# NORFOLK SOUTHERN CORP (NSC)

Informational only - not investment advice.

CIK: 0000702165
SIC: 4011 Railroads, Line-Haul Operating
SIC breadcrumb: [Transportation, Communications, Electric, Gas, And Sanitary Services](/division/E/) > [Railroad Transportation](/major-group/40/) > [SIC 4011 Railroads, Line-Haul Operating](/industry/4011/)
Latest 10-K filed: 2026-02-09
SEC page: https://www.sec.gov/edgar/browse/?CIK=702165
Filing source: https://www.sec.gov/Archives/edgar/data/702165/000162828026006268/nsc-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-09 · accession 0001628280-26-006268 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000702165.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 12,180,000,000 USD | 2025 | verified |
| Net income | 2,873,000,000 USD | 2025 | verified |
| Assets | 45,236,000,000 USD | 2025 | verified |
| Free cash flow | 2,157,000,000 USD | 2025 | computed |
| Net margin | 23.59% | 2025 | computed |
| Operating margin | 35.76% | 2025 | computed |
| Revenue YoY | +0.47% | 2025 | computed |
| ROE | 18.48% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

Peer groups: [North American Class I railroads](/compare/railroads/) · SIC 4011 Railroads, Line-Haul Operating

No market price, no rating, no forecast on this site. Not investment advice.

## Peer comparisons including NSC

- North American Class I railroads: [peer review](/compare/railroads/) · [market-risk page](/compare/railroads/risk/)


## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 12180000000 | USD | 2025 | 2026-02-09 |
| Net income | 2873000000 | USD | 2025 | 2026-02-09 |
| Assets | 45236000000 | USD | 2025 | 2026-02-09 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-09. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000702165.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 9,888,000,000 | 10,551,000,000 | 11,458,000,000 | 11,296,000,000 | 9,789,000,000 | 11,142,000,000 | 12,745,000,000 | 12,156,000,000 | 12,123,000,000 | 12,180,000,000 |
| Net income |  | 5,404,000,000 | 2,666,000,000 | 2,722,000,000 | 2,013,000,000 | 3,005,000,000 | 3,270,000,000 | 1,827,000,000 | 2,622,000,000 | 2,873,000,000 |
| Operating income | 3,009,000,000 | 3,522,000,000 | 3,959,000,000 | 3,989,000,000 | 3,002,000,000 | 4,447,000,000 | 4,809,000,000 | 2,851,000,000 | 4,071,000,000 | 4,356,000,000 |
| Diluted EPS | 5.62 | 18.61 | 9.51 | 10.25 | 7.84 | 12.11 | 13.88 | 8.02 | 11.57 | 12.75 |
| Operating cash flow | 3,034,000,000 | 3,253,000,000 | 3,726,000,000 | 3,892,000,000 | 3,637,000,000 | 4,255,000,000 | 4,222,000,000 | 3,179,000,000 | 4,052,000,000 | 4,361,000,000 |
| Capital expenditures | 1,887,000,000 | 1,723,000,000 | 1,951,000,000 | 2,019,000,000 | 1,494,000,000 | 1,470,000,000 | 1,948,000,000 | 2,327,000,000 | 2,381,000,000 | 2,204,000,000 |
| Dividends paid | 695,000,000 | 703,000,000 | 844,000,000 | 949,000,000 | 960,000,000 | 1,028,000,000 | 1,167,000,000 | 1,225,000,000 | 1,221,000,000 | 1,215,000,000 |
| Share buybacks | 803,000,000 | 1,012,000,000 | 2,781,000,000 | 2,099,000,000 | 1,439,000,000 | 3,390,000,000 | 3,110,000,000 | 622,000,000 | 0.00 | 534,000,000 |
| Assets | 34,892,000,000 | 35,711,000,000 | 36,239,000,000 | 37,923,000,000 | 37,962,000,000 | 38,493,000,000 | 38,885,000,000 | 41,652,000,000 | 43,682,000,000 | 45,236,000,000 |
| Liabilities | 22,483,000,000 | 19,352,000,000 | 20,877,000,000 | 22,739,000,000 | 23,171,000,000 | 24,852,000,000 | 26,152,000,000 | 28,871,000,000 | 29,376,000,000 | 29,689,000,000 |
| Stockholders' equity | 12,409,000,000 | 16,359,000,000 | 15,362,000,000 | 15,184,000,000 | 14,791,000,000 | 13,641,000,000 | 12,733,000,000 | 12,781,000,000 | 14,306,000,000 | 15,547,000,000 |
| Cash and cash equivalents | 956,000,000 | 690,000,000 | 358,000,000 | 580,000,000 | 1,115,000,000 | 839,000,000 | 456,000,000 | 1,568,000,000 | 1,641,000,000 | 1,530,000,000 |
| Free cash flow | 1,147,000,000 | 1,530,000,000 | 1,775,000,000 | 1,873,000,000 | 2,143,000,000 | 2,785,000,000 | 2,274,000,000 | 852,000,000 | 1,671,000,000 | 2,157,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 51.22% | 23.27% | 24.10% | 20.56% | 26.97% | 25.66% | 15.03% | 21.63% | 23.59% |
| Operating margin | 30.43% | 33.38% | 34.55% | 35.31% | 30.67% | 39.91% | 37.73% | 23.45% | 33.58% | 35.76% |
| Return on equity |  | 33.03% | 17.35% | 17.93% | 13.61% | 22.03% | 25.68% | 14.29% | 18.33% | 18.48% |
| Return on assets |  | 15.13% | 7.36% | 7.18% | 5.30% | 7.81% | 8.41% | 4.39% | 6.00% | 6.35% |
| Liabilities / equity | 1.81 | 1.18 | 1.36 | 1.50 | 1.57 | 1.82 | 2.05 | 2.26 | 2.05 | 1.91 |
| Current ratio | 0.98 | 0.84 | 0.72 | 0.90 | 1.07 | 0.86 | 0.76 | 1.24 | 0.90 | 0.85 |

