Core Viewpoint - Norfolk Southern Corporation (NSC) is expected to report first-quarter 2025 results on April 23, with earnings estimates revised downward by 5.2% to $2.72, indicating a 9.2% increase year-over-year, while revenues are projected at $3.01 billion, reflecting a 0.1% rise from the previous year [1]. Group 1: Earnings Performance - NSC's earnings have lagged the Zacks Consensus Estimate once in the last four quarters, surpassing it in the other three, with an average rise of 2.9% [2]. - The model does not predict an earnings beat for NSC this quarter, with an Earnings ESP of -0.60% and a Zacks Rank of 3 (Hold) [7]. Group 2: Factors Influencing Performance - The first-quarter top-line performance is expected to be negatively impacted by inflation, high interest rates, tariff uncertainties, weak freight demand, and supply-chain disruptions [3]. - E-commerce demand is driving shipment volumes for NSC, which is likely to positively influence results [5]. - However, softness in freight revenues and volumes is anticipated to negatively affect performance in the upcoming quarter [6]. Group 3: Segment Performance - The Intermodal segment's revenue consensus is $767.6 million, indicating a 3% increase from Q1 2024, while the Coal segment's revenue consensus is $368.8 million, reflecting a 7% decrease from the same period [4]. Group 4: Previous Earnings Highlights - In Q4 2024, NSC reported earnings of $3.04 per share, beating the Zacks Consensus Estimate of $2.95, with a year-over-year increase of 7.4% due to lower costs [8].

Company Overview - Norfolk Southern (NSC) shares increased by 7.6% to close at $222.02, following a significant trading volume compared to normal sessions, despite a prior 11.4% loss over the past four weeks [1] - The stock's gain was influenced by President Donald Trump's announcement to pause "reciprocal" import taxes for 90 days, as over 75 countries sought trade deals [2] Earnings Expectations - Norfolk Southern is projected to report quarterly earnings of $2.83 per share, reflecting a year-over-year increase of 13.7%, with expected revenues of $3.02 billion, up 0.7% from the previous year [2] - However, the consensus EPS estimate has been revised down by 1.2% over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] Industry Context - Norfolk Southern is part of the Zacks Transportation - Rail industry, where Canadian Pacific Kansas City (CP) also operates, having closed 9% higher at $73.18, but with a -8.1% return over the past month [4] - Canadian Pacific Kansas City's consensus EPS estimate has decreased by 0.3% to $0.75, representing an 8.7% increase compared to the previous year's EPS [5]

HUNTSVILLE, Ala., April 3, 2025 /PRNewswire/ -- The International Intermodal Center (IIC) at the Port of Huntsville announces a second consecutive year of growth in cargo operations in 2024 and the best year since 2008 for rail lifts. The North Alabama inland port saw 22.3% more rail lifts in 2024 (33,745) than in 2023 (27,597). On March 19, 2025, the IIC surpassed a historic milestone of one million lifts. Port of Huntsville announces second consecutive year of cargo operations growth in 2024, surpasses 1M ...

Core Insights - Norfolk Southern Corporation has launched RailGreen, a pioneering solution aimed at enabling customers to reduce emissions from freight rail shipments, making it the only freight railroad globally to offer verified certificates for supply chain emissions reduction [1][2][3] Emissions Reduction - Shipping by rail reduces emissions by an average of 75% compared to trucking, with RailGreen addressing the remaining 25% of emissions [2] - RailGreen utilizes blockchain-backed Environmental Attribute Certificates (EACs) to ensure that each ton of reduced CO₂e is uniquely tracked, preventing double counting [4][6] Transparency and Verification - The RailGreen process provides end-to-end transparency, verifying the chain of custody across various stakeholders, including fuel providers and cargo owners, with third-party validation against international standards [5][6] Commitment to Sustainability - RailGreen is part of Norfolk Southern's broader commitment to low-carbon freight solutions, including increased biofuel usage, which is third-party certified and generates RailGreen certificates for customers [7][8] - The company aims to more than double its biofuel consumption from 2022 to further reduce locomotive emissions [9] Industry Impact - RailGreen represents a significant shift in the freight rail industry by providing measurable supply chain decarbonization, enhancing the credibility needed for shippers to meet sustainability goals [6]

Group 1 - Norfolk Southern Corporation will participate in the 2025 J.P. Morgan Industrials Conference with a fireside chat featuring COO John Orr and CFO Jason Zampi on March 12, 2025, at 9 a.m. (ET) [1] - The presentation will be available for viewing on the Norfolk Southern Investors page [1] Group 2 - Norfolk Southern has been operating since 1827, focusing on freight transportation that supports the U.S. economy [2] - The company is committed to sustainability, helping customers avoid approximately 15 million tons of carbon emissions annually by utilizing rail transport [2] - Norfolk Southern delivers over 7 million carloads each year, covering a wide range of goods from agriculture to consumer products [2] - The company leads in automotive traffic among Class I Railroads and boasts the most extensive intermodal network in the eastern U.S. [2] - Norfolk Southern serves a significant portion of the U.S. population and manufacturing base, with connections to major container ports along the Atlantic coast, Gulf Coast, and Great Lakes [2]

Company Overview - Norfolk Southern Corporation has been operating since 1827, focusing on freight transportation across a 22-state network in the U.S. [2] - The company is committed to sustainability, helping customers avoid approximately 15 million tons of carbon emissions annually by utilizing rail shipping [2] - Norfolk Southern delivers around 7 million carloads each year, covering a wide range of goods from agriculture to consumer products [2] - The company boasts the most extensive intermodal network in the eastern U.S., serving a majority of the U.S. population and manufacturing base [2] Upcoming Event - Norfolk Southern's President and CEO Mark George, along with Executive Vice President and Chief Marketing Officer Ed Elkins, will participate in a fireside chat at the Barclays 42nd Annual Industrial Select Conference [1] - The event is scheduled for February 19, 2025, at 10:25 a.m. ET and will be available via webcast [1] - The presentation will be accessible on Norfolk Southern's Investors page on their website [1]

