Norfolk Southern reports strong third quarter 2024 results

Norfolk Southern Corporation reported its third quarter 2024 financial results, highlighting strong performance. Income from railway operations reached $1.6 billion, with an operating ratio of 47.7 percent and diluted earnings per share of $4.85. Excluding the impact of railway line sales, the Eastern Ohio incident, and restructuring charges, adjusted railway operating income stood at $1.1 billion, with an adjusted operating ratio of 63.4 percent and adjusted diluted EPS of $3.25.

During the quarter, Norfolk Southern completed two railway line sales, generating nearly $400 million in cash proceeds and gains of $380 million. Additionally, for the second consecutive quarter, insurance recoveries from the Eastern Ohio incident exceeded incremental costs.

President and CEO Mark R. George praised the team’s efforts, stating, “The Norfolk Southern team continues to build momentum, producing strong results for our shareholders and customers, and delivering on our safety culture for our employees.” He credited the team for driving productivity, growing volumes, and demonstrating resilience in the face of weather challenges, which led to both sequential and year-over-year margin improvement.

Third Quarter 2024 Highlights:

• Railway operating revenues totalled $3.1 billion, a 3 percent increase compared to Q3 2023.
• Income from railway operations was $1.6 billion, up 111 percent from Q3 2023.
• Adjusted income from railway operations was $1.1 billion, a 22 percent increase from the adjusted Q3 2023.
• The operating ratio was 47.7 percent, a significant improvement from 74.6 percent in Q3 2023.
• On an adjusted basis, the operating ratio was 63.4 percent, showing a 570-basis point improvement from Q3 2023.
• Diluted EPS rose by 131 percent to $4.85, while adjusted diluted EPS increased by 23 percent to $3.25.

These results position Norfolk Southern to meet its adjusted operating ratio targets for the second half and full year of 2024, ensuring long-term value creation.

For more information visit www.norfolksouthern.com