CN to invest $30 million in Tennessee rail infrastructure

HOMEWOOD, Ill. - Canadian National Railway (TSX: CNR) (NYSE: CNI), a $65.8 billion market cap transportation giant with impressive gross profit margins of nearly 55%, announced plans to invest approximately $30 million in Tennessee as part of its 2025 capital investment program, according to a press release statement issued Thursday. According to InvestingPro analysis, CNI is currently trading near its Fair Value, demonstrating the company’s stable market position.

The investment will focus on infrastructure, technology, rolling stock equipment, and network improvements across the state. CN said these projects aim to ensure safe movement of goods and support long-term sustainable growth in Tennessee and throughout its network. InvestingPro data reveals the company has maintained dividend payments for 30 consecutive years, with 29 years of consecutive increases, highlighting its commitment to sustainable growth and shareholder returns. Discover more insights about CN’s financial health and growth prospects in the comprehensive Pro Research Report, available with an InvestingPro subscription.

"The Tennessee Department of Transportation is excited about CN’s investments in Tennessee," said Dan Pallme, Assistant Bureau Chief of TDOT’s Planning Bureau. "The approximately $30 million will increase the entire system’s fluidity as Tennessee continues to grow."

This year’s investment follows CN’s approximately $36 million investment in Tennessee during 2024, which included over $7 million for upgrading the locomotive fueling facility at Harrison Yard and more than $1.3 million for improvements to CN’s transload facility at its Memphis railyard.

CN currently operates 161 railroad route miles in Tennessee and employs approximately 655 people in the state. The company reported local spending of $24 million and cash taxes paid of $8.7 million in Tennessee during 2024.

The railway company connects Canada’s Eastern and Western coasts with the U.S. Midwest and Gulf Coast, transporting more than 300 million tons of goods throughout North America annually.

In other recent news, Canadian National Railway announced a series of significant investments as part of its 2025 capital investment program. The company plans to invest $170 million in Illinois, focusing on constructing the Chicago Logistics Hub and upgrading facilities at the Homewood Campus. CN is also allocating $75 million for track maintenance and infrastructure initiatives in Mississippi, following a $56 million investment in the state in 2024. Additionally, CN will invest $80 million CAD in Atlantic Canada to enhance rail infrastructure in New Brunswick and Nova Scotia. In Indiana, CN plans a $20 million investment to improve track maintenance and rolling stock. These investments are part of CN’s broader strategy to support sustainable growth and maintain safe operations across its network. In analyst news, Citi raised its price target for Canadian National Railway to $124.00, highlighting the company’s competitive advantage at the Prince Rupert facility. The Prince Rupert facility is expected to grow volume at a 10% annualized rate through 2027, according to CN management.

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