CNI reported an operating income of C$1.77 billion (+28% Y/Y), and margin expanded by 231 bps to 40.7%, and an adjusted margin expanded by 260 bps to 41%.
The operating ratio was 59.3%, an improvement of 2.3-points, and the adjusted operating ratio of 59.0%, an improvement of 2.6-points.
Free cash flow for year-to-date was C$1.57 billion compared to C$1.28 billion for the same period in 2021.
Car velocity improved by 2% Y/Y, and through dwell (entire railroad, hours) improved by 6% Y/Y.
Fuel efficiency improved by 4% to a record of 0.838 US gallons of locomotive fuel consumed per 1,000 gross ton-miles (GTMs).
FY22 Outlook, reaffirmed: CNI expects to deliver ~15-20% adjusted diluted EPS growth. It targets an operating ratio below 60% and ROIC of ~15%.
It expects a free cash flow of C$3.7 billion – C$4.0 billion.
Price Action: CNI shares are trading higher by 15.88% at $135.34 during the post-market session on Tuesday.
