Norfolk Southern reports fourth quarter and full year 2025 results

Rhea-AI Summary

Norfolk Southern (NYSE: NSC) reported Q4 2025 revenue of $3.0B, income from railway operations of $937M, operating ratio of 68.5%, and diluted EPS of $2.87. Adjusted Q4 results exclude merger-related expenses and the Eastern Ohio incident: adjusted operating ratio 65.3% and adjusted diluted EPS $3.22. For full year 2025, railway operating revenues were $12.2B, income from railway operations was $4.4B, operating ratio was 64.2% (220 bps improvement), and diluted EPS was $12.75. The company cited over $215M in annual productivity savings.

Positive

• Diluted EPS increased by 10% to $12.75 for full year 2025
• Operating ratio improved by 220 basis points to 64.2% for 2025
• Achieved >$215 million in annual productivity savings

Negative

• Fourth quarter income from railway operations declined 17% year-over-year to $937M
• Q4 operating ratio widened to 68.5% from 62.6% due to one-time items and lower volumes
• Results required adjustments for merger-related expenses and the Eastern Ohio incident, reducing comparability

Key Figures

Q4 2025 revenue: $3.0B Q4 2025 operating income: $937M Q4 2025 operating ratio: 68.5% +5 more

8 metrics

Q4 2025 revenue $3.0B Down $50M or 2% vs Q4 2024 on 4% volume decline

Q4 2025 operating income $937M Down $194M or 17% vs Q4 2024; includes $85M land gain

Q4 2025 operating ratio 68.5% Worse than 62.6% in Q4 2024 which included line sales

Q4 2025 diluted EPS $2.87 Down $0.36 or 11% vs Q4 2024 including line sale gains

Q4 2025 adj EPS $3.22 Ex-incident and merger costs; up $0.18 or 6% vs adjusted Q4 2024

2025 revenue $12.2B Up $57M vs 2024; fuel surcharge headwind of $134M

2025 operating ratio 64.2% Improved 220 bps vs 66.4% in 2024

2025 diluted EPS $12.75 Increased 10% vs 2024

Market Reality Check

Price: $284.47 Vol: Volume 765,574 is below t...

normal vol

$284.47 Last Close

Volume Volume 765,574 is below the 20-day average of 1,045,164 (relative volume 0.73). normal

Technical Price $284.47 is trading above the 200-day MA $271.65, indicating a pre-news uptrend.

Peers on Argus

NSC was down 1.56% with key rail peers also lower: CSX -0.7%, CNI -1.81%, CP -1....

NSC was down 1.56% with key rail peers also lower: CSX -0.7%, CNI -1.81%, CP -1.29%, UNP -1.74%, and WAB -0.87%, but momentum data did not flag a sector-wide move.

Previous Earnings Reports

5 past events · Latest: Oct 23 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Oct 23	Q3 2025 earnings	Positive	-1.2%	Q3 2025 beat on adjusted EPS, improved OR, raised productivity target.
Jul 29	Q2 2025 earnings	Positive	-3.0%	Strong Q2 results and announcement of merger with Union Pacific.
Apr 23	Q1 2025 earnings	Positive	+0.9%	Resilient Q1 with adjusted EPS growth and better operating ratio.
Jan 29	Q4 2024 earnings	Positive	+1.8%	Q4 and 2024 results with improved adjusted OR and EPS growth.
Oct 22	Q3 2024 earnings	Positive	+4.9%	Strong Q3 2024 with high income, low OR, and large line sale gains.

Pattern Detected

Recent earnings releases have generally been received positively, with 3 aligned moves and 2 divergences, suggesting the stock often reacts constructively but can occasionally sell off on good results.

Recent Company History

Over the past five earnings cycles from Oct 2024 through Oct 2025, Norfolk Southern has reported steady revenue around $3.0–3.1B, focused on operating ratio improvement and adjusted EPS growth while managing Eastern Ohio incident impacts and merger-related items. Price reactions ranged from roughly flat to nearly +5%, with both positive and negative moves after generally constructive updates. Today’s Q4 and full-year 2025 report extends this focus on productivity gains and adjusted profitability.

Historical Comparison

earnings

+2.4 %

Average Historical Move

Historical Analysis

In the last five earnings releases, NSC’s average one-day move was about 2.36%, with mostly positive reactions. This Q4 and full-year 2025 report continues the pattern of focusing on operating ratio and adjusted EPS improvements despite incident and merger-related adjustments.

