Core Points - Tracy Robinson, President and CEO of CN, will speak at the Barclays 2025 Industrial Select Conference on February 19, 2025, at 8:05 a.m. ET [1] - CN will provide a live webcast of the event, with a replay available afterward [1] Company Overview - CN transports over 300 million tons of natural resources, manufactured products, and finished goods across North America annually [2] - The company operates a nearly 20,000-mile rail network, connecting Canada's Eastern and Western coasts with the U.S. Midwest and the Gulf of Mexico [2] - CN has been contributing to sustainable trade and community prosperity since its establishment in 1919 [2]

Core Points - CN has filed its 2024 Annual Financial Statements and related documents with Canadian and U.S. securities regulators, available on its website [1] - Printed copies of the 2024 Annual Financial Statements will be provided to shareholders free of charge upon request [2] - CN operates a nearly 20,000-mile rail network, transporting over 300 million tons of goods annually, contributing to sustainable trade and community prosperity since 1919 [3]

Core Points - CN has filed its 2024 Annual Financial Statements and related documents with Canadian and U.S. securities regulators, now available on its website [1] - Printed copies of the 2024 Annual Financial Statements will be provided to shareholders free of charge upon request [2] - CN operates a nearly 20,000-mile rail network, transporting over 300 million tons of goods annually, contributing to sustainable trade and community prosperity since 1919 [3]

Internal Control and Audit - The Company assessed the effectiveness of its internal control over financial reporting as of December 31, 2024, and determined it was effective[2]. - KPMG LLP issued an unqualified audit opinion on the Company's 2024 consolidated financial statements and internal control over financial reporting[3]. - The Company maintained effective internal control over financial reporting as of December 31, 2024, based on established criteria[17]. - The audit included evaluating the design and operating effectiveness of internal controls related to the Company's capital additions process[15]. - The internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting[21]. - The Company has been audited by KPMG LLP since 1992, ensuring continuity and expertise in the audit process[16]. Financial Performance - Revenues for 2024 reached $17,046 million, a slight increase of 1.3% compared to $16,828 million in 2023[26]. - Operating income decreased to $6,247 million in 2024 from $6,597 million in 2023, reflecting a decline of 5.3%[26]. - Net income for 2024 was $4,448 million, down 20.9% from $5,625 million in 2023[26]. - Basic earnings per share decreased to $7.02 in 2024 from $8.55 in 2023, a decline of 17.9%[26]. - Total operating expenses increased to $10,799 million in 2024, up from $10,231 million in 2023, representing a rise of 5.6%[26]. - Labor and fringe benefits rose to $3,422 million in 2024, compared to $3,150 million in 2023, an increase of 8.6%[26]. - Interest expense increased to $891 million in 2024 from $722 million in 2023, a rise of 23.4%[26]. - Other income (loss) was $42 million in 2024, down from $134 million in 2023[26]. - Income tax expense increased to $1,404 million in 2024 from $863 million in 2023, an increase of 62.5%[26]. - Comprehensive income for 2024 increased to $5,707 million, compared to $5,315 million in 2023, reflecting a rise of 7.4%[27]. Assets and Liabilities - Total assets as of December 31, 2024, reached $57,067 million, an increase of 8.5% from $52,666 million in 2023[29]. - Current liabilities decreased to $3,976 million in 2024, down 21% from $5,035 million in 2023[29]. - Long-term debt increased to $19,728 million in 2024, up 22% from $16,133 million in 2023[29]. - Shareholders' equity rose to $21,051 million in 2024, an increase of 4.6% from $20,117 million in 2023[29]. - The pension asset increased to $4,541 million in 2024, up from $3,140 million in 2023[29]. Cash Flow and Investments - Net cash provided by operating activities was $6,699 million, slightly down from $6,965 million in 2023[33]. - Total cash, cash equivalents, and restricted cash at the end of 2024 was $401 million, down from $924 million in 2023[33]. - Cash used in investing activities increased to $3,607 million in 2024 from $3,468 million in 2023[33]. - Issuance of debt rose to $3,483 million in 2024, compared to $2,554 million in 2023[33]. - Repurchase of common shares decreased to $2,600 million in 2024 from $4,551 million in 2023[33]. - Dividends paid increased to $2,138 million in 2024, compared to $2,071 million in 2023[33]. Taxation - The Company operates in various tax jurisdictions, requiring significant judgments and estimates regarding its tax positions[10]. - The audit procedures involved assessing the Company's interpretation of relevant tax regulations and evaluating the reasonability of its tax positions[12]. - The effective income tax expense for 2024 was C$1,404 million, compared to C$863 million in 2023, influenced by provincial and foreign income taxes[122]. - The company had net deferred income taxes of $(10,185) million as of December 31, 2024, an increase from $(9,384) million in 2023[125]. - The total amount of gross unrecognized tax benefits was $41 million as of December 31, 2024, down from $46 million in 2023[128]. Capital Expenditures - Capital additions, net of finance leases, amounted to $3,549 million for the year ended December 31, 2024, including $1,564 million for track and railway infrastructure maintenance[13]. - The Company capitalizes all costs necessary to make purchased assets ready for intended use, including direct material, labor, and contracted services[62]. - The service life of rail assets is extended through rail grinding, which is capitalized as it allows for additional gross tons to be carried over the rail[63]. - Expenditures related to shoulder ballast undercutting are capitalized as they represent the addition of a new asset, replacing deteriorated ballast[64]. - The Company uses approximately 40 different depreciable asset classes, with depreciation rates based on estimated service lives[67]. Debt and Financing - The Company has a total debt of $20,894 million as of December 31, 2024, which includes finance lease liabilities of $7 million[170]. - The Company extended the maturity date of its committed bilateral letter of credit facilities to April 28, 2027, with outstanding letters of credit totaling $329 million[167]. - The Company issued a total of $1,242 million in notes in May 2024, including $700 million 4.60% Notes due 2029 and $550 million 5.10% Notes due in 2054[158]. - The Company had total commercial paper borrowings of $721 million as of December 31, 2024, compared to $1,801 million in 2023, reflecting a decrease of 60%[160]. Pension and Investment Strategy - The Company expects total cash contributions of approximately $80 million for all other pension plans in 2025, with no contributions anticipated for the CN Pension Plan due to its fully funded status[180]. - The actual asset allocation for 2024 shows a 30% allocation to equities, up from 25% in 2023, while bonds decreased to 47% from 41%[183]. - As of December 31, 2024, the total fair value of plan assets is $18,435 million, a rise from $17,533 million in 2023[187]. - The funded status of the Company's pension plans is significantly influenced by overall capital market returns and interest rate levels[185]. - The fair value of total derivatives included in investments for 2024 was $8,359 million, with an unrealized gain of $86 million and an unrealized loss of $183 million, compared to $7,569 million, $504 million gain, and $257 million loss in 2023[198].

