Norfolk Southern Corp (NYSE:NSC) reported financial results for the second quarter ahead of the market open on Tuesday. Here’s a look at the key metrics from the quarter.
Q2 Earnings: Norfolk Southern reported second-quarter revenue of $3.11 billion, beating analyst estimates of $3.10 billion, according to Benzinga Pro. The company reported second-quarter adjusted earnings of $3.29 per share, beating analyst estimates of $3.27 per share.
Railway operating revenues were up $66 million year-over-year to $3.1 billion on volume growth of 3%. Excluding the impact of fuel surcharge revenue, railway revenue was up 4% year-over-year.
“This quarter, Norfolk Southern delivered another set of strong results — growing volumes, managing costs, and delivering 8% EPS growth. While we remain clear-eyed about market uncertainty, our performance reflects the strength of our strategy and our ability to continue disciplined execution, relentless focus on safety and seamless customer service,” said Mark George, president and CEO of Norfolk Southern.
Guidance: Norfolk Southern expects full-year 2025 revenue growth of 3% to 4% compared to 2024. The company anticipates an improvement of 100 to 150 basis points in adjusted operating ratio for 2025, but said it expects the third quarter to be pressured due to weaker revenue than expected early in the quarter.
Norfolk Southern now expects productivity savings in 2025 of over $175 million due to strong results from cost-control measures.
Norfolk Southern also announced an agreement with Union Pacific Corp (NYSE:UNP) to combine in a stock and cash transaction. Union Pacific will acquire Norfolk Southern at an implied value of $320 per share. Shareholders are set to receive one share of Union Pacific and $88.82 in cash for each share of Norfolk Southern stock held. The deal will create America’s first transcontinental railroad.
NSC Price Action: Norfolk Southern shares were down 1.58% at $281.89 at the time of publication Tuesday, according to Benzinga Pro.
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