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 ...

Financial Performance - Total railway operating revenues for Q4 2024 were $3,024 million, a decrease of 1.6% from $3,073 million in Q4 2023[2] - Net income for 2024 was $2,622 million, representing a 43.6% increase compared to $1,827 million in 2023[2] - Earnings per share (diluted) increased to $11.57 in 2024, up 44.5% from $8.02 in 2023[2] - Total railway operating expenses decreased to $1,893 million in Q4 2024, down 16.4% from $2,265 million in Q4 2023[2] Cash Flow and Assets - Cash flows from operating activities for 2024 were $4,052 million, an increase of 27.5% from $3,179 million in 2023[6] - Cash and cash equivalents at the end of 2024 were $1,641 million, an increase from $1,568 million at the end of 2023[6] - Total assets increased to $43,682 million at the end of 2024, up from $41,652 million at the end of 2023[4] Restructuring and Incidents - The company recognized $183 million in restructuring and other charges during 2024, with $27 million recognized in Q4 2024[8] - The Eastern Ohio incident resulted in expenses of $325 million in 2024, significantly lower than $1.1 billion in 2023[9] Share Repurchase - The company did not repurchase any shares in 2024, compared to repurchasing 2.8 million shares for $627 million in 2023[12]

Core Insights - Norfolk Southern Corporation reported solid financial performance for Q4 and full-year 2024, with a focus on productivity initiatives and operational efficiency [1][4][7] Financial Performance Summary - Q4 2024 revenue was $3.0 billion, with income from railway operations at $1.1 billion and an operating ratio of 62.6% [1][7] - Full-year 2024 revenue totaled $12.1 billion, with income from railway operations at $4.1 billion and an operating ratio of 66.4% [1][7] - Adjusted Q4 income from railway operations was $1.1 billion, reflecting a 40% increase compared to Q4 2023 [7] - Adjusted full-year income from railway operations was $4.1 billion, a 43% increase compared to 2023 [7] Adjusted Financial Metrics - Adjusted Q4 operating ratio was 64.9%, improving by 390 basis points from the adjusted Q4 2023 [7] - Adjusted diluted earnings per share for Q4 were $3.04, a 7% increase compared to adjusted Q4 2023 [7] - Full-year adjusted diluted earnings per share were $11.85, up 1% compared to adjusted 2023 [8][15] Operational Highlights - The company experienced a 3% volume growth in Q4 2024 compared to Q4 2023, despite a 2% decline in railway operating revenues [7] - Insurance recoveries related to the Eastern Ohio incident exceeded incremental costs for the third consecutive quarter [3] - The company emphasized its commitment to safety, productivity, and operational excellence, positioning itself for long-term value creation [4]

Core Insights - Norfolk Southern Corporation has appointed Lori J. Ryerkerk to its Board of Directors, expanding the board to 14 members [1][2] - Ryerkerk brings over 30 years of global leadership experience in the energy, manufacturing, and chemical industries, which is expected to enhance Norfolk Southern's operational capabilities [2][4] - The appointment aligns with Norfolk Southern's strategic vision to improve operational excellence and service delivery to customers [2][3] Company Overview - Norfolk Southern operates a freight transportation network across 22 states, contributing significantly to the U.S. economy by moving goods and materials [6] - The company is committed to sustainability, helping customers avoid approximately 15 million tons of carbon emissions annually by utilizing rail transport [6] - Norfolk Southern delivers around 7 million carloads each year, serving a diverse range of industries from agriculture to consumer goods [6] Lori J. Ryerkerk's Background - Ryerkerk previously served as chairman, CEO, and president of Celanese Corp., where she led significant growth and transformative acquisitions [3][4] - Her experience includes senior leadership roles at Shell, Hess Corp., and ExxonMobil, focusing on refining, chemicals, and global operations [4][5] - Ryerkerk holds a degree in chemical engineering and currently serves on the board of Eaton Corp., further enhancing her qualifications for the role at Norfolk Southern [5]

Core Viewpoint - Norfolk Southern (NSC) is anticipated to report a year-over-year increase in earnings despite a decline in revenues for the quarter ending December 2024, with the actual results being crucial for the stock's near-term price movement [1][2]. Earnings Expectations - The earnings report is scheduled for January 29, 2025, and could positively influence the stock if the results exceed expectations, while a miss could lead to a decline [2]. - The consensus estimate for quarterly earnings is $2.95 per share, reflecting a year-over-year increase of +4.2%, while revenues are projected at $3.03 billion, down 1.4% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 1.22%, indicating a reassessment by analysts [4]. - The Zacks Earnings ESP model suggests that the Most Accurate Estimate is higher than the consensus, resulting in an Earnings ESP of +0.80%, indicating a bullish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with a positive Earnings ESP being a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [6][8]. - Historical performance shows that Norfolk Southern has beaten consensus EPS estimates in two out of the last four quarters, with a recent surprise of +4.84% [12][13]. Conclusion - Norfolk Southern is positioned as a compelling candidate for an earnings beat, but investors should consider additional factors beyond earnings results when making investment decisions [14][16].