Norfolk Southern Reports Strong Q1 2025
Norfolk Southern Corporation, a leading freight rail operator serving a 22-state network across the eastern United States, continues to emphasize sustainability by helping customers reduce carbon emissions through rail shipping. In the first quarter of 2025, the company posted an 8% increase in adjusted net income and earnings per share, despite facing weather-related disruptions that initially impacted its operations.
The Atlanta-based railroad (NYSE: NSC) reported railway operating revenues of $3 billion, a slight decline of $11 million compared to the same period in 2024. Income from railway operations surged to $1.1 billion, up $933 million from the prior year. The operating ratio improved significantly to 61.7%, compared to 92.9% in Q1 2024, reflecting major gains in operational efficiency.
Earnings per share (EPS) stood at $3.31, a sharp rise from 23 cents a year earlier, helped in part by insurance recoveries related to the 2023 East Palestine derailment. Since Q2 2024, the company has received $141 million in insurance payouts, which contributed positively to the results. Without these recoveries, income would have been roughly $609 million, or $2.69 per share, compared to $2.49 per share in the same period last year.
Norfolk Southern reaffirmed its full-year guidance, acknowledging ongoing macroeconomic uncertainties. The company credited its resilient performance to the dedication of its workforce, which maintained consistent service levels and customer confidence despite adverse weather conditions and operational obstacles.
