Canadian National Railway Company (CNI): Business Model Canvas [Dec-2025 Updated]

You're trying to figure out the financial engine behind one of North America's most vital logistics players, and honestly, the Canadian National Railway Company's business model is a masterclass in asset leverage and operational discipline. Their core value isn't just the nearly 20,000-mile network; it's the relentless cost control that pushed their Q3 2025 operating ratio to a strong 61.4%. We're talking about a company that manages access to three coasts while investing heavily-like the C$3.4 billion capital program for 2025-to maintain that edge. Dive in below to see the nine building blocks that turn bulk freight and intermodal traffic into billions in revenue.

Canadian National Railway Company (CNI) - Canvas Business Model: Key Partnerships

You're looking at the network of relationships Canadian National Railway Company (CNI) builds to keep goods moving across North America and globally. These aren't just casual acquaintances; they are critical operational links. Here's a breakdown of the key partnerships as of late 2025, grounded in the latest available figures.

Interline Agreements with Other Class I Railroads

While specific, current volume or revenue splits from interline agreements with Class I railroads like Union Pacific aren't public in the latest filings, the importance of these connections is clear from broader industry data. In 2023, trade-related shipments accounted for 37% of total Class I railroad earnings, moving 543.5 million tons of goods through U.S. ports and across borders via rail. These agreements are the backbone for transcontinental freight flow.

Port and Terminal Operators for Seamless Global Container Movement

Seamless handoffs at ports are vital for CNI's intermodal business. The global container terminal operations market is expected to see throughput growth of 2.3% in 2025. For context on the scale of the sector CNI connects to, the European container terminal operations market is projected to reach €12.72 billion in 2025. CNI's operational planning must align with these massive throughput capacities.

Sustainability Collaboration: EcoConnexions Partners

CNI actively partners with customers, suppliers, and supply chain firms to drive sustainability, recognizing them through the EcoConnexions Partnership Program. The latest confirmed count of recognized partners was 73 in the 2024 program, which included major entities like Ford Motor Company and Cargill in prior years' recognition tiers. This collaboration is tied to tangible environmental action.

Short Line Railroads for Last-Mile Delivery and Regional Access

Short line railroads are essential for connecting regional shippers to CNI's main network. While specific transaction volumes aren't disclosed, the overall Class I industry context shows that growth was a key theme for both Class I railroads and short lines presenting at RailTrends in 2024, indicating an ongoing need for these feeder relationships to support growth pivots.

Trucking and Logistics Firms for Integrated Door-to-Door Service

The integration with trucking and logistics firms underpins CNI's intermodal and door-to-door offerings. For example, CNI announced investments in a high-efficiency loading fuel terminal at MacMillan Yard, with over $60 million CAD invested with project partners toward Phase 1 completion and Phase 2 advancement, serving Greater Toronto Area clients. This infrastructure supports the physical interface with over-the-road partners.

• CNI's 2025 Capital Program includes over $500 million allocated to upgrade and expand rolling stock.
• Q1 2025 Revenue Ton Miles (RTMs) increased 1% to 60,049 million.
• CNI's Q1 2025 Operating Ratio improved to 63.4%.

Finance: draft 13-week cash view by Friday.

Canadian National Railway Company (CNI) - Canvas Business Model: Key Activities

You're looking at the core actions Canadian National Railway Company takes to run its business, and honestly, it all boils down to moving massive amounts of stuff reliably across a huge footprint.

The first big activity is Operating and maintaining the nearly 20,000-mile North American rail network. This network connects Canada's Eastern and Western coasts with the U.S. Midwest and the Gulf of Mexico.

Next up is Executing Precision Scheduled Railroading (PSR) to boost efficiency. The results show this focus on the operating plan is working, at least in Q3 2025, where the operating ratio improved to 61.4% from 63.1% in Q3/2024. Here are some weekly operating indicators from late November 2025:

• CAR VELOCITY (CAR MILES / DAY): 227 (+11%)
• AVG TRAIN SPEED (MILES PER HOUR): 20 (+8%)
• THROUGH DWELL (HOURS): 6.7 (-7%)

A major ongoing activity is Investing C$3.4 billion in 2025 capital program for capacity and maintenance. This is a strategic continuation of their infrastructure spend, slightly down from 2024's C$3.5 billion. The allocation of this 2025 spend looks like this:

The infrastructure portion includes installing over 225 miles of new rail and focusing on about eight capacity-building projects in Western Canada scheduled for completion by year-end 2025.

