CN raised its full-year outlook after grain and energy volumes lifted second-quarter revenue 11 percent

Canadian National Railway raised its full-year guidance on Friday. Second-quarter revenue was C$4,753 million, up 11 percent from a year earlier, and the volume behind it came mostly from grain and energy. Revenue ton miles, the industry measure of freight actually moved, rose 5 percent to 62,250 million. Gross ton miles rose 3 percent.

The profit followed the volume. Diluted earnings were C$2.06 a share, up 10 percent, and C$2.08 on an adjusted basis, up 11 percent. Operating income was C$1,781 million and net income was C$1,249 million, up 7 percent. The railroad repurchased about 2.9 million shares for C$454 million and declared a third-quarter dividend of C$0.9150 a share.

One number went the wrong way. The operating ratio, expenses as a share of revenue, rose 80 basis points to 62.5 percent, so costs grew slightly faster than the top line even as both climbed. Fuel efficiency set a record for the quarter, which the company credited for part of the cost discipline.

The guidance is the news. CN now assumes low single-digit revenue ton mile growth for 2026, against the flattish growth it had assumed on January 30, and it expects adjusted diluted EPS growth in the mid-to-high single digits. Capital spending stays near C$2.8 billion. Chief executive Tracy Robinson said the raise was supported by sustained business momentum through the first half.