6-K
CANADIAN NATIONAL RAILWAY CO (CNI)
6-K
2025-11-06
For: 2025-11-06
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Added on
April 11, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Reportof Foreign Issuer Pursuant to Rule 13****a-16 or 15d-16
of theSecurities Exchange Act of 1934
For the month of November 2025
Commission File Number: 001-02413
Canadian National Railway Company
(Translation of registrant’s name into English)
935 de la Gauchetiere Street West
Montreal, Quebec
Canada H3B 2M9
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
| Form 20-F | ¨ | Form 40-F | x |
|---|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Canadian National Railway Company | |||
|---|---|---|---|
| Date: November 6, 2025 | By: | /s/ Cristina Circelli | |
| Name: | Cristina Circelli | ||
| Title: | Vice-President, Corporate Secretary and General Counsel |
CANADIAN NATIONAL RAILWAY COMPANY
Table of Content
| Items | Description |
|---|---|
| 1 | 2025 Investor Fact Book |
Exhibit 1
| POWERING<br>SUSTAINABLE<br>GROWTH<br>2025 INVESTOR FACT BOOK | ||
|---|---|---|
| FORWARD-LOOKING STATEMENTS<br>CN powers the economy by safely transporting more than<br>300 million tons of natural resources, manufactured<br>products and finished goods throughout North America<br>every year for its customers. With its nearly 20,000-mile<br>rail network and related transportation services,<br>CN connects Canada’s Eastern and Western<br>coasts with the U.S. Midwest and U.S. Gulf Coast,<br>contributing to trade and the prosperity of the<br>communities in which it operates since 1919.<br>DELIVERING<br>SUSTAINABLE<br>VALUE<br>PICTURED (ABOVE FROM LEFT):<br>Brian Arbic, Terminal Coordinator, Intermodal, Thomas Kelly, Conductor,<br>Crystal Monteiro, Lead Hand Operations (COVER): Noel Prasad Joseph, Conductor<br>They are among CN’s team of railroaders who deliver<br>service excellence and value every day.<br>As used herein, “Company” or “CN” refers to Canadian National Railway Company and, as the<br>context requires, its wholly owned subsidiaries.<br>Certain statements included in this CN 2025 Investor Fact Book constitute “forward-looking<br>statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and<br>under Canadian securities laws, including statements based on management’s assessment and<br>assumptions and publicly available information with respect to CN. By their nature, forward-looking<br>statements involve risks, uncertainties and assumptions. CN cautions that its assumptions may not<br>materialize and that current economic conditions render such assumptions, although reasonable at<br>the time they were made, subject to greater uncertainty. Forward-looking statements may be<br>identified by the use of terminology such as “believes,” “expects,” “anticipates,” “assumes,” “outlook,”<br> “plans,” “targets,” or other similar words.<br>2025 KEY ASSUMPTIONS: CN has made a number of economic and market assumptions in<br>preparing its 2025 outlook. The Company continues to assume slightly positive growth in North<br>American industrial production in 2025. For the 2024/2025 crop year, the grain crop in Canada was in<br>line with its five-year average and the U.S. grain crop was above its five-year average. The Company<br>now assumes that the 2025/2026 grain crop in Canada will be above its five-year average (compared<br>to its January 30, 2025 assumption that the 2025/2026 grain crop in Canada will be in line with its five-year average) and continues to assume that the U.S. grain crop will be above its five-year average.<br>CN continues to assume RTM growth will be in the low single-digit range. CN also continues to<br>assume that in 2025, the value of the Canadian dollar in U.S. currency will be in the range of $0.70 to<br>$0.75 and continues to assume that in 2025 the average price of crude oil (West Texas Intermediate)<br>will be in the range of US$60 to US$70 per barrel. The Company notes there is a heightened demand<br>risk as a result of the volatile macroeconomic conditions and global trade tensions.<br>Forward-looking statements are not guarantees of future performance and involve risks,<br>uncertainties and other factors which may cause actual results, performance or achievements of<br>CN to be materially different from the outlook or any future results, performance or achievements<br>implied by such statements. Accordingly, readers are advised not to place undue reliance on<br>forward-looking statements. Important risk factors that could affect the forward-looking<br>statements in this CN 2025 Investor Fact Book include, but are not limited to, general economic and<br>business conditions, including factors impacting global supply chains such as pandemics and<br>geopolitical conflicts and tensions; trade restrictions, trade barriers, or the imposition of tariffs or<br>other changes to international trade arrangements; industry competition; inflation, currency and<br>interest rate fluctuations; changes in fuel prices; legislative and/or regulatory developments;<br>compliance with environmental laws and regulations; actions by regulators; increases in<br>maintenance and operating costs; security threats; reliance on technology and related<br>cybersecurity risk; transportation of hazardous materials; various events which could disrupt<br>operations, including illegal blockades of rail networks, and natural events such as severe weather,<br>droughts, fires, floods and earthquakes; climate change; labor negotiations and disruptions;<br>environmental claims; uncertainties of investigations, proceedings and other types of claims and<br>litigation; risks and liabilities arising from derailments; timing and completion of capital programs;<br>the availability of and cost competitiveness of renewable fuels and the development of new<br>locomotive propulsion technology; reputational risks; supplier concentration; pension funding<br>requirements and volatility; and other risks detailed from time to time in reports filed by CN with<br>securities regulators in Canada and the United States. Reference should also be made to<br>Management’s Discussion and Analysis (MD&A) in CN’s annual and interim reports, Annual<br>Information Form and Form 40-F, filed with Canadian and U.S. securities regulators and available<br>on CN’s website, for a description of major risk factors relating to CN.<br>The achievement of CN’s climate goals is subject to several risks and uncertainties, including those<br>disclosed in the MD&A in CN’s annual and interim reports. There can be no certainty that the<br>Company will achieve any or all of these goals within the stated timeframe, or that achieving any of<br>these goals will meet all of the expectations of its stakeholders or applicable legal requirements.<br>Forward-looking statements reflect information as of the date on which they are made. CN assumes<br>no obligation to update or revise forward-looking statements to reflect future events, changes in<br>circumstances, or changes in beliefs, unless required by applicable securities laws. In the event CN<br>does update any forward-looking statement, no inference should be made that CN will make<br>additional updates with respect to that statement, related matters, or any other forward-looking<br>statement. Information contained on, or accessible through, our website is not incorporated by<br>reference into this CN 2025 Investor Fact Book.<br>NON-GAAP MEASURES: CN reports its financial results in accordance with United States<br>generally accepted accounting principles (GAAP). CN may also use non-GAAP measures in this CN<br>2025 Investor Fact Book that do not have any standardized meaning prescribed by GAAP. These<br>non-GAAP measures may not be comparable to similar measures presented by other companies.<br>CN’s outlook, guidance, or targets exclude certain adjustments, which are expected to be comparable<br>to adjustments made in prior years. However, management cannot individually quantify on a forward-looking basis the impact of these adjustments, which could be significant, are difficult to predict and<br>may be highly variable. As a result, CN does not provide a corresponding GAAP measure for, or<br>reconciliation to, its outlook, guidance or targets.<br>All amounts in this CN 2025 Investor Fact Book are expressed in Canadian dollars, unless<br>otherwise noted. | ||
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| TICKER SYMBOLS<br>CNR: Toronto Stock Exchange<br>CNI: New York Stock Exchange<br>Except where otherwise indicated, all financial<br>information reflected in this document is presented as<br>at December 31, 2024, or for the applicable year ended<br>on December 31, and is expressed in Canadian dollars<br>and determined on the basis of United States generally<br>accepted accounting principles (GAAP).<br>OVERVIEW<br>02 Competitive Strengths<br>03 Creating Long-Term Value<br>04 Strategy for Growth<br>05 Delivering Responsibly<br>06 Financial and Operating Measures<br>MARKETS<br>08 Market Overview<br>10 Petroleum and Chemicals<br>12 Metals and Minerals<br>14 Forest Products<br>16 Coal<br>18 Grain and Fertilizers<br>20 Intermodal<br>22 Automotive<br>24 Supply Chain Solutions<br>OPERATIONS<br>25 Operations Overview<br>FINANCIALS 26 Financial Overview<br>27 Quarterly Consolidated Financial<br>and Statistical Information<br>32 Non-GAAP Measures<br>40 Shareholder and Investor Information<br>Contents<br>PICTURED:<br>A CN train moves<br>energy-related products,<br>including frac sand and<br>petroleum, through Brule, AB.<br>Photo by CN employee www.cn.ca Tim Stevens<br>instagram.com/cnrailway<br>STAY CONNECTED WIT<br>H CN:<br>facebook.com/CNrail<br>x.com/CNRailway<br>linkedin.com/company/cn<br>TOTAL REVENUES<br>$17<br>B<br>NET CASH PROVIDED BY<br>OPERATING ACTIVITIES<br>$6.7<br>B<br>DILUTED EARNINGS<br>PER SHARE<br>$7.01<br>RETURN ON INVESTED<br>CAPITAL(1)<br>12.9<br>%<br>OPERATING<br>RATIO<br>63.4<br>%<br>FREE CASH FLOW(1)<br>$3.1<br>B<br>NET CASH USED IN<br>INVESTING ACTIVITIES<br>$3.6<br>B<br>ADJUSTED DILUTED<br>EARNINGS PER SHARE(1)<br>$7.10<br>ADJUSTED RETURN ON<br>INVESTED CAPITAL(1)<br>13.1<br>%<br>ADJUSTED OPERATING<br>RATIO(1)<br>(1) These non-GAAP measures do not have any standardized meaning<br>62.9<br>%<br>prescribed by GAAP and, therefore, may not be comparable to similar<br>measures presented by other companies. See section entitled Non-GAAP<br>Measures for an explanation of these non-GAAP measures.<br>2024 HIGHLIGHTS<br>01 | ||
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| Kamloops<br>Fort Nelson<br>Hay River<br>Fort McMurray<br>Matane Baie-Comeau<br>Sept-Îles<br>Springfield<br>East St. Louis<br>East Peoria<br>Conneaut<br>Pittsburgh<br>New London<br>Stevens<br> Point<br>Omaha<br>Sioux City<br>Sault<br>Ste.Marie<br>Fond<br>du Lac<br>Sarnia Buffalo<br>Baton Rouge<br>Minneapolis/St. Paul<br>Regina<br>Toledo<br>Decatur<br>Jackson<br>Prince George<br>Worcester Arcadia<br>Chippewa Falls<br>Auburn<br>Indianapolis<br>Joliet<br>Pascagoula<br>Green<br>Bay<br>Gulfport<br>Moncton<br>Syracuse<br>Mobile<br>Quebec<br>Montreal<br> New Orleans<br>Prince Rupert<br>Vancouver<br>Halifax Saint<br>John<br>Saskatoon<br>Chicago<br>Memphis<br>Edmonton<br>Calgary<br>Toronto<br>Detroit<br>Thunder Bay<br>Winnipeg<br>Gary<br>Leithton<br>Munger<br>West<br>Chicago<br>Joliet<br>Matteson<br>Chicago<br>Heights<br>Griffith<br>Goose Lake<br>Markham<br>Waukegan<br>South Chicago<br>Chicago<br>Outer Belt<br>(former EJ&E)<br>Chicago<br>INDIANA<br>ILLINOIS<br>LAKE<br>MICHIGAN<br>FASTEST<br>RAIL ROUTE IN<br>AND AROUND<br>CHICAGO<br>COMPETITIVE STRENGTHS<br>A FAR-REACHING AND DIVERSIFIED COMPANY<br>TRAFFIC BY GEOGRAPHY<br>(% of 2024 freight revenues)<br>W 35% Overseas<br>W 32% Transborder<br>W 17% Canadian domestic<br>W 16% U.S. domestic<br>BUSINESS UNIT REVENUE MIX<br>(% of 2024 total revenues)<br>W 22% Intermodal<br>W 20% Petroleum and chemicals<br>W 20% Grain and fertilizers<br>W 12% Metals and minerals<br>W 11% Forest products<br>W 6% Coal<br>W 5% Automotive<br>W 4% Other revenues<br>CN main lines<br>Secondary and feeder lines<br>Shortline partners<br>Ports served by CN<br>LEGEND<br>BROAD GEOGRAPHIC EXPOSURE BALANCED AND DIVERSE PORTFOLIO<br>18,900<br>ROUTE MILES (2025)<br>7major ports<br>SERVED ON THREE COASTS<br>21 terminals<br>ACROSS OUR NETWORK<br>CN’s three-coast network is a distinct<br>strength in powering sustainable growth.<br>We deliver safe, reliable and efficient service<br>to move a diverse portfolio of goods and<br>enable global supply chains. We connect<br>our customers with opportunities to reach<br>or expand their markets, facilitating their<br>growth and driving long-term value.<br>65%of traffic<br>ORIGINATES AND TERMINATES<br>ON CN’S NETWORK<br>209miles<br>CAR VELOCITY<br>(car miles per day)<br>$3.5B<br>CAPITAL INVESTMENTS<br>(net of amounts reimbursed by customers)<br>Over<br>ADVANTAGED TRI-COAST NETWORK WITH ACCESS OPTIONALITY<br>*All statistics are as of, or for the year ending December 31, 2024, unless otherwise noted.<br>EXTENSIVE<br>SINGLE-LINE ACCESS<br>EFFICIENT<br>OPERATIONS<br>INVESTING IN OUR<br>FUTURE BUSINESS<br> | 2025 INVESTOR FACT BOOK 02<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Delivering<br>Responsibly<br>Strategy<br>for Growth<br>Financial and<br>Operating Measures<br>Creating<br>Long-term Value<br>Competitive<br>Strengths | |
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| 2,706 2,752 2,703 2,750<br>3,187<br>3,531 3,549<br>4,079<br>2,863 2,891<br>2015 2016 2017 2018 2019 2020 2021 2022 2023 2024<br>16.9% 15.8% 15.8% 15.6% 15.1% 13.3% 14.1% 15.9% 14.5% 13.1%<br>16.7% 16.0% 22.4% 16.6% 15.2% 12.7% 16.4% 15.8% 16.8% 12.9%<br>CAPITAL INVESTMENTS VS. ROIC<br>Capital Investment ($ millions)<br>Return on Invested Capital (%) (2)<br>Adjusted Return on Invested Capital (%) (2)<br>2015 2016 2017 2018 2019 2020 2021 2022 2023 2024<br>SHAREHOLDER DISTRIBUTION ($ millions)<br>Share Repurchases<br>Dividends<br>1,239 1,159 996<br>1,333<br>1,544 1,634 1,740<br>2,004 2,071 2,138<br>2,000 2,000<br>1,750<br>2,000 1,700<br>379<br>1,582<br>4,709 4,551<br>2,651<br>2,746<br>3,159 3,239<br>6,713 6,622<br>4,789<br>3,333 3,244<br>2,013<br>3,322<br>2015 2016 2017 2018 2019 2020 2021 2022 2023 2024<br>CNR (TSX)<br>CNI (NYSE)<br>S&P 500<br>TSX<br>CN’S STOCK PERFORMANCE (2015–2024) (1)<br>(Index: Closing Price on December 31, 2014 = 100)<br>300<br>250<br>200<br>150<br>100<br>50<br>82%<br>SHARE PRICE RETURN SINCE JANUARY 2015(1)<br>CN’s share price on the TSX (CNR) has increased at a compound annual<br>growth rate (CAGR) of 7% over the last 10 years.<br>$31B<br>CAPITAL INVESTMENTS OVER THE LAST 10 YEARS<br>CN has a strong track record of capital investment and return on<br>invested capital (ROIC) to improve the safety and reliability of<br>our service, support the growth of our customers, and digitize our<br>processes to continue to compete effectively.<br>$39B<br>RETURNED TO SHAREHOLDERS OVER THE LAST 10 YEARS<br>CN’s strong financial position allowed us to return $4.8 billion to our<br>shareholders in 2024. With a 5% increase in 2024, we have raised<br>our dividend every year since our initial public offering in 1995 at a<br>compound average growth rate of 12% since 2015.<br>SHARE PRICE PERFORMANCE RETURNING SHAREHOLDER VALUE DISCIPLINED CAPITAL INVESTMENT<br>CREATING LONG-TERM VALUE<br>COMMITTED TO DELIVERING SUSTAINABLE VALUE<br>(1) Data extracted on December 31, 2024. Source: Factset<br>(2) These non-GAAP measures do not have any standardized meaning prescribed by GAAP and, therefore, may not be comparable to similar measures presented by other companies. See section entitled Non-GAAP Measures for an explanation of these non-GAAP measures.<br> | 2025 INVESTOR FACT BOOK 03<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Delivering<br>Responsibly<br>Strategy<br>for Growth<br>Financial and<br>Operating Measures<br>Competitive<br>Strengths<br>Creating<br>Long-term Value | |
