MONTREAL — Canadian National Railway Co. on Friday spelled out cuts to its workforce and capital spending as it wrestles with plateauing freight volumes caused by the cross-border trade war, even as it turned a tidy profit in its latest quarter.
The country’s largest railroad operator boosted net income five per cent year-over-year to $1.14 billion in the quarter ended 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, said 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 spending for 2026 compared with this year, a big change in its forecast.
“With a strong foundation in place, we’ve delayed select projects to reflect a softer economy,” said 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 added.
With trade to the U.S. wobbling, she stressed the prospects for greater traffic with Europe and Asia, noting CN’s extensive port access.
But Robinson cautioned that prospects for growth in 2026 looked modest thanks to economic uncertainty.
“We see another year of limited volume growth with a weak outlook for North American industrial production and housing starts and some mixed headwinds, given the continued impact of tariffs, on forest products in particular,” the CEO said.
Grain shipments dipped last quarter due to a late harvest, which is expected to hit record highs and boost volumes in the coming months.
On Friday, CN reported that revenue rose one per cent to $4.17 billion in the third quarter versus $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.
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Christopher Reynolds, The Canadian Press
This report by The Canadian Press was first published Oct. 31, 2025.
