Ms. Tracy Robinson reports

CN DELIVERS ON COMMITMENTS WITH STRONG SECOND QUARTER RESULTS AND RAISES 2026 GUIDANCE

Canadian National Railway Company (CN) has released its financial and operating results for the second quarter ended June 30, 2026.

"I want to thank the CN team for the strong results this quarter, which reflect their discipline, focus and execution. We delivered on our key commitments, with solid operational and commercial performance, improved productivity, strong cash flow generation, and continued financial discipline. We are raising our full-year guidance, supported by sustained business momentum and our continued ability to deliver results for our customers," stated Tracy Robinson, president and chief executive officer, CN.

Second quarter 2026 results highlights

CN saw improvements across operating metrics, with strong commercial and service performance. Gross ton miles (GTMs) increased by 3 per cent to 121,082 (millions), while revenue ton miles (RTMs) (increased by 5 per cent to 62,250 (millions). The company delivered diluted earnings per share (EPS) of $2.06, an increase of 10 per cent, and adjusted diluted EPS of $2.08, an increase of 11 per cent, or $2.09 on an adjusted basis at constant currency, an increase of 12 per cent (1).

The quarter's operating performance reflects the company's continued priority on operational execution, as well as its ability to provide solid service to customers, allowing it to capture demand in grain and in other markets.

Quarterly financial results highlights

Second quarter of 2026, compared with the second quarter of 2025:

• Revenues of $4,753-million, an increase of $481-million or 11 per cent. Operating income of $1,781-million, an increase of $143-million or 9 per cent, and adjusted operating income of $1,798-million, an increase of $160-million or 10 per cent (1);
• Operating ratio, defined as operating expenses as a percentage of revenues, of 62.5 per cent, an increase of 80 basis points, and adjusted operating ratio of 62.2 per cent, an increase of 50 basis points (1);
• Net income of $1,249-million, an increase of $77-million or 7 per cent, and adjusted net income of $1,261-million, an increase of $89-million or 8 per cent (1);
• Diluted EPS of $2.06, an increase of 10 per cent, and adjusted diluted EPS of $2.08, an increase of 11 per cent or $2.09 on an adjusted basis at constant currency, an increase of 12 per cent (1);
• Net cash provided by operating activities of $2,876-million and net cash used in investing activities of $1,034-million for the first half of 2026;
• Free cash flow for the first half of 2026 was $1,842-million, an increase of $294-million or 19 per cent (1);
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) reported for the 12 months ended June 30, 2026, of $8,832-million, an increase of 4 per cent (1);
• Adjusted debt-to-adjusted EBITDA of 2.61 times as at and for the 12 months ended June 30, 2026 (1);
• Repurchased approximately 2.9 million shares in the second quarter of 2026 for $454-million.

Quarterly operating performance highlights*

Second quarter of 2026, compared with the second quarter of 2025:

• GTMs increased 3 per cent to 121,082 (millions).
• RTMs increased 5 per cent to 62,250 (millions).
• Through dwell increased by 4 per cent to 7.1 (entire railroad, hours).
• Car velocity decreased by 1 per cent to 211 (car miles per day).
• Through network train speed increased by 1 per cent to 19.1 (miles per hour (mph)).
• Fuel efficiency of 0.836 (U.S. gallons of locomotive fuel consumed per 1,000 GTMs) was 3 per cent more efficient.
• Train length increased by 1 per cent to 8,084 (feet).
• GTMs per average number of employees increased 9 per cent to 5,105 (thousands).
• Operating expenses per GTM increased 9 per cent to 2.45 (cents).

* Statistical operating data and key operating measures are unaudited and based on estimated data available at such time, and are subject to change as more complete information becomes available.

Dividends

CN's board of directors has approved a third quarter 2026 dividend on the company's common shares outstanding. A quarterly dividend of 91.50 cents per common share will be paid on Sept. 29, 2026, to shareholders of record at the close of business on Sept. 8, 2026.

Revised 2026 financial guidance (1)

Based on strong volume and solid operational execution in the first half of the year, the company now assumes to deliver low-single-digit RTM growth in 2026 (compared with its Jan. 30, 2026, assumption of flattish growth). The company now expects adjusted diluted EPS growth in the mid-to-high-single-digit range (compared with its Jan. 30, 2026, expectation of slightly exceeding RTM growth).

In 2026, CN continues to plan to invest approximately $2.8-billion in its capital program, net of amounts reimbursed by customers. The company also expects to continue improving its free cash flow conversion throughout 2026.

Conference call details

CN's senior officers will review the results and the railway's outlook in a conference call starting at 8:30 a.m. Eastern Time on July 24, 2026. Ms. Robinson will lead the call. Parties wishing to participate via telephone may dial 1-800-715-9871 (Canada and the United States) or 1-647-932-3411 (international), using 2015414 as the passcode. Participants are advised to dial in 10 minutes prior to the call.

(1) Non-GAAP (generally accepted accounting principles) measures

CN reports its financial results in accordance with United States generally accepted accounting principles (GAAP). CN may also use non-GAAP measures in this news release that do not have any standardized meaning prescribed by GAAP. These non-GAAP measures may not be comparable with similar measures presented by other companies.

CN's outlook, guidance or targets exclude certain adjustments, which are expected to be comparable with 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 may be highly variable. As a result, CN does not provide a corresponding GAAP measure for, or reconciliation to, its outlook, guidance or targets.

This earnings news release, as well as additional information, including the financial statements, notes thereto, and the management's discussion and analysis (MD&)A, are contained in CN's quarterly review, available on the company's website and on SEDAR+, as well as on the U.S. Securities and Exchange Commission's website through EDGAR.

About Canadian National Railway Company

CN powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products and finished goods throughout North America every year for its customers. With its nearly 20,000-mile rail network and related transportation services, CN connects Canada's Eastern and Western coasts with the U.S. Midwest and the U.S. Gulf Coast, contributing to sustainable trade and the prosperity of the communities in which it operates since 1919.

We seek Safe Harbor.