## As-reported value updates

2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/NSC/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-23. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000702165.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 4.10 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 2.04 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 1.56 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 2,971,000,000 | 477,000,000 | 2.10 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 3,073,000,000 | 526,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 3,004,000,000 | 52,000,000 | 0.23 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 3,044,000,000 | 736,000,000 | 3.25 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 3,051,000,000 | 1,099,000,000 | 4.85 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 3,024,000,000 | 732,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 2,993,000,000 | 749,000,000 | 3.31 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 3,110,000,000 | 767,000,000 | 3.41 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 3,103,000,000 | 711,000,000 | 3.16 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 2,974,000,000 | 643,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 2,998,000,000 | 546,000,000 | 2.43 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 3,465,000,000 | 733,000,000 | 3.26 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from NSC's latest 10-K: [/company/NSC/business/](/company/NSC/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from NSC's latest 10-K: [/company/NSC/risk-factors/](/company/NSC/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/702165/000162828026049326/nsc-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-23
Report date: 2026-06-30

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the Consolidated Financial Statements and Notes.

OVERVIEW

Since 1827, Norfolk Southern Corporation and its predecessor companies have safely moved the goods and materials that drive the U.S. economy. Our dedicated team members deliver a wide variety of commodities annually for our customers, from agriculture to consumer products, and help them reduce carbon emissions by shipping via rail. We have the most extensive intermodal network in the eastern U.S. Our network serves a majority of the country's population and manufacturing base, with connections to every major container port on the Atlantic coast as well as major ports in the Gulf Coast and Great Lakes.

On July 28, 2025, we entered into a Merger Agreement with Union Pacific, marking a transformational step toward creating America’s first transcontinental railroad – an outcome we believe will unlock new opportunities for our customers, employees, and the broader U.S. economy. By integrating two complementary networks, we believe the merged company will be positioned to deliver more efficient, reliable, and sustainable freight service across the nation. See Note 1 for additional information on the proposed transaction.

Our second-quarter performance reflected strong volume growth which led to overall improvements in our adjusted financial results. Higher fuel prices had a significant impact on both railway operating revenues and expenses in the quarter. Our year-over-year results were also impacted by the absence of insurance recoveries related to the Eastern Ohio incident and incremental merger-related expenses. For the second quarter, we achieved an operating ratio (a measure of the amount of operating revenues consumed by operating expenses) of 67.6%, and an adjusted operating ratio of 65.5% (see our non-GAAP reconciliations beginning on page 25). We remain committed to being a safe, productive, resilient, and efficient railroad with industry-competitive margins.

