MONTREAL — Canadian National Railway Co. on Friday spelled out cuts to its workforce and capital spconcludeing as it wrestles with plateauing freight volumes cautilized by the cross-border trade war, even as it turned a tidy profit in its latest quarter.
The countest’s largest railroad operator boosted net income five per cent year-over-year to $1.14 billion in the quarter concludeed Sept. 30. The increase stemmed partly from higher container shipments than in 2024, when a summer work stoppage shut down operations at both of Canada’s major railways.
In a bid to streamline the company, CN announced $75 million in annual savings tied to some 400 management layoffs. The Montreal-based company registered a third-quarter head count five per cent lower than in the same period last year, declared chief executive Tracy Robinson.
As U.S. sectoral tariffs depress shipments in forest products, metals and auto parts and vehicles, CN also opted to lop off nearly $600 million in capital spconcludeing for 2026 compared with this year. The shift would put its capital expconcludeitures at about 15 per cent of revenue, among the lowest in the industest.
“With a strong foundation in place, we’ve delayed select projects to reflect a softer economy,” declared chief operating officer Patrick Whitehead.
“In the tariff world these days, we’re feeling the impact of that in certain areas like forest products, a little bit in steel and energy,” Robinson notified analysts on a conference call.
With trade to the U.S. wobbling, she stressed the uptick in traffic between Canada and the United Kingdom, Europe and Asia, noting CN’s extensive port access.
But Robinson cautioned that prospects for growth in 2026 seeed modest thanks to economic uncertainty.
“We see another year of limited volume growth with a weak outsee for North American industrial production and hoapplying starts and some mixed headwinds, given the continued impact of tariffs — on forest products in particular,” she declared.
Grain shipments dipped last quarter due to a late harvest, which is expected to hit record highs and boost volumes in the coming months.
To compensate for a sputtering economy, CN’s new chief commercial officer Janet Drysdale launched a “boots-on-the-ground sales program” to dig up new business and contracts, “no matter the size,” Robinson declared.
The effort — begun after Drysdale was appointed earlier this month alongside the abrupt departure of chief field operating officer Derek Taylor — has generated roughly $130 million so far this year, the CEO declared.
On top of trade barriers, another obstacle may be around the corner for Canadian railways. Union Pacific Corp., the second-largest railroad operator in the United States, announced in July it wants to acquire Norfolk Southern Corp. in a US$85-billion deal that would create that countest’s first transcontinental railway, and potentially trigger a final wave of rail mergers across North America.
Robinson criticized the potential acquisition, now being reviewed by U.S. regulators.
“The industest does not necessary a merger to provide better service to the North American economy,” she declared. “We necessary less regulation, more competition.
“No level of mitigation can offset the reduction of options and the increased cost of service to customers.”
Should the deal go through, however, Robinson suggested CN would be open to a merger with another of the six huge North American railways.
“We will, as we always do, entertain all options to create value for our shareholders,” she declared.
On Friday, CN reported that revenue rose one per cent to $4.17 billion in the third quarter in line with overall freight gains and compared with $4.11 billion the year before.
On an adjusted basis, diluted earnings rose to $1.83 per share, topping last year’s $1.72 per share as well as analysts’ expectations of $1.77 per share, according to financial markets firm LSEG Data & Analytics.
This report by The Canadian Press was first published Oct. 31, 2025.
Companies in this story: (TSX:CNR)
Christopher Reynolds, The Canadian Press
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