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ATLANTA - Norfolk Southern Corporation (NYSE:NSC) reported third quarter 2025 adjusted earnings per share of $3.30, exceeding analyst estimates of $3.20, while revenue of $3.1 billion was essentially in line with the consensus estimate of $3.11 billion.
The stock was down 0.24% following the earnings announcement.
The railway operator posted a 2% increase in revenue compared to the same quarter last year, despite flat volumes. The company achieved this growth amid a 1% headwind from lower fuel surcharge revenue, which declined by $30 million compared to the third quarter of 2024.
" Norfolk Southern delivered another quarter of strong results on safety, service, and productivity through a dynamic freight market," said President and CEO Mark George. "The entire Thoroughbred team pulled together to serve our customers, achieve an all-time record in fuel efficiency, delivered on key productivity initiatives, and executed a noteworthy land sale."
After adjusting for merger-related expenses, restructuring charges, and effects from the Eastern Ohio incident, Norfolk Southern’s operating ratio improved to 63.3%, representing a 10 basis point improvement from the adjusted 63.4% in the third quarter of 2024. The company’s adjusted income from railway operations increased by $21 million, or 2%, to $1.1 billion, aided by $65 million in incremental land sales.
In a sign of confidence in its efficiency initiatives, Norfolk Southern raised its 2025 productivity target to approximately $200 million from the previous target of approximately $175 million, highlighting management’s focus on operational improvements and cost management.
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