- Norfolk Southern (NSC, Financial) reported a robust Q1 2025 financial performance despite adverse weather conditions.
- Adjusted earnings per share (EPS) increased by 8% year-over-year to $2.69.
- The operating ratio improved by 200 basis points to 67.9%.
Norfolk Southern Corporation (NSC) announced its financial results for the first quarter of 2025, reporting total revenue of $3.0 billion and income from railway operations of $1.1 billion. The company achieved a significant improvement in its operating ratio, decreasing it to 61.7% from 92.9% in the same period last year.
Excluding the impact of the Eastern Ohio incident, adjusted income from railway operations rose to $961 million, a 6% increase compared to the same quarter in 2024. The adjusted operating ratio was reported at 67.9%, reflecting a 200 basis point improvement from 69.9% in the first quarter of 2024.
Norfolk Southern's diluted earnings per share (EPS) for the quarter was $3.31. However, after adjusting for the Eastern Ohio incident, the diluted EPS was $2.69, marking an 8% increase year-over-year from $2.49 in the first quarter of 2024. This improvement in EPS underscores the company's operational resilience and cost efficiency enhancements.
Despite a slight decline in overall revenue compared to Q1 2024, excluding fuel surcharge revenues, railway operating revenues surged to $2.8 billion, representing a 2% rise. The company also experienced a 1% growth in volume year-over-year.
Amidst a disruptive winter storm season, Norfolk Southern maintained its full-year guidance, reflecting confidence in its strategic trajectory while acknowledging the broader macroeconomic uncertainties. Insurance recoveries from the Eastern Ohio incident exceeded the incremental costs, positively impacting the results.
The company's performance has been bolstered by service improvements and enhanced customer confidence, leading to market share gains. According to CEO Mark George, these results were driven by the dedicated efforts of their team, who managed to deliver consistent service quality despite challenging conditions.