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| PICTURED:<br>CN’s scheduled operating plan supports<br>efficient service, including through our Chicago<br>bypass loop which saves up to 48 hours of<br>transit time by avoiding the city’s densest area.<br>Photo by CN employee Jordan Torregrosa<br>Make the Plan<br>NETWORK OPERATIONS develops a<br>plan to move volumes safely and efficiently<br>based on customer needs, with an eye to<br>optimizing train crews, locomotives, rail<br>cars and rail infrastructure. This approach<br>unlocks capacity and enables a fluid<br>network, all while keeping a longer-term<br>view toward ensuring future resources,<br>assets and capital projects can support<br>potential growth.<br>Run the Plan<br>FIELD OPERATIONS focuses on the<br>day-to-day execution of the plan, ensuring<br>trains depart on time and make their<br>scheduled connections, while prioritizing<br>safety and fluidity on our network and in<br>our yards. Adherence to the plan drives<br>higher asset velocity, more consistent<br>utilization of locomotive power and crews,<br>and more reliable first-mile and last-mile<br>service for our customers.<br>Sell the Plan<br>OUR COMMERCIAL TEAM sells into<br>the operating plan and our available<br>capacity. We work closely with our<br>customers to understand their business<br>needs and market dynamics. This helps<br>us plan our capacity and services to<br>unlock opportunities and grow with<br>them. Our Marketing and Operations<br>teams work hand in glove to meet<br>current and future customer demand.<br>MEASURING OUR RESULTS: 2024 PERFORMANCE HIGHLIGHTS<br>Operating to Plan Executing the Plan Serving Our Customers<br>18.9 mph<br>THROUGH NETWORK TRAIN SPEED<br>(miles per hour)<br>90%<br>AVERAGE ORIGIN TRAIN PERFORMANCE<br>(% of trains(1) departing origin within<br>allowance of the scheduled time)<br>94%<br>LOCAL SERVICE COMMITMENT<br>(% of cars that successfully completed<br>their Daily Operating Plan)<br>STRATEGY FOR<br>GROWTH<br>LEVERAGING THE POWER OF OUR PLAN<br>CN’s disciplined approach to scheduled railroading is our foundation<br>for growth. Our operating model – what we call “Make the Plan, Run<br>the Plan, Sell the Plan” – enables us to optimize our rail network and<br>other hard assets like locomotives and railcars, as well as train crews.<br>CN railroaders are committed to our scheduled operating model to<br>drive reliable, on-time performance for our customers, helping them<br>win in their markets. Working with our customers and supply chain<br>partners, we are advancing our CN-specific growth opportunities<br>to create value for our customers, employees and shareholders.<br> | 2025 INVESTOR FACT BOOK 04<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Delivering<br>Responsibly<br>Financial and<br>Operating Measures<br>Creating<br>Long-term Value<br>Competitive<br>Strengths<br>Strategy<br>for Growth | |
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| DELIVERING RESPONSIBLY<br>BUILDING A SUSTAINABLE FUTURE<br>At CN, we are focused on Delivering Responsibly: moving customer goods safely and efficiently; being environmentally<br>responsible; attracting and developing talented railroaders; and helping build safer, stronger communities, all while<br>adhering to the highest standards of governance and supporting shareholder value creation.<br>PICTURED:<br>Elma, MB<br>Photo by CN employee Ildar Noureev<br>Listed on the Dow Jones Best‑in‑Class<br>World Index for 13th consecutive year and<br>on the Dow Jones Best‑in‑Class North<br>American Index for 16th straight year.<br>Recognized as one of the top sustainability<br>performers in the transportation industry<br>by the 2025 S&P Global Yearbook.<br>Furthering Our Safety Culture<br>Safety is our core value and the foremost<br>priority for our people, our customers and<br>the communities in which we operate. We<br>are committed to providing the leadership,<br>training and resources necessary to<br>support our continuous improvement in<br>safety. We foster a strong safety culture<br>with ongoing training, including identifying<br>and eliminating potential exposures to<br>prevent workplace injuries and accidents.<br>Along our network and in our workplace,<br>we invest in advanced technologies to<br>enhance our safety performance as we<br>strive to be the safest railroad in North<br>America. CN’s safety management system<br>includes over 2,800 wayside detectors<br>that monitor train health in real time,<br>triggering alerts for issues like hot bearings<br>or dragging equipment. Additionally,<br>seven Automated Inspection Portals (AIP)<br>use high-definition imaging and AI to<br>help mechanics identify needed repairs<br>as trains pass through at speed.<br>Decarbonizing Rail Transportation<br>CN is committed to playing a key role in<br>the transition to a low-carbon economy.<br>Rail has a tremendous potential to<br>reduce the environmental impact of<br>transportation services. To further reduce<br>greenhouse gas (GHG) emissions, CN<br>seeks to achieve greater fuel efficiency<br>and strategically increase our usage of<br>renewable fuels. In addition to ongoing<br>fleet renewal, we continue to invest in<br>equipping locomotives with technologies<br>to improve overall performance and<br>fuel efficiency.<br>Empowering Our People<br>Our railroaders are the engine that<br>powers our success. We want our culture<br>to motivate and inspire employees to<br>support CN’s growth while creating<br>meaningful careers. This includes<br>cultivating a continuous learning culture<br>to help employees expand their skills<br>and address emerging trends. We remain<br>focused on attracting and developing<br>railroaders who can deliver operational<br>and customer service excellence.<br>Industry-leading Governance<br>CN is committed to continuously<br>improving our culture of integrity and<br>ethical business conduct, building trust<br>and confidence with all our stakeholders.<br>In the 2024 Globe and Mail’s Report on<br>Business, CN earned a first-place ranking<br>among 215 companies listed on the<br>S&P/TSX Composite Index with a score<br>of 99 out of 100, based on a rigorous<br>set of governance criteria.<br>The Delivering Responsibly section of our<br>website provides access to our most current<br>editions of our Sustainability Report, Data<br>Supplement, CDP Response with TCFD Index,<br>and Indigenous Reconciliation Action Plan.<br>www.cn.ca/delivering-responsibly<br>87%<br>OF CN EMPLOYEES ARE SHAREHOLDERS<br>1 million<br>TOTAL HOURS OF EMPLOYEE TRAINING<br>RECEIVED IN 2024<br>IMPROVING SAFETY PERFORMANCE(1) STRONG AND ALIGNED TEAM<br>(1) Safety indicators are unaudited and based on estimated data available at such time and are<br>subject to change as more complete information becomes available.<br>(2) Based on Federal Railroad Administration (FRA) reporting criteria.<br>(3) Based on FRA reporting criteria, includes only accidents with a cost in excess of US$11,300.<br>DECOUPLING EMISSIONS FROM GROWTH<br>500<br>400<br>300<br>200<br>100<br>0<br>20<br>16<br>12<br>8<br>4<br>0<br>Tonnes CO2e/Million GTMs<br>GTMs (Billions)<br>GHG EMISSIONS INTENSITY VS. GROSS TON MILES (GTMs)<br>48%<br>Reduction in GHG emissions<br>intensity since 1993<br>9394959697989900010203040506070809101112131415161718192021222324<br>Locomotive Emissions Intensity (Tonnes CO2<br>e/Million GTMs)<br>Gross Ton Miles (Billions)<br>PERSONAL INJURY RATIO(2)<br>(Injuries per 200,000 person-hours)<br>TRAIN ACCIDENT RATIO(3)<br>(Accidents per million train miles)<br>2019 2020 2021 2022 2023 2024<br>REDUCTION<br>OBJECTIVE<br>55%<br>2030 2019 2020 2021 2022 2023 2024 2030<br>4<br>REDUCTION<br>5%OBJECTIVE<br>1.97<br>1.64<br>1.36<br>0.98 1.10 1.06<br>2.23<br>1.87 1.84 1.80<br>2.10<br>1.66<br> | 2025 INVESTOR FACT BOOK 05<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Strategy<br>for Growth<br>Financial and<br>Operating Measures<br>Creating<br>Long-term Value<br>Competitive<br>Strengths<br>Delivering<br>Responsibly | |
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| FINANCIAL AND OPERATING MEASURES<br>2020 2021 2022 2023 2024(1)<br>KEY FINANCIAL PERFORMANCE INDICATORS<br>Total revenues ($ millions) 13,819 14,477 17,107 16,828 17,046<br>Freight revenues ($ millions) 13,218 13,888 16,569 16,236 16,395<br>Operating income ($ millions) 4,777 5,616 6,840 6,597 6,247<br>Adjusted operating income ($ millions)(2) 5,263 5,622 6,862 6,597 6,325<br>Net income ($ millions) 3,545 4,899 5,118 5,625 4,448<br>Adjusted net income ($ millions)(2) 3,767 4,225 5,134 4,800 4,506<br>Diluted earnings per share ($) 4.97 6.90 7.44 8.53 7.01<br>Adjusted diluted earnings per share ($)(2) 5.28 5.95 7.46 7.28 7.10<br>Net cash provided by operating activities ($ millions) 6,165 6,971 6,667 6,965 6,699<br>Net cash used in investing activities ($ millions) (2,946) (2,873) (2,510) (3,468) (3,607)<br>Free cash flow ($ millions)(2) 3,227 3,296 4,259 3,887 3,092<br>Gross property additions ($ millions) 2,863 2,897 2,757 3,217 3,549<br>Share repurchases ($ millions) 379 1,582 4,709 4,551 2,651<br>Dividends per share ($) 2.30 2.46 2.93 3.16 3.38<br>FINANCIAL POSITION<br>Total assets ($ millions) 44,804 48,538 50,662 52,666 57,067<br>Total liabilities ($ millions) 25,153 25,794 29,278 32,549 36,016<br>Shareholders’ equity ($ millions) 19,651 22,744 21,384 20,117 21,051<br>FINANCIAL RATIOS<br>Operating ratio (%) 65.4 61.2 60.0 60.8 63.4<br>Adjusted operating ratio (%) (2) 61.9 61.2 59.9 60.8 62.9<br>Adjusted debt-to-adjusted EBITDA multiple (times)(2) 1.98 1.82 1.86 2.25 2.60<br>Return on invested capital (ROIC) (%)(2) 12.7 16.4 15.8 16.8 12.9<br>Adjusted ROIC (%)(2) 13.3 14.1 15.9 14.5 13.1<br>(1) Financial data for full years ending on December 31.<br>(2) These non-GAAP measures do not have any standardized meaning prescribed by GAAP and, therefore, may not be comparable to similar measures presented by other companies.<br>See section entitled Non-GAAP Measures for an explanation of these non-GAAP measures.<br>FINANCIAL MEASURES<br>13,819 14,477<br>17,107 16,828 17,046<br>TOTAL REVENUES<br>($ millions)<br>2020 2021 2022 2023 2024<br>5.28<br>5.95<br>7.46 7.28 7.10<br>ADJUSTED DILUTED<br>EARNINGS PER SHARE ($)<br>(2)<br>2020 2021 2022 2023 2024<br>Diluted Earnings Per Share<br>61.9 61.2 59.9 60.8 62.9<br>ADJUSTED OPERATING<br>RATIO (%)(2)<br>2020 2021 2022 2023 2024<br>Operating Ratio<br>CAGR (2024 VS. 2020)<br>CAGR (2024 VS. 2020)<br>VARIANCE (2024 VS. 2020)<br>+5.4%<br>+8.0%<br>+100 BPS<br>FINANCIAL HIGHLIGHTS<br> | 2025 INVESTOR FACT BOOK 06<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Delivering<br>Responsibly<br>Strategy<br>for Growth<br>Creating<br>Long-term Value<br>Competitive<br>Strengths<br>Financial and<br>Operating Measures<br>1 2 | |
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| 2020 2021 2022 2023 2024<br>STATISTICAL OPERATING DATA<br>Gross ton miles (GTMs) (billions) 455.4 458.4 463.7 452.0 457.7<br>Revenue ton miles (RTMs) (billions) 230.4 233.1 235.8 232.6 235.5<br>Carloads (thousands) 5,595 5,701 5,697 5,436 5,390<br>Route miles (includes Canada and the U.S., end of year) 19,500 19,500 18,600 18,800 18,800<br>Employees (end of period) 24,381 22,604 23,971 24,987 24,671<br>Employees (average for the period) 23,786 24,084 23,396 24,920 25,304<br>KEY OPERATING MEASURES<br>Freight revenue per RTM (cents) 5.74 5.96 7.03 6.98 6.96<br>Freight revenue per carload ($) 2,362 2,436 2,908 2,987 3,042<br>GTMs per average number of employees (thousands) 19,144 19,033 19,820 18,140 18,088<br>Operating expenses per GTM (cents) 1.99 1.93 2.21 2.26 2.36<br>Labor and fringe benefits expense per GTM (cents) 0.60 0.63 0.63 0.70 0.75<br>Diesel fuel consumed (US gallons in millions) 407.5 405.2 402.2 395.2 401.1<br>Average fuel price ($/US gallon) 2.42 3.28 5.42 4.62 4.41<br>Fuel efficiency (US gallons of locomotive fuel consumed per 1,000 GTMs) 0.895 0.884 0.867 0.874 0.876<br>OPERATING METRICS<br>Car velocity (car miles per day) 185 195 196 213 209<br>Locomotive utilization (trailing GTMs per total horsepower) 196 198 197 191 186<br>Train weight (tons) 9,501 9,658 9,324 9,186 9,087<br>Train length (feet) 8,572 8,559 8,160 7,891 7,831<br>Through dwell (entire railroad, hours) 8.6 7.9 7.6 7.0 7.0<br>Through network train speed (miles per hour) 18.5 19.2 18.9 19.8 18.9<br>CN ROLLING STOCK<br>Diesel locomotives (end of period) 2,382 2,302 2,351 2,300 2,364<br>Freight cars (end of period) 62,857 56,730 56,469 54,155 54,573<br>(3) Statistical operating data, key operating measures, operating metrics and rolling stock information are unaudited and based on estimated data available at such time and are subject to change as<br>more complete information becomes available. Definitions of these indicators are provided on our website, www.cn.ca/glossary.<br>OPERATING HIGHLIGHTS OPERATING MEASURES(3)<br>CAGR (2024 VS. 2020)<br>CAGR (2024 VS. 2020)<br>CAGR (2024 VS. 2020)<br>+4.9%<br>+3.1%<br>-5.0%<br>5.74 5.96<br>7.03 6.98 6.96<br>FREIGHT REVENUE PER RTM<br>(cents)<br>2020 2021 2022 2023 2024<br>185 195 196<br>213 209<br>CAR VELOCITY<br>(car miles per day)<br>2020 2021 2022 2023 2024<br>8.6<br>7.9 7.6<br>7.0 7.0<br>THROUGH DWELL<br>(entire railroad, hours)<br>2020 2021 2022 2023 2024<br>FINANCIAL AND OPERATING MEASURES<br> | 2025 INVESTOR FACT BOOK 07<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Delivering<br>Responsibly<br>Strategy<br>for Growth<br>Creating<br>Long-term Value<br>Competitive<br>Strengths<br>Financial and<br>Operating Measures<br>1 2 | |
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| MARKET<br>OVERVIEW<br>GROWING WITH OUR CUSTOMERS<br>CN aims to provide the service our customers need to grow and perform in their<br>markets. Collaboration with our customers and supply chain partners helps us plan<br>our capacity and services to coordinate our investments to support volume growth<br>in lockstep with new customer opportunities. Excluding other revenue, CN’s freight<br>revenues are derived from seven main commodity groups representing a balanced,<br>diversified portfolio of 180 product types. This diversity helps us to have better<br>resilience through market fluctuations and economic cycles.<br>Our transcontinental network provides customers with access to seven major ports<br>in Canada and the U.S., facilitating global trade and service through 21 inland<br>intermodal terminals. Our supply chain services include rail, intermodal, trucking,<br>marine services, bulk handling, transloading and customs brokerage – offering<br>various options for transporting natural resources, manufactured products<br>and finished goods.<br> >300M<br>TONS OF CARGO CARRIED<br>ANNUALLY<br>10,000+<br>ORIGIN-DESTINATION PAIRS<br>85%<br>OF TRAFFIC ORIGINATES<br>ON CN’S NETWORK<br>4%<br>OTHER<br>REVENUES<br>20%<br>PETROLEUM<br>AND<br>CHEMICALS<br>6%<br>COAL<br>20%<br>GRAIN AND<br>FERTILIZERS<br>5%<br>AUTOMOTIVE<br>11%<br>FOREST<br>PRODUCTS<br>14%<br>INTERNATIONAL<br>INTERMODAL<br>8%<br>DOMESTIC<br>INTERMODAL<br>12%<br>METALS<br>AND MINERALS<br>2024 REVENUES BY COMMODITY GROUP<br>(% of total revenues)<br>Intermodal (22%) Bulk Products (26%) Automotive (5%)<br>Industrial Products (23%) Petroleum and Chemicals (20%) Other (4%)<br> 14% International Intermodal<br> 8% International Intermodal<br> INDUSTRIAL PRODUCTS<br> 12% Metals and minerals<br> 11% Forest products<br> BULK PRODUCTS<br> 20% Grain and fertilizers<br> 6% Coal<br> 20% Petroleum and chemicals<br> 5% Automotive<br> 4% Other revenues<br>$17B<br>TOTAL<br>REVENUES<br>BUSINESS UNIT REVENUE MIX<br> | 2025 INVESTOR FACT BOOK 08<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Coal<br>Forest<br>Products<br>Metals<br>and Minerals<br>Petroleum<br>and Chemicals Intermodal Automotive<br>Supply Chain<br>Solutions<br>Grain<br>and Fertilizers<br>Market<br>Overview<br>1 2<br>Over | |
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| REVENUES CARLOADS<br>$ millions thousands<br>2020 2021 2022 2023 2024<br>%<br>Change(1) 2020 2021 2022 2023 2024<br>%<br>Change(1)<br>Petroleum and chemicals 2,631 2,816 3,229 3,195 3,414 7% 597 596 636 634 648 2%<br>Metals and minerals 1,409 1,548 1,911 2,048 2,048 0% 935 969 956 1,002 974 (3%)<br>Forest products 1,700 1,740 2,006 1,943 1,931 (1%) 342 339 330 309 299 (3%)<br>Coal 527 618 937 1,017 929 (9%) 289 379 503 511 456 (11%)<br>Grain and fertilizers 2,609 2,475 2,783 3,265 3,422 5% 663 628 614 670 690 3%<br>Intermodal 3,751 4,115 4,906 3,823 3,757 (2%) 2,582 2,611 2,450 2,078 2,115 2%<br>Automotive 591 576 797 945 894 (5%) 187 179 208 232 208 (10%)<br>Total rail freight 13,218 13,888 16,569 16,236 16,395 1% 5,595 5,701 5,697 5,436 5,390 (1%)<br>Other 601 589 538 592 651 10%<br>Total 13,819 14,477 17,107 16,828 17,046 1%<br>REVENUE TON MILES (RTMs) FREIGHT REVENUE PER RTM<br>millions cents<br>2020 2021 2022 2023 2024<br>%<br>Change(1) 2020 2021 2022 2023 2024<br>%<br>Change(1)<br>Petroleum and chemicals 43,556 42,436 46,273 43,846 46,530 6% 6.04 6.64 6.98 7.29 7.34 1%<br>Metals and minerals 21,561 26,743 27,606 28,444 28,829 1% 6.53 5.79 6.92 7.20 7.10 (1%)<br>Forest products 25,602 25,948 25,020 23,141 22,111 (4%) 6.64 6.71 8.02 8.40 8.73 4%<br>Coal 16,173 18,471 22,679 22,682 20,165 (11%) 3.26 3.35 4.13 4.48 4.61 3%<br>Grain and fertilizers 61,736 58,733 55,359 63,479 64,594 2% 4.23 4.21 5.03 5.14 5.30 3%<br>Intermodal 59,165 58,412 56,029 47,886 50,190 5% 6.34 7.04 8.76 7.98 7.49 (6%)<br>Automotive 2,597 2,395 2,822 3,136 3,119 (1%) 22.76 24.05 28.24 30.13 28.66 (5%)<br>Total 230,390 233,138 235,788 232,614 235,538 1% 5.74 5.96 7.03 6.98 6.96 0%<br>$17B<br>REVENUES<br>5.4M<br>CARLOADS<br>236B<br>REVENUE TON MILES (RTMs)<br>6.96 cents<br>FREIGHT REVENUE PER RTM<br>742 miles<br>AVERAGE LENGTH OF HAUL<br>Performance Summary<br>2024 Performance Totals<br>(1) % change from 2023 to 2024.<br>MARKET OVERVIEW<br> | 2025 INVESTOR FACT BOOK 09<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Coal<br>Forest<br>Products<br>Metals<br>and Minerals<br>Petroleum<br>and Chemicals Intermodal Automotive<br>Supply Chain<br>Solutions<br>Grain<br>and Fertilizers<br>Market<br>Overview<br>1 2 | |
