Norfolk Southern Reports 2% Revenue Growth to $3.11 Billion in Q2 2025

Norfolk Southern Corporation reported its financial results for the second quarter and first half of 2025, showing a modest increase in railway operating revenues to $3.11 billion, up 2% from $3.04 billion in the same period last year. For the first six months, revenues reached $6.10 billion, a slight increase from $6.05 billion in 2024. The company’s net income for the second quarter was $768 million, a 4% increase from $737 million in the prior year, while net income for the first half surged 92% to $1.52 billion compared to $790 million in 2024. Diluted earnings per share also rose, reaching $3.41 for the second quarter and $6.72 for the first six months, reflecting increases of 5% and 93%, respectively.

The financial performance was bolstered by a reduction in railway operating expenses, which fell to $1.94 billion in the second quarter from $1.91 billion a year earlier, and significantly decreased by 20% to $3.78 billion for the first half, down from $4.70 billion. This decline was attributed to lower costs associated with the Eastern Ohio incident, where insurance recoveries exceeded incremental expenses. The operating ratio improved to 62.2% in the second quarter, down from 62.8% in 2024, indicating a more efficient operation.

In terms of operational developments, Norfolk Southern reported an increase in merchandise revenues, driven by higher volumes in agriculture, chemicals, and automotive sectors. The company also noted a slight decline in coal revenues due to lower average revenue per unit, despite an increase in utility coal tonnage. The intermodal segment remained stable, with a 1% increase in total intermodal units for the second quarter. The company’s workforce saw a reduction, with an average rail headcount down by approximately 970 compared to the previous year.

Strategically, Norfolk Southern has been active in managing its capital structure, repurchasing $456 million of common stock in the first half of 2025, a significant increase from no repurchases in the same period last year. The company also issued $400 million in senior notes due 2035 and renewed its accounts receivable securitization program, maintaining a borrowing capacity of $400 million. Looking ahead, Norfolk Southern anticipates revenue growth for the remainder of 2025, driven by higher volumes, despite ongoing macroeconomic uncertainties.

The company is also navigating the aftermath of the Eastern Ohio incident, which has resulted in various legal and environmental challenges. As of June 30, 2025, Norfolk Southern recorded total liabilities related to the incident at $721 million, with ongoing efforts to manage environmental remediation and legal proceedings. The company remains focused on operational efficiency and strategic growth, while also preparing for a potential merger with Union Pacific Corporation, which is subject to regulatory approvals and other conditions.