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Research Alert: Canadian National Railway Posts Mixed Q1 Results As Eps Beats, Revenue Lags

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Canadian National Railway (CNR) posted Q1 adjusted EPS of CAD1.80, topping our CAD1.73 estimate but missing consensus CAD1.81, while revenue declined 1% to CAD4.38B as 3% volume growth was offset by 3% freight revenue per RTM decline from FX and carbon tax elimination impacts. Operating ratio deteriorated 80 bps to 64.2% as cost inflation offset revenue pressure, with the company delivered record Q1 operational performance including fuel efficiency up 3%, car velocity up 6%, and employee productivity up 8%. Mixed commercial results saw grain/fertilizers grow 10% while metals/minerals declined 11%, with free cash flow up 44% to CAD900M supporting CAD869M in share repurchases. Management reiterated expectations for flattish RTM growth in 2026 with EPS growth slightly exceeding volume growth amid heightened demand risk from macroeconomic volatility and trade tensions. We view the strong operational metrics and cash generation positively, though revenue headwinds and margin pressure remain near-term concerns.

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Emergent BioSolutions Signs $50 Million Contract to Support SAB Biotherapeutics' Lead Program

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