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| W 50% Refined Petroleum Products<br>W 38% Chemicals and Plastics<br>W 7% Crude and Condensate<br>W 5% Sulfur<br>2024 COMMODITY BREAKDOWN<br>(% of revenues)<br>CAGR ( 2024 vs. 2020)<br>MARKET DRIVERS<br> • North American and international economic growth<br> • Chemicals and plastics feedstock prices<br> • North American liquified natural gas (LNG) production<br> • Demand for propane for heating and crop drying<br> • North American production and investment in clean energy<br> • Greenhouse gas (GHG) reduction through renewable diesel,<br>biodiesel and Sustainable Aviation Fuels (SAF)<br> • Trade and tariff policy<br>SULFUR<br> • Molten and prilled sulfur<br>RENEWABLE PRODUCTS<br> • Biodiesel, renewable propane,<br>condensate and diesel,<br>sustainable aviation fuel (SAF)<br>COMMODITIES<br>PETROLEUM PRODUCTS<br> • Propane, butane, crude oil,<br>gasoline, diesel, jet fuel, fuel oil,<br>lubricants, asphalt, condensate<br>CHEMICALS AND PLASTICS<br> • Polyethylene, polyvinyl chloride<br>(PVC), caustic soda, sulfuric acid,<br>pulp mill chemicals<br>KEY FACTS<br> • Supporting the sector as a rail carrier serving three key petrochemical<br>hubs in North America: Alberta, Louisiana and Ontario<br> • Moving petroleum and chemical shipments in customer-supplied<br>private cars<br> • Facilitating growth in propane, plastics and other petrochemical<br>commodities through export expansion projects on Canada’s<br>West Coast<br>REVENUES<br>($ millions)<br>2020 2021 2022 2023 2024<br>2,816 2,631<br>3,229 3,195<br>3,414<br>CARLOADS<br>(thousands)<br>2020 2021 2022 2023 2024<br>597 596<br>636 634 648<br>REVENUE TON MILES (RTMs)<br>(millions)<br>2020 2021 2022 2023 2024<br>42,436 43,556 46,273 43,846<br>46,530<br>FREIGHT REVENUE<br>PER RTM<br>(cents)<br>2020 2021 2022 2023 2024<br>6.64<br>6.04<br>6.98 7.29 7.34<br>~820 miles +7% +2% +2% +5%<br>PETROLEUM AND CHEMICALS<br>FUELING MARKET GROWTH FOR OUR CUSTOMERS<br>BUSINESS UNIT OVERVIEW AND MARKET DRIVERS<br>AVERAGE LENGTH OF HAUL (2024)<br>$3,414M<br>2024 REVENUES<br> | 2025 INVESTOR FACT BOOK 10<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Coal<br>Forest<br>Products<br>Metals<br>and Minerals<br>Market<br>Overview Intermodal Automotive<br>Supply Chain<br>Solutions<br>Grain<br>and Fertilizers<br>Petroleum<br>and Chemicals<br>1 2 | |
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| Scotford<br>Flat Rock<br>Hamilton<br>Ferndale, WA<br>Mont Belvieu, TX<br>Blue Hills<br>North Vancouver Kamloops<br>Hay River<br>Fort McMurray<br>Sarnia<br>Baton Rouge<br>Regina<br>Prince George<br>Joliet<br>Mobile<br>Quebec<br>Montreal<br> New Orleans<br>Prince Rupert<br>Vancouver<br>Halifax<br>Saint John<br>Saskatoon<br>Chicago<br>Memphis<br>Edmonton<br>Toronto<br>Detroit<br>Thunder Bay<br>Winnipeg<br>Calgary<br>Moncton<br>Supply Chain at a Glance<br>EXPANDING MARKET ACCESS AND<br>GROWTH OPPORTUNITIES<br>Petroleum<br>Chemicals<br> and plastics<br>Sulfur<br> Natural gas liquids<br>Ports served by CN<br>P CargoFlo®<br>P Propane export facility<br>P Petrochemical facility<br>P Petrochemical hub<br> Shale play<br>CN’S PETROLEUM AND CHEMICALS<br>SUPPLY CHAIN<br>85%<br>OF THE CANADIAN PETROCHEMICAL INDUSTRY IS<br>DIRECTLY SERVED BY CN<br>20 CargoFlo®<br>DISTRIBUTION FACILITIES ON OUR NETWORK FOR<br>LIQUIDS TRANSFER AND BAGGING OF BULK<br>COMMODITIES For more information, please visit:<br>www.cn.ca/your-industry/petroleum-chemicals<br>KEY ADVANTAGES<br>SPOTLIGHT<br>Partnering to Meet<br>Refined Fuel Demands<br>CN identified a marketplace need to address<br>fuel demand in the Greater Toronto Area<br>and provide a flexible, long-term supply<br>chain alternative to existing pipeline<br>infrastructure and limited capacity. In<br>partnership with customers, CN developed<br>infrastructure surrounding the first phase<br>of the new fuel distribution centre at CN’s<br>MacMillan Yard in Toronto in mid-2024.<br>The facility offers a safe, efficient cycle of<br>rail-to-tank unloading, and tank-to-truck<br>loading. It’s meeting crucial demand for<br>refined petroleum products – including<br>gasoline, diesel and ethanol – in Southern<br>Ontario, Canada’s largest and growing<br>fuel market. The terminal’s second phase,<br>targeted to open in Q4 2025, will add<br>six more tracks and five more tanks to<br>accommodate high-throughput,<br>interconnected unit trains.<br>PICTURED:<br>CN’s new fuel distribution centre,<br>MacMillan Yard, Toronto, ON<br>CN’s access to export terminals in<br>Prince Rupert, Vancouver, Montreal and<br>Mobile offers gateways to international<br>markets for propane, plastics and<br>renewable products.<br>CN provides producers with single-line<br>access to refineries in Eastern Canada as<br>well as the U.S. Midwest and U.S. Gulf Coast.<br>CN facilitates global supply chains with<br>available import/export capacity at major<br>ports on three coasts.<br>Our network and 19 Petroleum and<br>Chemicals transload facilities safely and<br>efficiently move products and connect<br>customers with their markets.<br>CN line<br>Major roads<br>Existing<br>and<br>Proposed<br>Facilities<br>CN’s<br>Scotford<br>Yard<br>Heartland<br>Boundary<br>(also includes<br>Edmonton)<br>North<br>Saskatchewan<br>River<br>1 Sherritt<br>2 Nutrien<br>3 Dow Chemicals<br>4 Keyera<br>5 Plains Midstream<br>6 AltaGas<br>7 Inter Pipeline<br>8 Pembina<br>9 Suncor<br>10 ATCO<br>11 Shell<br>12 Wolf Midstream<br>13 Evonik Canada<br>14 North West Redwater<br>15 Heartland Sulphur<br>16 Gibson Energy<br>17 TransCanada<br>18 Enbridge<br>19 Cenovus<br>20 MEG Energy<br>DIRECT ACCESS TO<br>OVER 20 COMPANIES WITHIN<br>ALBERTA’S INDUSTRIAL HEARTLAND PETROLEUM AND CHEMICALS<br> | 2025 INVESTOR FACT BOOK 11<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Coal<br>Forest<br>Products<br>Metals<br>and Minerals<br>Market<br>Overview Intermodal Automotive<br>Supply Chain<br>Solutions<br>Grain<br>and Fertilizers<br>Petroleum<br>and Chemicals<br>1 2 | |
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| METALS AND MINERALS<br>CONNECTING PRODUCERS WITH THEIR END MARKETS<br>CAGR ( 2024 vs. 2020)<br>~360 miles +10% +1% +8% +2%<br>REVENUES<br>($ millions)<br>2020 2021 2022 2023 2024<br>1,548<br>1,409<br>1,911<br>2,048 2,048<br>W 27% Metals<br>W 25% Minerals<br>W 28% Energy Materials<br>W 20% Iron Ore<br>2024 COMMODITY BREAKDOWN<br>(% of revenues)<br>CARLOADS<br>(thousands)<br>2020 2021 2022 2023 2024<br>969 935 956 1,002 974<br>2020 2021 2022 2023 2024<br>REVENUE TON MILES (RTMs)<br>(millions)<br>26,743<br>21,561<br>27,606 28,444 28,829<br>FREIGHT REVENUE<br>PER RTM<br>(cents)<br>2020 2021 2022 2023 2024<br>5.79<br>6.53<br>6.92 7.20 7.10<br>MARKET DRIVERS<br> • Oil and gas production<br> • Manufacturing production (e.g., automobiles, railcars,<br>heavy equipment, aerospace)<br> • Non-residential construction activity<br> • Large infrastructure projects<br> • Global demand for ores and metals<br> • Consumer goods production<br> • Trade and tariff policy<br>COMMODITIES<br>METALS AND MINERALS<br> • Steel, non-ferrous ore and<br>base metals such as aluminum,<br>spodumene (raw lithium),<br>copper, nickel and zinc<br> • Construction materials,<br>machinery, railway equipment,<br>large loads<br>KEY FACTS<br> • Serving 10 aluminum smelters, more than any other railroad<br>in North America<br> • Supporting customer growth as one of the top movers of<br>aluminum, iron ore and base metal ore<br> • Reaching all top shale plays in Canada, including the Western<br>Canada Sedimentary Basin, and providing unique network<br>access to emerging mining opportunities<br> • Offering single-line access from Wisconsin frac sand producers<br>to Western Canada’s Montney Formation drilling region<br>BUSINESS UNIT OVERVIEW AND MARKET DRIVERS<br>AVERAGE LENGTH OF HAUL (2024)<br>$2,048M<br>2024 REVENUES<br>ENERGY MATERIALS<br> • Frac sand and pipe<br>IRON ORE<br> • Crude ore, iron ore<br>pellets, chips and fines,<br>blast furnace trim<br> | 2025 INVESTOR FACT BOOK 12<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Coal<br>Forest<br>Products<br>Petroleum<br>and Chemicals<br>Market<br>Overview Intermodal Automotive<br>Supply Chain<br>Solutions<br>Grain<br>and Fertilizers<br>Metals<br>and Minerals<br>1 2 | |
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| Scotford<br>Bienfait<br>Flat Rock<br>Hamilton<br>Escanaba<br>Two Harbors<br>Surrey<br>North Vancouver<br>Saguenay<br>Fort McMurray<br>Fort<br>Nelson<br>Baie-Comeau<br>Kitimat<br>Sept-Îles<br>Conneaut<br>Pittsburgh<br>Duluth<br>Sault<br>Ste.Marie<br>Minneapolis/St. Paul<br>Toledo<br>Decatur<br>Jackson<br>Prince<br>George<br>Chetwynd<br>Grande Prairie<br>Arcadia<br>Chippewa Falls<br>Joliet<br>Mobile<br>Quebec<br>Montreal<br> New Orleans<br>Prince Rupert<br>Vancouver<br>Halifax<br>Saint John<br>Saskatoon<br>Chicago<br>Memphis<br>Edmonton<br>Toronto<br>Detroit<br>Thunder Bay<br>Winnipeg<br>Calgary<br>Moncton<br>Supply Chain at a Glance<br>PROVIDING ACCESS AND OPTIONS FOR GROWTH<br>Metals<br>Minerals<br>Energy materials<br>Iron ore<br>Ports served by CN<br>E Aluminum smelters<br>P CN metals distribution centres<br>P CN iron ore docks<br>CN’S METALS AND MINERALS SUPPLY CHAIN<br>Varied fleet<br>OF RAILCARS TO SUPPORT OUR<br>CUSTOMERS NEEDS<br>14 distribution centres<br>STRATEGICALLY LOCATED AT KEY SITES<br>ACROSS OUR NETWORK<br>CN’s rail network reaches deep into<br>mining regions rich in metals, minerals,<br>iron ore and frac sand, as well as key<br>aluminum- and steel-producing areas.<br>Our strong origin franchise and<br>access to end markets makes CN among<br>the top transporters of aluminum and<br>iron ore in North America.<br>CN owns and operates a fully<br>integrated supply chain that transports<br>iron ore commodities directly from mines<br>to mills via rail and the Great Lakes Fleet.<br>CN’s large rail fleet is as varied as our<br>customers’ needs – from covered and<br>open coil gondolas to bulkhead flatcars<br>accommodating loads of up to 110 tons.<br> For more information, please visit:<br>www.cn.ca/your-industry/metals-minerals<br>KEY ADVANTAGES<br>SPOTLIGHT<br>Enabling Frac Sand<br>Growth in Northeast<br>British Columbia<br>In Northeast British Columbia, growing<br>natural gas drilling activity has driven up<br>demand for frac sand—a critical material<br>for energy companies. Wisconsin’s high-quality sand is especially sought after,<br>and CN plays a pivotal role in transporting<br>it, providing direct single-line access<br>from the mine to the heart of the<br>Montney Formation.<br>CN’s strategic investments are increasing<br>capacity, supporting new terminal<br>development, and supporting market<br>expansion. As of Q1 2025, CN serves two<br>unit-train facilities, with additional<br>terminals in development.<br>PICTURED:<br>Wisconsin Northern White frac sand being loaded<br>and transported to energy markets.<br>Bienfait<br>Flat Rock<br>Hamilton<br>Escanaba<br>Two Harbors<br>Saguenay<br>Chetwynd<br>Dawson Creek<br>Shale play<br>CN unit train facility<br>Tumbler<br>Ridge Grande<br>Prairie<br>Kamloops<br>Fort<br>Nelson<br>Baie-Comeau<br>Sept-Îles<br>Conneaut<br>Pittsburgh<br>Duluth<br>Sault<br>Ste.Marie<br>Minneapolis/St. Paul<br>Toledo<br>Decatur<br>Jackson<br>Prince George<br>Arcadia<br>Chippewa Falls<br>Joliet<br>Mobile<br>Quebec<br>Montreal<br> New Orleans<br>Prince Rupert<br>Vancouver<br>Halifax<br>Saint John<br>Saskatoon<br>Chicago<br>Memphis<br>Edmonton<br>Toronto<br>Detroit<br>Thunder Bay<br>Winnipeg<br>Calgary<br>Moncton<br>MOVING MORE<br>FRAC SAND VOLUME<br>INTO NORTHERN BC METALS AND MINERALS<br> | 2025 INVESTOR FACT BOOK 13<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Coal<br>Forest<br>Products<br>Petroleum<br>and Chemicals<br>Market<br>Overview Intermodal Automotive<br>Supply Chain<br>Solutions<br>Grain<br>and Fertilizers<br>Metals<br>and Minerals<br>1 2 | |
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| FOREST PRODUCTS<br>ROOTED IN DELIVERING SERVICE EXCELLENCE<br>CAGR ( 2024 vs. 2020)<br>~840 miles +3% -3% -4% +7%<br>REVENUES<br>($ millions)<br>2020 2021 2022 2023 2024<br>1,700 1,740<br>2,006 1,943 1,931 W 53% Lumber and Panels<br>W 47% Pulp and Paper<br>2024 COMMODITY BREAKDOWN<br>(% of revenues)<br>CARLOADS<br>(thousands)<br>2020 2021 2022 2023 2024<br>342 339 330<br>309 299<br>2020 2021 2022 2023 2024<br>REVENUE TON MILES (RTMs)<br>(millions)<br>25,602 25,948 25,020<br>23,141 22,111<br>FREIGHT REVENUE<br>PER RTM<br>(cents)<br>2020 2021 2022 2023 2024<br>6.64 6.71<br>8.02 8.40 8.73<br>MARKET DRIVERS<br>LUMBER AND PANELS<br> • Residential construction,<br>repairs and remodelling,<br>industrial activity<br> • Trade and tariff policy<br>COMMODITIES<br>LUMBER AND PANELS<br> • Lumber, oriented strand board<br>(OSB) panels, plywood, siding,<br>engineered wood products,<br>timber mats<br>KEY FACTS<br> • Moving more forest products than any other rail carrier in<br>North America<br> • Supporting customer demand with an upgraded fleet of<br>~19,500 premium cars, including centrebeams and box cars<br>for lumber, panels, pulp and paper<br>BUSINESS UNIT OVERVIEW AND MARKET DRIVERS<br>AVERAGE LENGTH OF HAUL (2024)<br>$1,931M<br>2024 REVENUES<br>PULP AND PAPER<br> • Woodpulp, newsprint, printing<br>paper, paperboard,<br>containerboard, logs, wood<br>chips, wood pellets<br>PULP AND PAPER<br> • Global consumption of pulp,<br>paper, tissue and packaging;<br>coal substitution for offshore<br>power generation<br> • Trade and tariff policy<br> | 2025 INVESTOR FACT BOOK 14<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Coal<br>Metals<br>and Minerals<br>Petroleum<br>and Chemicals<br>Market<br>Overview Intermodal Automotive<br>Supply Chain<br>Solutions<br>Grain<br>and Fertilizers<br>Forest<br>Products<br>1 2 | |
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| Edson<br>Surrey<br>North Battleford<br>Atikokan<br>Prince George<br>Mobile<br>Quebec<br>Montreal<br> New Orleans<br> Prince<br>Rupert<br>Vancouver<br>Halifax<br>Saint John<br>Saskatoon<br>Chicago<br>Memphis<br>Edmonton<br>Toronto<br>Detroit<br>Thunder Bay<br>Winnipeg Moncton<br>Calgary<br>Supply Chain at a Glance<br>SUPPORTING OUR CUSTOMERS IN EVOLVING MARKETS<br>Lumber and panels<br>Pulp and paper<br>Wood pellets<br>Ports served by CN<br>P CN forest products<br> distribution centres<br>P Wood pellet producers<br>CN’S FOREST PRODUCTS SUPPLY CHAIN<br>~9,100centrebeams<br>CN MAINTAINS THE INDUSTRY’S LARGEST FLEET<br>TO MEET EVOLVING DEMAND<br>13 distribution centres<br>STRATEGICALLY LOCATED IN KEY LOCATIONS<br>ACROSS OUR NETWORK<br>CN’s network reaches Canadian and<br>U.S. fibre-rich producing regions to move<br>forest products across North America<br>and access overseas markets.<br>CN operates North America’s largest<br>forest products railcar fleet to reliably<br>handle customer needs and an<br>evolving market.<br>Our direct access to two West Coast<br>ports provides capacity and efficiency<br>advantages in shipping to Asia.<br>CN is positioned to meet market<br>demand for growth products such as<br>wood pellets, engineered wood siding,<br>containerboard and tissue paper.<br> For more information, please visit:<br>www.cn.ca/your-industry/forest-products<br>KEY ADVANTAGES<br>SPOTLIGHT<br>Invested in Our Forest<br>Products Customers<br>CN continues its strong partnership with<br>our forest products customers, helping<br>them to reach existing and new markets<br>for lumber, panels, paper, woodpulp and<br>other goods. Aligned with a long-term<br>commitment to support growth and<br>efficiencies within this sector, CN has<br>continued to invest in railcar equipment.<br>For example, more than 1,600 high-capacity<br>box cars have been acquired in recent years<br>to complement our existing fleet of<br>premium cars. CN uniquely serves forest-rich and remote regions in Northern<br>Canada, including in British Columbia,<br>Alberta and Quebec. 13 forest products<br>distribution centres are located in key<br>locations across the network enabling<br>non-rail-served customers to benefit from<br>CN’s reliable and cost-effective service.<br>PICTURED:<br>Moving forest products to market, Clinton, BC<br>Photo by CN Employee Michael Thomas<br>FOREST PRODUCTS<br> | 2025 INVESTOR FACT BOOK 15<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Coal<br>Metals<br>and Minerals<br>Petroleum<br>and Chemicals<br>Market<br>Overview Intermodal Automotive<br>Supply Chain<br>Solutions<br>Grain<br>and Fertilizers<br>Forest<br>Products<br>1 2 | |