Typical Pattern

Earnings updates from late 2024 through 2025 show a progression of stable <b>$3.0–3.1B</b> quarterly revenue, improving adjusted operating ratios in the mid-60% range, and growing adjusted EPS. Management repeatedly highlighted productivity gains, Eastern Ohio incident adjustments, and, in mid-2025, the proposed Union Pacific merger, setting the context for the latest full-year 2025 results.

Market Pulse Summary

This announcement details Q4 and full-year 2025 performance, highlighting quarterly revenue of $3.0B...

Analysis

This announcement details Q4 and full-year 2025 performance, highlighting quarterly revenue of $3.0B, reported EPS of $2.87, and adjusted EPS of $3.22. For 2025, NSC delivered $12.2B in revenue, an operating ratio of 64.2%, and EPS of $12.75 while exceeding $215M in productivity savings. Historical earnings releases show a focus on operating efficiency and incident-related adjustments. Investors may watch future volume trends, additional productivity gains, and any merger-related developments.

Key Terms

operating ratio, diluted earnings per share, fuel surcharge revenue, basis points

4 terms

operating ratio financial

"operating ratio was 68.5%, and diluted earnings per share were $2.87."

A company's operating ratio is a simple percentage that shows how much of its revenue is eaten up by the costs of running the business — calculated by dividing operating expenses by operating revenue. For investors it signals efficiency and profit potential: a lower operating ratio means the company keeps more of each dollar it earns (like a household with lower bills keeping more of its paycheck), while a higher ratio suggests tighter margins and less room to absorb shocks.

diluted earnings per share financial

"operating ratio was 68.5%, and diluted earnings per share were $2.87."

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

fuel surcharge revenue financial

"Fuel surcharge revenue declined $134 million compared to 2024, which represents a 1% headwind"

An extra fee companies add to invoices to offset changing fuel costs, collected alongside regular sales rather than as a separate product. For investors it matters because it directly affects revenue and profit margins—when fuel prices rise the surcharge can protect margins, and when they fall it can reduce billed amounts—so tracking it helps assess how resilient a business’s cash flow and pricing power are, much like a restaurant raising menu prices when ingredient costs spike.

basis points financial

"Operating ratio in 2025 was 64.2%, an improvement of 220 basis points, compared to 66.4%"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

AI-generated analysis. Not financial advice.

Delivered on safety and service improvements while exceeding full year productivity target, achieving over $215 million in annual savings

ATLANTA, Jan. 29, 2026 /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) announced Thursday its fourth quarter and full year 2025 financial results. In the quarter, revenue was $3.0 billion, income from railway operations was $937 million, operating ratio was 68.5%, and diluted earnings per share were $2.87. 

Adjusting the results to exclude merger-related expenses and the effects of the Eastern Ohio incident, fourth quarter income from railway operations was $1.0 billion, the operating ratio was 65.3%, and diluted earnings per share were $3.22.

"In 2025, we strengthened the foundation of our railroad. We kept our cost commitments, maintained reliable service, and delivered measurable safety gains with the company's best injury and accident rates in more than a decade," said Mark George, president and chief executive officer of Norfolk Southern. "In the face of a volatile and challenging macro-economic backdrop, our team focused on the controllables – delivering outsized productivity savings in excess of $215 million that accompanies our safety and service improvements. As we move through 2026, the demand environment remains unclear, but we are steadfastly focused on prioritizing the safety of our employees and communities, delivering consistent customer service, and driving further productivity gains to contain our costs in any volume environment."

Fourth Quarter Summary 

• Railway operating revenues of $3.0 billion, down $50 million, or 2%, compared to the fourth quarter 2024, on a volume decline of 4% year-over-year.  
  
  
• Income from railway operations was $937 million, a decrease of $194 million, or 17%, compared to fourth quarter 2024 which included railway line sales of $53 million. Fourth quarter 2025 includes a large land sale that resulted in a net gain of $85 million.
  • Adjusting for: the effects of the Eastern Ohio incident in both years; merger-related expenses in 2025; and gains on railway line sales in 2024, income from railway operations was $1.0 billion, down $31 million, or 3%, compared to adjusted fourth quarter 2024.

• Operating ratio in the quarter was 68.5% compared to 62.6% in fourth quarter 2024 which included the aforementioned railway line sales.
  • Adjusting for merger-related expenses and the effects of the Eastern Ohio incident, the operating ratio for the quarter was 65.3%.

