Canadian National Railway Company

Union Pacific and Norfolk Southern have filed a response arguing that opponents' prima facie challenges to their proposed merger should be rejected, asserting that their application easily meets the Surface Transportation Board's threshold requirements. The railroads submitted extensive evidence, including plans to create new single-line service for over 88,000 county-to-county lanes, generate approximately $1 billion in annual operating savings, and divert 2.1 million truckloads to rail. They also proposed customer protections such as an Open Gateway Commitment and new access rights for Canadian National. The STB issued a procedural schedule on August 18, advancing the review. Union Pacific CEO Jim Vena and Norfolk Southern CEO Mark George emphasized the merger's public benefits, including job guarantees and improved service.

Canadian National Railway reported progress on its hybrid locomotive development program in August 2026, expanding testing to three hybrid units and planning to convert two more to hybrid-electric platforms with AC traction technology by the end of 2026. The company's pilot hybrid locomotive achieved up to a 50% fuel-efficiency improvement, fewer engine-related failures, and lower noise and emissions, using new solid-state batteries and a larger 2.8MWh system paired with an 800HP Tier 4 engine. The company also announced a binding memorandum of understanding with Union Pacific that expands operating rights for both railroads and strengthens North American freight corridors. Simply Wall St projects Canadian National Railway will reach CA$20.9 billion revenue and CA$5.9 billion earnings by 2029, requiring 5.5% yearly revenue growth and about a CA$1.1 billion earnings increase from CA$4.8 billion today.

Canadian National Railway announced the advancement of its hybrid locomotive development program, marking another milestone in its commitment to more efficient and sustainable rail operations. Following a successful initial pilot project, CN now has three locomotives being tested and is working to transform two additional locomotives into hybrid-electric platforms with AC traction technology by the end of 2026. The company expects this industry-first approach to improve fuel efficiency, reliability, and operational performance while extending asset life and reducing emissions. In its pilot project, CN achieved up to a 50 percent improvement in fuel efficiency, along with significant reductions in traditional engine-related failures, increased horsepower, and reduced idling. New features include solid-state battery technology, a larger 2.8MWh battery system paired with an 800HP Tier 4 engine, and increased horsepower from 3,200 to 3,800 HP.

Canadian National Railway moved more than 33.8 million metric tons of grain from Western Canada in the 2025-26 crop year, surpassing the previous record of 32.6 million metric tons set in the prior crop year. The company also set a July record by moving 2.62 million metric tons of grain, exceeding the previous July record of 2.43 million metric tons set in 2020. Canadian National's shares have gained 34.5% over the past year, compared with 29.1% growth for the Transportation-Rail industry. The company currently carries a Zacks Rank #3 (Hold).

Union Pacific reported a strong quarter and settled with Canadian National Railway, removing a major opponent to its proposed $71.5 billion acquisition of Norfolk Southern. Revenue rose 12% to $6.86 billion, beating the $6.71 billion expected, and adjusted earnings came in at $3.41 a share versus $3.24 expected. The company raised its full-year guidance to high-single-digit earnings growth. The settlement gives Canadian National expanded Midwest access and a stake in two jointly owned terminal railroads in exchange for dropping its opposition. The merger still faces opposition from BNSF, Canadian Pacific Kansas City, some shippers, and state attorneys general, and the Surface Transportation Board has not yet restarted its review.

Canadian National Railway will not oppose the proposed Norfolk Southern-Union Pacific merger after reaching two separate agreements with Union Pacific that give CN a faster route to Mexico and a first-ever foothold in Kansas City. One deal, independent of the merger, grants CN haulage rights over Union Pacific's tracks between Memphis and the Mexican border crossing at Eagle Pass, Texas, for traffic moving between Canadian origins or destinations and Mexico, providing a faster, more direct route to compete against CPKC. In exchange, Union Pacific gains rights to use CN's Chicago bypass, the EJ&E corridor, to avoid the city's congested rail network. The merger-contingent piece grants CN trackage rights over Union Pacific through Missouri, giving CN access to the Kansas City market for the first time operating its own trains and use of Union Pacific's underutilized Neff Yard, addressing competitive concerns for roughly five shippers whose railroad options would drop from two to one and approximately two dozen shippers, mostly in the St. Louis area, who would go from three options to two. The merger developments come as four of the six Class 1 railroads reported earnings this week showing broad-based volume improvement, with CSX volumes up 6%, Norfolk Southern up 4%, Canadian National up 5% on a revenue-ton-mile basis, and Union Pacific up 2%, and three of the four raised their financial or volume outlooks for the year, led by intermodal growth.

