NSC · Norfolk Southern Corporation

Norfolk Southern's Q1 2026 results reflect disciplined execution amid challenges including volatile volumes, severe winter weather, and rising fuel prices in March, as stated by CEO Mark George. Railway operating revenues held flat at $3.0 billion despite a 1% volume decline, with Merchandise up slightly to $1,885 million, Intermodal down to $749 million, and Coal at $364 million. GAAP income from railway operations fell 23% to $877 million, driven by higher expenses: compensation and benefits steady at $740 million, purchased services up to $522 million, fuel up 5% to $256 million, and depreciation up to $352 million. Notably, $52 million in merger-related expenses and $10 million net Eastern Ohio incident costs impacted results, versus $185 million recoveries last year. Adjusted metrics show resilience, with income from operations down just 2% to $939 million and operating ratio up 80 basis points to 68.7%. Diluted EPS declined 27% to $2.43 GAAP but only 1% adjusted to $2.65. Balance sheet remains solid with $1.3 billion cash, though operating cash flow dropped to $344 million from $950 million, reflecting working capital changes. No share repurchases occurred, versus 1.0 million shares last year. Management emphasized safety, service recovery, and cost control, positioning for momentum into Q2 without providing explicit guidance.