Core Insights - Norfolk Southern experienced a decline in intermodal volume, revenue, and profits in the fourth quarter due to heightened competition, particularly from CSX, which formed an intermodal alliance with BNSF Railway [1][2] Financial Performance - Quarterly operating income fell 17% to $937 million, while revenue decreased 2% to $3 billion. Adjusted for one-time items, operating income was down 3% to $1 billion, and earnings per share declined 11% to $2.87, but increased 6% to $3.22 on an adjusted basis [4] - The operating ratio for the fourth quarter was 68.5%, up from 62.6% in the fourth quarter of 2024, with an adjusted operating ratio of 65.3% [5] Volume and Traffic - Intermodal volume dropped by 7%, leading to a 4% decline in overall traffic. However, merchandise and coal business saw a 1% increase for the quarter [1][5] - Despite the decline in intermodal traffic, Norfolk Southern managed to move 3% more gross ton-miles in 2025 with 4% fewer employees [2] Strategic Initiatives - Norfolk Southern and Union Pacific plan to file a revised merger application with the Surface Transportation Board in March, which, if approved, would create the first transcontinental railroad [3] - The company is actively seeking to optimize revenue and attract quality carloads, with initiatives such as the UP-NS interline service and the launch of double-stack service to New England [6]