The company is also busy Managing a diverse fleet of locomotives and over 300 million tons of freight annually. Canadian National Railway Company powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year. For the 2025-2026 crop year, they forecast moving between 27.0 and 29.5 million metric tonnes (MMT) of grain and processed grain products.

Finally, a key activity involves Developing digital tools for logistics and customer visibility. For instance, their 2025-2026 Grain Plan focuses on supply chain visibility through operational dashboards and its Western Canadian Grain Report.

Finance: draft 13-week cash view by Friday.

Canadian National Railway Company (CNI) - Canvas Business Model: Key Resources

You're looking at the core assets Canadian National Railway Company (CN) relies on to run its massive operation. These aren't just things they own; they are the physical and intellectual foundations of their service delivery.

The most critical physical asset is the rail network itself. Canadian National Railway Company (CN) operates a network spanning approximately 20,000 mi (32,000 km) of track, connecting Canada's Eastern and Western coasts with the U.S. Midwest and the Gulf of Mexico, making it the only transcontinental rail network in North America.

This network is supported by extensive real estate holdings, including major operational hubs. For instance, the acquisition of the Iowa Northern Railway Company in March 2025 added about 175 route miles in northeast Iowa, for which CN paid US$230 million ($312 million).

The rolling stock fleet is immense and constantly being renewed. Canadian National Railway Company (CN) is focused on fleet enhancements to support specific high-volume commodities. For the 2024-2025 crop year, the plan highlighted the delivery of 750 new high-efficiency grain hopper cars. Anyway, they expect to have about 1,950 locomotives available for the 2024-2025 winter.

Here's a quick look at some of the recent fleet additions and technology deployment:

Intellectual property and technology are key to maintaining efficiency and safety. Canadian National Railway Company (CN) uses proprietary systems to manage its vast infrastructure.

• Deployment of the 4th generation Autonomous Track Inspection Program (ATIP).
• ATIP uses ground penetrating radar for detailed ballast and subgrade assessments.
• The company is focused on improving visibility and planning through innovative supply chain coordination tools.

Finally, the human capital is essential, though subject to market adjustments. While the company is adjusting its headcount to reflect the business environment, such as laying off about 400 managers in October 2025 due to tariffs, they are also focused on growth. To be fair, between April 2023 and May 2024, the number of available CN operating employees grew by 9%. This skilled workforce manages assets that generated an estimated C$3.4 billion capital program for 2025.

Canadian National Railway Company (CNI) - Canvas Business Model: Value Propositions

You're looking at the core reasons why shippers choose Canadian National Railway Company (CNI) over other options, and honestly, the network geography is the first thing that jumps out.

The unique access to three coasts is a massive differentiator. It's not just about having tracks; it's about where those tracks end up, connecting you to global trade lanes seamlessly.

• Vast rail network spanning close to 32,000 km (or nearly 20,000 miles) of track across Canada and the United States.
• The only transcontinental rail network in North America connecting to the Atlantic, Pacific, and Gulf of Mexico coasts.
• This reach provides unparalleled access to major West Coast ports like Vancouver and Prince Rupert, which serve as primary gateways to Asia.

For high-volume shippers, the value proposition centers on economies of scale, which is where rail beats trucking over long distances. Canadian National Railway Company moves a staggering amount of freight, powering the economy by safely transporting more than 300 million tons of goods annually.

The operational discipline shows up directly in the cost structure. Here's a quick look at the Q3 2025 performance that underpins that cost-effectiveness:

The improvement in the operating ratio to 61.4% from 63.1% the prior year shows management is actively focused on making the firm more profitable through productivity, even with modest volume growth. Also, the intermodal segment, a key part of integrated logistics, saw revenues rise 11%, fueled by a 15% increase in carloads in Q3 2025.

Canadian National Railway Company provides integrated logistics solutions, meaning you can use their services for end-to-end supply chain simplicity. They offer a unique combination of rail service, warehousing, and distribution, often using well-established partnerships for seamless offline service into major North American markets. This helps shippers convert road freight to rail for the long haul, which is the core of cost-effective, high-volume transport.

