Norfolk Southern Corp. on Wednesday reported a rebound in first-quarter profits despite slightly weaker revenue from a year ago as it recovered from severe winter weather across its network.
The Atlanta-based railroad (NYSE: NSC) reported railway operating revenues of $3 billion, down $11 million compared to the first quarter of 2024. Income from railway operations was $1.1 billion, an increase of $933 million.
Operating ratio in the quarter was 61.7% compared to 92.9% in the first quarter of 2024. Diluted earnings per share was $3.31, up from 23 cents, when the company agreed to a $600 million settlement following a major derailment in East Palestine, Ohio, in 2023.
The company since the second quarter of 2024 continues to benefit from insurance payouts related to East Palestine. Those payments totaled $141 million in the first quarter. Income would have been $609 million, or $2.69 per share, compared to $2.49 per share a year ago, without the payments.
“Our service performance is increasing our customers’ confidence in Norfolk Southern and allowing us to gain share,” said President and Chief Executive Mark George, in an earnings release.
The improvement comes after a rocky 2024 when investor Ancora Holdings won three board seats in a failed bid to take over the carrier. Norfolk Southern later fired CEO Alan Shaw after it was discovered he had had an inappropriate relationship with a subordinate.
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