Norfolk Southern posts lower revenue, higher income in Q4

Norfolk Southern Corp. yesterday announced fourth-quarter 2024 revenue declined 2% to $3 billion, and income from railway operations rose 40% to $1.1 billion compared with Q4 2023 financial results. The company posted diluted earnings per share (EPS) of $3.23 and an operating ratio (OR) of 62.6% for the quarter.

After adjusting the results to exclude the impact of railway line sales, the February 2023 derailment in East Palestine, restructuring and other charges, as well as shareholder advisory costs, Q4 income from railway operations was $1.1 billion, the OR was 64.9% and the diluted EPS was $3.04, according to an NS press release.

Excluding the same items, as well as a deferred income tax benefit, full-year income from railway operations was $4.1 billion, operating ratio was 65.8%, and the diluted EPS was $11.85.

For the third consecutive quarter, insurance recoveries related to the Eastern Ohio incident exceeded incremental costs.

Additionally, NS reported the following for Q4:
• Excluding the impact of lower fuel surcharge revenue, railway operating revenue was $2.8 billion, up 2%, on volume growth of 3% compared to Q4 2023;
• Adjusting for the impact of railway line sales, restructuring and other charges, and the Eastern Ohio incident, income from railway operations was $1.1 billion, up $104 million, or 11%, compared to adjusted Q4 2023;
• The Q4 OR of 62.6% compared to 73.7% Q4 2023. On an adjusted basis, the OR for Q4 was 64.9%. This represents 390 basis points of improvement from the adjusted Q4 2023 of 68.8%; and
• The adjusted diluted EPS of $3.04 increased 7% from the Q4 2023 adjusted diluted EPS.

"We closed 2024 with another quarter of solid performance, building on the success of Q3. Our network is running fast, our terminals are more efficient and service metrics are steady," said President and CEO Mark George. "Our customers are noticing and rewarding us with more business."