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Operating cash flow exceeded net income with OCF/NI of 1.29 in 2026Q2, but dividends and buybacks of $1.02B outpaced FCF of $916M, indicating reliance on balance sheet capacity.
Canadian National Railway Company (CNI) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 7.02B | 7.04B | 6.7B | 6.96B | 6.67B | 6.97B | 6.17B | 5.92B | 5.92B | 5.52B | 5.2B | 5.14B | 4.38B | 3.55B | 3.06B | 2.98B | 3B | 2.28B | 2.03B | 2.42B | 2.95B | 2.71B | 2.14B | 1.98B | 1.61B | 1.62B | 1.51B | 1.28B | 1.23B | 901.83M | 567.04M |
| Operating CF Margin % | - | 40.74% | 39.3% | 41.39% | 38.97% | 48.15% | 44.61% | 39.71% | 41.32% | 42.3% | 43.22% | 40.76% | 36.11% | 33.55% | 30.85% | 32.96% | 36.15% | 30.94% | 23.94% | 30.61% | 37.21% | 37.36% | 32.67% | 33.58% | 26.38% | 28.68% | 27.74% | 24.41% | 30.02% | 20.85% | 14.33% |
| Operating CF Growth % | 20.69% | 5.14% | -3.82% | 4.47% | -4.36% | 13.07% | 4.09% | 0.08% | 7.29% | 6.04% | 1.21% | 17.32% | 23.48% | 15.95% | 2.82% | -0.77% | 31.59% | 12.21% | -15.97% | -18.07% | 9.06% | 26.46% | 8.25% | 22.58% | -0.56% | 7.64% | 17.84% | 4.13% | 36.1% | 59.04% | 323.16% |
| Net Income | 4.78B | 4.72B | 4.45B | 5.63B | 5.12B | 4.9B | 3.54B | 4.22B | 4.33B | 5.48B | 3.64B | 3.54B | 3.17B | 2.61B | 2.68B | 2.46B | 2.1B | 1.85B | 1.9B | 2.16B | 2.09B | 1.56B | 1.26B | 1.01B | 800M | 1.04B | 937M | 748.31M | 222.71M | 469.49M | 124M |
| Depreciation & Amortization | 1.93B | 1.94B | 1.89B | 1.82B | 1.73B | 1.6B | 1.59B | 1.56B | 1.33B | 1.28B | 1.23B | 1.16B | 1.05B | 980M | 924M | 884M | 834M | 790M | 725M | 678M | 653M | 630M | 602M | 560M | 591M | 538M | 533M | -497.52M | -316.4M | -317.26M | -196.14M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 374.04M | 333.73M | 325M | -288M | 404M | 513M | 481M | 569M | 527M | -1.2B | 704M | 600M | 416M | 331M | 451M | 531M | 418M | 138M | 230M | -82M | 3M | 547M | 366M | 411M | 272M | 295M | 312M | 417M | 55.6M | 355.32M | 0 |
| Other Non-Cash Items | -410.4M | -409.67M | -58M | -136M | -173M | -186M | 421M | 136M | -448M | -197M | -332M | -112M | -147M | -137M | -945M | -888M | -152M | -226M | -274M | -271.49M | 5M | 3M | 110M | -34M | 201M | -50M | -394M | 1.01B | 1.17B | 606.23M | 842.83M |
| Working Capital Changes | 342.94M | 466.62M | 92M | -53M | -411M | 147M | 129M | -560M | 182M | 143M | -35M | -44M | -105M | -238M | -50M | -8M | -205M | -277M | -545M | -65.51M | 202M | -31M | -197M | 25M | -252M | -202M | 118M | -399.31M | 91.66M | -211.95M | -203.65M |
| Change in Receivables | -141.46M | 91.93M | 205M | 71M | -290M | -22M | 158M | -7M | -91M | -125M | -3M | 188M | -59M | 32M | -20M | -51M | -3M | 39M | -432M | 229M | -17M | 142.51M | -232.44M | 153.78M | -80M | 199M | 71M | -157.47M | 264.95M | 5.01M | 7.26M |