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| COAL<br>PROVIDING DIRECT ACCESS TO KEY MARKETS<br>CAGR ( 2024 vs. 2020)<br>~390 miles +15% +12% +6% +9%<br>REVENUES<br>($ millions)<br>2020 2021 2022 2023 2024<br>618<br>527<br>937<br>1,017<br>W 929 52% Canadian Coal – Export<br>W 23% Petroleum Coke<br>W 13% U.S. Coal – Export<br>W 12% U.S. Coal – Domestic<br>2024 COMMODITY BREAKDOWN<br>(% of revenues)<br>CARLOADS<br>(thousands)<br>2020 2021 2022 2023 2024<br>379<br>289<br>503 511<br>456<br>2020 2021 2022 2023 2024<br>REVENUE TON MILES (RTMs)<br>(millions)<br>18,471<br>16,173<br>22,679 22,682<br>20,165<br>FREIGHT REVENUE<br>PER RTM<br>(cents)<br>2020 2021 2022 2023 2024<br>3.26 3.35<br>4.13<br>4.48 4.61<br>MARKET DRIVERS<br> • Weather<br> • Environmental regulations<br> • Global supply/demand conditions<br> • North American and global demand for<br>energy and steel<br> • North American and European natural gas prices<br>COMMODITIES<br> • Grades of bituminous coal from thermal<br>to metallurgical<br> • Metallurgical coke<br> • Petroleum coke<br>KEY FACTS<br> • Moving a diversified coal portfolio with<br>45% thermal coal, 43% metallurgical coal, and<br>petroleum coke comprising the remaining 12%<br> • Facilitating Canadian coal exports, namely<br>metallurgical coal destined for steelmaking<br>plants in Asia<br>BUSINESS UNIT OVERVIEW AND MARKET DRIVERS<br>AVERAGE LENGTH OF HAUL (2024)<br>$929M<br>2024 REVENUES<br> • Supporting global supply chains as the only<br>Canadian railway in North America with direct<br>access to coal export terminals on Canada’s<br>West Coast and the U.S. Gulf Coast<br> | 2025 INVESTOR FACT BOOK 16<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Forest<br>Products<br>Metals<br>and Minerals<br>Petroleum<br>and Chemicals<br>Market<br>Overview Intermodal Automotive<br>Supply Chain<br>Solutions<br>Grain<br>Coal and Fertilizers<br>1 2 | |
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| East Dubuque<br>Calvert City<br>Chiles Mound City<br>Lloydminster<br>Kamloops<br>Fort McMurray<br>East St. Louis<br>Sarnia<br>Baton Rouge<br>Regina<br>Prince George<br>Joliet<br>Mobile<br>Quebec<br>Montreal<br> New Orleans<br>Prince Rupert<br>Vancouver<br>Halifax<br>Saint John<br>Saskatoon<br>Chicago<br>Memphis<br>Edmonton<br>Toronto<br>Detroit<br>Thunder Bay<br>Winnipeg Moncton<br>Calgary<br>Supply Chain at a Glance<br>ENABLING EXPORT AND DOMESTIC COAL SUPPLY CHAINS<br>CN’S COAL SUPPLY CHAIN<br>~2 days faster to Asia<br>TIME-SAVING ADVANTAGE WITH CN’S EXCLUSIVE<br>RAIL ACCESS TO TRIGON AT THE PORT OF<br>PRINCE RUPERT<br>6 export terminals<br>CN’S ACCESS TO HIGH-CAPACITY EXPORT<br>TERMINALS (4 IN CANADA AND 2 IN THE U.S.)<br>CREATES DIRECT LINKS FOR OUR CUSTOMERS<br>CN is the only railway to serve all<br>three Canadian coal export terminals<br>on the West Coast: Westshore, Neptune<br>and Trigon.<br>CN provides single-line access from<br>coal mines in the U.S. Midwest to domestic<br>power plants and export terminals on the<br>Gulf Coast.<br>Our dedicated Bulk Operations<br>service group supports efficient customer<br>shipments by working with all supply chain<br>partners to manage inventories at mines<br>and terminals, including coordination to<br>meet vessel schedules.<br> For more information, please visit:<br>www.cn.ca/your-industry/coal<br>KEY ADVANTAGES<br>SPOTLIGHT<br>Delivering Supply Chain<br>Advantage for Canadian<br>Coal Exports<br>Metallurgical coal mines in Canada,<br>primarily located in British Columbia and<br>Alberta, provide coke – an essential<br>input in the production of steel. In recent<br>years, market conditions have improved<br>with more favorable metallurgical coal prices<br>and growing export demand for Canada’s<br>high-quality, low-sulfur product, notably to<br>supply Asian steelmaking plants. CN’s<br>network offers a competitive advantage<br>for producers with time-saving and<br>cost-efficient services to transport the<br>metallurgical coal from mines to export<br>terminals on Canada’s West Coast,<br>which has the closest access to the Asian<br>market. In Northeast British Columbia,<br>for example, the recent reactivation of<br>the Quintette steelmaking coal mine is<br>responding to market needs, with shipments<br>underway and CN providing a strategic<br>supply chain link.<br>PICTURED:<br>Trigon Pacific Terminals’ coal export facility<br>in Prince Rupert, BC<br>Canadian coal<br>U.S. coal<br>Petroleum coke<br> Ports served by CN<br>P Coal mines<br>P Petroleum coke sourcing<br>P Barge transload terminals<br>E Export terminals<br>COAL<br> | 2025 INVESTOR FACT BOOK 17<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Forest<br>Products<br>Metals<br>and Minerals<br>Petroleum<br>and Chemicals<br>Market<br>Overview Intermodal Automotive<br>Supply Chain<br>Solutions<br>Grain<br>Coal and Fertilizers<br>1 2 | |
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| GRAIN AND FERTILIZERS<br>EMPOWERING OUR CUSTOMERS TO FEED THE WORLD<br>CAGR ( 2024 vs. 2020)<br>+7% +1% +1% +6%<br>MARKET DRIVERS<br>GRAIN<br> • Weather conditions, seeded and<br>harvested acreage, mix of grain<br>crops and crop yield, size and<br>quality of individual crops<br> • International market conditions,<br>foreign government policy<br>COMMODITIES<br>GRAIN<br> • Wheat, canola, peas, oats, barley,<br>corn, soybeans, ethanol, distiller’s<br>dried grains, canola and soybean<br>meal and oil, other oils and<br>fats, malt<br>KEY FACTS<br> • Moving Western Canadian grain for export via three ports:<br>Vancouver, Prince Rupert and Thunder Bay<br> • Serving the U.S. grain market from the Midwest to the Gulf Coast<br> • Transporting fertilizer throughout North America and to/from<br>ports on Canada’s West and East Coasts<br>~900 miles<br>REVENUES<br>($ millions)<br>2020 2021 2022 2023 2024<br>2,475 2,609 2,783<br>3,265 3,422<br>W 42% Canadian Grain – Regulated<br>W 12% Canadian Grain – Commercial<br>W 17% U.S. Grain – Domestic<br>W 7% U.S. Grain – Exports<br>W 13% Fertilizers – Potash<br>W 9% Fertilizers – Other<br>2024 COMMODITY BREAKDOWN<br>(% of revenues)<br>CARLOADS<br>(thousands)<br>2020 2021 2022 2023 2024<br>628<br>663<br>614<br>670 690<br>2020 2021 2022 2023 2024<br>REVENUE TON MILES (RTMs)<br>(millions)<br>58,733 61,736<br>55,359<br>63,479 64,594<br>FREIGHT REVENUE<br>PER RTM<br>(cents)<br>2020 2021 2022 2023 2024<br>4.23 4.21<br>5.03 5.14 5.30<br>BUSINESS UNIT OVERVIEW AND MARKET DRIVERS<br>AVERAGE LENGTH OF HAUL (2024)<br>$3,422M<br>2024 REVENUES<br>FERTILIZER<br> • Potash, ammonia nitrate,<br>urea, phosphate fertilizers,<br>anhydrous ammonia,<br>ammonium sulphate,<br>liquid fertilizers<br>FERTILIZER<br> • Input prices, demand,<br>government policies,<br>international competition<br> | 2025 INVESTOR FACT BOOK 18<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Coal<br>Forest<br>Products<br>Metals<br>and Minerals<br>Petroleum<br>and Chemicals<br>Market<br>Overview Intermodal Automotive<br>Supply Chain<br>Solutions<br>Grain<br>and Fertilizers<br>1 2 | |
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| Mobile<br>Quebec<br>Montreal<br> New Orleans<br>Prince Rupert<br>Vancouver<br>Halifax<br>Saint John<br>Saskatoon<br>Chicago<br>Memphis<br>Edmonton<br>Toronto<br>Detroit<br>Thunder Bay<br>Winnipeg Moncton<br>Calgary<br>Supply Chain at a Glance<br>PARTNERING TO DELIVER END-TO-END SERVICES<br>Canadian grain<br>U.S. grain<br> Ports served by CN<br>Fertilizers – potash<br>Fertilizers – other<br>CN’S GRAIN AND FERTILIZERS<br>SUPPLY CHAIN<br>4,150hopper cars<br>NEW HOPPER CARS HANDLE UP TO 40%<br>MORE GRAIN PER TRAIN<br>70%grain elevators<br>BUILT IN WESTERN CANADA SINCE 2015 ARE<br>EXCLUSIVELY ON CN’S NETWORK<br>CN’s network investments are supporting<br>increased capacity and fluidity in key<br>corridors, including sidings up to 12,000 feet<br>long in Western Canada.<br>Strategically located stuffing facilities<br>along CN’s network load grain products<br>into intermodal containers ready for<br>export shipment.<br>CN’s access to ports on three coasts<br>and the Great Lakes helps customers meet<br>demand in key markets in Asia and<br>Latin America.<br>CN supports North America’s growing<br>renewable fuels market by transporting<br>seed to crush plants, feedstocks to refineries,<br>and renewable fuels to end markets.<br>high-efficiency<br>of high-throughput<br> For more information, please visit:<br>www.cn.ca/your-industry/grain and www.cn.ca/your-industry/fertilizer<br>KEY ADVANTAGES<br>SPOTLIGHT<br>Growing Our Network<br>for Agribusiness<br>CN’s acquisition of Iowa Northern Railway<br>(IANR) and its 175 route miles represents an<br>opportunity to support agribusiness in Iowa<br>while extending our reach to further serve<br>customers and enable incremental growth.<br>The combined CN-IANR offers a single-line<br>service to better connect U.S. Midwest<br>agricultural and industrial markets –<br>including grain, fertilizer and renewable<br>fuels – to the rest of CN’s North American<br>network. Customers, farmers and local<br>businesses along the IANR network will<br>benefit from new options to respond to<br>the current needs and accelerate growth in<br>new markets, while preserving access to<br>their existing carriers. IANR also builds<br>the density of our Southern U.S. network,<br>yielding growth opportunities for bulk<br>grain and processed grain products.<br>PICTURED:<br>Grain train, Iowa Northern Railway, Greene, IA<br>Viterra<br>Viterra Viterra<br>Viterra<br>G3<br>G3<br>G3<br>G3<br>G3<br>G3<br>G3<br>G3<br>P&H P&H<br>DG Global<br>GrainsConnect<br>GrainsConnect, Viterra<br>Fraser Grain Terminal,<br>G3 Vancouver, Fibreco<br>Ray-Mont<br>Logistics Richardson<br>Richardson<br>GrainsConnect<br>G3<br>P&H AGT Foods<br>Richardson<br>Completed new grain elevators<br>Waterfront export facilities<br>NEW GRAIN ELEVATORS BUILT ON CN LINE<br>NEW HIGH-THROUGHPUT<br>ELEVATORS BUILT ON CN LINE GRAIN AND FERTILIZERS<br> | 2025 INVESTOR FACT BOOK 19<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Coal<br>Forest<br>Products<br>Metals<br>and Minerals<br>Petroleum<br>and Chemicals<br>Market<br>Overview Intermodal Automotive<br>Supply Chain<br>Solutions<br>Grain<br>and Fertilizers<br>1 2 | |
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| INTERMODAL<br>TRI-COASTAL SOLUTIONS FOR A DYNAMIC GLOBAL MARKET<br>CAGR ( 2024 vs. 2020)<br>~1,820 miles 0% -5% -4% +4%<br>REVENUES<br>($ millions)<br>2020 2021 2022 2023 2024<br>4,115<br>3,751<br>4,906<br>3,823 3,757<br>W 64% International<br>W 36% Domestic<br>2024 COMMODITY BREAKDOWN<br>(% of revenues)<br>CARLOADS<br>(thousands)<br>2020 2021 2022 2023 2024<br>2,582 2,611<br>2,450<br>2,078 2,115<br>2020 2021 2022 2023 2024<br>REVENUE TON MILES (RTMs)<br>(millions)<br>59,165 58,412 56,029<br>47,886 50,190<br>FREIGHT REVENUE<br>PER RTM<br>(cents)<br>2020 2021 2022 2023 2024<br>7.04<br>6.34<br>8.76<br>7.98<br>7.49<br>COMMODITIES<br>INTERNATIONAL<br> • Ocean-borne import<br>and export dry and<br>temperature-controlled<br>containerized traffic<br>KEY FACTS<br> • Executing supply chain collaboration agreements with key ports<br> • Offering one of Canada’s largest reefer fleets with CargoCool®,<br>CN’s temperature-controlled transport business<br> • Delivering flexible first-mile to last-mile options with CNTL, one of<br>Canada’s largest trucking companies, and CN-owned TransX<br> • Expanding reach and capacity with full membership in the Equipment<br>Management Pool (EMP), with a supply of ~40,000 containers<br> • Supporting customers with a dedicated Customer Experience Team<br>MARKET DRIVERS<br>INTERNATIONAL<br> • North American<br>economic and trade<br>conditions<br> • Global trade patterns<br>BUSINESS UNIT OVERVIEW AND MARKET DRIVERS<br>AVERAGE LENGTH OF HAUL (2024)<br>$3,757M<br>2024 REVENUES<br>DOMESTIC<br> • Consumer products for large retailers<br> • Raw materials, manufactured goods<br>and consumer products for wholesale<br>trucking and logistics clients<br> • International to domestic container<br>transload conversion options<br>for shippers<br>DOMESTIC<br> • North American economy and<br>consumer spending<br> • North American industrial<br>production<br> | 2025 INVESTOR FACT BOOK 20<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Coal<br>Forest<br>Products<br>Metals<br>and Minerals<br>Petroleum<br>and Chemicals<br>Market<br>Overview Automotive<br>Supply Chain<br>Solutions<br>Grain<br>and Fertilizers Intermodal<br>1 2 | |
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| Joliet<br>Jackson<br>MEXICO<br>Arcadia<br>Chippewa Falls<br>Indianapolis<br>Prince George<br>Regina<br>Saskatoon<br>Halifax<br>Chicago<br>Detroit<br>Mobile<br>Toronto<br>Montreal<br>Memphis<br>Moncton<br>New Orleans<br>Edmonton<br>Calgary<br>Winnipeg<br>Prince Rupert<br>Vancouver<br>Saint John<br>Supply Chain at a Glance<br>OFFERING SEAMLESS GLOBAL AND DOMESTIC<br>TRADE CONNECTIONS<br>International<br>Domestic<br> Intermodal ports served by CN<br>P Intermodal terminals<br>P Logistics parks<br>CN’S INTERMODAL SUPPLY CHAIN<br>~10,500 containers<br>INCLUDING DOMESTIC AND CARGOCOOL®<br>CONTAINERS, SUPPORTING CAPACITY<br>AND GROWTH<br>~9,600 chassis<br>ENABLE EFFICIENT AND FLEXIBLE DELIVERY<br>TO END MARKETS<br>CN facilitates seamless global trade<br>connections with 21 intermodal terminals<br>located near ports and large urban centres.<br>CN’s intermodal service allows our<br>customers to benefit from the lower cost,<br>reduced emissions and higher cargo<br>payloads of shipping by rail.<br>With TransX and CNTL, CN pairs the<br>efficiency of rail with the added flexibility<br>of trucking to better serve our local and<br>non-rail-served customers.<br>CN provides access to ports with<br>available import/export capacity and<br>shorter transit times to/from Asia, the<br>Indian subcontinent, Europe, the Middle<br>East, Africa and South America.<br> For more information, please visit:<br>www.cn.ca/your-industry/consumer-goods and<br>www.cn.ca/your-industry/temperature-controlled-cargo<br>KEY ADVANTAGES<br>PICTURED:<br>Fairview Container Terminal, Port of Prince Rupert, BC<br>SPOTLIGHT<br>Prince Rupert:<br>Strengthening Supply<br>Chain Options<br>CN’s intermodal solutions help customers<br>reach markets across North America.<br>With its tri-coastal network, CN has access<br>to major gateways on the East, West and<br>Gulf coasts, including the Port of Prince<br>Rupert. CN’s exclusive, on-dock rail access<br>to Prince Rupert directly connects<br>customers to our North American network,<br>offering the only single-line rail service<br>from Canada’s West Coast to Detroit and<br>Memphis. Recent expansions at the<br>Fairview Container Terminal are increasing<br>Prince Rupert’s capacity to 1.6 million TEUs,<br>boosting the port’s ability to handle growing<br>trade volumes. New projects – including<br>the IntermodeX logistics centre and<br>CANXPORT transloading facility – will<br>make Prince Rupert even more attractive<br>by providing additional transloading<br>capacity for overseas customers to improve<br>their round trip economics.<br>MEXICO<br>Chippawa Falls<br>Regina<br>Arcadia<br>New York<br>Cincinnati<br>Indianapolis<br>Columbus<br>Cleveland<br>Philadelphia<br>Wilmington<br>Montreal<br>Prince<br>George<br>Vancouver<br>Halifax<br>Moncton<br>Saskatoon<br>Chicago<br>Edmonton<br>Toronto<br>Detroit<br>Atlanta<br>Kansas City<br>Winnipeg<br>Monterrey<br>Silao<br>Calgary<br>EXPANDING ACCESS THROUGH<br>INTERLINE PARTNERSHIPS<br> CN line<br> Shortline partners<br> Union Pacific<br> Ferromex<br> Norfolk Southern<br> CSX<br> Interline partnership<br> destinations<br>INTERMODAL<br> | 2025 INVESTOR FACT BOOK 21<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Coal<br>Forest<br>Products<br>Metals<br>and Minerals<br>Petroleum<br>and Chemicals<br>Market<br>Overview Automotive<br>Supply Chain<br>Solutions<br>Grain<br>and Fertilizers Intermodal<br>1 2 | |
