CN, all directors were re-elected at the shareholders' meeting... While preparing for fundraising, they still oppose the merger with American Railways.

CN re-elects all board members at the annual general meeting and consecutively announces first-quarter performance, dividends, and funding plans, while simultaneously reviewing operational and financial strategies. Particularly during the review process of a major merger in the U.S. railway industry, concerns over reduced competition were raised again, maintaining a firm stance.

All directors elected at the shareholder meeting… Chairman also reappointed

Canadian National Railway CN (Canada National Railway·TSX: CNR·NYSE: CNI) announced at its online live annual shareholder meeting on May 1 that all 11 director candidates listed in the March 9, 2026 information circular were elected. Voting results showed that most candidates received over 99% approval from shareholders. Shirley Boudrea was re-elected as chairman by the board.

First quarter sales of 4.38B CAD… free cash flow up 44%

CN achieved a record-high first-quarter transportation performance in Q1 2026. Revenue ton miles (RTM) increased by 3% year-over-year to 61.83B. Sales revenue was 4.38B CAD, approximately 64.59 trillion Korean won. Operating profit was 64.59k CAD, about 2.0285 trillion Korean won, with diluted earnings per share of 1.87 CAD.

Notably, free cash flow reached 900 million CAD, up 44%. Approximately 1.3275 trillion Korean won. The company repurchased about 6 million shares for 869 million CAD (around 1.2818 trillion Korean won) and announced a quarterly dividend.

Second quarter dividend of 0.915 CAD per share… paid June 30

CN has set the dividend for Q2 2026 at 0.9150 CAD per common share, equivalent to about 1,350 Korean won. The dividend record date is June 9, after the close of business, with payment scheduled for June 30.

The company also maintained its 2026 full-year performance guidance. Assuming transportation RTM growth remains flat, capital expenditures are expected to be about 2.8 billion CAD, roughly 4.13 trillion Korean won.

Ensuring 37-month bond issuance capacity… for refinancing and share repurchases

CN filed a shelf prospectus in Canada on April 29 and submitted a registration statement to the U.S. Securities and Exchange Commission (SEC), laying the groundwork for issuing debt securities in Canada and the U.S. over the next 37 months.

The company stated that the raised funds could be used for general corporate purposes, including repayment or refinancing of existing debt, share repurchases, mergers and acquisitions, and other business opportunities. However, the registration is not yet effective, and securities cannot be sold until it becomes effective.

Opposition to major U.S. railway merger persists… “Concerns over reduced competition remain”

CN stated that it will continue to participate in the review process of the revised merger application submitted by Union Pacific and Norfolk Southern with the Surface Transportation Board (STB). The company claims that the applicant has failed to propose “meaningful competition improvements” or solutions to eliminate significant competitive harm as required by new regulations.

According to CN, if the transaction proceeds, it could create a structure controlling about 40% of U.S. freight rail transportation. CN considers the application incomplete and inappropriate at this stage, urging the STB to impose additional conditions to protect competition and public interests. This highlights that the restructuring of the North American rail market could go beyond mere corporate mergers, affecting freight rates, route competition, and freight options overall.

Grain transportation hits record high… strong demand in Western Canada

In operations, CN also demonstrated strong momentum. The company reported transporting over 2.96 million tons of grain in Western Canada in March, setting a record for that month. Weekly transportation volumes exceeded 600k tons for two consecutive weeks, peaking over 650k tons.

In February, the company also transported over 2.67 million tons of Western Canadian grain, setting a record for February. CN explained that despite temporary severe weather affecting port handling capacity in Vancouver and Prince Rupert corridors, network speeds recovered quickly afterward. Record export demand and the seasonal reopening of the Sault Ste. Marie port also contributed to performance improvements.

Donates $750k to southern Chicago suburbs near Homewood, Illinois

CN announced it will donate $750k over three years to support programs preventing homelessness in the southern Chicago suburbs near Homewood, Illinois. About 1.55B Korean won. Funds will be allocated to Anew, Respond Now, and South Suburban PADS, each receiving $250k, to expand shelter and prevention services.

Overall, CN’s recent announcements show that while improving performance, rewarding shareholders, and ensuring flexible financing, the company is strengthening its competitive defense logic regarding North American railway restructuring. Due to the industry’s characteristics, CN remains sensitive to economic conditions and freight volume changes, but the booming and stable cash flow from grain transportation is likely to be a core defensive strength for CN this year.

TP AI note: The article was summarized using a language model based on TokenPost.ai. The main content of the text may be omitted or inconsistent with facts.