Canadian National Railway Maintains Earnings-Growth Forecast as Shocks Subside

  • Railroad sees adjusted EPS growing by 10% to 15% through 2026
  • Fourth-quarter results slightly beat analysts’ estimates

CN Rail raised its quarterly dividend by 7% — its 28th straight year of increasing its payout to shareholders.

Photographer: Christinne Muschi/Bloomberg
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Canadian National Railway Co. is sticking with its outlook for double-digit profit growth over the next few years, shrugging off a 2023 marred by labor strife, low grain shipments and a sluggish economy.

The rail operator expects earnings per share to grow around 10% in 2024 on an adjusted basis, hovering at the lower end of its 10% to 15% longer-term target. The company expects to boost freight volumes and raise prices more than the industry average, “all of which assumes a supportive economy,” it said in a statementBloomberg Terminal Tuesday.