| Change in Inventory | -34.28M | -23.98M | -6M | -18M | -82M | -7M | 20M | -60M | -120M | -70M | -2M | 4M | -51M | -38M | -30M | 11M | -43M | 32M | -23M | 18M | -36M | -25M | 10M | -3M | 0 | 11M | 6M | 38.17M | 18.43M | 7.01M | 16.04M |
| Change in Payables | 319.81M | 219.82M | -107M | -191M | -9M | 141M | -49M | -498M | 379M | 418M | -51M | -282M | 0 | -245M | 129M | 34M | 285M | -204M | -127M | -348.39M | 196.67M | -156.53M | 4.79M | -96M | -154M | -209M | 21.03M | 63.13M | 64.51M | 19.03M | 50.03M |
| Cash from Investing | -3.39B | -3.71B | -3.61B | -3.47B | -2.51B | -2.87B | -2.95B | -4.19B | -3.4B | -2.74B | -2.65B | -2.77B | -2.18B | -1.85B | -1.42B | -1.73B | -1.38B | -1.44B | -1.4B | -895M | -1.35B | -1.07B | -2.41B | -1.07B | -924M | -2.17B | -981M | -900.84M | -3.27B | -514.45M | -431.07M |
| Capital Expenditures | -3.47B | -3.66B | -3.55B | -3.19B | -2.75B | -2.89B | -2.86B | -3.87B | -3.53B | -2.67B | -2.69B | -2.71B | -2.3B | -1.97B | -1.73B | -1.63B | -1.59B | -1.4B | -1.42B | -1.39B | -1.3B | -1.19B | -1.07B | -1.04B | -938M | -1.06B | -958M | -939.01M | -738.17M | -577.56M | -496.04M |
| CapEx % of Revenue | 19.51% | 21.14% | 20.82% | 18.94% | 16.08% | 19.97% | 20.72% | 25.91% | 24.66% | 20.5% | 22.39% | 21.46% | 18.93% | 18.66% | 17.45% | 18% | 19.12% | 19.03% | 16.79% | 17.56% | 16.37% | 16.38% | 16.37% | 17.73% | 15.35% | 18.72% | 17.65% | 17.93% | 18.05% | 13.35% | 12.54% |
| Acquisitions | 84.22M | 0 | 0 | -390M | 0 | -22M | -8M | -259M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -373M | -50M | 326M | -84M | 0 | -1.53B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -2.01M | -54.96M | -58M | 109M | 240M | 40M | -75M | -66M | 127M | -65M | 40M | -61M | 121M | 121M | 310M | -104M | 203M | 338M | 74M | 52M | 33M | 110.67M | 192M | -32M | 14M | -1.11B | -23M | 38.17M | -2.54B | 63.11M | 64.97M |
| Cash from Financing | -3.98B | -3.37B | -3.62B | -3.41B | -4.67B | -3.86B | -2.71B | -1.9B | -2.31B | -2.9B | -2.54B | -2.22B | -2.37B | -1.66B | -1.58B | -1.65B | -1.49B | -884M | -559M | -1.34B | -1.48B | -1.44B | 511M | -605M | -546M | 740M | -679M | -392.29M | 1.94B | -129.08M | -148.99M |
| Debt Issued (Net) | 1.13B | 906.26M | 1.06B | 3.21B | 2.08B | -392M | -705M | 1.39B | 974M | 454M | 691M | 89M | -77M | 437M | 353M | 278M | -184M | -483M | 844M | 582M | 219M | -137M | 698M | -32M | -412M | 679M | -178M | -1.05B | 2.03B | -67.11M | -80.04M |
| Equity Issued (Net) | -2.94B | -2.06B | -2.65B | -4.58B | -4.81B | -1.61B | -402M | -1.74B | -2.05B | -2.1B | -2.07B | -1.84B | -1.5B | -1.4B | -1.4B | -1.42B | -913M | 73M | -967M | -1.51B | -1.36B | -1.3B | -187M | -573M | -134M | 61M | -501M | 779M | 12.29M | 16.03M | 10.97M |
