CN posts uptick in Q2 profit; drops outlook amid trade, tariff uncertainty

CN yesterday reported second-quarter 2025 revenue declined 1% to $4.72 billion, while adjusted net and operating income remained flat compared with the same period a year ago. 

The Class I reported Q2 freight revenue fell to C$4 billion from C$4.15 billion a year ago; operating income increased to C$1.64 billion from C$1.55 billion; adjusted operating income remained flat at C$1.64 billion; and net income inched up to $1.17 billion from $1.11 billion.

The company posted diluted earnings per share of C$1.87 for the quarter compared to C$1.75 a year ago. The operating ratio fell to 61.7% from 64% a year ago.

“Our team's ability to be nimble and our focus on tight cost control allowed us to adjust our operations and deliver strong results despite a challenging external environment," said CN President and CEO Tracy Robinson in a press release. "We are working closely with customers, including those impacted by trade issues, to provide them with the services they need to win in their markets. We remain focused on powering the North American economy and delivering for shareholders.”

Due to economic uncertainty as a result of trade and tariff volatility in key economic sectors, CN said it now expects its adjusted diluted EPS growth will be in the mid to high single-digit range in 2025, compared to the 10% to 15% growth that the company expected as of Jan. 30.

CN continues to plan to invest C$3.4 billion in its capital program, net of amounts reimbursed by customers, company officials said.

Also, as a result of its updated guidance for the year and the continued high level of macroeconomic uncertainty and volatility related to evolving trade and tariff policies, CN dropped its 2025-2026 financial outlook.