CN Railway Defies Tariffs Gloom, Keeps 2025 Growth Outlook
[Stay on top of transportation news: .]
Canadian National Railway Co. kept its financial outlook for 2025 intact despite rising economic risks, but management acknowledged that uncertainty is leaving many customers in limbo.
Canada’s largest railway reported revenue of C$4.4 billion ($3.2 billion) in the first quarter, up 4% from the same period last year. Earnings grew 8% to C$1.85 per share on an adjusted diluted basis, beating forecasts by 7 Canadian cents.
“We’ve not seen a significant impact to our volumes thus far, but there’s no question that uncertainty has increased over the last few months, and we’re seeing a heightened risk of recession in both Canada and the U.S.,” CEO Tracy Robinson told analysts.
Canadian National still projects 10% to 15% growth in earnings per share this year. “Should the recessionary risk materialize, demand for freight transportation would be negatively impacted,” it added in a statement.
The shares rose by more than 2% before reversing gains following the earnings release in New York post-market trading. They had fallen 1.2% during the regular session.
CN Announces First Quarter Results
Learn more: — Canadian National (@CNRailway)
Carloads of metals and minerals and forest products were down by 11% and 6%, respectively, in the quarter. Both sectors are affected by tariffs or other duties imposed by the U.S.
“We did see some sector-specific reactions, including a combination of paused shipments to avoid tariffs, reduced production or inventory building, and also some apparent pull-forward demand for finished vehicles in particular,” Chief Commercial Officer Remi Lalonde said.
Want more news? Listen to today's daily briefing above or go here for more info
The company’s domestic rival, Canadian Pacific Kansas City, cut its financial outlook for this year due to the uncertainty caused by the trade war that President Donald Trump started. CEO Keith Creel said April 30 that there’s a “heightened risk of economic recession.”
Canada’s economy has started to feel the squeeze of the trade fight, with industry-based gross domestic product figures pointing to annualized growth of just 1.5% in the first quarter, less than expected.
The U.S. economy contracted by about 0.3% because of a surge of imports, as companies scrambled to secure merchandise before Trump’s tariffs hit.
