CN to invest $510 million in Alberta rail infrastructure

EDMONTON - Canadian National Railway Company (TSX: CNR) (NYSE: CNI), known as CN, has announced a substantial investment plan for the province of Alberta. The company, currently valued at $67.2 billion and trading at $107.20, is set to invest approximately $510 million CAD as part of its 2025 capital investment program. According to InvestingPro data, CN maintains impressive gross profit margins of 54.8% and has demonstrated consistent financial strength with an Altman Z-Score of 5.59. This funding will go towards track maintenance and strategic infrastructure initiatives aimed at improving intermodal capacity in Edmonton and enhancing rail capacity between Edson and Hinton along CN’s mainline.

This investment represents a significant increase from the $357 million CAD the company invested in Alberta in 2024, which included over $35 million for capacity expansion along CN’s Edson Subdivision track. With revenue growth of 2.6% in the last twelve months and a moderate debt level, CN continues to demonstrate strong financial management. InvestingPro analysis reveals 10+ additional exclusive insights about CN’s financial health and growth prospects, available to subscribers. The ongoing infrastructure enhancements are designed to ensure the safe and efficient movement of goods, bolstering long-term sustainable growth in Alberta and across CN’s network.

Tracy Robinson, President and Chief Executive Officer of CN, emphasized the importance of building for the future and maintaining a resilient and efficient network to provide exceptional service to customers and supply chain partners. The investment is also expected to support economic growth in North America and the communities where CN operates.

Mayor Adam Gamble of Parkland County, Alberta, highlighted CN’s pivotal role in providing nearly 400 businesses in the Acheson Industrial Area with connectivity to global markets, particularly through the nearby intermodal facility and direct rail spurs. He noted the strategic advantage this infrastructure provides to the region’s diversified business sectors in optimizing supply chain efficiency and reducing operating costs.

CN’s presence in Alberta includes approximately 3,421 employees, 2,505 railroad route miles operated, and significant community investments and local spending. In 2024, the company contributed $2.1 million to community investments and spent $968 million locally, while paying $83 million in cash taxes. The company has maintained its position as a reliable dividend payer, having raised dividends for 29 consecutive years, with a current yield of 2.37%. For detailed analysis of CN’s financial performance and future prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers 1,400+ top stocks with expert insights and actionable intelligence.

The announcement of CN’s investment plan is based on a press release statement and constitutes forward-looking information subject to risks, uncertainties, and assumptions. The company cautions that these statements are made based on current economic conditions and may change in the future.

About CN: CN is a transportation leader, safely moving over 300 million tons of resources, products, and goods across North America annually. With a rail network spanning nearly 20,000 miles, CN connects Canada’s coasts with the U.S. Midwest and Gulf Coast, facilitating sustainable trade and community prosperity since 1919. The company maintains strong financial metrics with a return on equity of 22% and operates with a beta of 0.88, indicating lower volatility compared to the broader market. Discover more detailed financial analysis and expert insights through InvestingPro’s comprehensive coverage of CN and other leading transportation stocks.

In other recent news, Canadian National Railway (CN) reported first-quarter earnings that surpassed analyst expectations, with revenue increasing by 4% year-over-year to C$4.4 billion. The company’s adjusted earnings per share reached C$1.85, exceeding the consensus estimate of C$1.79. Despite challenging winter conditions and macroeconomic uncertainties, CN’s operating ratio improved slightly to 63.4%. In addition to its earnings report, CN announced a substantial capital investment of approximately $3.4 billion CAD for 2025, focusing on enhancing capacity, safety, and sustainability across its North American network. This includes a specific investment of $600 million CAD in Ontario, aimed at improving track maintenance and infrastructure. Analyst firm Benchmark retained its Hold rating on CN stock, noting the company’s strong revenue performance and reaffirming its full-year EPS growth target of 10%-15%. Meanwhile, Stephens raised its price target for CN shares from $105 to $109, maintaining an Equal Weight rating, following CN’s better-than-expected first-quarter performance. CN’s management remains committed to its strategic plan, despite potential headwinds from economic conditions and foreign exchange rates.

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