Core Viewpoint - Canadian National Railway Company (CNI) reported a decline in earnings and revenues for the fourth quarter of 2024, missing consensus estimates while facing challenges in volume and operating expenses [1][2][3]. Financial Performance - CNI's fourth-quarter 2024 earnings were $1.30 per share (C$1.82), missing the Zacks Consensus Estimate of $1.37 and declining 12.1% year-over-year [1]. - Revenues for the fourth quarter were $3.11 billion (C$4.35 billion), surpassing the Zacks Consensus Estimate of $3.07 billion but still declining year-over-year [1]. - Operating income decreased by 11% compared to the fourth quarter of 2023, with an operating ratio worsening to 62.6% from 59.3% [3]. Volume and Revenue Metrics - Revenue ton-miles (RTMs) decreased by 3% year-over-year, with carloads down by 5% [2]. - Freight revenue per RTM saw a slight increase of 0.1% year-over-year [2]. - Freight revenues, which accounted for 95.9% of total revenues, decreased by 3% year-over-year, with notable declines in several segments including coal (down 8%) and automotive (down 20%) [4]. Segment Performance - Carloads in various segments showed mixed results, with petroleum and chemicals up by 4% while automotive fell by 18% [5]. - Specific segment revenues included a 1% increase in petroleum and chemicals and a 4% increase in grain and fertilizers, contrasting with declines in metals and minerals, forest products, and coal [4][5]. Liquidity and Capital Management - CNI ended the fourth quarter with cash and cash equivalents of C$389 million, up from C$273 million in the previous quarter [6]. - Long-term debt increased to C$19.7 billion from C$18.6 billion [6]. - The company generated C$1.99 billion from operating activities, with free cash flow at C$1.03 billion [6]. Dividend and Share Buyback - The board approved a 5% increase in the quarterly cash dividend, marking the 29th consecutive year of dividend increases [7]. - A new Normal Course Issuer Bid was approved, allowing the purchase of up to 20 million common shares for cancellation over a 12-month period starting February 4, 2025 [7]. Future Outlook - For 2025, CNI anticipates adjusted earnings per share (EPS) growth of 10%-15% and plans to invest approximately C$3.4 billion in its capital program [8]. - The company expects low to mid-single-digit growth in RTMs and a 1% growth in North American industrial production [9]. - CNI aims for compounded annual adjusted diluted EPS growth in the high single-digit range from 2024 to 2026 [9].

