- Canadian National Railway (TSX:CNR) reported its Q4 and full-year 2024 results, a year marked by significant challenges, including a worker lockout
- Q4 2024 revenues were C$4,358 million, down by C$113 million or 3 per cent
- Full-year 2024 revenues were C$17,046 million, up by C$218 million or 1 per cent
- Canadian National Railway stock (TSX:CNR) last traded at C$152.26
Canadian National Railway (TSX:CNR) reported its Q4 and full-year 2024 results, a year marked by significant challenges, including a worker lockout.
Q4 2024 highlights
- Revenue ton miles (RTMs): 59,305 million, a decrease of 3 per cent compared to Q4 2023.
- Revenues: C$4,358 million, down by C$113 million or 3 per cent.
- Operating income: C$1,628 million, a decline of C$190 million or 10 per cent.
- Operating ratio: 62.6 per cent, an increase of 3.3 points.
- Diluted earnings per share (EPS): C$1.82, a decrease of 45 per cent, or a 10 per cent decrease on an adjusted basis.
Full-year 2024 highlights
- RTMs: 235,538 million, an increase of 1 per cent from 2023.
- Revenues: C$17,046 million, up by C$218 million or 1 per cent.
- Operating income: C$6,247 million, a decrease of C$350 million or 5 per cent.
- Operating ratio: 63.4 per cent, an increase of 2.6 points, with an adjusted operating ratio of 62.9 per cent, up by 2.1 points.
- Diluted EPS: C$7.01, a decrease of 18 per cent, and adjusted diluted EPS of C$7.10, a decrease of 2 per cent.
- Return on invested capital (ROIC): 12.9 per cent, down by 3.9 points, and adjusted ROIC of 13.1 per cent, a decrease of 1.4 points.
2025 guidance and long-term outlook
CN expects to achieve 10 per cent-15 per cent adjusted diluted EPS growth in 2025 and plans to invest approximately C$3.4 billion in its capital program. Over the 2024-2026 period, CN targets compounded annual adjusted diluted EPS growth in the high single-digit range.
Shareholder returns
The Board of Directors has approved a 5 per cent increase to CN’s 2025 quarterly cash dividend, marking the 29th consecutive year of dividend increases. Additionally, a new Normal Course Issuer Bid (NCIB) will allow CN to purchase up to 20 million common shares for cancellation over a 12-month period starting February 4th, 2025.
Impact of the 2024 worker lockout
The financial results were impacted by the worker lockout that CN Rail dealt with in 2024. The job action, led by the Teamsters Canada Rail Conference, began in the summer and lasted several weeks, causing significant disruptions to CN’s operations. The action was a result of disputes over working conditions, wages, and job security.
CEO’s statement
In a news release detailing these results, Tracy Robinson, CN’s president and CEO stated, “Thanks to our team and the strength of our operating model, we were able to quickly recover from several shocks across the supply chain in 2024. We have good momentum as 2025 begins, and we are well positioned to drive growth with our customers and operating leverage across our system.”
CN Rail transports more than 300 million tons of natural resources, manufactured products and finished goods throughout North America every year across its nearly 20,000-mile rail network and related transportation services.
Canadian National Railway stock (TSX:CNR) last traded at C$152.26 and has lost 2.60 per cent in January 2025, on top of a 16.97 per cent loss since January 2024.
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(Top photo: File.)