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| CAGR ( 2024 vs. 2020)<br>~740 miles +11% +3% +5% +6%<br>REVENUES<br>($ millions)<br>2020 2021 2022 2023 2024<br>591 576<br>797<br>945<br>W 93% Finished Vehicles 894<br>W 7% Auto Parts<br>2024 COMMODITY BREAKDOWN<br>(% of revenues)<br>CARLOADS<br>(thousands)<br>2020 2021 2022 2023 2024<br>179 187<br>208<br>232<br>208<br>2020 2021 2022 2023 2024<br>REVENUE TON MILES (RTMs)<br>(millions)<br>2,395<br>2,597<br>2,822<br>3,136 3,119<br>FREIGHT REVENUE<br>PER RTM<br>(cents)<br>2020 2021 2022 2023 2024<br>24.05 22.76<br>28.24<br>30.13 28.66<br>MARKET DRIVERS<br> • Global and North American automotive production and sales<br> • Consumer confidence and disposable income<br> • Average age of vehicles in North America<br> • Auto dealer inventory levels<br> • Price of fuel<br> • Zero-emission vehicle (ZEV) adoption and transition<br> • Trade and tariff policy<br>COMMODITIES<br> • Finished vehicles<br> • Auto parts<br>KEY FACTS<br> • Handling more than two million finished vehicles annually<br> • Operating 18 automotive compounds accessing 12 North American vehicle assembly plants<br> • Serving the industry with ~5,000 multi-level railcars<br> • Enabling connections at three ports for finished vehicles in Vancouver, Halifax and Mobile<br> • Handling containerized auto parts at six ports: Vancouver, Prince Rupert, Saint John, Montreal,<br>Halifax and Mobile<br>AUTOMOTIVE<br>RELIABLE SERVICE WITH A FOCUS ON DYNAMIC SOLUTIONS<br>BUSINESS UNIT OVERVIEW AND MARKET DRIVERS<br>AVERAGE LENGTH OF HAUL (2024)<br>$894M<br>2024 REVENUES<br> | 2025 INVESTOR FACT BOOK 22<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Coal<br>Forest<br>Products<br>Metals<br>and Minerals<br>Petroleum<br>and Chemicals<br>Market<br>Overview Intermodal<br>Supply Chain<br>Solutions<br>Grain<br>and Fertilizers Automotive<br>1 2 | |
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| Windsor<br>Markham<br>Charny<br>St. John’s<br>New Richmond<br>Jackson<br>Mobile<br>Quebec<br>Montreal<br>Prince Rupert<br>Vancouver<br>Halifax<br>Saint John<br>Saskatoon<br>Chicago<br>Memphis<br>Edmonton<br>Toronto<br>Detroit<br>Winnipeg<br>Calgary<br>Moncton<br>Sarnia<br>Thunder Bay<br> New Orleans<br>Supply Chain at a Glance<br>HELPING MOVE AN INTERCONNECTED<br>AUTOMOTIVE SUPPLY CHAIN<br>Finished vehicles<br>Auto parts<br> Intermodal auto parts<br> Ports served by CN<br>P Automotive compounds<br>P Assembly plants<br>CN’S AUTOMOTIVE SUPPLY CHAIN<br>18compounds<br>PROVIDE SAFE AND COST-EFFECTIVE TRANSPORT<br>OF FINISHED VEHICLES AND AUTO PARTS ACROSS<br>NORTH AMERICA<br>~5,000railcar fleet<br>OF BI-LEVEL AND TRI-LEVEL AUTORACKS<br>HELPS CN TRANSPORT SUVS AND OTHER<br>FINISHED VEHICLES<br>automotive<br> For more information, please visit:<br>www.cn.ca/your-industry/automotive<br>SPOTLIGHT<br>Offering Flexible Options<br>for Shifting Needs<br>CN plays a vital role in North America’s<br>automotive supply chain, serving 11<br>assembly plants across Michigan, Ontario<br>and Mississippi. The Autoport-operated<br>terminal in Halifax is the only facility in<br>Eastern Canada with exclusive CN rail<br>access, supporting vehicle imports from<br>Asia, Europe and Mexico. On the West<br>Coast, CN’s access to the Port of Vancouver<br>offers efficient connections to and from<br>Asian markets. Inland, CN’s distribution<br>network includes key facilities like New<br>Richmond, Wisconsin—an auto compound<br>supporting finished vehicle movements<br>across the U.S. Midwest through both<br>single-line and interchange service. To<br>support this evolving sector, CN has<br>strengthened its capabilities through<br>ongoing enhancements in infrastructure,<br>rolling stock, and technology—building a<br>resilient, scalable network aligned with<br>shifting supply chain strategies.<br>PICTURED:<br>CN’s Autoport, Port of Halifax, NS<br>KEY ADVANTAGES<br>CN’s three-coast network enables<br>imports of finished vehicles and auto<br>parts globally.<br>CN manages the full automotive supply<br>chain, including rail, truck, transload,<br>customs, customer service and special<br>vehicle processing requests.<br>CN provides transportation solutions to<br>support the zero-emission vehicle (ZEV)<br>supply chain – from mines to battery<br>packs to completed ZEV vehicles.<br>Our intermodal service offers an<br>efficient option for auto parts for domestic<br>shippers and overseas suppliers.<br>Sarnia<br>Port Huron London<br>Milton<br>Chicago<br>Detroit<br>Toronto<br>2<br>4<br>3 1<br>5 6<br>7<br>8<br>9<br>10<br>11 12<br> 1 Lansing GM<br> 2 Flint Truck GM<br> 3 GM Orion<br> 4 Flat Rock Ford<br> 5 Dearborn Truck Ford<br> 6 Stellantis Toledo<br> 7 Windsor Stellantis<br>8 Ingersoll GM<br>9 Brampton Stellantis<br> 10 Oakville Ford<br> 11 Oshawa GM<br>12 Honda Alliston<br>AUTOMOTIVE<br> | 2025 INVESTOR FACT BOOK 23<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Coal<br>Forest<br>Products<br>Metals<br>and Minerals<br>Petroleum<br>and Chemicals<br>Market<br>Overview Intermodal<br>Supply Chain<br>Solutions<br>Grain<br>and Fertilizers Automotive<br>1 2 | |
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| SUPPLY CHAIN SOLUTIONS<br>MEETING OUR CUSTOMERS’ DIVERSE NEEDS<br>CN’s Supply Chain Solutions go beyond rail to extend our market reach and enable our<br>customers to benefit from rail transportation’s cost and environmental benefits. We<br>provide a range of services designed to offer operational flexibility and capacity to support<br>the safe and efficient movement of goods to market.<br>We collaborate with customers to determine the right<br>suite of services tailored to their business needs. CN<br>works with our customers to identify, coordinate and<br>execute cost-effective solutions to meet their current<br>demands and be ready for future needs. Our services<br>include: vessel and dock operations to support the iron<br>ore supply chain; 18 auto compounds located across<br>We collaborate with customers to determine the right<br>suite of services tailored to their business needs. CN<br>works with our customers to identify, coordinate and<br>execute cost-effective solutions to meet their current<br>demands and be ready for future needs. Our services<br>include: vessel and dock operations to support the iron<br>ore supply chain; 18 auto compounds located across<br>our North American rail network to receive, store,<br>and facilitate distribution of finished vehicles to<br>allow our customers to serve their local markets;<br>an extensive network of strategically positioned<br>distribution, transfer, warehousing and reload<br>facilities to support broader market access and<br>facilitate the use of rail transportation.<br>our North American rail network to receive, store,<br>and facilitate distribution of finished vehicles to<br>allow our customers to serve their local markets;<br>an extensive network of strategically positioned<br>distribution, transfer, warehousing and reload<br>facilities to support broader market access and<br>facilitate the use of rail transportation.<br>BUSINESS DEVELOPMENT<br>When companies seek to grow their<br>business and connect to rail, CN’s Business<br>Development team offers solutions,<br>including Certified Rail Ready Sites in<br>strategic markets across our network.<br>For more information please visit: www.cn.ca/our-services<br>SUPPLY CHAIN SALES<br>We collaborate with our customers<br>across North America to facilitate<br>end-to-end supply chains that deliver<br>essential goods businesses need to<br>grow and meet marketplace demands.<br>CUSTOMS BROKERAGE<br>Our licensed customs brokers ensure<br>our customers’ shipments moving in/<br>out of the U.S., Canada and Mexico are<br>efficiently cleared and managed.<br>IRON ORE SUPPLY CHAIN<br>CN owns and operates a fully integrated<br>supply chain that transports iron ore<br>directly from mines to steel mills via rail<br>and the Great Lakes Fleet.<br>DISTRIBUTION SERVICES<br>CN’s network of distribution centres,<br>bulk transfer facilities, CargoFlo®<br>transload terminals and warehouses<br>are strategically located to help our<br>customers reach and grow their markets.<br>AUTOMOTIVE SUPPLY CHAIN<br>CN handles finished vehicles and auto<br>parts from domestic manufacturers<br>and through ports on three coasts to<br>18 auto compounds across our network<br>for distribution to local dealers.<br>PICTURED:<br>CN’s Great Lakes Fleet vessel<br>Presque Isle, being loaded at<br>Duluth, MI, ore dock. CN’s iron<br>ore operation is an example of<br>our end-to-end supply chain<br>mindset, transporting iron ore<br>from mine to mill entirely on<br>CN assets.<br>EXTENSIVE NETWORK OF SUPPLY CHAIN FACILITIES AND SERVICES<br> | 2025 2025 INVESTOR FACT BOOK INVESTOR FACT BOOK INVESTOR FACT BOOK 24<br>MARKETS OVERVIEW OPERATIONS FINANCIALS<br>Coal<br>Forest<br>Products<br>Metals<br>and Minerals<br>Petroleum<br>and Chemicals<br>Market<br>Overview Intermodal Automotive<br>Grain<br>and Fertilizers<br>Supply Chain<br>Solutions | |
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| SOUTHERN REGION<br>EASTERN REGION<br>WESTERN REGION<br>Mobile<br>Quebec<br>Montreal<br> New Orleans<br>Prince Rupert<br>Vancouver<br>Saint John Halifax<br>Saskatoon<br>Chicago<br>Memphis<br>Edmonton<br>Toronto<br>Detroit<br>Thunder Bay<br>Winnipeg Calgary Moncton<br>7.0 hours<br>THROUGH DWELL<br>(entire railroad, hours)<br>OPERATIONS<br>OVERVIEW<br>DELIVERING SERVICE EXCELLENCE<br> For up-to-date weekly key operating metrics, please visit: www.cn.ca/investors/key-weekly-metrics<br>Close collaboration across the entire<br>organization to deliver safe, efficient and<br>reliable transportation solutions for<br>our customers.<br>458B<br>GROSS TON MILES<br>W 52% Western Region<br>W 21% Eastern Region<br>W 27% Southern Region<br>GTMs BY REGION<br>(% of 2024 total GTMs)<br>W 52% Western Region<br>W 21% Eastern Region<br>W 27% Southern Region<br>GTMs BY REGION<br>(% of 2024 total GTMs)<br>W 52% Western Region<br>W 21% Eastern Region<br>W 27% Southern Region<br>GTMs BY REGION<br>(% of 2024 total GTMs)<br>CN’s focus on operational excellence is rooted in our commitment<br>to customer service. Our scheduled operating model allows us to optimize<br>our network, rolling stock and crews to match customer volumes, and<br>we are deploying incremental capacity to support our customers’ growth.<br>Our Operations team structure complements our operating model and<br>aligns the distinct capabilities required to develop the plan with the daily<br>demands necessary to safely and efficiently execute it.<br>Our railroaders understand their role in executing the plan. They work<br>together with a focus on delivering efficiency and reliability – helping to<br>meet customer commitments and continually enhance service excellence.<br>Our operating plan also drives resiliency and our ability to manage supply<br>chain disruptions. When these situations arise, we are agile and take the<br>necessary steps to safely return to a scheduled operation.<br>GTMs BY REGION<br>209 miles<br>CAR VELOCITY<br>(car miles per day)<br>70–100 million<br>50–70 million<br>30–50 million<br>10–30 million<br>Up to 10 million<br>Ports served by CN<br>TRAFFIC DENSITY LEGEND<br>(GTMs per route mile)<br> | 2025 INVESTOR FACT BOOK 25<br>OVERVIEW MARKETS OPERATIONS FINANCIALS | |
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| FINANCIAL<br>OVERVIEW<br>DRIVING LONG-TERM SHAREHOLDER VALUE CREATION<br>(1) These non-GAAP measures do not have any standardized meaning prescribed by GAAP and, therefore,<br>may not be comparable to similar measures presented by other companies. See section entitled<br>Non-GAAP Measures for an explanation of these non-GAAP measures.<br>(2) Net of amounts reimbursed by customers.<br>(3) Dividends and share repurchases are subject to Board approval.<br>Bringing<br>Top-Line Growth<br>to the Bottom Line<br> • Growing faster than the economy and<br>pricing ahead of rail inflation<br> • Incremental efficiency improvements<br>Consistent<br>Approach to<br>Capital Allocation<br> • Reinvesting in the business<br> • Maintaining a strong balance sheet<br> • Dividend growth in line with earnings growth<br>over the long term(3)<br>CN is dedicated to driving long-term shareholder value creation through<br>profitable top-line growth, strong cash flow generation and a consistent<br>capital allocation policy. We strategically invest in our network and<br>infrastructure to enhance safety and efficiency, and grow capacity in line<br>with our customers’ needs.<br>We are focused on rewarding shareholders through dividend growth and<br>executing on our annual share repurchase programs. In 2024, we delivered<br>$7.01 diluted earnings per share (EPS), $7.10 in adjusted diluted EPS,(1) a<br>return on invested capital (ROIC) of 12.9%,(1) and an adjusted ROIC of 13.1%.(1)<br>Our $3.5 billion(2) strategic capital investment strengthened our network<br>to further support customer service and be ready for future growth.<br>With an efficient and resilient operating model, CN-specific growth<br>opportunities and a strong leadership team to execute, we aim to deliver<br>long-term shareholder value.<br>Trimble, TN<br>Photo by CN employee Eric Graf<br>A DISCIPLINED EXECUTION OF OUR PLAN<br> | 2025 INVESTOR FACT BOOK 26<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>Quarterly Consolidated<br>Financial and Statistical Information Non-GAAP Measures<br>Shareholder and<br>Investor Information<br>Financial<br>Overview | |
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| Quarterly Consolidated Statements of Income<br>Unaudited<br>($ millions, unless otherwise indicated) 2023 2024<br>Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year<br>REVENUES 4,313 4,057 3,987 4,471 16,828 4,249 4,329 4,110 4,358 17,046<br>OPERATING EXPENSES<br>Labor and fringe benefits 812 747 773 818 3,150 894 850 795 883 3,422<br>Purchased services and material 593 571 534 556 2,254 571 578 566 598 2,313<br>Fuel 557 485 486 569 2,097 514 546 519 481 2,060<br>Depreciation and amortization 448 449 457 463 1,817 462 466 475 489 1,892<br>Equipment rents 90 83 89 97 359 99 102 93 98 392<br>Other 151 122 131 150 554 163 151 147 181 642<br>Loss on assets held for sale - - - - ‑ - 78 - - 78<br>Total operating expenses 2,651 2,457 2,470 2,653 10,231 2,703 2,771 2,595 2,730 10,799<br>Operating income 1,662 1,600 1,517 1,818 6,597 1,546 1,558 1,515 1,628 6,247<br>Interest expense (165) (173) (185) (199) (722) (210) (220) (230) (231) (891)<br>Other components of net periodic benefit income 119 120 121 119 479 113 114 114 113 454<br>Other income (loss) 1 1 (2) 134 134 2 32 10 (2) 42<br>Income before income taxes 1,617 1,548 1,451 1,872 6,488 1,451 1,484 1,409 1,508 5,852<br>Income tax recovery (expense) (397) (381) (343) 258 (863) (348) (370) (324) (362) (1,404)<br>Net income 1,220 1,167 1,108 2,130 5,625 1,103 1,114 1,085 1,146 4,448<br>Operating ratio 61.5% 60.6% 62.0% 59.3% 60.8% 63.6% 64.0% 63.1% 62.6% 63.4%<br>EARNINGS PER SHARE ($)<br>Basic 1.83 1.76 1.69 3.30 8.55 1.72 1.75 1.72 1.82 7.02<br>Diluted 1.82 1.76 1.69 3.29 8.53 1.72 1.75 1.72 1.82 7.01<br>WEIGHTED AVERAGE NUMBER OF SHARES (millions)<br>Basic 668.3 661.6 654.3 646.4 657.7 640.7 635.0 629.6 628.9 633.5<br>Diluted 669.9 663.1 655.6 647.6 659.1 641.9 636.2 630.5 629.5 634.5<br>Dividends declared per share ($) 0.7900 0.7900 0.7900 0.7900 3.1600 0.8450 0.8450 0.8450 0.8450 3.3800<br>For more information on our financial results, please visit www.cn.ca/investors/financial-results<br> | 2025 INVESTOR FACT BOOK 27<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>1 2 3 4 5<br>Financial<br>Overview<br>Shareholder and<br>Non-GAAP Measures Investor Information<br>Quarterly Consolidated<br>Financial and Statistical Information | |