• Diluted earnings per share were $2.87, down $0.36, or 11%, compared to fourth quarter 2024 which included the aforementioned railway line sales.
  • Adjusting for merger-related expenses and the effects of the Eastern Ohio incident, diluted earnings per share were $3.22, up $0.18, or 6%, compared to adjusted fourth quarter 2024.

Full Year Summary 

• Railway operating revenues of $12.2 billion, up $57 million, compared to full year 2024. 
  • Fuel surcharge revenue declined $134 million compared to 2024, which represents a 1% headwind to overall revenues.

• Income from railway operations was $4.4 billion, an increase of $285 million, or 7%, compared to full year 2024. 
  • Adjusting for: the impact of merger-related expenses in 2025; restructuring and other charges in both years; the Eastern Ohio incident in both years; and gains on railway line sales in 2024, income from railway operations was $4.3 billion, up $122 million, or 3%, compared to adjusted 2024.

• Operating ratio in 2025 was 64.2%, an improvement of 220 basis points, compared to 66.4% in 2024.
  • Adjusting for the impact of merger-related expenses, restructuring and other charges, and the Eastern Ohio incident, the operating ratio for 2025 was 65.0%. This represents 80 basis points of improvement from adjusted 2024 which was 65.8%. 

• Diluted earnings per share were $12.75, an increase of 10% compared to 2024.
  • Adjusting for the impact of merger-related expenses, restructuring and other charges, and the Eastern Ohio incident, diluted earnings per share were $12.49, up $0.64, or 5%, compared to adjusted 2024.

About Norfolk Southern
Since 1827, Norfolk Southern Corporation (NYSE: NSC) and its predecessor companies have safely moved the goods and materials that drive the U.S. economy. Today, it operates a 22-state freight transportation network. Committed to furthering sustainability, Norfolk Southern helps its customers avoid approximately 15 million tons of yearly carbon emissions by shipping via rail. Its dedicated team members deliver approximately 7 million carloads annually, from agriculture to consumer goods. Norfolk Southern also has the most extensive intermodal network in the eastern U.S. It serves a majority of the country's population and manufacturing base, with connections to every major container port on the Atlantic coast as well as major ports across the Gulf Coast and Great Lakes. Learn more by visiting www.NorfolkSouthern.com.

Cautionary Statement on Forward-Looking Statements
Certain statements in this press release are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or our achievements or those of our industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements may be identified by the use of words like "may," "will," "could," "would," "should," "expect," "anticipate," "believe," "project," or other comparable terminology. While the Company has based these forward-looking statements on those expectations, assumptions, estimates, beliefs, and projections it views as reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which involve factors or circumstances that are beyond the Company's control, including but not limited to: (i) changes in domestic or international economic, political or business conditions, including those impacting the transportation industry; (ii) the Company's ability to successfully implement its operational, productivity, and strategic initiatives; (iii) a significant adverse event on our network, including but not limited to a mainline accident, discharge of hazardous material, or climate-related or other network outage; (iv) the outcome of claims, litigation, governmental proceedings, and investigations involving the Company, including those with respect to the Eastern Ohio incident; (v) new or additional governmental regulation and/or operational changes resulting from or related to the Eastern Ohio incident; and (vi) a significant cybersecurity incident or other disruption to our technology infrastructure; and (vii) those pertaining to the Merger. These and other important factors, including those discussed under "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, as supplemented in Part II, Item 1A of our Form 10-Q ended September 30, 2025 and filed with the SEC on October 23, 2025, may cause actual results, performance, or achievements to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements herein are made only as of the date they were first issued, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Measures
Information included within this press release contains non-GAAP financial measures, including adjusted income from railway operations, adjusted operating ratio, and adjusted diluted earnings per share. Non-GAAP financial measures should be considered in addition to, not as a substitute for, the financial measures reported in accordance with U.S. generally accepted accounting principles (GAAP).  

