Norfolk Southern today reported fourth quarter income fell 17% to $937 million on revenue that was down 2% to $3 billion, as freight volumes declined 4% from a year ago.
Diluted earnings per share were $2.87, down 36 cents, or 11%, compared to fourth quarter 2024. Taking out expenses related to the proposed merger with Union Pacific (NYSE: UNP) and ongoing costs of the East Palestine, Ohio, derailment, per share earnings were $3.22, up 6%, y/y.
The Atlanta-based company (NYSE: NSC) said current quarter results included rail line sales of $53 million and a large land sale that resulted in a net gain of $85 million.
The operating ratio in the quarter, a key indicator of efficiency, was 68.5% compared to 62.6% in fourth quarter 2024.
For all of 2025, income from railway operations came to $4.4 billion, an increase of $285 million, or 7%, on revenues of $12.2 billion, up $57 million, compared to full year 2024.
Fuel surcharge revenue declined $134 million compared to 2024, or 1%. Adjusted income rose 3% to $4.3 billion.
The operating ratio in 2025 was 64.2%, an improvement of 220 basis points, from 66.4% in 2024.
Diluted earnings per share improved 10% to $12.75, an increase of 10% compared to 2024. Adjusted earnings totaled $12.49, up 5%.
Subscribe to FreightWaves’ Rail e-newsletter and get the latest insights on rail freight right in your inbox.
Find more articles by Stuart Chirls here.
Related coverage:
Clean sweep for weekly rail freight improvement