Core Viewpoint - Canadian National Railway Company (CNI) is a significant player in North America's railroad industry, impacting nearly every business and consumer [1] Group 1: Company Overview - CNI has been a long-term investment choice for many due to its essential role in the transportation sector [1] - The company is recognized for its strong growth potential and is considered undervalued in the market [1] Group 2: Investment Philosophy - The investment approach focuses on long-term value and identifying opportunities that can yield strong returns [1] - The strategy is based on thorough industry insights and rigorous analysis to uncover potential investments [1]

Core Points - Canadian National Railway Company (CNI) held its Q4 2024 earnings conference call on January 30, 2025, at 4:30 PM ET [1] - Key participants included the President and CEO, Chief Financial Officer, and other executive vice presidents [1] - The conference call was facilitated by an operator who introduced the session and outlined the format, including a question-and-answer segment following the speakers' remarks [3] Company Overview - The company provided forward-looking statements and non-GAAP definitions for review, indicating that these statements are based on current information and educated assumptions, which come with inherent risks and uncertainties [4] - The company emphasized that actual outcomes may differ from expectations due to these risks [4]

分组1 - Canadian National (CNI) reported quarterly earnings of $1.30 per share, missing the Zacks Consensus Estimate of $1.37 per share, and down from $1.48 per share a year ago, representing an earnings surprise of -5.11% [1] - The company posted revenues of $3.11 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.32%, but down from $3.28 billion year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates just once and topped consensus revenue estimates only once [2] 分组2 - The current consensus EPS estimate for the coming quarter is $1.31 on revenues of $3.11 billion, and for the current fiscal year, it is $5.72 on revenues of $12.64 billion [7] - The estimate revisions trend for CN is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] - The Transportation - Rail industry is currently in the bottom 30% of the Zacks industries, which may materially impact the stock's performance [8]

Core Viewpoint - CN has announced a 5% increase in its 2025 dividend and a new share repurchase program, reflecting confidence in its financial strength and commitment to enhancing shareholder returns [1][2]. Dividend Announcement - The Board of Directors approved a quarterly dividend of C$0.8875 per common share, payable on March 31, 2025, to shareholders of record by March 10, 2025 [6]. Share Repurchase Program - The new normal course issuer bid allows CN to repurchase up to 20 million common shares, representing 3.18% of the total shares outstanding as of January 23, 2025 [2][4]. - The repurchase will occur over a 12-month period, starting from February 4, 2025, and will utilize various methods including discretionary transactions and automatic repurchase plans [3][4]. - CN's previous repurchase program, which allowed for the purchase of up to 32 million shares, is set to expire on January 31, 2025, with 13,940,250 shares repurchased at an average price of C$168.00 [5]. Financial Management - CN maintains an adjusted debt-to-adjusted EBITDA target of 2.5x, indicating a focus on financial stability and prudent capital management [2][8].

Core Viewpoint - CN has announced a 5% increase in its 2025 dividend and a new share repurchase program, reflecting confidence in its financial strength and commitment to enhancing shareholder returns [1][2]. Dividend Announcement - The Board of Directors approved a quarterly dividend of C$0.8875 per common share, payable on March 31, 2025, to shareholders of record by March 10, 2025 [5]. Share Repurchase Program - CN's new normal course issuer bid allows for the repurchase of up to 20 million common shares, representing 3.18% of the total shares outstanding as of January 23, 2025 [2][3]. - The repurchase will occur over a 12-month period, from February 4, 2025, to February 3, 2026, using various methods including discretionary transactions and automatic repurchase plans [2][3]. - The previous repurchase program, which allowed for the purchase of up to 32 million shares, is set to expire on January 31, 2025, with 13,940,250 shares repurchased at an average price of C$168.00 [4]. Financial Management - CN maintains an adjusted debt-to-adjusted EBITDA target of 2.5x, indicating a focus on financial stability and prudent capital management [2][7].