NS reports Q1 growth in adjusted earnings despite weather-related interruptions

Norfolk Southern Corp. today reported first-quarter 2025 revenue from railway operations of $3 billion, income of $1.1 billion, diluted earnings per share of $3.31 and an operating ratio of 61.7%.

After adjusting the results to exclude the 2023 train derailment in eastern Ohio, Q1 2025 income from railway operations rose 6% to $961 million and the diluted EPS rose 8% to $2.69 compared with the same quarter a year ago, according to an NS press release.

The company posted Q1 net income of $750 million compared to $53 million a year ago.

The Class I's railway operating revenue of $3 billion declined $11 million compared to Q1 2024. Excluding the impact of fuel surcharge revenue, which was lower compared to the prior year, NS posted railway operating revenue of $2.8 billion, up $47 million, or 2%, compared to adjusted Q1 2024, on volume growth of 1%.

Insurance recoveries related to the derailment in Ohio exceeded incremental costs in the quarter, NS officials said.

NS' OR of 61.7% compared to 92.9% in Q1 2024. Adjusting for the derailment, the Q1 2025 OR was 67.9% compared to the adjusted Q1 2024 OR of 69.9%. 

"The Thoroughbred team once again demonstrated tremendous resilience in the quarter, overcoming a disruptive winter storm season to deliver an improved operating ratio, earnings growth and a consistent service experience for our customers," said President and CEO Mark George.