Despite challenges, CN Rail's revenue rose to $4.1bn as recovery efforts and grain movement excel
Canadian National Railway Co. (CN) saw its third-quarter profits impacted by summer wildfires and labour disputes, though revenues still increased compared to last year, as reported by Financial Post.
The railway company reported revenues of $4.1bn for the quarter ending September 30, a $123m increase from the previous year. However, net income fell slightly to $1.09bn from $1.11bn a year ago.
Chief Executive Tracy Robinson addressed the challenges CN faced in the recent quarter, including the August worker lockout and the July wildfires in Jasper, Alta., which disrupted the busiest rail corridor on the network.
Both events added extra costs for CN, but Robinson emphasized that the company has since recovered, stating, “We bounced back quickly.”
Robinson highlighted CN's strong performance, pointing to record grain movement from Western Canada and consistent local service levels as signs of resilience.
September was a record month for grain hauling, according to Chief Operations Officer Derek Taylor.
CIBC Capital Markets analyst Kevin Chiang noted that CN’s key growth areas include strength in grain, recovery in intermodal, and other internal growth drivers.
He added, “If we add back the non-recurring costs CN faced this year from the wildfires, strike, and network disruptions, the company should be in a position to deliver outsized EPS growth in 2025.”
Regarding labour issues, Robinson said the arbitration process with the Teamsters Canada Rail Conference is proceeding as expected, following the August strike.
The strike, which arose after the previous agreement expired in 2023, was swiftly curtailed by the federal labour board, which ordered workers back to their jobs.
“This gives us labour stability on the railway,” Robinson added.
Despite positive performance in some areas, Robinson acknowledged softening demand in certain sectors. This led to hiring freezes in parts of the network earlier this year.
However, CN is preparing for future growth by increasing surge capacity, particularly in its eastern and southern regions.