SUMMARIZED RESULTS OF OPERATIONS

[[GREPCENT_TABLE]]
[["","Second Quarter","","First Six Months"],["","2026","","2025","","% change","","2026","","2025","","% change"],["","($ in millions, except per share amounts)"],["Railway operating revenues","$","3,465","","","$","3,110","","","11%","","$","6,463","","","$","6,103","","","6%"],["Railway operating expenses","$","2,341","","","$","1,935","","","21%","","$","4,462","","","$","3,782","","","18%"],["Income from railway operations","$","1,124","","","$","1,175","","","(4%)","","$","2,001","","","$","2,321","","","(14%)"],["Net income","$","734","","","$","768","","","(4%)","","$","1,281","","","$","1,518","","","(16%)"],["Diluted earnings per share","$","3.26","","","$","3.41","","","(4%)","","$","5.69","","","$","6.72","","","(15%)"],["Railway operating ratio (percent)","67.6","","","62.2","","","9%","","69.0","","","62.0","","","11%"]]
[[/GREPCENT_TABLE]]

Income from railway operations, net income, and diluted earnings per share decreased in both periods, the result of higher railway operating expenses, primarily related to the absence of insurance recoveries related to the Eastern Ohio incident recognized in the prior year. Our financial results were further impacted by higher fuel prices, merger-related expenses, and inflation. These effects were partially offset by higher railway operating revenues, driven by increased average revenue per unit, primarily driven by higher fuel surcharge revenue, and increased volume.

The following tables adjust our GAAP financial results for the second quarters and first six months of 2026 and 2025 to exclude restructuring and other charges and the effects of the Incident. The adjusted results for the second quarter and first six months of 2026 also exclude merger-related expenses. The income tax effects of these non-

24

GAAP adjustments were calculated based on the applicable tax rates to which the non-GAAP adjustments related. We use these non-GAAP financial measures internally and believe this information provides useful supplemental information to investors to facilitate making period-to-period comparisons by excluding these items. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant to be considered in isolation from, or as a substitute for, the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similar measures presented by other companies.

[[GREPCENT_TABLE]]
[["","Non-GAAP Reconciliation for Second Quarter 2026"],["","Reported (GAAP)","","Merger-Related Expenses","","Restructuring and Other Charges","","Eastern Ohio Incident","","","","","","Adjusted (non-GAAP)"],["","($ in millions, except per share amounts)"],["Railway operating expenses","$","2,341","","","$","(51)","","","$","(6)","","","$","(15)","","","","","","","$","2,269"],["Income from railway operations","$","1,124","","","$","51","","","$","6","","","$","15","","","","","","","$","1,196"],["Net income","$","734","","","$","42","","","$","5","","","$","12","","","","","","","$","793"],["Diluted earnings per share","$","3.26","","","$","0.19","","","$","0.02","","","$","0.05","","","","","","","$","3.52"],["Railway operating ratio (percent)","67.6","","","(1.5)","","","(0.2)","","","(0.4)","","","","","","","65.5"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","Non-GAAP Reconciliation for Second Quarter 2025"],["","Reported (GAAP)","","","","Restructuring and Other Charges","","Eastern Ohio Incident","","","","Adjusted (non-GAAP)"],["","($ in millions, except per share amounts)"],["Railway operating expenses","$","1,935","","","","","$","(10)","","","$","47","","","","","$","1,972"],["Income from railway operations","$","1,175","","","","","$","10","","","$","(47)","","","","","$","1,138"],["Net income","$","768","","","","","$","8","","","$","(35)","","","","","$","741"],["Diluted earnings per share","$","3.41","","","","","$","0.04","","","$","(0.16)","","","","","$","3.29"],["Railway operating ratio (percent)","62.2","","","","","(0.3)","","","1.5","","","","","63.4"]]
[[/GREPCENT_TABLE]]

In the table below, references to the results for the second quarters of 2026 and 2025 and related comparisons use the adjusted, non-GAAP results from the reconciliations in the previous tables.