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| Quarterly Consolidated Balance Sheets<br>Unaudited<br>($ millions) 2023 2024<br>Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4<br>ASSETS<br>Current assets<br>Cash and cash equivalents 484 539 491 475 412 335 273 389<br>Restricted cash and<br>cash equivalents 453 451 451 449 449 449 425 12<br>Accounts receivable 1,385 1,223 1,284 1,300 1,313 1,223 1,243 1,164<br>Material and supplies 764 757 761 699 783 788 725 720<br>Other current assets 330 296 384 166 324 335 377 334<br>Total current assets 3,416 3,266 3,371 3,089 3,281 3,130 3,043 2,619<br>Properties 43,499 43,546 44,525 44,617 45,179 45,701 46,194 47,960<br>Operating lease<br>right-of-use assets 443 416 432 424 392 379 372 485<br>Pension asset 3,139 3,245 3,350 3,140 3,247 3,358 3,467 4,541<br>Deferred income tax assets – – – 682 685 679 659 689<br>Intangible assets, goodwill<br>and other 406 403 411 714 740 741 746 773<br>Total assets 50,903 50,876 52,089 52,666 53,524 53,988 54,481 57,067<br>Unaudited<br>($ millions) 2023 2024<br>Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4<br>LIABILITIES AND<br>SHAREHOLDERS’ EQUITY<br>Current liabilities<br>Accounts payable and other 2,289 2,394 2,360 2,695 2,467 2,520 2,640 2,810<br>Current portion<br>of long-term debt 2,325 1,107 2,296 2,340 3,007 2,410 2,079 1,166<br>Total current liabilities 4,614 3,501 4,656 5,035 5,474 4,930 4,719 3,976<br>Deferred income tax liabilities 9,858 9,910 10,134 10,066 10,183 10,291 10,398 10,874<br>Other liabilities and<br>deferred credits 445 461 453 522 502 524 563 612<br>Pension and other<br>postretirement benefits 484 480 480 495 493 491 487 483<br>Long-term debt 14,323 15,831 16,086 16,133 16,754 18,100 18,619 19,728<br>Operating lease liabilities 320 295 309 298 264 248 237 343<br>Total liabilities 30,044 30,478 32,118 32,549 33,670 34,584 35,023 36,016<br>SHAREHOLDERS’ EQUITY<br>Common shares 3,589 3,573 3,533 3,512 3,510 3,484 3,477 3,474<br>Common shares in Share Trusts (141) (142) (143) (144) (128) (129) (128) (129)<br>Additional paid-in capital 360 369 375 373 350 364 360 372<br>Accumulated other<br>comprehensive loss (1,986) (2,079) (1,910) (2,279) (2,133) (2,064) (2,138) (1,020)<br>Retained earnings 19,037 18,677 18,116 18,655 18,255 17,749 17,887 18,354<br>Total shareholders’ equity 20,859 20,398 19,971 20,117 19,854 19,404 19,458 21,051<br>Total liabilities and<br>shareholders' equity 50,903 50,876 52,089 52,666 53,524 53,988 54,481 57,067<br> | 2025 INVESTOR FACT BOOK 28<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>1 2 3 4 5<br>Financial<br>Overview<br>Shareholder and<br>Non-GAAP Measures Investor Information<br>Quarterly Consolidated<br>Financial and Statistical Information | |
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| Quarterly Consolidated Statements of Cash Flows<br>Unaudited<br>($ millions) 2023 2024<br>Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year<br>OPERATING ACTIVITIES<br>Net income 1,220 1,167 1,108 2,130 5,625 1,103 1,114 1,085 1,146 4,448<br>Adjustments to reconcile net income to net cash provided by operating activities:<br>Depreciation and amortization 448 449 457 463 1,817 462 466 475 489 1,892<br>Pension income and funding (105) (105) (104) (104) (418) (95) (98) (95) (97) (385)<br>Gain on disposal of property – – – (129) (129) – – – – –<br>Deferred income taxes 70 109 124 (591) (288) 68 87 152 18 325<br>Loss on assets held for sale – – – – – – 78 – – 78<br>Changes in operating assets and liabilities:<br>Accounts receivable (21) 165 (55) (18) 71 (13) 91 (5) 132 205<br>Material and supplies (73) 3 8 44 (18) (79) (3) 59 17 (6)<br>Accounts payable and other (557) 105 (81) 342 (191) (272) (17) 1 181 (107)<br>Other current assets (30) 51 (6) 70 85 (123) 30 70 23 –<br>Other operating activities, net 103 41 61 206 411 66 65 32 86 249<br>Net cash provided by operating activities 1,055 1,985 1,512 2,413 6,965 1,117 1,813 1,774 1,995 6,699<br>INVESTING ACTIVITIES<br>Property additions (461) (875) (917) (934) (3,187) (576) (853) (1,176) (944) (3,549)<br>Proceeds from disposal of property - - - 129 129 - - - - –<br>Business acquisitions and combinations - - - (390) (390) - - - - –<br>Other investing activities, net (1) (10) (14) 5 (20) (12) (13) (14) (19) (58)<br>Net cash used in investing activities (462) (885) (931) (1,190) (3,468) (588) (866) (1,190) (963) (3,607)<br> | 2025 INVESTOR FACT BOOK 29<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>1 2 3 4 5<br>Financial<br>Overview<br>Shareholder and<br>Non-GAAP Measures Investor Information<br>Quarterly Consolidated<br>Financial and Statistical Information | |
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| Quarterly Consolidated Statements of Cash Flows (cont.)<br>Unaudited<br>($ millions) 2023 2024<br>Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year<br>FINANCING ACTIVITIES<br>Issuance of debt - 1,730 - 824 2,554 861 1,245 1,011 366 3,483<br>Repayment of debt (12) (215) (11) (12) (250) (374) (137) (17) (510) (1,038)<br>Change in commercial paper, net 1,228 (989) 1,073 (404) 908 458 (539) (675) (625) (1,381)<br>Settlement of foreign exchange forward contracts on debt 10 (12) 23 17 38 (19) 32 (15) 122 120<br>Issuance of common shares for stock options exercised 13 18 2 16 49 24 8 6 3 41<br>Withholding taxes remitted on the net settlement of equity settled awards (35) (2) (1) (13) (51) (48) (3) (1) - (52)<br>Repurchase of common shares (1,160) (1,045) (1,194) (1,152) (4,551) (926) (1,086) (438) (150) (2,600)<br>Purchase of common shares for settlement of equity settled awards (1) (2) (1) - (4) (1) (3) (1) - (5)<br>Purchase of common shares by Share Trusts (7) (7) (7) (7) (28) (28) (7) (7) (8) (50)<br>Dividends paid (526) (521) (515) (509) (2,071) (540) (535) (532) (531) (2,138)<br>Net cash used in financing activities (490) (1,045) (631) (1,240) (3,406) (593) (1,025) (669) (1,333) (3,620)<br>Effect of foreign exchange fluctuations on cash, cash equivalents, restricted cash, and<br>restricted cash equivalents - (2) 2 (1) (1) 1 1 (1) 4 5<br>Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents 103 53 (48) (18) 90 (63) (77) (86) (297) (523)<br>Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period 834 937 990 942 834 924 861 784 698 924<br>Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period 937 990 942 924 924 861 784 698 401 401<br>Cash and cash equivalents, end of period 484 539 491 475 475 412 335 273 389 389<br>Restricted cash and cash equivalents, end of period 453 451 451 449 449 449 449 425 12 12<br>Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period 937 990 942 924 924 861 784 698 401 401<br>SUPPLEMENTAL CASH FLOW INFORMATION<br>Interest paid (251) (115) (256) (154) (776) (263) (188) (265) (210) (926)<br>Income taxes paid (424) (284) (279) (210) (1,197) (370) (301) (262) (288) (1,221)<br> | 2025 INVESTOR FACT BOOK 30<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>1 2 3 4 5<br>Financial<br>Overview<br>Shareholder and<br>Non-GAAP Measures Investor Information<br>Quarterly Consolidated<br>Financial and Statistical Information | |
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| Quarterly Financial and Statistical Data<br>(1) Based on Federal Railroad Administration (FRA) reporting criteria.<br>Unaudited<br>2023 2024<br>Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year<br>REVENUES ($ millions)<br>Petroleum and chemicals 828 748 758 861 3,195 857 850 839 868 3,414<br>Metals and minerals 529 497 515 507 2,048 530 528 502 488 2,048<br>Forest products 511 480 466 486 1,943 494 501 467 469 1,931<br>Coal 263 263 242 249 1,017 221 241 229 238 929<br>Grain and fertilizers 861 688 722 994 3,265 860 738 786 1,038 3,422<br>Intermodal 1,012 983 880 948 3,823 959 1,040 882 876 3,757<br>Automotive 215 235 237 258 945 216 255 217 206 894<br>Total freight revenues 4,219 3,894 3,820 4,303 16,236 4,137 4,153 3,922 4,183 16,395<br>Other revenues 94 163 167 168 592 112 176 188 175 651<br>Total revenues 4,313 4,057 3,987 4,471 16,828 4,249 4,329 4,110 4,358 17,046<br>STATISTICAL OPERATING DATA<br>Gross ton miles (GTMs) (millions) 115,442 109,693 108,221 118,687 452,043 115,627 117,852 110,555 113,660 457,694<br>Revenue ton miles (RTMs) (millions) 59,961 55,877 55,640 61,136 232,614 59,749 59,936 56,548 59,305 235,538<br>Carloads (thousands) 1,353 1,369 1,326 1,388 5,436 1,343 1,419 1,304 1,324 5,390<br>Route miles (includes Canada and the U.S.) 18,600 18,600 18,600 18,800 18,800 18,800 18,800 18,800 18,800 18,800<br>Employees (end of period) 24,718 25,178 25,101 24,987 24,987 25,179 25,656 25,428 24,671 24,671<br>Employees (average for the period) 24,403 25,005 25,168 25,102 24,920 25,191 25,570 25,593 24,862 25,304<br>KEY OPERATING MEASURES<br>Freight revenue per RTM (cents) 7.04 6.97 6.87 7.04 6.98 6.92 6.93 6.94 7.05 6.96<br>Freight revenue per carload ($) 3,118 2,844 2,881 3,100 2,987 3,080 2,927 3,008 3,159 3,042<br>GTMs per average number of employees (thousands) 4,731 4,387 4,300 4,728 18,140 4,590 4,609 4,320 4,572 18,088<br>Operating expenses per GTM (cents) 2.30 2.24 2.28 2.24 2.26 2.34 2.35 2.35 2.40 2.36<br>Labor and fringe benefits expense per GTM (cents) 0.70 0.68 0.71 0.69 0.70 0.77 0.72 0.72 0.78 0.75<br>Diesel fuel consumed (US gallons in millions) 104.1 97.4 90.0 103.7 395.2 103.6 103.0 94.4 100.1 401.1<br>Average fuel price ($/US gallon) 4.79 4.24 4.66 4.76 4.62 4.50 4.57 4.43 4.15 4.41<br>Fuel efficiency (US gallons of locomotive fuel consumed per 1,000 GTMs) 0.902 0.888 0.832 0.874 0.874 0.896 0.874 0.854 0.881 0.876<br>SAFETY INDICATORS(1)<br>Injury frequency rate (per 200,000 person-hours) 0.98 1.04 1.08 0.83 0.98 1.20 1.17 1.04 1.12 1.06<br>Accident rate (per million train miles) 1.53 1.98 2.10 1.62 1.80 1.68 1.54 1.46 1.75 1.66<br>Statistical operating data, key operating measures and safety indicators are unaudited and based on estimated data available at such time and are subject to change as more complete information becomes available.<br>Definitions of these indicators are provided on our website, www.cn.ca/glossary.<br> | 2025 INVESTOR FACT BOOK 31<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>1 2 3 4 5<br>Financial<br>Overview<br>Shareholder and<br>Non-GAAP Measures Investor Information<br>Quarterly Consolidated<br>Financial and Statistical Information | |
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| Non-GAAP Measures<br>PICTURED:<br>Aberdeen, SK<br>Photo by CN employee Steven Holschen<br>CN reports its financial results in accordance with United States<br>generally accepted accounting principles (GAAP). CN may also<br>use non-GAAP measures in this CN 2025 Investor Fact Book that<br>do not have any standardized meaning prescribed by GAAP. These<br>non-GAAP measures may not be comparable to similar measures<br>presented by other companies.<br>Adjusted Performance Measures<br>Adjusted net income, adjusted diluted<br>earnings per share, adjusted operating<br>income, adjusted operating expenses and<br>adjusted operating ratio are non-GAAP<br>measures that are used to set performance<br>goals and to measure CN’s performance<br>and may include the following adjustments:<br>i. operating expense adjustments:<br>workforce reduction program,<br>depreciation expense on the<br>deployment of a replacement system,<br>advisory fees related to shareholder<br>matters, losses and recoveries from<br>assets held for sale, business<br>acquisition-related costs;<br>ii. non-operating expense adjustments:<br>business acquisition-related financing<br>fees, merger termination income, gains<br>and losses on disposal of property; and<br>iii. the effect of changes in tax laws<br>including rate enactments and changes<br>in tax positions affecting prior years.<br> | 2025 INVESTOR FACT BOOK 32<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>1 2 3 4 5 6 7 8<br>Quarterly Consolidated<br>Financial and Statistical Information<br>Financial<br>Overview<br>Shareholder and<br>Non-GAAP Measures Investor Information | |
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| ADJUSTED NET INCOME AND EARNINGS PER SHARE<br>Adjusted net income is defined as Net income in accordance with GAAP adjusted for certain significant items. Management believes that adjusted net income provides additional insight to management and investors into the<br>Company’s operations and underlying business trends as well as facilitate period-to-period comparisons, as it excludes certain significant items that are not reflective of CN’s underlying business operations and could distort the<br>analysis of trends in business performance. Adjusted diluted earnings per share is defined as adjusted net income divided by the weighted-average diluted shares outstanding. This measure helps management and investors<br>evaluate the Company’s profitability on a per-share basis, facilitating the assessment of period-over-period performance by removing the impact of significant, non-recurring items.<br>The following table provides a reconciliation of Net income and Earnings per share in accordance with GAAP, as reported for the periods specified, to the non-GAAP adjusted performance measures presented herein:<br>For the year ended December 31, 2024, the Company’s adjusted net income was $4,506 million, or $7.10 per diluted share, which excludes a loss on assets held for sale of $78 million, or $58 million after-tax ($0.09 per diluted<br>share), recorded in the second quarter, resulting from an agreement to transfer the ownership and related risks and obligations of the Quebec Bridge located in Quebec, Canada, to the Government of Canada.<br>Unaudited Year ended December 31<br>($ millions, except per share data) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024<br>Net income (1) 3,529 3,630 5,470 4,312 4,198 3,545 4,899 5,118 5,625 4,448<br>Adjustments:<br>Operating expense adjustments:<br> Workforce reduction program – – – 27 31 – 39 - - - Depreciation expense on the deployment of replacement system – – – – 84 – – - - - Advisory fees related to shareholder matters – – – – – – 20 22 - - Loss (recovery) on assets held for sale – – – – – 486 (137) - - 78<br> Transaction-related costs – – – – – – 84 - - -Non-operating expense adjustments:<br> Amortization of bridge financing and other fees - - - – – – 97 - - - Merger termination fee - - - – – – (886) - - - Gains on disposal of property – 76 – (338) – – – - (129) -Tax adjustments:<br> Tax-deductible goodwill and related impacts (2) – – – – – – – - (713) - Tax effect of adjustments (3) – 10 – 39 (30) (123) 109 (6) 17 (20)<br> Tax law changes and rate enactments 42 7 (1,706) – (112) (141) – - - -Total adjustments 42 (59) (1,706) (272) (27) 222 (674) 16 (825) 58<br>Adjusted net income (1) 3,571 3,571 3,764 4,040 4,171 3,767 4,225 5,134 4,800 4,506<br>Diluted earnings per share (1) 4.38 4.66 7.22 5.85 5.81 4.97 6.90 7.44 8.53 7.01<br>Impact of adjustments, per share 0.05 (0.08) (2.25) (0.37) (0.03) 0.31 (0.95) 0.02 (1.25) 0.09<br>Adjusted diluted earnings per share (1) 4.43 4.58 4.97 5.48 5.78 5.28 5.95 7.46 7.28 7.10<br>(1) In the first quarter of 2022, the Company changed its method of calculating market-related values of pension assets for its defined benefit plans using a retrospective approach. See the Company’s selected financial information restated for change in accounting policy filed on September 9, 2022, which<br>may be found online on SEDAR+ at www.sedarplus.com, on the SEC’s website at www.sec.gov through EDGAR, and on the Company’s website at www.cn.ca in the Investors section, for additional information.<br>(2) Relates to the impacts resulting from tax filings consistent with a ruling that the Company received in a non-U.S. foreign jurisdiction in connection with prior taxation years.<br>(3) The tax impact of adjustments is based on the nature of the item for tax purposes and related tax rates in the applicable jurisdiction.<br>Non-GAAP Measures (cont.)<br> | 2025 INVESTOR FACT BOOK 33<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>1 2 3 4 5 6 7 8<br>Quarterly Consolidated<br>Financial and Statistical Information<br>Financial<br>Overview<br>Shareholder and<br>Non-GAAP Measures Investor Information | |