| Dividends Paid | -2.21B | -2.21B | -2.14B | -2.07B | -2B | -1.74B | -1.63B | -1.54B | -1.33B | -1.24B | -1.16B | -996M | -818M | -724M | -652M | -585M | -503M | -474M | -436M | -418M | -340M | -275M | -222M | -191M | -170M | -150M | -136M | -118M | -98.3M | -78.13M | -67.98M |
| Share Repurchases | -3.01B | -2.12B | -2.65B | -4.58B | -4.81B | -1.61B | -402M | -1.74B | -2.05B | -2.1B | -2.07B | -1.84B | -1.5B | -1.4B | -1.4B | -1.42B | -913M | 0 | -1.02B | -1.58B | -1.48B | -1.42B | -273M | -656M | -203M | 0 | -529M | 0 | 0 | 0 | 0 |
| Other Financing | 41.93M | -6M | 104M | 36M | 72M | -117M | 34M | -7M | 105M | -14M | -4M | 528M | 30M | 31M | 117M | 77M | 115M | 0 | 0 | 0 | 0 | 275M | 222M | 191M | 170M | 150M | 136M | -1.29M | 0 | 143.1K | -11.93M |
| Net Change in Cash | -359.62M | -19.65M | -523M | 90M | -507M | 241M | 512M | -171M | 206M | -119M | -4M | 161M | -162M | 59M | 54M | -389M | 138M | -61M | 103M | 131M | 117M | -85M | 17M | 105M | -28M | 38M | -290M | -11M | -101.37M | 258.96M | -12.97M |
| Free Cash Flow | 3.55B | 3.39B | 3.15B | 3.78B | 3.92B | 4.08B | 3.3B | 2.06B | 2.39B | 2.84B | 2.51B | 2.43B | 2.08B | 1.57B | 1.33B | 1.35B | 1.41B | 877M | 607M | 1.03B | 1.65B | 1.52B | 1.07B | 933M | 674M | 563M | 548M | 343.09M | 489.2M | 292.21M | 315.11M |
| FCF Margin % | 19.97% | 19.6% | 18.48% | 22.45% | 22.9% | 28.18% | 23.89% | 13.8% | 16.67% | 21.8% | 20.83% | 19.3% | 17.17% | 14.89% | 13.4% | 14.96% | 17.03% | 11.9% | 7.16% | 13.04% | 20.83% | 20.99% | 16.3% | 15.86% | 11.03% | 9.96% | 10.1% | 6.55% | 11.96% | 6.75% | 7.96% |
| FCF Growth % | 9.76% | 7.56% | -16.62% | -3.55% | -4% | 23.56% | 60.45% | -13.78% | -16.04% | 13.4% | 3% | 16.79% | 32.32% | 18.51% | -1.63% | -4.39% | 61.12% | 44.48% | -41.07% | -37.65% | 8.73% | 42.39% | 14.36% | 38.43% | 19.72% | 2.74% | 59.72% | -29.87% | 67.41% | -7.27% | 264.12% |
| FCF per Share | 5.84 | 5.43 | 4.96 | 5.73 | 5.69 | 5.74 | 4.63 | 2.86 | 3.24 | 3.75 | 3.22 | 3.02 | 2.53 | 1.86 | 3.08 | 3.02 | 3.04 | 0.93 | 0.85 | 2.02 | 1.55 | 1.35 | 0.92 | 0.80 | 0.56 | 0.47 | 0.46 | 0.28 | 0.45 | 0.26 | 0.31 |
| FCF Conversion (FCF/Net Income) | 0.74x | 1.49x | 1.51x | 1.24x | 1.30x | 1.42x | 1.74x | 1.40x | 1.37x | 1.01x | 1.43x | 1.45x | 1.38x | 1.36x | 1.14x | 1.21x | 1.43x | 1.23x | 1.07x | 1.12x | 1.41x | 1.74x | 1.70x | 1.95x | 2.02x | 1.56x | 1.61x | 1.70x | 4.65x | 0.87x | 0.67x |
| Interest Paid | 998M | 979M | 926M | 776M | 542M | 512M | 551M | 521M | 488M | 477M | 470M | 432M | 409M | 344M | 364M | 329M | 366M | 407M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 1.12B | 935M | 1.22B | 1.2B | 1.29B | 759M | 353M | 822M | 776M | 712M | 653M | 725M | 722M | 890M | 289M | 482M | 214M | 245M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying CNI stock.
