issues) are sticky versus at risk of reverting in 2027.
A: Management answered briefly that gains came from providing great service and expressed confidence operations will continue to deliver strong service into next year. They implied stickiness depends on sustaining that service level.
"We have gained business this year because we have provided a great service." — Janet Drysdale
Bill C-39 and interswitching impact
Q (David Vernon · Bernstein): Analyst asked management's view on Bill C-39, its elements (permitting, labor), and specifically the potential impact of extended interswitching on 2027 volumes.
A: Management said Bill C-39 contains positive permitting and labor-focused provisions that could boost investment and permitting speed. On interswitching, they said they disagree with the principle but noted two pilots showed no business movement changes, so they don't expect a material volume impact if implemented. They emphasized servicing customers well reduces such impacts.
"The interswitching is just an extension of what the government has put in place before on an extended interswitching." — Tracy Robinson (CEO)
How much more capacity exists
Q (Konark Gupta · Scotiabank): Analyst asked how much growth the current network can absorb before new investment is needed and when capacity limits might be hit.
A: Management said they increased Western Corridor capacity by about 25% and double-tracked two-thirds of the Edson sub, which has allowed more volume with fewer locomotives. They believe east and south have ample capacity and that future growth timing depends on where growth occurs, but current investments give them room to grow within normalized capital levels.
"We lifted the capacity of the Western Corridor by, in effect, 25%, and have got two-thirds of the Edson sub double-tracked," — Tracy Robinson (CEO)
Productivity vs volume dependence
Q (Brandon Oglenski · Barclays): Analyst asked how much incremental efficiency (Fast Track) depends on volume growth, since sales need service to win share.
A: Management said they will continually challenge processes and right-size resources to volume, using volume as their North Star. They noted seven quarters of year-over-year productivity improvement and lower cost per GTM this year, and said operations will keep focusing on productivity regardless of volume swings.
"My job is to make sure that we're right-sizing resources to volume." — Pat Whitehead
Sustainability of EPS growth
Q (Chris Wetherbee · Wells Fargo): Analyst asked if the setup points to a return to double-digit EPS growth in 2027 or beyond and how sustainable recent gains are.
A: Management said they are focused on controllable elements: capacity, boots-on-the-ground commercial focus, and productivity, which together create operating leverage and cash generation. They acknowledged headwinds like lapping a big grain cycle but see idiosyncratic growth opportunities (Mexico, energy) and aim for high single-digit to low double-digit EPS growth over time while staying disciplined.
"We're focused on executing, and that has, as you say, been translating into results." — Tracy Robinson (CEO)
Energy volume outlook and labor talks
Q (Benoit Poirier · Desjardins): Analyst asked whether petroleum and chemicals RTM could see double-digit volume growth in 2027 and for an update on TCRC labor discussions as the agreement expires in December 2026.
A: Management described steady, ratable multi-commodity energy growth with specific project timelines: ACE Terminal mid-2028 and Dow Path2Zero in late 2029, so growth is gradual and multi-year rather than an immediate double-digit leap. On labor, they said they believe in collective bargaining, are engaged with TCRC now, and are focused on achieving a constructive agreement before the expiry.
"When we get into mid-2028, we've got the ACE Terminal coming online." — Janet Drysdale
Prince Rupert coal disruption effect
Q (Kevin Chiang · CIBC): Analyst asked if coal terminal issues in Prince Rupert (Trigon) could hit propane or P&C near-term and how that affects the P&C outlook for end of 2026.
A: Management said the federal government is involved and labor stability is important; weekly volumes show impacts mainly on coal and petroleum coke with a small NGL impact so far. They said some NGLs can be diverted to other terminals, they view this as a short-term transient issue, and they have already considered these impacts in guiding to full-year low single-digit RTM growth.
"We have taken these impacts into consideration when we kind of reiterated our expectation for full-year low single-digit RTM growth, and of course, as it relates to the full-year guidance." — Janet Drysdale