CN to invest $80 million in Atlantic Canada rail upgrades

MONTREAL - Canadian National Railway Company (TSX: CNR) (NYSE: CNI), a prominent player in North American ground transportation with a market capitalization of $66.8 billion, has announced an $80 million CAD investment for rail infrastructure improvements in New Brunswick and Nova Scotia as part of its 2025 capital investment program. The funding aims to enhance track maintenance and strategic infrastructure in the region, which includes upgrading CN’s railyards and the CN Autoport facility in Eastern Passage, N.S. According to InvestingPro data, the company maintains impressive gross profit margins of nearly 55% and operates with a moderate level of debt.

The investment is designed to ensure the safe transport of goods and support sustainable growth across CN’s network in Atlantic Canada. Tracy Robinson, President and CEO of CN, stated, "Our continued infrastructure investment in New Brunswick and Nova Scotia will help strengthen the resiliency and efficiency of our network across Atlantic Canada." This commitment to infrastructure development comes as CN maintains its position as a reliable dividend payer, having raised its dividend for 29 consecutive years - one of several key insights available through InvestingPro’s comprehensive analysis tools.

Rhonda Tulk-Lane, CEO of the Atlantic Chamber of Commerce, echoed the sentiment, emphasizing the role of robust supply chains in driving economic growth.

In 2024, CN invested approximately $84 million in the same provinces, focusing on maintenance of infrastructure such as rail and tie replacements, grade crossing work, and structure maintenance. Notable projects from the previous year included a $5 million rail bridge upgrade in New Brunswick and a $4 million improvement to the CN Autoport in Nova Scotia.

The company provided statistics highlighting its 2024 local economic impact, with 362 employees and 596 railroad route miles operated in New Brunswick, and 356 employees with 162 route miles in Nova Scotia. Community investments and local spending by CN in both provinces underscored its economic footprint in the region.

CN’s forward-looking statements within the press release indicate plans and targets for the future but also acknowledge the inherent risks and uncertainties in such projections.

CN, which has been operational since 1919, plays a crucial role in North America’s economy by transporting over 300 million tons of cargo annually across its nearly 20,000-mile rail network. The company’s financial health score is rated as "Fair" by InvestingPro, which offers detailed analysis of over 1,400 stocks through its Pro Research Reports, helping investors make informed decisions with comprehensive metrics and expert insights.

This news is based on a press release statement from Canadian National Railway Company.

In other recent news, Canadian National Railway Company (CN) has announced a significant capital expenditure program for 2025, planning to invest approximately $3.4 billion CAD to enhance capacity, safety, and sustainability across its North American rail network. This investment includes $2.9 billion allocated for maintenance and strategic infrastructure initiatives within Canada and the United States, alongside over $500 million for expanding and upgrading its rolling stock. Additionally, CN has revealed plans to invest $510 million CAD in Alberta and $600 million CAD in Ontario to boost track maintenance and infrastructure. These investments aim to improve intermodal capacity and support long-term growth across CN’s network.

In parallel developments, BMO Capital and UBS have both maintained positive ratings for Canadian National Railway stock, with price targets set at Cdn$168.00 and Cdn$174.00, respectively. BMO Capital analysts highlighted CN’s potential for strong volume growth through the Prince Rupert gateway, while UBS noted expected growth in the intermodal container and energy/chemicals sectors. These analyst ratings reflect confidence in CN’s strategic initiatives and growth prospects. CN’s investments are expected to enhance its operational efficiency and support economic growth in the regions it serves.

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