Our fourth quarter and full year 2025 non-GAAP financial results exclude merger-related expenses, restructuring and other charges, and the overall impact on operating expenses resulting from costs and recoveries associated with the Eastern Ohio Incident (the Incident).  Our fourth quarter and full year 2024 non-GAAP financial results exclude restructuring and other charges, costs and recoveries associated with the Incident, gains on railway line sales, shareholder advisory costs, and a deferred tax adjustment. The following tables adjust our fourth quarter and full year 2025 and fourth quarter and full year 2024 GAAP financial results to exclude the effects of those items. The income tax effects of the non-GAAP adjustments were calculated based on the applicable tax rates to which the non-GAAP adjustments related.  We use these non-GAAP financial measures internally and believe this information provides useful supplemental information to investors to facilitate making period-to-period comparisons by excluding these costs. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant to be considered in isolation from, or as a substitute for, the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similar measures presented by other companies.  Information about the adjustments that are not currently available to us could have a potentially unpredictable and significant impact on future GAAP results.  Further information about the Company's non-GAAP measures are available on our website at www.norfolksouthern.com on the Investors page under Events and Presentations.  

 

	($ in millions, except per share amounts)				Fourth
					Quarter 2025
	Income from railway operations		$		937
	Merger-related expenses and effect of the Incident				94
	Adjusted income from railway operations		$		1,031
	Operating ratio				68.5 %
	Merger-related expenses and effect of the Incident				(3.2 %)
	Adjusted operating ratio				65.3 %
	Diluted earnings per share		$		2.87
	Merger-related expenses and effect of the Incident				0.35
	Adjusted diluted earnings per share		$		3.22

 

($ in millions except per share amounts)				Fourth
				Quarter 2024
Income from railway operations		$		1,131
Gains on railway line sales, effect of the Incident, and restructuring and other charges				(69)
Adjusted income from railway operations		$		1,062
Operating ratio				62.6 %
Gains on railway line sales, effect of the Incident, and restructuring and other charges				2.3 %
Adjusted operating ratio				64.9 %
Diluted earnings per share		$		3.23
Gains on railway line sales, effect of the Incident, shareholder advisory costs,    and restructuring and other charges				(0.19)
Adjusted diluted earnings per share		$		3.04

 

	($ in millions, except per share amounts)				Full Year
					2025
	Income from railway operations		$		4,356
	Merger-related expenses, restructuring and other charges, and effect of the Incident				(88)
	Adjusted income from railway operations		$		4,268
	Operating ratio				64.2 %
	Merger-related expenses, restructuring and other charges, and effect of the Incident				0.8 %
	Adjusted operating ratio				65.0 %
	Diluted earnings per share		$		12.75
	Merger-related expenses, restructuring and other charges, and effect of the Incident				(0.26)
	Adjusted diluted earnings per share		$		12.49

 

($ in millions except per share amounts)				Full Year
				2024
Income from railway operations		$		4,071
Gains on railway line sales, effect of the Incident, and restructuring and other charges				75
Adjusted income from railway operations		$		4,146
Operating ratio				66.4 %
Gains on railway line sales, effect of the Incident, and restructuring and other charges				(0.6 %)
Adjusted operating ratio				65.8 %
Diluted earnings per share		$		11.57
Gains on railway line sales, favorable deferred tax adjustment, effect of the Incident,                restructuring and other charges, and shareholder advisory costs				0.28
Adjusted diluted earnings per share		$		11.85

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SOURCE Norfolk Southern Corporation

FAQ

What were Norfolk Southern (NSC) Q4 2025 earnings and adjusted EPS on January 29, 2026?

Q4 2025 diluted EPS was $2.87, and adjusted diluted EPS was $3.22. According to the company, adjustments exclude merger-related expenses and effects of the Eastern Ohio incident, improving comparability versus prior year results.

How did Norfolk Southern's (NSC) operating ratio perform for full year 2025?

Full year 2025 operating ratio was 64.2%, an improvement of 220 basis points. According to the company, adjusted operating ratio was 65.0%, representing 80 basis points improvement versus adjusted 2024.

How much productivity savings did Norfolk Southern (NSC) report for 2025 and why does it matter?

Norfolk Southern reported over $215 million in annual productivity savings for 2025. According to the company, these savings accompany safety and service improvements and help contain costs in uncertain demand environments.

What drove the year-over-year change in Norfolk Southern's (NSC) Q4 2025 revenue and volumes?

Q4 2025 railway operating revenues were $3.0B, down 2% with volumes down 4% year-over-year. According to the company, the decline reflects lower volumes and certain one-time items that affected comparability with 2024.

What is the impact of the Eastern Ohio incident and merger expenses on NSC 2025 results?

The company reported that the Eastern Ohio incident and merger-related expenses affected comparability and were excluded from adjusted results. According to the company, adjusted metrics show stronger operating ratio and EPS versus unadjusted figures.