Canadian National Railway Company (CNI) generated $7.04B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Canadian National Railway Company (CNI) generated $3.39B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Canadian National Railway Company (CNI) spent $3.66B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Canadian National Railway Company (CNI) returned $2.21B to shareholders via cash dividends and spent $2.12B on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Cost inflation and margin compression
Cash Conversion Remains Solid
CNI's operating cash flow consistently exceeds net income, with OCF/NI averaging 1.4 over the past ten quarters, indicating high earnings quality. According to recent financial statements, this gap suggests minimal accrual distortions.
The OCF/NI ratio has ranged from 1.00 to 1.78, with the lowest readings in Q1 quarters, likely reflecting seasonal working capital outflows. The consistent premium of operating cash flow over net income suggests that earnings are well-backed by cash, though the Q1 dip to 1.00 warrants monitoring for any deterioration in conversion quality.
FCF Stability Amid Modest Growth
Free cash flow margins have held between 12.7% and 24.1% over the last ten quarters, with the latest quarter at 19.3%. Based on reported figures, FCF generation remains stable despite revenue growth of only 1.4% YoY.
FCF has been consistently positive, ranging from $541M to $1.1B per quarter, with no clear trend of expansion or contraction. The stability in FCF margins, despite modest revenue growth, suggests that CNI is effectively converting revenue into cash, though the lack of acceleration may limit upside.
Capital Intensity Reflects Network Needs
CapEx as a percentage of revenue has averaged 19.3% over the past ten quarters, with peaks in Q4 and Q3, indicating significant reinvestment in track and equipment. As reported in financial statements, this capital intensity is typical for a Class I railroad.
CapEx has ranged from $440M to $1.2B per quarter, with the highest spending in Q3 and Q4, likely aligning with maintenance schedules and network upgrades. The consistent capital outlays are essential for maintaining the 19,500-mile network, but they also constrain FCF, which is a key consideration for investors.
Seasonal Working Capital Swings
Working capital changes have been volatile, swinging from -$487M to +$484M over the past ten quarters, with Q1 typically showing outflows. According to recent SEC filings, these swings appear seasonal, tied to agricultural cycles and payment timing.
The negative working capital changes in Q1 of each year (e.g., -$455M in 2025Q1, -$487M in 2024Q1) suggest cash outflows for inventory or receivables, while Q4 often shows inflows (e.g., +$484M in 2025Q4). This pattern is consistent with the grain harvest cycle, where Q1 may involve higher payables or lower collections, but the overall impact on annual cash flow appears neutral.
Capital Returns Outpace FCF
Dividends and buybacks have consistently exceeded free cash flow, with total distributions averaging $1.4B per quarter versus FCF of $0.8B. Based on reported figures, CNI is funding shareholder returns through a mix of cash flow and balance sheet capacity.
In 2026Q2, dividends and buybacks totaled $1.02B against FCF of $916M, indicating a payout ratio above 100%. This trend has persisted across the period, with buybacks particularly aggressive in 2025Q3 and 2024Q2, suggesting a deliberate strategy to return capital even if it means drawing on cash reserves or increasing leverage.
Cumulative Cash Exceeds Earnings
Over the past ten quarters, cumulative operating cash flow of $16.7B has exceeded cumulative net income of $11.4B, a gap of $5.3B. As reported in financial statements, this divergence indicates strong cash generation relative to accounting earnings.
The cumulative OCF/NI ratio of 1.47 suggests that CNI's earnings are backed by substantial cash flows, likely due to large non-cash depreciation charges. This gap provides a cushion for capital expenditures and shareholder returns, but investors should monitor whether the gap narrows, which could signal deteriorating cash conversion.
What Could Invalidate the Base Case
Despite strong cash conversion, CNI's reliance on debt to fund shareholder returns and potential cost inflation could pressure future cash flows. According to recent financial statements, the low current ratio and elevated payouts warrant caution.
The consistent over-distribution of capital relative to FCF may indicate reliance on balance sheet capacity, which could become strained if cash flows weaken. Additionally, the absence of stock-based compensation in recent quarters may understate true cash costs, and the low current ratio suggests limited liquidity buffer. Investors should monitor whether the OCF/NI ratio declines from its current 1.29 level, which could signal deteriorating earnings quality.