Investment Q&A

Please see our comments today on BIPC; while BEPC has not specifically announced anything, investors are now questioning the sustainability of the BEPC premium as well. CNR had mixed results. 

Canadian National's (CN) unchanged demand outlook for flat revenue ton miles (RTM), despite 3% growth in the metric in 1Q, reflects how volatile the volume backdrop has become amid various geopolitical and macroeconomic uncertainties. Though management expects strength in petroleum, chemicals, grain and domestic intermodal this year, weakness in metals, minerals, forest products and fertilizers may be a headwind. Continued focus on network fluidity will be crucial to mitigate the margin impact of any volume challenges that arise. The trajectory of fuel-price growth will also be key for where CN's profitability heads this year. Management noted on its earnings call that elevated fuel prices through the rest of the year could lead to a 10-cent tailwind on EPS but a 20-bp headwind on margins.