Norfolk Southern to elect new chair after Mongeau’s resignation

Published 03/06/2025, 13:14
© Reuters.

ATLANTA - Norfolk Southern Corporation (NYSE:NSC), a railroad giant with a market capitalization of $55.29 billion, has announced the resignation of Chairman Claude Mongeau from the Board of Directors this week, citing personal reasons. A new chair will be elected at the company’s next scheduled board meeting later in June. According to InvestingPro data, the company maintains strong financial metrics with a Fair Value suggesting slight undervaluation at its current trading price of $245.26.

During his tenure, Mongeau played a pivotal role in the company’s operations, having been elected as chair in May 2024 after serving on the board since September 2019. His leadership was particularly noted during the last year as he oversaw the integration of a new board and maintained the company’s impressive 49.49% gross profit margin. President and CEO Mark R. George expressed gratitude for Mongeau’s "outsized time and effort" which left Norfolk Southern "a much stronger railroad."

Mongeau, who previously held the position of president and CEO of Canadian National Railway Company from January 2010 to June 2016, remains a director at Cenovus Energy. His career at Canadian National Railway spanned over two decades, where he also served in executive roles in finance and strategic planning.

Norfolk Southern, with a history dating back to 1827, operates a vast freight transportation network across 22 states. It is known for its sustainability efforts, helping customers avoid 15 million tons of carbon emissions annually by opting for rail transport. The railroad company is a significant player in the U.S. economy, handling approximately 7 million carloads each year and maintaining the most extensive intermodal network in the eastern United States.

The forthcoming board meeting will determine the next chairperson to take the helm and continue the company’s trajectory. This development comes as Norfolk Southern continues to serve a vital role in connecting the nation’s manufacturing base and population to major ports along the Atlantic, Gulf Coast, and Great Lakes. The company’s financial strength is evident in its $12.11 billion revenue and 44-year track record of consecutive dividend payments. For deeper insights into Norfolk Southern’s performance metrics and growth potential, including additional ProTips and comprehensive analysis, visit InvestingPro.

This news is based on a press release statement from Norfolk Southern Corporation.

In other recent news, Norfolk Southern Corporation reported its first-quarter earnings, with an adjusted earnings per share (EPS) of $2.69, slightly exceeding the market consensus of $2.66. The company also reaffirmed its full-year guidance, anticipating a 3% year-over-year revenue growth and a 150 basis points improvement in operating ratio. Meanwhile, BMO Capital Markets adjusted its price target for Norfolk Southern from $265 to $255, citing concerns over weakening demand despite the company’s strong first-quarter performance. Goldman Sachs downgraded Norfolk Southern’s stock rating from Buy to Neutral, maintaining a price target of $278, while highlighting risks such as slower macroeconomic growth and volatility in key sectors. UBS maintained a Buy rating with a $275 price target, expressing optimism about cost savings and operational improvements. Benchmark also kept its Buy rating and a $265 target, noting Norfolk Southern’s resilience in service metrics and market share gains. At the recent annual shareholder meeting, Norfolk Southern’s shareholders elected thirteen directors, ratified the appointment of KPMG LLP as the accounting firm, and approved executive compensation. These developments reflect the mixed outlook from analysts and the company’s ongoing efforts to navigate economic challenges.

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