[[GREPCENT_TABLE]]
[["","Adjusted (non-GAAP)"],["","Second Quarter"],["","2026","","2025","","% change"],["","($ in millions, except per share amounts)"],["Railway operating expenses","$","2,269","","","$","1,972","","","15%"],["Income from railway operations","$","1,196","","","$","1,138","","","5%"],["Net income","$","793","","","$","741","","","7%"],["Diluted earnings per share","$","3.52","","","$","3.29","","","7%"],["Railway operating ratio (percent)","65.5","","","63.4","","","3%"]]
[[/GREPCENT_TABLE]]

25

[[GREPCENT_TABLE]]
[["","Non-GAAP Reconciliation for First Six Months 2026"],["","Reported (GAAP)","","Merger-Related Expenses","","Restructuring and Other Charges","","Eastern Ohio Incident","","","","","","Adjusted (non-GAAP)"],["","($ in millions, except per share amounts)"],["Railway operating expenses","$","4,462","","","$","(103)","","","$","(6)","","","$","(25)","","","","","","","$","4,328"],["Income from railway operations","$","2,001","","","$","103","","","$","6","","","$","25","","","","","","","$","2,135"],["Net income","$","1,281","","","$","85","","","$","5","","","$","19","","","","","","","$","1,390"],["Diluted earnings per share","$","5.69","","","$","0.38","","","$","0.02","","","$","0.08","","","","","","","$","6.17"],["Railway operating ratio (percent)","69.0","","","(1.6)","","","(0.1)","","","(0.3)","","","","","","","67.0"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","Non-GAAP Reconciliation for First Six Months 2025"],["","Reported (GAAP)","","Restructuring and Other Charges","","Eastern Ohio Incident","","","","","","Adjusted (non-GAAP)"],["","($ in millions, except per share amounts)"],["Railway operating expenses","$","3,782","","","$","(10)","","","$","232","","","","","","","$","4,004"],["Income from railway operations","$","2,321","","","$","10","","","$","(232)","","","","","","","$","2,099"],["Net income","$","1,518","","","$","8","","","$","(176)","","","","","","","$","1,350"],["Diluted earnings per share","$","6.72","","","$","0.03","","","$","(0.78)","","","","","","","$","5.97"],["Railway operating ratio (percent)","62.0","","","(0.2)","","","3.8","","","","","","","65.6"]]
[[/GREPCENT_TABLE]]

In the table below, references to the results for the first six months of 2026 and 2025 and related comparisons use the adjusted, non-GAAP results from the reconciliations in the previous tables.

[[GREPCENT_TABLE]]
[["","Adjusted (non-GAAP)"],["","First Six Months"],["","2026","","2025","","% change"],["","($ in millions, except per share amounts)"],["Railway operating expenses","$","4,328","","","$","4,004","","","8%"],["Income from railway operations","$","2,135","","","$","2,099","","","2%"],["Net income","$","1,390","","","$","1,350","","","3%"],["Diluted earnings per share","$","6.17","","","$","5.97","","","3%"],["Railway operating ratio (percent)","67.0","","","65.6","","","2%"]]
[[/GREPCENT_TABLE]]

On an adjusted basis, income from railway operations increased in the second quarter and first six months due to higher railway operating revenues, driven by higher average revenue per unit, primarily driven by increased fuel surcharge revenue, and increased volume. Partially offsetting the increase in revenues were higher adjusted railway operating expenses, reflecting higher fuel prices and inflation.

26

DETAILED RESULTS OF OPERATIONS

Railway Operating Revenues

The following tables present a comparison of revenues ($ in millions), units (in thousands), and average revenue per unit ($ per unit) by commodity group.

