Norfolk Southern posts lower revenue, net income in Q4

Norfolk Southern Railway today reported fourth-quarter 2025 railway operating revenue of $2.97 billion, down 2%, and net income of $644 million, down 12%, and diluted earnings per share of $2.87, down 11% compared to the same quarter in 2024.

The Class I posted income from railway operations of $937 million, down 17%. The operating ratio (OR) increased to 68.5% in the quarter from 62.6% in Q4 2024. Railway operating income in 2024 included railway line sales of $53 million. Q4 2025 includes a large land sale that resulted in a net gain of $85 million.

Adjusting the results to exclude Union Pacific Railroad-NS merger-related expenses and the effects of the East Palestine, Ohio, train derailment in 2023, Q4 2025 income from railway operations was $1 billion, the OR was 65.3%, and diluted EPS were $3.22.

For full-year 2025, total railway operating revenue rose less than 1% to $12.2 billion, net income rose 10% to $2.9 billion, and diluted EPS rose 10% to $12.75 compared to 2024's results. Fuel surcharge revenue declined $134 million compared to 2024, which represents a 1% headwind to overall revenue. The company reported full-year 2025 railway operating income of $4.36 billion, up 7%, and an OR of 64.2%, down 3%

Adjusting for the impact of merger-related expenses in 2025, restructuring and other charges in both years, the Eastern Ohio incident in both years and gains on railway line sales in 2024, income from railway operations in 2025 was $4.3 billion, up 3%, compared to adjusted 2024. The adjusted OR for 2025 was 65% compared to the adjusted OR a year ago of 65.8%.

“In 2025, we strengthened the foundation of our railroad. We kept our cost commitments, maintained reliable service and delivered measurable safety gains with the company’s best injury and accident rates in more than a decade,” said President and CEO Mark George in a press release. “In the face of a volatile and challenging macro-economic backdrop, our team focused on the controllables — delivering outsized productivity savings in excess of $215 million that accompanies our safety and service improvements."

The demand environment remains unclear for 2026, George said.

"[B]ut we are steadfastly focused on prioritizing the safety of our employees and communities, delivering consistent customer service and driving further productivity gains to contain our costs in any volume environment," he added.