Core Viewpoint - Union Pacific shareholders have approved a merger with Norfolk Southern, indicating a significant consolidation in the railroad industry [1] Company Summary - Union Pacific and Norfolk Southern are both major railroad operators in the United States, and this merger represents a strategic move to enhance operational efficiencies and market presence [1]

Core Points - U.S. President Donald Trump is funding a $300 million White House ballroom with contributions from himself and 37 donors, including various sectors such as tech, crypto, and philanthropy [1][20] Tech Sector - Major tech companies have contributed, including Amazon, Apple, Google, Meta, Microsoft, and others, with each donating $1 million to Trump's inauguration [3][4][8][20] - Amazon's streaming service paid $40 million for a Melania Trump documentary, and its cloud division is a significant government contractor [3] - Apple CEO Tim Cook has engaged with Trump on EU tax issues and presented him with a customized glass plaque [4] - Microsoft CEO Satya Nadella has met Trump multiple times regarding AI regulations [8] Crypto Sector - Notable crypto donors include Coinbase, Ripple, Tether, and the Winklevoss twins, who have been active in supporting pro-Trump initiatives [10][11] - Trump has eased regulations on cryptocurrencies, which has positively impacted firms like Ripple [11] Energy & Industrial Sector - Companies like Caterpillar and NextEra Energy have contributed, with Caterpillar primarily supporting Republican initiatives [12] - NextEra Energy is the largest U.S. electric utility, aligning with Trump's vision for tech companies needing electricity for AI data centers [12] Philanthropy - The Adelson Family Foundation and other philanthropic organizations have made contributions, focusing on various causes including support for Israel and the arts [13] Defense & National Security - Defense contractors like Booz Allen Hamilton and Lockheed Martin have shown support for Trump's initiatives, with Booz Allen settling government lawsuits under the Biden administration [17] Individual Donors - Several individual donors, including biotech entrepreneur Stefan E. Brodie and sports team owners like Edward Glazer, have contributed to Trump's campaigns [18][19]

BAIRD 2025 GLOBAL INDUSTRIALS CONFERENCE UNION PACIFIC CORPORATION JIM VENA – CHIEF EXECUTIVE OFFICER JENNIFER HAMANN – CHIEF FINANCIAL OFFICER Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be 1 Cautionary Information 2 3 Strategic Execution Driving Industry Leading Results SAFETY + SERVICE & OPERATIONAL EXCELLENCE 210 219 215 221 226 238 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25** 86% 89% 94% 99% 98% 100% 89% 96% 93% 97% 100% 100% Q3'24 Q4 ...

Core Viewpoint - The proposed merger between Union Pacific and Norfolk Southern, valued at $85 billion, is viewed negatively by Canadian railroads, including Canadian Pacific Kansas City and Canadian National, who argue it will harm the industry and reduce customer options [1][2]. Group 1: Industry Concerns - CPKC stated that the merger is "not in the public interest," "unnecessary," and would dominate rail transportation markets, limiting customer choices [2]. - CN's president emphasized that the industry does not require a merger to enhance service, advocating for more cooperation instead of consolidation [3]. - Both CPKC and CN have launched campaigns urging shippers to voice their opposition to the merger to the Surface Transportation Board (STB) [2][3]. Group 2: Regulatory Process - Union Pacific and Norfolk Southern plan to submit their merger application to the STB by early December, seeking to expedite the review process by requesting a 45-day reduction [4]. - The STB's review is anticipated to take between 17 to 22 months, with the timeline for shippers to file notices typically set for 45 days post-application submission [4]. - CPKC's CEO has called for a thorough review of the merger application, indicating that a comprehensive evaluation cannot be completed in less than 16 to 17 months [5][6].

Industry Overview - U.S. Class I railroads are experiencing tepid growth with a 3% year-over-year decline in rail volumes for the week ending October 25, 2025, totaling 498,462 carloads and intermodal units moved, despite a 2% year-to-date increase [1] - North American rail volumes, including major U.S. players, averaged around 700,000 carloads over the trailing four-week period, showing a year-over-year dip while intermodal traffic, which constitutes 53% of total volume, experienced a 4% year-to-date gain but fell 4% in Week 43 [2] Commodity Performance - Grain volumes have increased by 7% year-to-date and 5% quarter-to-date, driven by strong U.S. exports amid global supply disruptions, with record soybean harvests reported by the U.S. Department of Agriculture [3] - Coal shipments showed mixed results, remaining flat weekly but down 3% quarter-to-date and up 4% year-to-date, reflecting earlier increases in domestic power plant usage, although recent declines indicate a cooling trend as natural gas prices stabilize [3] Automotive Sector Impact - North American automotive carloads decreased by 10% in Week 43, with a quarter-to-date increase of 2%, primarily due to a fire at Novelis' aluminum plant, which halted production and is expected to cost Ford an estimated 90,000-100,000 vehicles in Q4 [4] - Ford is increasing shifts at other plants to mitigate losses, while GM is facing lesser impacts; Eastern railroads anticipate Q4 pressure due to their proximity to affected auto plants, whereas Western railroads have maintained relative stability [4]

