Norfolk Southern (NSC) Q3 2025 Financial Results Summary

ATLANTA, Oct. 23, 2025 – Norfolk Southern Corporation (NYSE: NSC) announced its financial results for the third quarter of 2025. Below is a summary of the key financial metrics and operational highlights from the report.

Third Quarter Summary

• Railway Operating Revenues:

• Total revenue was $3.1 billion, which is an increase of $52 million, or 2%, compared to the third quarter of 2024, despite flat volumes.

• Fuel Surcharge Revenue:

• Revenue from fuel surcharges declined by $30 million versus the same quarter in 2024, representing a 1% headwind to overall revenues.

• Income from Railway Operations:

• Reported income was $1.1 billion, marking a decrease of $498 million compared to the third quarter of 2024, which had a $380 million benefit from railway line sales.

• Adjusted income from railway operations: After excluding merger-related expenses, restructuring, other charges, and the Eastern Ohio incident, income was $1.1 billion, up $21 million, or 2%, aided by $65 million in incremental land sales compared to the adjusted third quarter of 2024.

• Operating Ratio:

• For the quarter, the operating ratio was 64.6%, an increase from 47.7% in the third quarter of 2024, primarily affected by the previous railway line sales.

• The adjusted operating ratio was 63.3%, which represents an improvement of 10 basis points from the adjusted third quarter of 2024 (63.4%).

• Diluted Earnings per Share (EPS):

• Reported diluted EPS was $3.16, down from $4.85 in the third quarter of 2024.
• When adjusted for merger-related expenses, restructuring, other charges, and the Eastern Ohio incident, diluted EPS was $3.30, which is an increase of $0.05, or 2%, compared to the adjusted third quarter of 2024.

Highlights

• Productivity Gains:

• The company has raised its productivity target for 2025 to approximately $200 million, up from the previously set target of $175 million.

• Operational Efficiency:

• Achieved an all-time record in fuel efficiency.

• Successfully executed key productivity initiatives while delivering strong service consistency.

• Commentary from Leadership:

• President and CEO Mark George remarked on the team’s collaboration to serve customers and emphasized the discipline and focus exhibited to drive results and strengthen the company’s long-term foundation.

Dividend and Share Repurchase

• The report did not specify whether Norfolk Southern declared a quarterly dividend or initiated any share repurchase program during this quarter.

Conclusion

Norfolk Southern reported a mixed bag of results for Q3 2025 with increases in revenue and adjusted income metrics, despite significant drops in reported income and diluted earnings per share due to previous year benefits from asset sales. The company’s focus on productivity enhancements and operational improvements reflects its commitment to maintaining service consistency in a dynamic freight market. The raised productivity target indicates a positive outlook for the company’s operational efficiency moving forward.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

($ in millions, except per share amounts)

CONDENSED CONSOLIDATED BALANCE SHEETS

(No Balance Sheet table was found in the text provided.)