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| For the year ended December 31, 2023,<br>the Company’s adjusted net income was<br>$4,800 million, or $7.28 per diluted share,<br>which excludes:<br> • a gain on disposal of property within<br>the Bala Subdivision located in<br>Markham and Richmond Hill, Ontario,<br>Canada of $129 million, or $112 million<br>after-tax ($0.17 per diluted share)<br>recorded in the fourth quarter in<br>Other income within the Consolidated<br>Statements of Income; and<br> • a net deferred income tax recovery<br>of $713 million ($1.08 per diluted share)<br>recorded in the fourth quarter resulting<br>from tax filings consistent with a ruling<br>that the Company received in a non-U.S. foreign jurisdiction in connection<br>with prior taxation years.<br>For the year ended December 31, 2022,<br>the Company’s adjusted net income<br>was $5,134 million, or $7.46 per diluted<br>share, which excludes advisory fees related<br>to shareholder matters of $22 million, or<br>$16 million after-tax ($0.02 per diluted<br>share) of which $12 million, or $9 million<br>after-tax ($0.01 per diluted share) was<br>recorded in the second quarter and<br>$10 million, or $7 million after-tax ($0.01<br>per diluted share) was recorded in the<br>first quarter in Other expense within the<br>Consolidated Statements of Income.<br>For the year ended December 31, 2021,<br>the Company reported adjusted net<br>income of $4,225 million,(1) or $5.95 per<br>diluted share,(1) which excludes:<br> • employee termination benefits and<br>severance costs related to a workforce<br>reduction program of $39 million, or<br>$29 million after-tax ($0.04 per diluted<br>share) recorded in the third quarter in<br>Labor and fringe benefits within the<br>Consolidated Statements of Income;<br> • advisory fees related to shareholder<br>matters of $20 million, or $15 million<br>after-tax ($0.02 per diluted share) of<br>which $13 million, or $10 million after-tax<br>($0.01 per diluted share) was recorded<br>in the fourth quarter and $7 million,<br>or $5 million after-tax ($0.01 per<br>diluted share) was recorded in the third<br>quarter in Other expense within the<br>Consolidated Statements of Income;<br> • the recovery of $137 million, or<br>$102 million after-tax ($0.14 per diluted<br>share) recorded in the first quarter<br>related to the loss on assets held for<br>sale in the second quarter of 2020, to<br>reflect an agreement for the sale for<br>ongoing rail operations, certain non-core rail lines in Wisconsin, Michigan<br>and Ontario to a short line operator;<br> • transaction-related costs, consisting<br>of an advance to Kansas City Southern<br>(KCS) and a related refund, net of<br>transaction costs, of $84 million, or<br>$70 million after-tax ($0.10 per diluted<br>share), recorded in the third quarter<br>resulting from the terminated CN<br>Merger Agreement with KCS;<br> • amortization of bridge financing and<br>other fees of $97 million, or $84 million<br>after-tax ($0.11 per diluted share), of<br>which $65 million, or $60 million<br>after-tax ($0.08 per diluted share) was<br>recorded in the third quarter and<br>$32 million, or $24 million after-tax<br>($0.03 per diluted share) was recorded<br>in the second quarter, resulting from<br>the KCS transaction, recorded in Interest<br>expense within the Consolidated<br>Statements of Income; and<br> • merger termination fee paid by KCS<br>to CN of $886 million, or $770 million<br>after-tax ($1.08 per diluted share),<br>recorded in the third quarter resulting<br>from KCS’ notice of termination of the<br>CN Merger Agreement with KCS.<br>For the year ended December 31, 2020,<br>the Company reported adjusted net<br>income of $3,767 million,(1) or $5.28 per<br>diluted share,(1) which excludes a loss<br>of $486 million, or $363 million after-tax<br>($0.51 per diluted share) in the second<br>quarter, resulting from the Company’s<br>decision to market for sale for ongoing<br>rail operations, certain non-core lines in<br>Wisconsin, Michigan and Ontario, and a<br>current income tax recovery of $141 million<br>($0.20 per diluted share) in the first<br>quarter resulting from the enactment<br>of the Coronavirus Aid, Relief, and<br>Economic Security (CARES) Act, a U.S.<br>tax-and-spending package aimed<br>at providing additional stimulus to<br>address the economic impact of the<br>COVID-19 pandemic.<br>Non-GAAP Measures (cont.)<br>(1) In the first quarter of 2022, the Company changed its method of calculating market-related values of pension assets for its defined benefit plans using a retrospective approach. See the Company’s selected financial information restated for change in accounting policy filed on<br>September 9, 2022, which may be found online on SEDAR+ at www.sedarplus.com, on the SEC’s website at www.sec.gov through EDGAR, and on the Company’s website at www.cn.ca in the Investors section, for additional information.<br> | 2025 INVESTOR FACT BOOK 34<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>1 2 3 4 5 6 7 8<br>Quarterly Consolidated<br>Financial and Statistical Information<br>Financial<br>Overview<br>Shareholder and<br>Non-GAAP Measures Investor Information | |
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| For the year ended December 31, 2019,<br>the Company reported adjusted net<br>income of $4,171 million,(1) or $5.78 per<br>diluted share,(1) which excludes employee<br>termination benefits and severance costs<br>related to a workforce reduction program<br>of $31 million, or $23 million after-tax<br>($0.03 per diluted share) in the fourth<br>quarter; a deferred income tax recovery<br>of $112 million ($0.15 per diluted share)<br>in the second quarter, resulting from the<br>enactment of a lower provincial corporate<br>income tax rate; and a depreciation<br>expense of $84 million, or $62 million<br>after-tax ($0.09 per diluted share) in the<br>first quarter, related to costs previously<br>capitalized for a Positive Train Control<br>(PTC) back office system following the<br>deployment of a replacement system.<br>For the year ended December 31, 2018,<br>the Company reported adjusted net<br>income of $4,040 million,(1) or $5.48 per<br>diluted share,(1) which excludes employee<br>termination benefits and severance costs<br>related to a workforce reduction program<br>of $27 million, or $20 million after-tax<br>($0.03 per diluted share) in the fourth<br>quarter and gains on disposal of property<br>of $338 million, or $292 million after-tax<br>($0.40 per diluted share), consisting of<br>the following:<br> • in the fourth quarter, a gain previously<br>deferred on the 2014 disposal of a<br>segment of the Guelph Subdivision<br>located between Georgetown and<br>Kitchener, Ontario, together with the<br>rail fixtures and certain passenger<br>agreements (the “Guelph”), of<br>$79 million, or $70 million after-tax<br>($0.10 per diluted share);<br> • in the third quarter, a gain on disposal<br>of property located in Montreal,<br>Quebec, (the “Doney and St-François<br>Spurs”) of $36 million, or $32 million<br>after-tax ($0.04 per diluted share); and<br> • in the second quarter, a gain on transfer<br>of the Company’s finance lease in the<br>passenger rail facilities in Montreal,<br>Quebec, together with its interests in<br>related railway operating agreements<br>(the “Central Station Railway Lease”),<br>of $184 million, or $156 million after-tax<br>($0.21 per diluted share), and a gain<br>on disposal of land located in Calgary,<br>Alberta, excluding the rail fixtures<br>(the “Calgary Industrial Lead”), of<br>$39 million, or $34 million after-tax<br>($0.05 per diluted share).<br>For the year ended December 31, 2017,<br>the Company reported adjusted net<br>income of $3,764 million,(1) or $4.97 per<br>diluted share,(1) which excludes a net<br>deferred income tax recovery of $1,706<br>million ($2.25 per diluted share) consisting<br>of the following:<br> • in the fourth quarter, a deferred income<br>tax recovery of $1,764 million ($2.33 per<br>diluted share) resulting from the<br>enactment of a lower U.S. federal<br>corporate income tax rate due to the<br>Tax Cuts and Jobs Act (“U.S. Tax Reform”)<br>and a deferred income tax expense of<br>$50 million ($0.07 per diluted share)<br>resulting from the enactment of higher<br>provincial corporate income tax rates;<br> • in the third quarter, a deferred income<br>tax expense of $31 million ($0.04 per<br>diluted share) resulting from the<br>enactment of a higher state corporate<br>income tax rate;<br> • in the second quarter, a deferred income<br>tax recovery of $18 million ($0.02 per<br>diluted share) resulting from the<br>enactment of a lower provincial<br>corporate income tax rate; and<br> • in the first quarter, a deferred income<br>tax recovery of $5 million ($0.01 per<br>diluted share) resulting from the<br>enactment of a lower provincial<br>corporate income tax rate.<br>For the year ended December 31, 2016,<br>the Company reported adjusted net<br>income of $3,571 million,(1) or $4.58 per<br>diluted share,(1) which excludes a gain on<br>disposal of approximately one mile of<br>elevated track leading into Montreal’s<br>Central Station, together with the rail<br>fixtures, of $76 million, or $66 million<br>after-tax ($0.09 per diluted share) in the<br>fourth quarter, and a deferred income tax<br>expense of $7 million ($0.01 per diluted<br>share) resulting from the enactment of a<br>higher provincial corporate income tax<br>rate in the second quarter.<br>For the year ended December 31, 2015,<br>the Company reported adjusted net<br>income of $3,571 million,(1) or $4.43 per<br>diluted share,(1) which excludes a deferred<br>income tax expense of $42 million ($0.05<br>per diluted share) resulting from the<br>enactment of a higher provincial corporate<br>income tax rate in the second quarter.<br>Non-GAAP Measures (cont.)<br>(1) In the first quarter of 2022, the Company changed its method of calculating market-related values of pension assets for its defined benefit plans using a retrospective approach. See the Company’s selected financial information restated for change in accounting policy filed on<br>September 9, 2022, which may be found online on SEDAR+ at www.sedarplus.com, on the SEC’s website at www.sec.gov through EDGAR, and on the Company’s website at www.cn.ca in the Investors section, for additional information.<br> | 2025 INVESTOR FACT BOOK 35<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>1 2 3 4 5 6 7 8<br>Quarterly Consolidated<br>Financial and Statistical Information<br>Financial<br>Overview<br>Shareholder and<br>Non-GAAP Measures Investor Information | |
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| ADJUSTED OPERATING INCOME, OPERATING EXPENSES AND OPERATING RATIO<br>Adjusted operating income is defined as Operating income in accordance with GAAP adjusted for certain significant operating expense items that are not reflective of CN’s underlying business operations. This measure helps<br>management and investors assess the Company’s core operating results by excluding items that may distort the analysis of ongoing business performance. Adjusted operating expenses is defined as Operating expenses in<br>accordance with GAAP adjusted for certain significant operating expense items that are not reflective of CN’s underlying business operations. This measure provides management and investors with a view of ongoing costs<br>which exclude unusual or non-recurring items, enabling more accurate assessment of cost management and resource allocation across reporting periods. Adjusted operating ratio is defined as adjusted operating expenses as<br>a percentage of revenues. For management and investors, the adjusted operating ratio serves as a key performance indicator of cost management and overall operational effectiveness, as it demonstrates how effectively<br>management controls costs relative to total revenue by excluding unusual or non-recurring items.<br>The following table provides a reconciliation of Operating income, Operating expenses and operating ratio, as reported for the periods specified, to the non-GAAP adjusted performance measures presented herein:<br>Unaudited Year ended December 31<br>($ millions, except percentages) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024<br>Operating income 5,155 5,032 5,243 5,493 5,593 4,777 5,616 6,840 6,597 6,247<br>Operating expense adjustments:<br>Workforce reduction program - - - 27 31 – 39 - - -<br>Depreciation expense on the deployment of replacement system - - - – 84 – – - - -<br>Advisory fees related to shareholder matters - - - – – – 20 22 – –<br>Loss (recovery) on assets held for sale - - - – – 486 (137) - - 78<br>Transaction-related costs - - - – – – 84 - - -<br>Total operating expense adjustments - - - 27 115 486 6 22 – 78<br>Adjusted operating income 5,155 5,032 5,243 5,520 5,708 5,263 5,622 6,862 6,597 6,325<br>Operating expenses 7,456 7,005 7,798 8,828 9,324 9,042 8,861 10,267 10,231 10,799<br>Total operating expense adjustments - - - (27) (115) (486) (6) (22) – (78)<br>Adjusted operating expenses 7,456 7,005 7,798 8,801 9,209 8,556 8,855 10,245 10,231 10,721<br>Operating ratio(1) 59.1% 58.2% 59.8% 61.6% 62.5% 65.4% 61.2% 60.0% 60.8% 63.4%<br>Impact of adjustments – – – (0.1)% (0.8)% (3.5)% – (0.1)% – (0.5)%<br>Adjusted operating ratio 59.1% 58.2% 59.8% 61.5% 61.7% 61.9% 61.2% 59.9% 60.8% 62.9%<br>(1) Operating ratio is defined as operating expenses as a percentage of revenues.<br>Non-GAAP Measures (cont.)<br> | 2025 INVESTOR FACT BOOK 36<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>1 2 3 4 5 6 7 8<br>Quarterly Consolidated<br>Financial and Statistical Information<br>Financial<br>Overview<br>Shareholder and<br>Non-GAAP Measures Investor Information | |
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| Free Cash Flow<br>Free cash flow is a useful measure<br>of liquidity as it demonstrates the<br>Company’s ability to generate cash for<br>debt obligations and for discretionary<br>uses such as payment of dividends, share<br>repurchases and strategic opportunities.<br>The Company defines its free cash flow<br>measure as the difference between net<br>cash provided by operating activities<br>and net cash used in investing activities,<br>adjusted for the impact of (i) business<br>acquisitions and combinations, and<br>(ii) merger transaction-related payments,<br>cash receipts and cash income taxes,<br>which are items that are not indicative<br>of operating trends. Free cash flow does<br>not have any standardized meaning<br>prescribed by GAAP and, therefore, may<br>not be comparable to similar measures<br>presented by other companies.<br>The following table provides a<br>reconciliation of Net cash provided<br>by operating activities in accordance<br>with GAAP, as reported for the periods<br>specified, to the non-GAAP free cash<br>flow presented herein:<br>(1) Relates to income tax payments of $102 million for KCS merger transaction-related payments and cash receipts. See Note 4 – Acquisitions,<br>Terminated CN Kansas City Southern (KCS) merger agreement, to the Company’s 2022 Annual Consolidated Financial Statements and the section<br>entitled Adjusted performance measures to the Company’s 2022 Annual MD&A filed on January 31, 2023, which may be found online on SEDAR+<br>at www.sedarplus.com, on the SEC’s website at www.sec.gov through EDGAR, and on the Company’s website at www.cn.ca in the Investors<br>section, for additional information.<br>(2) Relates to the terminated CN KCS merger agreement. See Note 3 – Acquisitions, Terminated CN KCS merger agreement, to the Company’s 2021<br>Annual Consolidated Financial Statements and the section entitled Adjusted performance measures to the Company’s 2021 Annual MD&A filed on<br>February 1, 2022, which may be found online on SEDAR+ at www.sedarplus.com, on the SEC’s website at www.sec.gov through EDGAR, and on<br>the Company’s website at www.cn.ca in the Investors section, for additional information.<br>(3) Relates to the acquisitions of H&R Transport Limited (“H&R”) and the TransX Group of Companies (“TransX”). See the section entitled Liquidity and<br>capital resources – Investing activities to the Company’s 2021 Annual MD&A filed on February 1, 2022, which may be found online on SEDAR+ at<br>www.sedarplus.com, on the SEC’s website at www.sec.gov through EDGAR, and on the Company’s website at www.cn.ca in the Investors section,<br>for additional information.<br>(4) Relates to the acquisition of the shares of Iowa Northern Railway Company and the business combination of Cape Breton & Central Nova Scotia<br>Railway. See Note 4 – Business acquisitions and combinations to the Company’s 2023 Annual Consolidated Financial Statements filed on<br>January 31, 2024, which may be found online on SEDAR+ at www.sedarplus.com, on the SEC’s website at www.sec.gov through EDGAR, and<br>on the Company’s website at www.cn.ca in the Investors section, for additional information.<br>Unaudited Year ended December 31<br>($ millions) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024<br>Net cash provided by operating activities 5,140 5,202 5,516 5,918 5,923 6,165 6,971 6,667 6,965 6,699<br>Net cash used in investing activities (2,767) (2,682) (2,738) (3,404) (4,190) (2,946) (2,873) (2,510) (3,468) (3,607)<br>Net cash provided before financing activities 2,373 2,520 2,778 2,514 1,733 3,219 4,098 4,157 3,497 3,092<br>Adjustments:<br>Cash income taxes for merger transaction-related payments and cash receipts(1) – – – – – – – 102 - -Transaction-related costs paid(2) – – – – – – 125 - - -Advance for acquisition(2) – – – – – – 845 - - -Refund of advance for acquisition(2) – – – – – – (886) - - -Merger termination fee (2) – – – – – – (886) - - -Business acquisitions and combinations(3)(4) – – – – 259 8 – - 390 -Total adjustments – – – – 259 8 (802) 102 390 -Free cash flow 2,373 2,520 2,778 2,514 1,992 3,227 3,296 4,259 3,887 3,092<br>Non-GAAP Measures (cont.)<br> | 2025 INVESTOR FACT BOOK 37<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>1 2 3 4 5 6 7 8<br>Quarterly Consolidated<br>Financial and Statistical Information<br>Financial<br>Overview<br>Shareholder and<br>Non-GAAP Measures Investor Information | |