[[GREPCENT_TABLE]]
[["","Second Quarter","","First Six Months"],["Revenues","2026","","2025","","% change","","2026","","2025","","% change"],["Merchandise:"],["Agriculture, forest and consumer products","$","673","","","$","645","","","4%","","$","1,298","","","$","1,281","","","1%"],["Chemicals","646","","","546","","","18%","","1,213","","","1,081","","","12%"],["Metals and construction","480","","","458","","","5%","","893","","","872","","","2%"],["Automotive","334","","","323","","","3%","","614","","","601","","","2%"],["Merchandise","2,133","","","1,972","","","8%","","4,018","","","3,835","","","5%"],["Intermodal","908","","","743","","","22%","","1,657","","","1,503","","","10%"],["Coal","424","","","395","","","7%","","788","","","765","","","3%"],["Total","$","3,465","","","$","3,110","","","11%","","$","6,463","","","$","6,103","","","6%"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["Units"],["Merchandise:"],["Agriculture, forest and consumer products","184.3","","186.4","","(1%)","","365.6","","370.0","","(1%)"],["Chemicals","153.6","","139.1","","10%","","295.0","","271.1","","9%"],["Metals and construction","169.0","","171.1","","(1%)","","314.5","","319.4","","(2%)"],["Automotive","103.8","","104.0","","\u2014%","","193.4","","192.3","","1%"],["Merchandise","610.7","","600.6","","2%","","1,168.5","","1,152.8","","1%"],["Intermodal","1,064.1","","1,010.9","","5%","","2,044.7","","2,033.8","","1%"],["Coal","187.3","","181.7","","3%","","366.1","","346.4","","6%"],["Total","1,862.1","","1,793.2","","4%","","3,579.3","","3,533.0","","1%"]]
[[/GREPCENT_TABLE]]

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/702165/000162828026006268/nsc-20251231.htm
Complete FY 2025 MD&A: /company/NSC/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-09
Report date: 2025-12-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the Consolidated Financial Statements and Notes. Refer to Item 8 “Notes to Consolidated Financial Statements” for all “Note” references.

OVERVIEW

Since 1827, Norfolk Southern Corporation and its predecessor companies have safely moved the goods and materials that drive the U.S. economy. Our dedicated team members deliver a wide variety of commodities annually for our customers, from agriculture products to consumer goods, and help them reduce carbon emissions by shipping via rail. We have the most extensive intermodal network in the eastern U.S. Our network serves a majority of the country's population and manufacturing base, with connections to every major container port on the Atlantic coast as well as major ports in the Gulf Coast and Great Lakes.

Throughout 2025, we took deliberate actions to strengthen the Company and position it for long-term success. On July 28, 2025, we entered into a Merger Agreement with Union Pacific, marking a transformational step toward creating America’s first transcontinental railroad—an outcome we believe will unlock new opportunities for our customers, employees, and the broader U.S. economy. By integrating two complementary networks, the merged company will be positioned to deliver more efficient, reliable, and sustainable freight service across the nation. Details of the proposed transactions are further described in Note 2.

We also continued to make progress towards resolving environmental and legal matters resulting from the Incident (as defined further and described in Note 19) with insurance and other recoveries during 2025 exceeding incremental expenses. Safety continued to be a core value, and our relentless focus and intentional actions drove improvements in numerous safety metrics. Operational execution remained a key focus in 2025, with an emphasis on delivering high quality service while delivering notable improvements in labor productivity and fuel efficiency. Despite periods of macroeconomic uncertainty, growth in automotive and chemicals traffic, reflecting improved service and customer demand, drove merchandise revenues higher and led to a modest increase in overall volumes.

The combination of operational productivity, modest volume growth and favorable merchandise pricing were pivotal in driving earnings growth as compared to 2024. Although our financial results, as compared to the prior year, were significantly impacted by the absence of $433 million in gains on the sales of railway lines that occurred in 2024, we successfully monetized other properties that resulted in meaningful gains in the current year. For the full year, we achieved an operating ratio (a measure of the amount of operating revenues consumed by operating expenses) of 64.2%, and an adjusted operating ratio of 65.0% (see our non-GAAP reconciliations beginning on page K28). We remain committed to being a safe, productive, resilient, and efficient railroad with industry-competitive margins.

