Canadian National Railway posts strong Q4 with revenue and EPS growth, plans buyback and dividend hikes.

Canadian National Railway (CNI) reported a solid Q4 2025 with 2% revenue growth and 14.3% adjusted EPS increase, driven by record grain volumes and strong intermodal business. The company improved its operating ratio by 250 basis points to 60.1%, signaling better efficiency. With capital expenditures expected to drop by 500 million CAD and a new share buyback program underway, CNI aims to boost free cash flow and sustain approximately 8% annual dividend growth. Trading at a forward P/E of 17.9, about 11% below fair value, CNI is positioned for a projected 15% total return through March 2027, making it an attractive investment opportunity.