Companies /Industrials

Norfolk Southern Corp

NYSE: NSC Railroads
$329.46
▲ $1.63 (+0.50%) today
Markets closed · 5:03pm ET

Q2 2025 Earnings

Reported Jul 29, 2025, 8:10am ET · SEC source
$3.29
Miss −0.31%
EPS · est. $3.30
$3.1B
Miss −0.71%
Revenue · est. $3.1B
−2.1%
Trailing market
NSC vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−2%0+2%+4%Jul 29Jul 30report 8:10am ETearnings−0.3%+0.6%
−2%0+2%+4%Jul 29Jul 30earnings−0.3%+0.6%
NSC +0.6%S&P 500 −0.3%
0+3%Jul 29Jul 30report 8:10am ETearnings−0.3%+0.6%
0+3%Jul 29Jul 30earnings−0.3%+0.6%
NSC +0.6%NASDAQ −0.3%
−3%0+3%Jul 28Aug 6report 8:10am ETearnings−1.4%+0.6%
−3%0+3%Jul 28Aug 6earnings−1.4%+0.6%
NSC +0.6%S&P 500 −1.4%
−3%0+3%Jul 28Aug 6report 8:10am ETearnings−1.5%+0.6%
−3%0+3%Jul 28Aug 6earnings−1.5%+0.6%
NSC +0.6%NASDAQ −1.5%
−3.04%
Day of report
+0.47%
Next session
+0.78%
One week
+0.04%
30 days

S&P 500 over the same 30 days: +2.15%.

Did NSC Beat Earnings? Q2 2025 Results

Norfolk Southern delivered a fractionally soft second quarter, with adjusted diluted EPS of $3.29 missing the $3.30 consensus by 0.31% and revenue of $3.11 billion coming in 0.71% below expectations, though the top line still grew 2.2% year-over-year on the back of 3% volume growth. The results, however, were almost immediately overshadowed by a blockbuster announcement: Union Pacific has agreed to acquire Norfolk Southern in a stock-and-cash deal valued at $320 per share, implying a total enterprise value of $85.00 billion, a combination that would reshape the competitive landscape of North American freight rail and has already prompted speculation about countermoves among rival carriers. Operationally, the quarter showed genuine improvement, with the GAAP operating ratio tightening to 62.2% from 62.8% a year ago, aided in part by $47.00 million in net recoveries tied to the 2023 East Palestine derailment. Looking ahead, management narrowed its full-year revenue growth outlook to 2-3% and trimmed its adjusted operating ratio improvement target to 100-150 basis points, while raising its productivity savings goal to $175 million-plus, even as the pending merger effectively ends the company's share repurchase program.

Key Takeaways
  • 3% volume growth across all segments
  • 170 basis point improvement in adjusted operating ratio to 63.4%
  • Productivity savings exceeding targets, raised to $175M+ for 2025
  • Merchandise revenue growth of 4% driven by volume
  • Coal volume growth of 12%
  • Continued improvement in fuel efficiency
  • Eastern Ohio incident net recoveries of $47 million in the quarter

“This quarter, Norfolk Southern delivered another set of strong results — growing volumes, managing costs, and delivering 8% EPS growth. While we remain clear-eyed about market uncertainty, our performance reflects the strength of our strategy and our ability to continue disciplined execution, relentless focus on safety and seamless customer service.”

Norfolk Southern CEO, on the earnings call

Forward Guidance & Outlook

Norfolk Southern updated its 2025 full-year guidance: revenue growth of 2-3% (narrowed from 3%), adjusted operating ratio improvement of 100-150 basis points year-over-year (previously 150 bps), and raised productivity/annual cost-savings target to $175M+ (from $150M+). Q3 2025 adjusted operating ratio is expected to be pressured due to a weaker-than-expected revenue environment early in the quarter. The company has ceased its share repurchase program in connection with the pending Union Pacific merger transaction.

NSC YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$900.0M$1.8B$2.7B$3.0B$3.1BRevenue$1.1B$1.2BOperating Income$737.0M$768.0MNet Income
$0$900.0M$1.8B$2.7BRevenueOperating IncomeNet Income

NSC Revenue by Segment

Merchandise$2.0B+4.0%
Intermodal$743.0M
Coal$395.0M−1.0%

Figures from SEC filings and company reports. Not investment advice.