CN Rail Positioned for Higher Earnings, Cash Flow Without Extra Capex -- Market Talk

1237 ET - CN Rail is operating in an improving freight environment, and 2H may still hold some opportunity for extra growth. In an RBC report, Walter Spracklin says that the magnitude of the recent raise came in higher than expected, and notes that "if we assume the EPS guide equates to 7% y/y growth, this implies EPS of $8.16, well above consensus of $7.94 and our $8.05." Spracklin says the low-single-digit volume guide implies no acceleration in growth in 2H, but "giving further potential upside if conditions continue to improve (which we believe they will)." Spracklin adds that CN Rail is achieving this growth without increasing its capital spending, as past investments created enough capacity to support higher volumes which could boost free cash flow. (adriano.marchese@wsj.com)

(END) Dow Jones Newswires

July 27, 2026 12:37 ET (16:37 GMT)