Norfolk Southern reports mixed Q3 financial results

Norfolk Southern Corp. yesterday reported third-quarter 2025 railway operating revenue climbed 2% to $3.1 billion on flat volumes, while income from railway operations fell 31% to $1.1 billion compared to Q3 2024. 

Fuel surcharge revenue declined $30 million compared to Q3 2024, which represents a 1% headwind to overall revenue, NS officials said in a press release.

After adjusting the results to exclude merger-related expenses, restructuring and other charges and the effects of the 2023 derailment in eastern Ohio, Q3 2025 income from railway operations was $1.1 billion, a 2% increase aided by $65 million incremental land sales, NS officials said. 

The company posted diluted earnings per share (EPS) of $3.16 compared to $4.85 a year ago. When adjusted, the Q3 diluted EPS grew 2% to $3.30. Net income came in at $711 million for the quarter, down 35% year over year.

The operating ratio for the quarter was 64.6%, up from 47.7% a year ago, which included the railway line sales. When adjusted, the OR came in at 63.3%, down from 63.4% in Q3 2024.

“Norfolk Southern delivered another quarter of strong results on safety, service and productivity through a dynamic freight market,” said President and CEO Mark George. “The entire Thoroughbred team pulled together to serve our customers, achieve an all-time record in fuel efficiency, delivered on key productivity initiatives, and executed a noteworthy land sale that will ultimately deliver rail volumes for years to come."

In a call with analysts, George touted the railroad's safety improvements, both in the employee injury and train accident categories; stable terminal dwell and car velocity performances; and a new quarterly record in fuel efficiency gains during Q3. 

The merger expenses are related to Union Pacific Railroad's proposed acquisition of NS, which was announced in late July.