Norfolk Southern posts railway revenue, income growth in Q3

Norfolk Southern Corp. today reported third-quarter 2024 operating revenue of $3.1 billion, up 3%, and income from railway operations of $1.6 billion, up 111% compared to the same quarter in 2023.

After adjusting the results to exclude the impact of the sale of two rail lines, the 2023 East Palestine train derailment, restructuring and other charges, NS posted Q3 railway operating income of $1.1 billion — a 22% increase compared to adjusted results a year ago.

On an adjusted basis, the Class I's Q3 operating ratio (OR) was 63.4%, compared to an adjusted OR of 69.1% a year ago. Adjusted diluted earnings per share were $3.25, up 60 cents or 23%, compared to adjusted Q3 2023.

During the quarter, the company closed two railway line sales resulting in cash proceeds of nearly $400 million and gains of $380 million. For the second consecutive quarter, insurance recoveries related to the train derailment in East Palestine, Ohio, exceeded incremental costs.

"Working together, our team drove productivity and grew volumes while demonstrating resiliency in dealing with weather challenges," said NS President and CEO Mark George in a press release. "Thanks to our team's hard work, we delivered sequential and year-over-year margin improvement putting us on track to achieve our adjusted operating ratio targets for the second half and full year 2024, and we are well positioned for long-term value creation."