Canadian National Railway Co. revised its financial outlook upward for the full year as the company manages to weather U.S. tariff turbulence and the Canadian economy holds steady.

“Our customers have become very adept at managing the situation, and we’ve been there to support them along the way as they’ve changed some of their supply chains,” Chief Commercial Officer Janet Drysdale told analysts during a conference call on July 24. 

Canada’s largest railway had assumed flat revenue per ton-mile at the beginning of the year. It’s now raising its expectations for growth to the low-single digits, and foresees higher profits.

U.S. President Donald Trump’s tariffs have weighed on Canadians’ sentiment over the past year, and a new threat of 50% levies on certain goods starting August 19 is adding fresh uncertainty. But the economy is showing some resilience, with all signs pointing to a rebound in the second quarter.

CN reported financial results that beat analyst estimates for the second quarter. Revenue and adjusted diluted earnings per share both soared 11% to C$4.8 billion ($3.4 billion) and C$2.08, respectively, compared to the same period last year.

Sales for all product categories rose, even for forest products that were hit by severe levies last year. Grain, fertilizers, petroleum and chemicals were especially strong during the quarter.

The company said the period benefited from greater productivity, fuel efficiency and commercial execution. “The gains we are delivering are structural and enduring, supporting value creation well beyond the quarter,” Chief Operating Officer Patrick Whitehead told analysts.

CN’s operating ratio — a key gauge of railway efficiency that measures expenses as a percentage of revenue — ticked higher from last year to 62.5%.

The railway’s shares were down 0.5% in Toronto to C$182.84 as of 11:23 a.m. on July 24.

“Risks remain from volatile economic conditions, global trade tensions and geopolitical conflicts, along with weaker international intermodal imports and ongoing pressure in forest products,” Bloomberg Intelligence analyst Lee A. Klaskow said in a note.

CN announced earlier this week two agreements with Union Pacific Corp., which seeks to merge with Norfolk Southern Corp., to expand operating rights for both railroads and alleviate competitive regulatory concerns related to the deal.

“These agreements are strategic and they bring long-term benefits,” Chief Executive Officer Tracy Robinson told analysts. “They structurally enhance and extend our network by giving us direct and very competitive access to important markets in Kansas City and Mexico.”