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| Adjusted Debt-To-Adjusted<br>EBITDA Multiple<br>Management believes that the adjusted<br>debt-to-adjusted EBITDA multiple is a<br>useful credit measure because it reflects<br>the Company’s ability to service its debt<br>and other long-term obligations. The<br>Company calculates the adjusted<br>debt-to-adjusted EBITDA multiple as<br>adjusted debt divided by the last 12 months<br>of adjusted EBITDA. Adjusted debt is<br>defined as the sum of Long-term debt and<br>Current portion of long-term debt as<br>reported on the Company’s Consolidated<br>Balance Sheets as well as Operating lease<br>liabilities, including current portion and<br>pension plans in deficiency recognized on<br>the Company’s Consolidated Balance<br>Sheets due to the debt-like nature of their<br>contractual and financial obligations.<br>Adjusted EBITDA is calculated as Net<br>income excluding Interest expense,<br>Income tax expense, Depreciation and<br>amortization, operating lease cost,<br>Other components of net periodic benefit<br>income, Other income (loss), and other<br>significant items that are not reflective of<br>CN’s underlying business operations and<br>which could distort the analysis of trends in<br>business performance. Adjusted debt and<br>adjusted EBITDA are non-GAAP measures<br>used to compute the Adjusted debt-to-adjusted EBITDA multiple. These measures<br>do not have any standardized meaning<br>prescribed by GAAP and, therefore, may<br>not be comparable to similar measures<br>presented by other companies.<br>The following table provides a reconciliation<br>of debt and Net income in accordance with<br>GAAP, reported as at and for the periods<br>specified, to adjusted debt and adjusted<br>EBITDA, which have been used to calculate<br>the non-GAAP adjusted debt-to-adjusted<br>EBITDA multiple:<br>Unaudited As at and for the year ended December 31<br>($ millions, unless otherwise indicated) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024<br>Debt 10,427 10,937 10,828 12,569 13,796 12,906 12,485 15,429 18,473 20,894<br>Adjustments:<br>Operating lease liabilities, including current portion (1) 607 533 478 579 501 418 430 466 415 477<br>Pension plans in deficiency (2) 469 442 455 477 521 553 447 353 362 350<br>Adjusted debt 11,503 11,912 11,761 13,625 14,818 13,877 13,362 16,248 19,250 21,721<br>Net income (3) 3,529 3,630 5,470 4,312 4,198 3,545 4,899 5,118 5,625 4,448<br>Interest expense 439 480 481 489 538 554 610 548 722 891<br>Income tax expense (recovery) (3) 1,333 1,283 (400) 1,348 1,207 976 1,443 1,645 863 1,404<br>Depreciation and amortization 1,158 1,225 1,281 1,329 1,562 1,589 1,598 1,729 1,817 1,892<br>Operating lease cost(4) 204 197 191 218 171 143 131 142 149 153<br>Other components of net periodic benefit income (3) (99) (266) (296) (280) (297) (292) (407) (498) (479) (454)<br>Other loss (income) (47) (95) (12) (376) (53) (6) (43) 27 (134) (42)<br>Adjustments:<br>Workforce reduction program (5) – – – 27 31 – 39 - - -Advisory fees related to shareholder matters (6) – – – – – – 20 22 - -<br>Loss (recovery) on assets held for sale (7) – – – – – 486 (137) - - 78<br>Transaction-related costs (8) – – – – – – 84 - - -<br>Merger termination fee (8) – – – – – – (886) - - -<br>Adjusted EBITDA 6,517 6,454 6,715 7,067 7,357 6,995 7,351 8,733 8,563 8,370<br>Adjusted debt-to-adjusted EBITDA multiple (times) 1.77 1.85 1.75 1.93 2.01 1.98 1.82 1.86 2.25 2.60<br>(1) Represents the present value of operating lease payments.<br>(2) Represents the total funded deficit of all defined benefit pension plans with a projected benefit obligation in excess of plan assets.<br>(3) In the first quarter of 2022, the Company changed its method of calculating market-related values of pension assets for its defined benefit<br>plans using a retrospective approach. See the Company’s selected financial information restated for change in accounting policy filed on<br>September 9, 2022, which may be found online on SEDAR+ at www.sedarplus.com, on the SEC’s website at www.sec.gov through EDGAR,<br>and on the Company’s website at www.cn.ca in the Investors section, for additional information.<br>(4) Represents the operating lease costs recorded in Purchased services and material and Equipment rents within the Consolidated Statements<br>of Income.<br>(5) Relates to employee termination benefits and severance costs for a workforce reduction program, recorded in Labor and fringe benefits within the<br>Consolidated Statements of Income.<br>(6) Relates to advisory fees related to shareholder matters recorded in Other expense within the Consolidated Statements of Income.<br>(7) Relates to the loss (recovery) on assets held for sale resulting from the Company entering into an agreement for the sale of non-core lines and<br> a loss on assets held for sale resulting from an agreement to transfer the ownership and related risks and obligations of the Quebec Bridge located<br> in Quebec, Canada, to the Government of Canada.<br>(8) Relates to the terminated CN KCS merger agreement.<br>Non-GAAP Measures (cont.)<br> | 2025 INVESTOR FACT BOOK 38<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>1 2 3 4 5 6 7 8<br>Quarterly Consolidated<br>Financial and Statistical Information<br>Financial<br>Overview<br>Shareholder and<br>Non-GAAP Measures Investor Information | |
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| ROIC and Adjusted ROIC<br>ROIC and adjusted ROIC are useful<br>measures for management and investors<br>to evaluate the efficiency of the<br>Company’s use of capital funds and<br>allow investors to assess the operating<br>and investment decisions made<br>by management.<br>The Company calculates ROIC as return<br>divided by average invested capital,<br>both of which are non-GAAP measures.<br>Return is defined as Net income plus<br>interest expense after-tax, calculated using<br>the Company’s effective tax rate. Average<br>invested capital is defined as the sum of<br>Total shareholders’ equity, Long-term debt<br>and Current portion of long-term debt<br>less Cash and cash equivalents, and<br>Restricted cash and cash equivalents,<br>averaged between the beginning and<br>ending balance over the last 12-month<br>period. The Company calculates<br>adjusted ROIC as adjusted return<br>divided by average invested capital,<br>both of which are non-GAAP measures.<br>Adjusted return is defined as adjusted net<br>income plus interest expense after-tax,<br>calculated using the Company’s adjusted<br>effective tax rate. Return, average invested<br>capital, ROIC, adjusted return and adjusted<br>ROIC do not have any standardized<br>meaning prescribed by GAAP and, therefore,<br>may not be comparable to similar measures<br>presented by other companies.<br>The following table provides a<br>reconciliation of Net income and<br>adjusted net income to return and<br>adjusted return, respectively, as well as<br>the calculation of average invested<br>capital, which have been used to<br>calculate ROIC and adjusted ROIC:<br>(1) In the first quarter of 2022, the Company changed its method of calculating market-related values of pension assets for its defined benefit plans<br>using a retrospective approach. See the Company’s selected financial information restated for change in accounting policy filed on September 9,<br>2022, which may be found online on SEDAR+ at www.sedarplus.com, on the SEC’s website at www.sec.gov through EDGAR, and on the Company’s<br>website at www.cn.ca in the Investors section, for additional information.<br>(2) The effective tax rate, defined as Income tax expense as a percentage of Income before income taxes, used to calculate the tax on Interest expense<br>for 2024 was 24.0% (2023 - 24.5%, 2022 - 24.3%, 2021 - 22.8%, 2020 - 21.6%, 2019 - 22.3%, 2018 - 23.8%, 2017 - 25.8%, 2016 - 26.1%,<br>2015 - 27.4%). Due to the significantly lower effective tax rate reported by the Company in 2023, tax on interest expense for 2023 was calculated<br>using an adjusted effective tax rate. Due to the negative effective tax rate reported by the Company in 2017, tax on interest expense for 2017 was<br>calculated using an adjusted effective tax rate.<br>(3) In the fourth quarter of 2015, the Company adopted ASU 2015-03 Interest – Imputation of Interest on a retrospective basis. As a result, debt issuance<br>costs were reclassified from assets to Long-term debt in the amount of $42 million, $37 million, as at December 31, 2015, 2014 respectively.<br>(4) This non-GAAP measure does not have any standardized meaning prescribed by GAAP and, therefore, may not be comparable to similar measures<br>presented by other companies. See the section entitled Adjusted performance measures for an explanation of this non-GAAP measure.<br>(5) Relates to amortization of bridge financing and other fees resulting from the KCS transaction, recorded in Interest expense within the Consolidated<br>Statements of Income.<br>(6) The adjusted effective tax rate is a non-GAAP measure, defined as Income tax expense, net of tax adjustments as presented in Adjusted<br>performance measures as a percentage of Income before taxes, net of pre-tax adjustments as presented in Adjusted performance measures.<br>This measure does not have any standardized meaning prescribed by GAAP and, therefore, may not be comparable to a similar measure presented<br>by other companies. The adjusted effective tax rate used to calculate the adjusted tax on interest expense for 2024 was 24.0% (2023 - 24.5%,<br>2022 - 24.3%, 2021 - 24.0%, 2020 - 24.8%, 2019 - 24.4%, 2018 - 24.5%, 2017 - 25.8%, 2016 - 26.2%, 2015 - 26.6%).<br>Unaudited As at and for the year ended December 31<br>($ millions, except percentage) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024<br>Net income (1) 3,529 3,630 5,470 4,312 4,198 3,545 4,899 5,118 5,625 4,448<br>Interest expense 439 480 481 489 538 554 610 548 722 891<br>Tax on interest expense (2) (120) (125) (124) (116) (120) (120) (139) (133) (177) (214)<br>Return(1) 3,848 3,985 5,827 4,685 4,616 3,979 5,370 5,533 6,170 5,125<br>Average total shareholders' equity 14,210 14,896 15,749 17,149 17,841 18,846 21,198 22,064 20,751 20,584<br>Average long-term debt(3) 8,407 9,217 9,098 10,067 11,626 11,931 11,987 13,175 15,253 17,931<br>Average current portion of long-term debt 993 1,466 1,785 1,632 1,557 1,420 709 783 1,699 1,753<br>Less: Average cash, cash equivalents, restricted cash and restricted cash equivalents (596) (674) (613) (656) (674) (844) (1,221) (1,088) (879) (663)<br>Average invested capital 23,014 24,905 26,019 28,192 30,350 31,353 32,673 34,934 36,824 39,605<br>ROIC(1) 16.7% 16.0% 22.4% 16.6% 15.2% 12.7% 16.4% 15.8% 16.8% 12.9%<br>Adjusted net income (1)(4) 3,571 3,571 3,764 4,040 4,171 3,767 4,225 5,134 4,800 4,506<br>Interest expense 439 480 481 489 538 554 610 548 722 891<br>Less: Amortization of bridge financing and other fees (5) - - - – – – (97) - - -<br>Adjusted tax on interest expense (6) (117) (126) (124) (120) (131) (137) (123) (133) (177) (214)<br>Adjusted return(1) 3,893 3,925 4,121 4,409 4,578 4,184 4,615 5,549 5,345 5,183<br>Average invested capital 23,014 24,905 26,019 28,192 30,350 31,353 32,673 34,934 36,824 39,605<br>Adjusted ROIC(1) 16.9% 15.8% 15.8% 15.6% 15.1% 13.3% 14.1% 15.9% 14.5% 13.1%<br>Non-GAAP Measures (cont.)<br> | 2025 INVESTOR FACT BOOK 39<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>1 2 3 4 5 6 7 8<br>Quarterly Consolidated<br>Financial and Statistical Information<br>Financial<br>Overview<br>Shareholder and<br>Non-GAAP Measures Investor Information | |
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| Shareholder and Investor Information<br>Transfer Agent and Registrar<br>Computershare<br>Trust Company of Canada<br>Offices in:<br>Montreal, QC; Toronto, ON;<br>Calgary, AB; Vancouver, BC<br>Telephone: 1-800-564-6253<br>www.investorcentre.com<br>Co-Transfer Agent<br>and Co-Registrar<br>Computershare Investor Services<br>Attn: Shareholder Services<br>Overnight mail delivery:<br>320 Bay Street, 14th Floor<br>Toronto, ON M5H 4A6<br>Regular mail delivery:<br>P.O. Box 505000<br>Louisville, KY 40233-5000<br>Telephone: 1-800-962-4284<br>Shareholder Services<br>Shareholders with questions<br>concerning their shares<br>should contact:<br>Computershare<br>Trust Company of Canada<br>Shareholder Services<br>100 University Avenue, 8th Floor<br>Toronto, ON M5J 2Y1<br>Telephone: 1-800-564-6253<br>www.computershare.com<br>Investor Relations<br>Stacy Alderson<br>Assistant Vice-President<br>Investor Relations<br>Telephone: 514-399-0052<br>Greg Hamilton<br>Senior Manager<br>Investor Relations<br>Telephone: 514-399-4654<br>Nicole Smith<br>Expert<br>Investor Relations<br>Telephone: 403-827-2344<br>Fax: 514-399-5985<br>Email: investor.relations@cn.ca<br>Mailing Address<br>CN Investor Relations<br>935 de La Gauchetière St. W.<br>16th Floor<br>Montreal, QC H3B 2M9<br>www.cn.ca/investors<br> | 2025 INVESTOR FACT BOOK 40<br>OVERVIEW MARKETS OPERATIONS FINANCIALS<br>1 2<br>Quarterly Consolidated<br>Financial and Statistical Information<br>Financial<br>Overview Non-GAAP Measures<br>Shareholder and<br>Investor Information | |
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| CN Investor Relations understands the importance of communicating the CN<br>story and sharing the most current and timely information with our shareholders,<br>the financial community and other stakeholders. The Investors section of our<br>website holds a wealth of information to keep investors and potential investors<br>informed and up to date.<br>Key<br>Weekly Metrics<br>Each week, CN reports measures representing<br>key indicators of railroad performance. We report<br>weekly volume data for RTMs and carloads, and<br>weekly operating metrics such as car velocity,<br>average train speed and through dwell.<br>www.cn.ca/investors/key-weekly-metrics<br>Interactive<br>Analyst Center<br>CN provides an interactive dashboard of our<br>Company’s historical GAAP and non-GAAP financial<br>and operating results. This accessible and easy-to-use platform allows investors and analysts to view<br>and capture key performance indicators, build<br>custom charts, and export data.<br>www.cn.ca/investors/interactive-analyst-center<br>Latest Financial<br>Results and Reports<br>We offer access to the latest and historical financial<br>and other company reports, including the Investor<br>Fact Book, Annual Report and Sustainability Report.<br>Each quarter, we update our Investor Presentation<br>as part of our commitment to share the CN story.<br>www.cn.ca/investors/reports-and-archives<br>Upcoming<br>Webcasts and Events<br>Our executive team regularly interacts with the<br>investment community through our quarterly investor<br>call and industry conferences. We provide a<br>comprehensive schedule of upcoming investor events<br>on our website, including webcast information. Stay<br>informed about the latest news and events from CN.<br>www.cn.ca/investors/events www.cn.ca/investors<br>Current<br>Stock Information<br>We have various tools that provide helpful data<br>about CN’s common shares on the Toronto Stock<br>Exchange (TSX: CNR) and the New York Stock<br>Exchange (NYSE: CNI). These tools include stock<br>information, interactive charts, stock price history<br>and splits, an investment calculator and dividends.<br>www.cn.ca/investors/stock-information<br>KEEPING INVESTORS UP TO DATE<br>ONLINE INVESTOR TOOLS | ||
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