Finally, the commitment to safety and environmental sustainability is quantified through ongoing investment and goal setting. You can count on their focus on network fluidity, which is intrinsically linked to safety.

• Locomotive fleet availability reached 92.2% year-to-date in 2025.
• The company consumes approximately 15% less locomotive fuel per gross ton mile than the industry average.
• Canadian National Railway Company received approval for its science-based net-zero goal from the Science Based Targets initiative in 2024.

The 2025 capital program, which includes nearly $2.48 billion dedicated to tracks, yards, and rolling stock, directly supports maintaining service performance and network resiliency.

Canadian National Railway Company (CNI) - Canvas Business Model: Customer Relationships

Canadian National Railway Company emphasizes deep, ongoing collaboration with its B2B freight customers, which is foundational to its scheduled operating model. The company's commitment to service excellence is quantified through specific performance metrics and significant capital deployment aimed at network reliability.

High service quality, evidenced by a 95% local service commitment performance.

While the target of 95% is the stated goal, Canadian National Railway Company reported that performance under its Local Service Commitment Plan (LSCP) improved to 94% in 2024, measuring if customers received the right cars in the committed switch window. This focus on reliability is supported by investments designed to enhance network fluidity and capacity.

The investments in 2025 directly support the service quality promised to customers:

Dedicated account management for large B2B freight customers.

Canadian National Railway Company maintains a focus on customer collaboration, as highlighted by the President and Chief Executive Officer in Q1 2025. The company recognizes over 30 customers, suppliers, and supply chain partners through its EcoConnexions Partnership Program for their leadership in sustainability, demonstrating a formalized structure for deep engagement with key stakeholders.

Consultative approach to supply chain optimization.

The company works with customers on operational alignment, such as blocking trains to reduce switching time for commodities like propane, which is a form of supply chain optimization. This consultative effort is part of the broader strategy to enhance service and convert road traffic to rail. The industry context shows that companies are losing an estimated $1.5 trillion annually due to supply chain inefficiencies, driving the demand for such optimization guidance.

Digital self-service tools for tracking and booking shipments.

Canadian National Railway Company invests in data analytic systems, including artificial intelligence, to support data-driven decision-making for customers. The company utilizes robust supply chain visibility tools to improve data quality and responsiveness. While specific adoption rates are not public, the general industry benchmark for strong digital service adoption, which Canadian National Railway Company likely targets, typically exceeds 70%.

Long-term contracts with major shippers for stable volume and pricing.

The stability in the market is leading shippers to lengthen their bid cycles and secure longer contracts with trusted carriers for stable rates. Historically, the rail sector has been able to raise prices at a CAGR of about +5.7%, which is quicker than the rate of inflation, suggesting the value derived from these stable, long-term agreements.

• The company utilizes a Voice of the Customer Survey to gather direct insights. [cite: 10 from first search]
• Customer-focused reporting includes the Efficient Receiver Report and the Winter Situation Report. [cite: 4 from third search]

Canadian National Railway Company (CNI) - Canvas Business Model: Channels

You're looking at how Canadian National Railway Company (CNI) gets its services-from bulk commodities to intermodal containers-to the customer. It's a massive physical network supported by direct sales engagement.

Direct sales force targeting large industrial and resource companies.

CNI deploys a direct sales approach to secure high-volume, long-term contracts with major players in sectors like energy, automotive, and agriculture. This team works to integrate CNI's services directly into the customer's supply chain planning. For the third quarter ending September 30, 2025, Canadian National Railway Company reported sales revenues of $\text{C\$4.17 billion}$. This revenue base is directly influenced by the success of these direct engagements across their core commodity groups.

Intermodal terminals and ports (e.g., Vancouver, Prince Rupert, New Orleans).

The physical reach of CNI is defined by its network connecting three coasts: the Atlantic, the Pacific, and the Gulf of Mexico, spanning approximately $\text{20,000-mile}$ across Canada and Mid-America. This network is the backbone for intermodal traffic, which moves containers and trailers. While overall Class I intermodal volume growth moderated in early 2025 after a strong January, Canadian National's year-to-date grain volumes showed significant strength, up $\text{17%}$ compared to 2024. The company's Q2 2025 revenues were $\text{C\$4,272 million}$, with Revenue Ton Miles (RTMs) at $\text{59,215 million}$.

