Norfolk Southern posts revenue, income growth in Q2

Norfolk Southern Corp. today announced second-quarter 2025 revenue of $3.1 billion, income from railway operations of $1.2 billion and diluted earnings per share of $3.41.

Recoveries related to the 2023 East Palestine, Ohio, train derailment exceeded incremental costs in the quarter, NS officials said in a press release. After adjusting the results to exclude restructuring and other charges as well as the effects of the East Palestine incident, Q2 2025 income from railway operations was $1.1 billion, the operating ratio (OR) was 63.4% and diluted earnings per share were $3.29, NS officials said in a press release.

For Q2 2025, NS also reported:
• Railway operating revenue rose $66 million compared to Q2 2024, on volume growth of 3%. Excluding the impact of fuel surcharge revenue, which was lower compared to the prior year, railway operating revenue was $2.9 billion, up $122 million, or 4%, compared to adjusted Q2 2024;

• Income from railway operations rose $44 million from Q2 2024. Adjusting for restructuring and other costs and the effects of East Palestine, income rose $75 million, or 7%, compared to adjusted Q2 2024;

• The Q2 2025 adjusted OR of 63.4% represents 170 basis points of improvement from the adjusted Q2 2024 OR of 65.1%; and

• Adjusted for restructuring and other costs and the effects of East Palestine, diluted earnings per share rose 23 cents per share or 8%, compared to adjusted Q2 2024.

"This quarter, Norfolk Southern delivered another set of strong results — growing volumes, managing costs and delivering 8% EPS growth," said NS President and CEO Mark George. "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."

George added: "We're controlling what we can control and, in fact, are ahead of schedule on our productivity targets thanks to the exceptional efforts of our Thoroughbred team."

For its 2025 outlook and guidance, NS announced it continues to expect revenue growth in 2025, but given the dynamic economic environment, it is updating full-year revenue growth expectations to 2% to 3% versus 2024.

The company also expects an adjusted OR improvement for 2025, but Q3 2025 is expected to be pressured due to a weaker than expected revenue environment early in the quarter.