Financial Performance - Total railway operating revenues reached $12.1 billion in 2024, with merchandise carloads accounting for 62% of revenues[18] - The company handled 2.3 million merchandise carloads in 2024, and intermodal units totaled 4.1 million, representing 25% of total revenues[20] - Coal revenues constituted 13% of total railway operating revenues, with 76.7 million tons handled[21] - The railway operating ratio improved to 66.4% in 2024, down from 76.5% in 2023[18] - Approximately 90% of the company's revenues come from exempt shipments or shipments moving under transportation contracts[40] Capital Expenditures and Assets - Capital expenditures for property additions totaled $4.024 billion in 2024, including $1.643 billion for the acquisition of CSR assets[23] - The company has a net property value of approximately $36 billion on a historical cost basis[23] - The company completed the acquisition of a 337-mile railway line from Cincinnati Southern Railway in March 2024[17] Operations and Infrastructure - The company operates 35,000 total miles of track, maintaining 28,300 miles[26] - The average age of locomotives in service is 29.6 years, with 61 units retired in 2024[26] Workforce and Labor Relations - Approximately 80% of railroad employees are covered by collective bargaining agreements[30] Safety and Security - The company provided rail accident response training to more than 5,500 emergency responders in 2024[51] - The company continues to enhance the security of its rail system, following a comprehensive security plan developed post September 11, 2001[47] - The company operates under U.S. Coast Guard Maritime Security Regulations at four facilities, with security plans approved by the Captain of the Port[49] - The company has ongoing programs to sponsor local emergency responders at the Security and Emergency Response Training Center[51] - The company evaluates its business continuity and disaster recovery planning, including scenarios for cybersecurity attacks[52] - The company is engaged in close coordination with federal and state agencies to enhance security and response capabilities[50] Regulatory Environment and Competition - The company is subject to regulation by the U.S. Surface Transportation Board (STB), which determines if the company is "revenue adequate" based on its return on net investment[39] - The company faces strong competition from rail, water, and highway carriers, with price being only one of several important factors for shippers[44] - The company continues to oppose efforts to reimpose increased economic regulation in the rail industry[41]

Financial Performance - Norfolk Southern reported revenue of $3.02 billion for the quarter ended December 2024, a decrease of 1.6% year-over-year [1] - The earnings per share (EPS) was $3.04, an increase from $2.83 in the same quarter last year [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $3.03 billion, resulting in a surprise of -0.16% [1] - The company delivered an EPS surprise of +3.05%, with the consensus EPS estimate being $2.95 [1] Key Metrics - Railway Operating Ratio was reported at 62.6%, better than the average estimate of 65.6% based on five analysts [4] - Total carloads volume was 1.79 million, slightly below the average estimate of 1.8 million [4] - Carloads volume for merchandise was 560.5 thousand, compared to the four-analyst average estimate of 561.8 thousand [4] - Carloads volume for intermodal was 1.06 million, matching the average estimate [4] Revenue Breakdown - Railway operating revenues from merchandise in agriculture, forest, and consumer products were $646 million, exceeding the average estimate of $634.38 million, with a year-over-year change of +1.1% [4] - Railway operating revenues from coal were $390 million, above the average estimate of $378.60 million, but represented a year-over-year decline of -9.3% [4] - Railway operating revenues from merchandise in chemicals were $521 million, slightly below the average estimate of $522.38 million, with a year-over-year change of +1.8% [4] - Railway operating revenues from intermodal were $792 million, compared to the average estimate of $786.47 million, reflecting a year-over-year change of -0.3% [4] - Railway operating revenues from merchandise in automotive were $283 million, below the average estimate of $293.01 million, with a year-over-year change of -4.4% [4] - Total railway operating revenues from merchandise were $1.84 billion, slightly below the average estimate of $1.86 billion, with a year-over-year change of -0.4% [4] - Railway operating revenues from merchandise in metals and construction were $392 million, compared to the average estimate of $414.01 million, representing a year-over-year change of -2.5% [4] Stock Performance - Norfolk Southern shares returned +7.5% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1: Earnings Performance - Norfolk Southern reported quarterly earnings of $3.04 per share, exceeding the Zacks Consensus Estimate of $2.95 per share, and up from $2.83 per share a year ago, representing an earnings surprise of 3.05% [1] - The company posted revenues of $3.02 billion for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.16%, and down from $3.07 billion year-over-year [2] Group 2: Stock Performance and Outlook - Norfolk Southern shares have increased approximately 7.5% since the beginning of the year, outperforming the S&P 500's gain of 3.2% [3] - The current consensus EPS estimate for the upcoming quarter is $2.91 on revenues of $3.04 billion, and for the current fiscal year, it is $13.21 on revenues of $12.58 billion [7] Group 3: Industry Context - The Transportation - Rail industry, to which Norfolk Southern belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges ahead [8] - Another company in the same industry, Canadian National, is expected to report a year-over-year earnings decline of 7.4% for the quarter ended December 2024, with revenues anticipated to be down 6.4% from the previous year [9][10]

Q4 2024 EARNINGS CALL January 29, 2025 FORWARD-LOOKING STATEMENTS / NON-GAAP MEASURES This presentation and the related materials contain "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements relate to future events or future performance of Norfolk Southern Corporation (NYSE: NSC) ("Norfolk Southern," "NS," the "Company," "we," "our," or "us") and involve known and unknown risks, uncertainties, an ...