Union Pacific and Norfolk Southern CEOs say the latest additions to their merger application further enhance competition. In a supplemental filing, the railroads doubled the number of shippers eligible for Committed Gateway Pricing and added bulk unit train moves, a change CEO Jim Vena said came from customer feedback. CEO Mark George noted the move goes beyond what any Class I merger has offered, and together with a new agreement giving CN access to Kansas City and UP’s Mexico gateway, it changes the competitive landscape. The filing also includes a mechanism for customers to seek reciprocal switching from the Surface Transportation Board if service deteriorates during integration. The CEOs argued the merger would create 88,000 single-line lanes, which they said are 27% less costly than interline moves and more likely to shift freight from truck to rail.

Canadian National Railway raised its full-year 2026 guidance after reporting second-quarter revenues of $4.8 billion, an 11% increase driven by record performance in grain and energy products. Adjusted diluted earnings per share rose 11% to $2.08, or 12% on a constant currency basis, while revenue ton miles grew 5% to 62.3 billion. The company now expects mid- to high single-digit adjusted diluted EPS growth for the year, up from its prior forecast, on low single-digit RTM growth. CN also announced two strategic agreements with Union Pacific that secure long-term access to Mexico via Memphis and, contingent on regulatory approval of a merger, competitive access to Kansas City, mitigating concerns about broader rail industry consolidation. Operational productivity initiatives, including the Fast Track program, delivered $100 million in realized savings year-to-date, and free cash flow for the first half reached $1.8 billion, a 19% increase.

CN announced that its Board of Directors has approved a third-quarter 2026 dividend on the company's outstanding common shares. A quarterly dividend of ninety-one and a half cents (0.9150 Canadian dollars) per common share will be paid on September 29, 2026, to shareholders of record at the close of business on September 8, 2026.

Canadian National Railway and Union Pacific have signed an operating rights agreement granting each company key access across North America. The arrangement provides Canadian National Railway with improved reach between Canada, the U.S. Midwest, and Mexico, while Union Pacific gains a congestion-free bypass around Chicago. The agreement is linked to CN's support of Union Pacific's merger with Norfolk Southern and is expected to influence service patterns over time. The deal could affect corridor utilization, service offerings, and customer routing decisions as the operating rights are implemented.

Union Pacific and CN have signed a binding Memorandum of Understanding that establishes a framework for CN to secure competitive access in connection with Union Pacific's proposed merger with Norfolk Southern. Under the settlement, which is contingent on Surface Transportation Board approval and closing of the merger, CN gains access to shipper facilities where Class I railroad options would be reduced, acquires Norfolk Southern's ownership interests in the Kansas City Terminal Railway Company and the Terminal Railroad Association of St. Louis, and obtains new Midwest overhead rights between Tuscola, Illinois, and East St. Louis, Illinois, as well as rights to serve customers between St. Louis, Missouri, and Kansas City, Missouri. For the first time, CN will have a footprint in Kansas City with usage of Union Pacific's Neff Yard, and CN agrees not to oppose the merger. Union Pacific CEO Jim Vena said the agreement reinforces commitments to preserve and enhance competitive options, while CN President and CEO Tracy Robinson emphasized that the framework preserves competitive access to key markets including Kansas City.

Canadian National Railway set a new monthly grain movement record across its network, moving 2.67 million metric tonnes of grain from Western Canada in June. That surpassed the previous June record of 2.64 million metric tonnes set in 2020. The company said the result showed strong customer demand, supply-chain coordination, and operational flexibility despite heavy rainfall in parts of Western Canada.

Canadian National Railway Company set a new monthly record for propane shipments to Watson Island in May 2026, with carloads rising 40% year-over-year. The milestone surpassed the previous record from August 2024 and reflects stronger throughput on the South Beamer-to-Watson Island corridor, driven by robust export demand and operational improvements such as train length optimization and better asset utilization. The achievement reinforces CNI's strategic role in Canada's energy export supply chain, enabling producers and terminal operators to capitalize on international demand. Continued collaboration with partners like Pembina and a focus on network efficiency are expected to support higher freight volumes and long-term revenue growth.

CN established a new monthly record for grain movement in June, moving 2.67 million metric tonnes of grain from Western Canada. This surpassed the previous June record of 2.64 million metric tonnes set in June 2020. The record performance reflects strong customer demand, close supply chain collaboration, and operational flexibility despite heavy rainfall in parts of Western Canada. CN worked with customers to adjust shipping plans and maintain network fluidity, efficiently moving grain to export markets.