SUMMARIZED RESULTS OF OPERATIONS

[[GREPCENT_TABLE]]
[["","","","","","","","2025","","2024"],["","2025","","2024","","2023","","vs. 2024","","vs. 2023"],["","($ in millions, except per share amounts)","","(% change)"],["Railway operating revenues","$","12,180","","","$","12,123","","","$","12,156","","","\u2014","%","","\u2014","%"],["Railway operating expenses","$","7,824","","","$","8,052","","","$","9,305","","","(3","%)","","(13","%)"],["Income from railway operations","$","4,356","","","$","4,071","","","$","2,851","","","7","%","","43","%"],["Net income","$","2,873","","","$","2,622","","","$","1,827","","","10","%","","44","%"],["Diluted earnings per share","$","12.75","","","$","11.57","","","$","8.02","","","10","%","","44","%"],["Railway operating ratio (percent)","64.2","","","66.4","","","76.5","","","(3","%)","","(13","%)"]]
[[/GREPCENT_TABLE]]

K27

Income from railway operations, net income, and diluted earnings per share increased in 2025 compared to 2024, the result of lower railway operating expense and higher railway operating revenues. The decrease in railway operating expense includes higher net recoveries related to the Incident in addition to lower expenses associated with restructuring activities. Partially offsetting those items were lower gains from the sales of railway lines and properties and expenses incurred in 2025 related to the proposed merger. The increase in railway operating revenues was driven by a combination of favorable traffic mix, which was partially offset by lower fuel surcharge revenue. Our railway operating ratio improved to 64.2 percent.

Income from railway operations, net income, and diluted earnings per share increased in 2024 compared to 2023, primarily a result of lower railway operating expenses. The reduction in our operating expenses included lower net expenses related to the Incident and $433 million of gains on the sale of railway lines. Railway operating revenues were slightly lower as decreased fuel surcharge revenue, an adverse mix of traffic, and decreased pricing were nearly offset by increased volumes. Our railway operating ratio improved to 66.4 percent.

The following tables adjust our 2025, 2024, and 2023 financial results as reported under U.S. Generally Accepted Accounting Principles (GAAP) financial results to exclude certain items. Adjusted 2025 financial results exclude Merger-related expenses, restructuring and other charges, and the overall impact on operating expenses resulting from costs and recoveries associated with the Incident. Adjusted 2024 financial results exclude gains on railway line sales, restructuring and other charges, costs and recoveries associated with the Incident, shareholder advisory costs, and a deferred tax adjustment. Adjusted 2023 financial results exclude the effects of the Incident. The income tax effects of these non-GAAP adjustments were calculated based on the applicable tax rates to which the non-GAAP adjustments related. We use these non-GAAP financial measures internally and believe this information provides useful supplemental information to investors to facilitate making period-to-period comparisons by excluding these items. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant to be considered in isolation from, or as a substitute for, the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similar measures presented by other companies.

[[GREPCENT_TABLE]]
[["","Non-GAAP Reconciliation for 2025"],["","Reported (GAAP)","","","Merger-Related Expenses","","Restructuring and Other Charges","","","","Eastern Ohio Incident","","Adjusted (non-GAAP)"],["","($ in millions, except per share amounts)"],["Railway operating expenses","$","7,824","","","","$","(80)","","","$","(22)","","","","","$","190","","","$","7,912"],["Income from railway operations","$","4,356","","","","$","80","","","$","22","","","","","$","(190)","","","$","4,268"],["Net income","$","2,873","","","","$","69","","","$","17","","","","","$","(143)","","","$","2,816"],["Diluted earnings per share","$","12.75","","","","$","0.31","","","$","0.07","","","","","$","(0.64)","","","$","12.49"],["Railway operating ratio (percent)","64.2","","","","(0.6)","","","(0.2)","","","","","1.6","","","65.0"]]
[[/GREPCENT_TABLE]]

