First look: Norfolk Southern earnings

Norfolk Southern said earnings rose in 5% in Q2

(Photo: FreightWaves/Jim Allen)

Norfolk Southern (NYSE: NSC) reported strong Q2 2025 results, with revenue reaching $3.1 billion and diluted EPS increasing 5% year-over-year to $3.41. 

The company achieved an operating ratio of 62.2% and railway operating income of $1.2 billion.

After adjusting for restructuring and continuing costs from the East Palestine derailment, NS’s adjusted EPS was $3.29, an 8% increase, and its operating ratio improved to 63.4%. Volume saw a 3% growth, and productivity savings are now projected to exceed $175 million in 2025.

In a significant development, NS announced a merger agreement with Union Pacific, which will establish America’s first transcontinental railroad. Under the terms of the agreement, NS shareholders will receive one Union Pacific share plus $88.82 in cash for each NS share, valuing Norfolk Southern at $85 billion.

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Stuart Chirls

Stuart Chirls is a journalist who has covered the full breadth of railroads, intermodal, container shipping, ports, supply chain and logistics for Railway Age, the Journal of Commerce and IANA. He has also staffed at S&P, McGraw-Hill, United Business Media, Advance Media, Tribune Co., The New York Times Co., and worked in supply chain with BASF, the world's largest chemical producer. Reach him at stuartchirls@firecrown.com.