Transload and distribution centers for converting freight modes.

To bridge the gap between rail and local trucking, Canadian National Railway Company operates a significant network of facilities designed for seamless commodity exchange. They maintain $\text{31}$ strategically located distribution centers across Canada and the United States. These centers support various commodities, including specialized facilities for forest products, metals, and automotive. Specifically, there are $\text{18}$ bulk distribution facilities dedicated to liquid and dry bulk transloading through the CargoFlo service. Furthermore, the automotive segment utilizes $\text{18}$ automotive facilities, which handle over $\text{2 million}$ vehicles annually. A recent example of channel enhancement was the opening of a $\text{20,000}$ sq. ft. transload logistics facility in Flat Rock, Michigan, in 2024.

Third-party logistics (3PL) providers for end-to-end solutions.

Canadian National Railway Company partners with trusted Top Tier partners to extend its reach, offering shippers end-to-end solutions that go beyond the rail line. This collaboration is essential for providing the flexibility of short-haul truck delivery alongside long-distance rail economy. The company also offers dedicated services like Customs Brokerage, which handles over $\text{250,000}$ clearances annually, supporting the international flow through these channel partners. The Distribution Services Team, consisting of nearly $\text{300}$ employees, coordinates these logistics, including equipment operation and transloading.

Here is a snapshot of the operational scale supporting these channels as of mid-to-late 2025 financial reporting periods:

The company's Q1 2025 results showed Revenue Ton Miles (RTMs) at $\text{60,049 million}$, representing a $\text{1%}$ increase year-over-year, with revenues of $\text{C\$4,403 million}$. This demonstrates the transactional throughput moving through these various channels.

• Direct Sales Target Segments: Industrial, Resource, Agricultural.
• Key Port Access Points: Vancouver, Prince Rupert, New Orleans.
• Transload Services: CargoFlo for liquid/dry bulk, specialized handling for forest products and metals.
• Logistics Support: Access to approximately $\text{1,000}$ trucks network-wide for first and last mile delivery.

Finance: review Q3 $\text{2025}$ operating ratio against Q2 $\text{2025}$ to assess channel cost effectiveness by end of next week.

Canadian National Railway Company (CNI) - Canvas Business Model: Customer Segments

You're looking at the core customers Canadian National Railway Company (CNI) serves, the businesses that rely on its nearly 20,000-mile network to move massive volumes across North America. This isn't about individual consumers; it's strictly B2B, moving raw materials and finished goods that power the continent's economy.

The customer base is highly concentrated in bulk commodities and high-volume container traffic. For instance, Intermodal shippers, which include major shipping lines and large retailers moving containers, accounted for a significant chunk of the business in 2024. Honestly, understanding this concentration is key to seeing where CNI focuses its operational muscle.

Here's a look at the financial weight of the top segments based on 2024 revenue, which totaled C$17,046 million:

The math on that is simple: 42% of the total 2024 revenue came from just those two groups. Still, the agricultural sector is arguably the most strategically vital, especially given the seasonal demands and the sheer scale of Canadian resource exports.

For the Agricultural sector, which includes grain and fertilizer, CNI is a market leader. The company has stated it holds a dominant 50% market share in grain transportation, connecting producers to global markets. You see their performance in the latest operational reports; for example, Canadian National Railway Company set a new all-time monthly record for grain movement in October 2025, moving over 3.4 million metric tonnes of grain from Western Canada. This segment is mandated to account for 70% of Canadian grain exports, making their network performance directly tied to national trade balances.

Beyond these top revenue drivers, Canadian National Railway Company serves several other critical industrial customer groups. These are the other pillars of their freight volume:

• Forest products.
• Metals and minerals.
• Automotive manufacturers.

To be fair, the network's utility extends beyond direct end-to-end shipping for these major commodity movers. Canadian National Railway Company also serves other Class I railroads, which is essential for maintaining a seamless continental rail network. This interline traffic exchange ensures cargo can move smoothly across competitor lines when necessary, keeping the entire system fluid.

You can see the breadth of their customer engagement through the commodities they handle, which total over 300 million tons of goods annually. This diverse portfolio helps mitigate risk when one specific commodity market slows down.