Canadian National Railway has entered into a conditional long-term lease agreement with PlasCred Circular Innovations for a proposed advanced recycling facility at its Scotford Yard in Fort Saskatchewan, Alberta. The lease provides an initial 15-year term with options to extend site control for up to 30 years, utilizing an existing 35,000-square-foot industrial building and a 200-car rail siding. The Scotford Yard location offers direct access to Canadian National's North American rail network, streamlining transportation of inbound mixed plastic waste and outbound refined hydrocarbon condensate. Once operational, the Neos facility is expected to process up to 100 tons of hard-to-recycle plastics per day, converting them into approximately 500 barrels of refined hydrocarbon condensate daily for use as feedstock in new plastics and other industrial applications. The agreement remains conditional on certain requirements, but represents a strategic step for Canadian National in supporting clean technology projects and expanding freight opportunities.

Canadian National Railway released its 2025 Sustainability Data Supplement, highlighting continued progress toward its 2030 emissions-reduction targets, improvements in safety performance and workforce representation, and recognition from several leading ESG rating agencies. The company maintained inclusion in the Dow Jones Best-in-Class indices, was named to Corporate Knights' Best 50 Corporate Citizens in Canada, and received an MSCI ESG 'AA' rating, a CDP Climate Change score of 'B', and an EcoVadis Silver medal. CNI's shares have gained 22% over the past year, outperforming the Transportation-Rail industry's 18.9% growth.

PlasCred Circular Innovations has entered into a conditional long-term lease agreement with Canadian National Railway for the site of its proposed PlasCred Neos advanced recycling facility at CN's Scotford Yard in Fort Saskatchewan, Alberta. The lease, subject to conditions being met before August 1, 2026, provides an initial 15-year term with renewal options securing up to 30 years of site control. The 7.34-acre property includes a 35,000-square-foot industrial building and a 200-car rail siding, supporting receipt of mixed plastic waste, advanced recycling operations, and direct rail shipment of finished products. Once operational, the facility will process up to 100 tonnes of mixed hard-to-recycle plastics per day, converting them into approximately 500 barrels per day of refined hydrocarbon condensate for new plastics and other industrial uses. The site's location within Alberta's Industrial Heartland and direct access to CN's rail network are expected to enhance transportation efficiency and reduce infrastructure needs.

Two blue chip industrial stocks, Canadian National Railway and Johnson Controls, have pulled back slightly and may present buying opportunities. Canadian National Railway, which has a 19,500-mile North American network and a monopoly over Canada's port of Prince Rupert, saw a 1.5% decline for the week ending June 24 against a 17.3% year-to-date gain, while Johnson Controls, a building systems company with exposure to data center cooling, fell 1.6% over the past week but is up 19.3% this year. Canadian National is noted for its high-teens cash flow as a percentage of revenue and efficient operating model, having grown earnings per share by 7% last year despite a $350 million revenue hit from U.S. trade tariffs, with spending poised to decline by $500 million and ongoing share buybacks. Johnson Controls, founded in 1885, is benefiting from data center demand that is driving the bulk of its order growth in the Americas, contributing to a $20 billion backlog and leading management to raise 2026 earnings-per-share guidance to $4.85 from $4.55, while some analysts see potential value from selling or spinning off its fire and security unit.

Canadian National Railway declared a quarterly dividend of $0.67 per share, yielding 2.22%, which exceeds the Transportation-Rail industry average of 0.78% and the S&P 500's 1.45%. The annualized dividend of $2.67 represents a 5% increase from the prior year, and the company has raised its dividend five times over the last five years, averaging 7.31% annual growth. The payout ratio stands at 49% of trailing twelve-month earnings. The Zacks Consensus Estimate for fiscal 2026 earnings is $5.75 per share, implying 5.31% growth. The stock currently carries a Zacks Rank of #3 (Hold).

Canadian National Railway Co has secured a deal to provide rail services to mining giant BHP for transporting potash from the Jansen mine in Saskatchewan to Vancouver ports for export. The initial contract will run for approximately four years and is focused on the Jansen Stage 1 production, with the railroad operator potentially involved in later phases. Canadian National Railway will operate unit trains using BHP-owned railcars between the mine and export terminals. BHP stated the arrangement strengthens its supply chain reliability and positions it well to deliver potash to global customers, while Canadian National Railway called the Jansen project a significant opportunity for Canada's export industry. The Jansen mine is expected to begin production in mid-2027.