Global Finance News
29 Jan 2026, 20:02
Norfolk Southern Corporation reported fourth-quarter and full-year 2025 results, highlighting meaningful safety and service improvements alongside productivity gains that more than offset a challenging demand environment.
In the fourth quarter, revenue totaled $3.0 billion, down 2% year over year due to a 4% decline in volumes. Income from railway operations was $937 million and diluted EPS came in at $2.87, both lower than a year earlier, which had benefited from railway line sales. On an adjusted basis, excluding merger-related expenses and impacts from the Eastern Ohio incident, income from railway operations was $1.0 billion, the operating ratio was 65.3%, and adjusted diluted EPS rose 6% year over year to $3.22.
For the full year, railway operating revenues edged up to $12.2 billion, despite a $134 million headwind from lower fuel surcharge revenue. Income from railway operations increased 7% to $4.4 billion, while the operating ratio improved to 64.2%, reflecting stronger cost control and productivity. Diluted EPS for 2025 rose 10% to $12.75, with adjusted EPS up 5% to $12.49.
Management said the company delivered its best safety performance in more than a decade and exceeded its full-year productivity target, achieving more than $215 million in annual savings. While the demand outlook for 2026 remains uncertain, Norfolk Southern emphasized continued focus on safety, reliable service, and further productivity gains to manage costs across varying volume conditions.
In the fourth quarter, revenue totaled $3.0 billion, down 2% year over year due to a 4% decline in volumes. Income from railway operations was $937 million and diluted EPS came in at $2.87, both lower than a year earlier, which had benefited from railway line sales. On an adjusted basis, excluding merger-related expenses and impacts from the Eastern Ohio incident, income from railway operations was $1.0 billion, the operating ratio was 65.3%, and adjusted diluted EPS rose 6% year over year to $3.22.
For the full year, railway operating revenues edged up to $12.2 billion, despite a $134 million headwind from lower fuel surcharge revenue. Income from railway operations increased 7% to $4.4 billion, while the operating ratio improved to 64.2%, reflecting stronger cost control and productivity. Diluted EPS for 2025 rose 10% to $12.75, with adjusted EPS up 5% to $12.49.
Management said the company delivered its best safety performance in more than a decade and exceeded its full-year productivity target, achieving more than $215 million in annual savings. While the demand outlook for 2026 remains uncertain, Norfolk Southern emphasized continued focus on safety, reliable service, and further productivity gains to manage costs across varying volume conditions.