K28

[[GREPCENT_TABLE]]
[["","Non-GAAP Reconciliation for 2024"],["","Reported (GAAP)","","","Gains on Railway Line Sales","","Restructuring and Other Charges","","","","Eastern Ohio Incident","","Shareholder Advisory Costs","","Deferred Income Tax Adjustment","","Adjusted (non-GAAP)"],["","($ in millions, except per share amounts)"],["Railway"],["operating","$","8,052","","","","$","433","","","$","(183)","","","","","$","(325)","","","$","\u2014","","","$","\u2014","","","$","7,977"],["expenses"],["Income from"],["railway","$","4,071","","","","$","(433)","","","$","183","","","","","$","325","","","$","\u2014","","","$","\u2014","","","$","4,146"],["operations"],["Net income","$","2,622","","","","$","(327)","","","$","125","","","","","$","247","","","$","44","","","$","(27)","","","$","2,684"],["Diluted earnings","$","11.57","","","","$","(1.44)","","","$","0.55","","","","","$","1.09","","","$","0.20","","","$","(0.12)","","","$","11.85"],["per share"],["Railway"],["operating ratio","66.4","","","","3.6","","","(1.5)","","","","","(2.7)","","","\u2014","","","\u2014","","","65.8"],["(percent)"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","Non-GAAP Reconciliation for 2023"],["","Reported (GAAP)","","","Eastern Ohio Incident","","Adjusted (non-GAAP)"],["","($ in millions, except per share amounts)"],["Railway operating expenses","$","9,305","","","","$","(1,116)","","","$","8,189"],["Income from railway operations","$","2,851","","","","$","1,116","","","$","3,967"],["Net income","$","1,827","","","","$","846","","","$","2,673"],["Diluted earnings per share","$","8.02","","","","$","3.72","","","$","11.74"],["Railway operating ratio (percent)","76.5","","","","(9.1)","","","67.4"]]
[[/GREPCENT_TABLE]]

K29

In the table below, references to 2025, 2024, and 2023 results and related comparisons use the adjusted, non-GAAP results from the reconciliations in the preceding tables.

[[GREPCENT_TABLE]]
[["","Adjusted (Non-GAAP)"],["","2025","","2024","","2023","","2025 vs. 2024","","2024 vs. 2023"],["","($ in millions, except per share amounts)","","(% change)"],["Railway operating expenses","$","7,912","","","$","7,977","","","$","8,189","","","(1","%)","","(3","%)"],["Income from railway operations","$","4,268","","","$","4,146","","","$","3,967","","","3","%","","5","%"],["Net income","$","2,816","","","$","2,684","","","$","2,673","","","5","%","","\u2014","%"],["Diluted earnings per share","$","12.49","","","$","11.85","","","$","11.74","","","5","%","","1","%"],["Railway operating ratio (percent)","65.0","","","65.8","","","67.4","","","(1","%)","","(2","%)"]]
[[/GREPCENT_TABLE]]

On an adjusted basis, income from railway operations in 2025 increased due to lower adjusted railway operating expenses and higher railway operating revenues, which drove improvements in net income, diluted earnings per share, and operating ratio. Railway operating revenues were higher driven by a combination of favorable traffic mix, which was partially offset by lower fuel surcharge revenue. Adjusted railway operating expenses were down over prior year as higher gains on operating property sales and lower fuel expense were partially offset by increased expenses associated with claims, materials, compensation and benefits, purchased services and equipment rents.

In 2024, on an adjusted basis, income from railway operations increased due to lower adjusted railway operating expenses, with lower fuel prices, decreased costs of purchased services, and lower other expenses contributing significantly to the overall decline, and more than offsetting the decline in revenue. Net income and diluted earnings per share were only up slightly compared to the prior year as lower other income-net and higher interest expense on debt offset the increase in income from railway operations.

K30

DETAILED RESULTS OF OPERATIONS

Railway Operating Revenues

The following tables present a three-year comparison of revenues, volumes (units), and average revenue per unit by commodity group.

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/NSC/mda/fy2025/
All MD&A years: /company/NSC/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/NSC/mda/fy2024/): filed 2025-02-10; accession 0000702165-25-000008 (https://www.sec.gov/Archives/edgar/data/702165/000070216525000008/nsc-20241231.htm)
- [FY 2023 MD&A](/company/NSC/mda/fy2023/): filed 2024-02-05; accession 0000702165-24-000005 (https://www.sec.gov/Archives/edgar/data/702165/000070216524000005/nsc-20231231.htm)
- [FY 2022 MD&A](/company/NSC/mda/fy2022/): filed 2023-02-03; accession 0000702165-23-000010 (https://www.sec.gov/Archives/edgar/data/702165/000070216523000010/nsc-20221231.htm)
- [FY 2021 MD&A](/company/NSC/mda/fy2021/): filed 2022-02-04; accession 0000702165-22-000007 (https://www.sec.gov/Archives/edgar/data/702165/000070216522000007/nsc-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 4011 Railroads, Line-Haul Operating) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/NSC.md · JSON record: /company/NSC.json · verified financials: /company/NSC/financials.json / /company/NSC/financials.csv · machine TOC for the whole site: /llms.txt