CN reports lower revenue, profit in Q4

CN yesterday reported fourth-quarter 2024 total revenue dipped 3% to C$4.4 billion and net income fell 46% to C$1.1 billion compared to the same period a year ago.

On an adjusted basis, diluted earnings per share for Q4 fell to C$1.82, down 45% from C$2.02 a year ago, according to a CN press release. The Class I posted a Q4 operating ratio of 62.6%, up from 59.3% in Q3 2023.

CN's Q4 revenue ton miles of 59.3 million declined 3% year over year.

For full-year 2024, CN reported revenue of C$17 billion, a 1% increase, and net income of C$4.4 billion, a 21% decrease from in 2023. The adjusted operating ratio came in at 62.9% for the year, up from 60.8% a year ago.

“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," said CN President and CEO Tracy Robinson. "We have good momentum as 2025 begins, and we are well positioned to drive growth with our customers and operating leverage across our system.”

In a conference call with analysts, Robinson said one-off challenges that impacted the company's financial results included the uncertainty stemming from the Canadian government's referral of a labor dispute to the Canadian Investor Relations Board, as well as a rail shutdown and then strikes at the ports of Prince Rupert, Vancouver and Montreal.

"Long story short, we were resourced for more volumes than we handled and we didn't deliver growth to the bottom-line. We're not happy with that," Robinson said, according to a Seeking Alpha transcript of yesterday's call with analysts.

In 2025, CN expects to deliver 10% to 15% adjusted diluted EPS growth and plans to invest C$3.4 billion in its capital program.