Core Viewpoint - Norfolk Southern Corporation (NSC) is a significant player in the rail freight transportation sector, competing with major companies like Union Pacific and CSX Corporation. The company has shown strong performance despite recent stock price adjustments and market volatility [1][2][3]. Group 1: Stock Performance - RBC Capital maintained a "Sector Perform" rating for NSC, with a revised price target lowered from $320 to $315 [2][5]. - NSC has outperformed the S&P 500 by approximately 10% since the last review, indicating solid performance despite a slight decrease in stock price to $281.89, down 0.68% today [2][5]. - The stock's trading range today has been between $280.46 and $285.08, with a yearly high of $302.24 and a low of $201.63, reflecting significant volatility [3]. Group 2: Market Capitalization and Investor Interest - Norfolk Southern's market capitalization is around $63.25 billion, with a trading volume of 693,595 shares, suggesting strong investor interest [4][5]. Group 3: Potential Deals and Future Impact - Investors should monitor the potential deal with Union Pacific, which could have a significant impact on both companies over the next year [4][5].

Core Viewpoint - Norfolk Southern Corporation (NSC) is positioned for potential growth with a price target of $315 set by RBC Capital, indicating an 11.9% upside from its current trading price of $281.50 [1]. Financial Performance - The Q3 2025 earnings call on October 23, 2025, included key executives and attracted analysts from major financial institutions, highlighting strong interest in NSC's financial performance and strategic direction [2]. - NSC's current stock price is $281.58, showing a slight decrease of $2.25 or approximately -0.79%, with a daily trading range between $281.02 and $285.08 [3]. Market Position - Norfolk Southern's market capitalization stands at approximately $63.18 billion, reflecting its significant presence in the transportation sector [4]. - The trading volume on the NYSE is 391,369 shares, indicating active investor interest in the company's stock [4].

Core Viewpoint - Norfolk Southern (NYSE: NSC) was trading at approximately $220 per share earlier this year, reflecting a 10% discount to its fair value based on analysis [1]. Summary by Relevant Sections Company Performance - The stock price of Norfolk Southern was noted to be around $220 per share following their Q1 2025 earnings release [1]. Investment Analysis - The analysis indicates that the stock appears to be undervalued, trading at a 10% discount to its fair value [1].

Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Insights - Norfolk Southern reported revenue of $3.1 billion for the quarter ended September 2025, reflecting a 1.7% increase year-over-year and exceeding the Zacks Consensus Estimate of $3.09 billion by 0.44% [1] - The company's EPS for the quarter was $3.30, up from $3.25 in the same quarter last year, surpassing the consensus EPS estimate of $3.18 by 3.77% [1] Financial Performance Metrics - Railway Operating Ratio was reported at 64.6%, higher than the estimated 63.7% by analysts [4] - Total carloads volume was 1.8 million, matching the average estimate [4] - Intermodal carloads volume was 1.03 million, consistent with the average estimate [4] - Merchandise carloads volume was 595.1 thousand, exceeding the estimated 589.88 thousand [4] - Coal carloads volume was 176.7 thousand, slightly below the estimated 179.4 thousand [4] Revenue Breakdown - Railway operating revenues from Merchandise (Agriculture, forest, and consumer products) were $630 million, slightly below the estimate of $639.63 million, with a year-over-year change of +1% [4] - Railway operating revenues from Coal were $375 million, below the estimate of $389.94 million, representing a year-over-year decline of 12.2% [4] - Railway operating revenues from Chemicals were $569 million, surpassing the estimate of $560.89 million, with a year-over-year increase of +4.8% [4] - Railway operating revenues from Intermodal were $759 million, slightly below the estimate of $760.31 million, with a year-over-year change of -0.5% [4] - Railway operating revenues from Automotive were $322 million, exceeding the estimate of $299.46 million, reflecting a year-over-year increase of +17.5% [4] - Total Railway operating revenues from Merchandise were $1.97 billion, above the estimate of $1.95 billion, with a year-over-year change of +5.8% [4] - Railway operating revenues from Metals and construction were $448 million, slightly below the estimate of $452.58 million, with a year-over-year increase of +6.7% [4] Stock Performance - Norfolk Southern's shares have returned -1.6% over the past month, contrasting with the Zacks S&P 500 composite's +0.2% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]