NSC
Norfolk Southern Corporation294.00
-5.49-1.83%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
1% headwind, fight-back services
Q&A quantified a 1% revenue headwind from merger-driven competition—like J.B. Hunt shifting to CSX—while unveiling counter-moves such as new Louisville-UP and Massachusetts services to stem further bleed. Management broke down 2026 OpEx ($8.2-8.4B): 4% inflation and $30-40M normalized land sales offset by $150M productivity, with headcount flat to down. No volume guide issued; costs flex for scenarios up to mid-single-digit growth. Fight like hell for quality revenue. Merger opposition dismissed as rivals' self-interest; STB snag deemed mere completeness fix. Cautious on intermodal/coal; investors eye demand snapback.
Key Stats
Market Cap
65.97BP/E (TTM)
22.43Basic EPS (TTM)
13.11Dividend Yield
0.02%Recent Filings
10-K
FY2025 results
Norfolk Southern posted $12.2B in FY2025 railway operating revenues, flat y/y but with merchandise up 3% to $7.7B on automotive and chemicals volume gains, while coal dropped 8% amid soft export demand; operating ratio sharpened to 64.2% from 66.4% via fuel savings and Incident net recoveries exceeding expenses by $254M. Volumes held steady at 7.1M units, but Q4 details absent. Cash from operations hit $4.4B, funding $2.2B capex and $534M buybacks before suspending for the pending Union Pacific merger. Debt stands at $17.1B with $1.5B cash. Merger regulatory delays risk stalling momentum.
8-K
Q4 revenues down, productivity beats
Norfolk Southern reported Q4 2025 railway revenues of $3.0B, down 2% on 4% volume drop, with income from operations at $937M and operating ratio of 68.5%. Adjusted figures excluding merger costs and Eastern Ohio effects showed $1.0B income, 65.3% ratio—yet full-year adjusted operating ratio improved 80bps to 65.0%, beating productivity targets with over $215M savings. Demand stays unclear for 2026.
8-K
UP-NS merger application filed
Norfolk Southern and Union Pacific filed their STB merger application on December 19, 2025, advancing the July 29 deal to form America's first transcontinental railroad with 50,000 route miles. It pledges to slash 2,400 daily handlings and 60,000 car-miles, shift 2 million truckloads to rail yearly, protect all union jobs, and add 900 net new ones by year three—while investing $2.1B for $2B revenue synergies and $133M annual capex savings. STB approval remains key amid integration risks.
8-K
Shareholders approve UP merger
Norfolk Southern shareholders approved the merger with Union Pacific on November 14, 2025, with 162M votes for versus 2M against. Shareholders get 1.0 UP share plus $88.82 cash per NSC share. Closing eyed for early 2027, pending STB approval. Merger promises coast-to-coast rail network. Regulatory nod remains key hurdle.
8-K
Merger proxy supplements issued
Norfolk Southern issued supplemental disclosures to its Joint Proxy Statement/Prospectus, addressing three New York lawsuits and demand letters alleging disclosure flaws in the Union Pacific merger materials. Mailed October 10, these updates refine fairness opinions from Morgan Stanley, Wells Fargo, and BofA, detailing NS's $6,663M NTM Adjusted EBITDA and broker targets ($174-$300/share). Shareholder votes loom November 14. Companies deny merit, aim to quash delays.
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