Finance: draft 13-week cash view by Friday.

Canadian National Railway Company (CNI) - Canvas Business Model: Cost Structure

The Cost Structure for Canadian National Railway Company is heavily weighted toward maintaining its extensive physical network, which involves significant fixed and capital costs. You'll see a clear commitment to infrastructure investment alongside variable cost management, especially concerning labor and fuel.

The network maintenance component is substantial, with a planned expenditure of C$2.9 billion for 2025 maintenance. This is separate from the broader capital program, which Canadian National Railway Company continues to plan at approximately C$3.35 billion for the full year 2025, net of amounts reimbursed by customers. This focus on infrastructure is a core, non-negotiable cost of running a Class I railroad.

Variable costs are managed actively, particularly fuel expenses. For instance, in the second quarter of 2025, fuel expenses decreased by 25% compared to the prior year period, driven partly by a 23% decrease in the price per gallon. Labor costs are another major area of focus, especially following recent contract negotiations. Engineers and conductors secured a wage hike of 3% per year under a contract retroactive to January 1, 2024. To offset this and other pressures, Canadian National Railway Company is pursuing productivity efforts, which included an additional C$75 million in labor cost reductions reported in the third quarter of 2025. The company has also reduced its workforce, with a total of 1200 layoffs since October 2024.

Debt servicing costs are managed against a stated financial target. Canadian National Railway Company continues to manage to its adjusted debt-to-adjusted EBITDA target of 2.5x. As of the twelve months ended September 30, 2025, the actual leverage ratio stood at 2.54x. This leverage management guides capital allocation decisions, including future spending plans.

Here's a look at the planned capital spending trajectory:

The cost base is also influenced by ongoing productivity and workforce adjustments:

• Total workforce reductions since October 2024: 1200
• Q3 2025 productivity savings from labor costs: C$75 million
• Wage increase for engineers/conductors: 3% per year
• Leverage ratio as of Q2 2025: 2.5x

Canadian National Railway Company (CNI) - Canvas Business Model: Revenue Streams

You're looking at the revenue engine for Canadian National Railway Company as of late 2025, and it's clear the business relies on a highly diversified freight base, even while navigating sector-specific tariff headwinds.

Canadian National Railway Company's revenue streams are fundamentally built upon moving vast quantities of goods across its network, segmented into distinct commodity groups. The company reported total revenues for Q3 2025 were C$4.2 billion, reflecting a 1% increase year-over-year, according to their latest filings. This modest top-line growth, despite volume pressures in certain areas, was achieved through strong cost control, which improved the operating ratio to 61.4% in the quarter.

The Intermodal segment remains a critical component, often cited as the largest revenue contributor. This stream comes from transporting shipping containers and trailers, and it showed significant strength in Q3 2025, with revenues rising 11% year-over-year, partly recovering from prior year disruptions.

Bulk commodity revenue is another pillar, primarily driven by essential resources. For the third quarter, the Coal segment saw revenue growth of 3%, and the Petroleum & Chemicals segment grew by 1%. Grain shipments experienced a dip last quarter due to a late harvest, but expectations are for record highs to boost volumes in the coming months.

Merchandise revenue covers a range of industrial goods. Here, the impact of sector-specific tariffs was more noticeable. Forest products revenue decreased by -4%, and Metals & Minerals revenue fell by -6%. Chemicals, which is often grouped with petroleum, saw a 1% revenue increase.

Here's a quick look at how some of the key freight segments performed in Q3 2025 compared to the prior year:

To be fair, the seven diversified commodity groups that make up freight revenue include more than just the above, but these represent the key areas showing movement in the latest report. The company's ability to generate cash flow is strong, with net cash provided by operating activities reaching C$4,822 million for the first nine months of 2025. Plus, Canadian National Railway Company demonstrated a commitment to shareholder returns, repurchasing close to 8 million shares in the third quarter for approximately C$1 billion.

You can see the revenue generation broken down by the major components that drive the business:

• Freight revenue from seven diversified commodity groups.
• Intermodal revenue, the largest segment, from container and trailer transport.
• Bulk commodity revenue from grain, coal, and petroleum.
• Merchandise revenue from forest products, metals, and chemicals.
• Q3 2025 total revenue was C$4.2 billion.

Finance: draft 13-week cash view by Friday.