NS posts 'strong' Q2 results

Norfolk Southern Corp. yesterday announced second-quarter 2024 income from railway operations of $1.1 billion, an operating ratio of 62.8% and diluted earnings per share of $3.25.

After adjusting the results to exclude the impact of the February 2023 train derailment in East Palestine, Ohio, restructuring and other charges, as well as shareholder advisory costs from the recent proxy contest, NS posted $1.1 billion in railway operating income, an operating ratio of 65.1% and diluted EPS of $3.06.

Notably, in Q2, the impact of the East Palestine incident included insurance recoveries that were greater than the costs incurred in the quarter, NS officials said in a press release.

Railway operating revenue in the quarter grew 2% to $3 billion compared to the same period in 2023. When adjusted for East Palestine, restructuring and other costs, the railway net income of $1.1 billion rose 7% year over year.

The operating ratio in the quarter was 62.8% compared to 80.7% in Q2 2023. When adjusted, the Q2 operating ratio was 65.1% compared to 66.7% a year ago. The quarter’s adjusted EPS of $3.06 represented a 4% increase over Q2 2023.

The quarter’s results — including on operating ratio and expenses — were “strong,” said NS President and CEO Alan Shaw in a press release.

"During the quarter, we demonstrated that we are leveraging our service product to secure volume growth, enhancing our safety culture, and accelerating operational improvements, while eliminating service recovery costs," he said. "These results show that our strategy is working and that our momentum is building."

The company reaffirmed its guidance of a full-year adjusted operating ratio of about 66%, Shaw said.