MONTREAL — Canadian National Railway plans to spend Ca$3.4 billion ($2.43 billion U.S.) under its capital spending plan for 2025, including Ca$2.9 billion ($2.07 billion) for maintenance and infrastructure improvements.
“At CN, we believe investing in our network is investing in the future of North American supply chains,” CEO Tracy Robinson said in a press release. “Our 2025 capital program reflects a clear focus on strengthening the resilience, efficiency, and sustainability of our operations. These investments are about delivering exceptional service today — and building a safer, more connected tomorrow for our customers, employees, supply chain partners, and the economy.”
Infrastructure work already underway includes more than 225 miles of new rail installation, as well as eight projects in Western Canada to improve capacity. Those are expected to be completed by the end of the year.
The figure is down slightly from 2024’s Ca$3.5 billion, which included Ca$1.7 billion for track and other projects to maintain the safety and integrity of its network, the railroad said. Among the projects included in the 2024 plan are:
— More than Ca$75 million (U.S. $54 million) on a 4-mile siding extension between Sutton and Spaulding on CN’s Elgin, Joliet & Eastern, its route around Chicago.
— Work in the Vancouver, British Columbia, area including $7.6 million for the initial investement in the Holdom Overpass project; $2 million for improvements to the 3.2-kilometer (2-mile) Thornton Tunnel in Burnaby, B.C.; and $7 million for upgrades to the Lulu Island and Fraser River bridges.
— More than $60 million toward completion of the first phase and advancing the second phase of a fuel terminal at MacMillan Yard in Vaughn, Ontario, serving the Toronto Area.
The railroad also plans some Ca$500 million ($357 million U.S.) on upgrades to and expansion of its rolling stock.
How about CN spending money on the IC where only 12 axles are required to activate crossing signals and fix the issue between Mattoon and Kinmundy, IL so the Saluki and Illini can run with single level equipment instead of Superliners
Sounds great, but how much is CN spending in stock repurchase? Compared to Capex?
It is important to note most CapEx is replacement, not capacity additions.
The February 2025-26 buybacks are roughly $2.1B US based on today’s share price. February 2024-25 roughly $2.4B US.
CN (NYSE: CNI) has announced two significant shareholder-friendly initiatives: a 5% dividend increase for 2025 and a new share repurchase program. The company’s Board approved a new normal course issuer bid to purchase up to 20 million common shares (3.18% of outstanding shares) between February 4, 2025, and February 3, 2026.
Meanwhile the executives are stuffing their clown-sized pockets with cash. Tracy Robinson made $13.1M US in 2023. Worth every penny, right?
“and $7 million for upgrades to the Lulu Island and Fraser River bridges”
Makes one wonder what work this entails. Just a drop in the bucket for what is needed on the 121-year-old New Westminster bridge over the Fraser River, which is complete replacement (it’s owned by the federal government).
“a fuel terminal at MacMillan Yard in Vaughn, Ontario”
The correct spelling of the city is Vaughan.