Norfolk Southern Corporation has entered into a definitive agreement to issue and sell $400 million in 5.100% Senior Notes due 2035.

The notes are being offered at 99.830% of their face value, with an estimated net proceed of approximately $395.75 million after deducting underwriting discounts and offering expenses.

The underwriters include BofA Securities, SMBC Nikko Securities America, and Wells Fargo Securities. The transaction is expected to close around May 2, 2025, pending standard closing conditions. Proceeds will be used for general corporate purposes.

This offering is being made under Norfolk Southern’s shelf registration filed in December 2023, and the underwriting agreement includes standard representations and warranties.

Norfolk Southern reports Q1 2025 results, highlights 8% adjusted EPS growth

Norfolk Southern Corporation (NYSE: NSC) released its first quarter 2025 financial results, reporting solid performance despite weather disruptions and macroeconomic uncertainty. The company reaffirmed its full-year guidance.

Key Q1 2025 financial highlights:

- Revenue: $3.0 billion, slightly down from $3.004 billion in Q1 2024
- Income from railway operations (GAAP): $1.1 billion
- Adjusted income from operations: $961 million, up 6% from adjusted Q1 2024
- Operating ratio: 61.7% (GAAP); adjusted: 67.9%, improved by 200 basis points from Q1 2024
- Diluted EPS: $3.31 (GAAP); adjusted EPS: $2.69, up 8% year-over-year
- Volume: Increased 1% year-over-year
- Insurance recoveries: Exceeded incremental costs from the Eastern Ohio incident

President and CEO Mark George praised the company's resilience, citing improved efficiency and customer service during a winter marked by storms.

Segment performance:

Revenue excluding fuel surcharges rose 2% year-over-year to $2.79 billion. Gains were attributed to volume growth and operational efficiency. Adjusted operating ratio and earnings reflect improved underlying business fundamentals.

Outlook:

Norfolk Southern maintained its full-year 2025 guidance while acknowledging continued macroeconomic uncertainty, particularly regarding fuel and freight demand trends.

Norfolk Southern Launches Industry-First Verified Emissions Reduction Program for Freight Customers

On March 31, 2025, Norfolk Southern Corporation (NYSE: NSC) introduced RailGreen, a new program that allows freight rail customers to reduce their supply chain emissions through verified carbon reduction certificates. With this launch, Norfolk Southern becomes the first freight railroad globally to offer a certified solution of this kind.

Key highlights:

RailGreen is built on Norfolk Southern’s third-party certified use of biofuels, generating Environmental Attribute Certificates (EACs) that customers can purchase and apply to their supply chain emissions. The program was developed in collaboration with 123Carbon, using blockchain-backed tracking to ensure accuracy and prevent double counting.

The process works as follows:
- Norfolk Southern’s use of certified biofuels generates emissions reduction certificates.
- Customers purchase these certificates to help meet their sustainability goals.
- Norfolk Southern uses the proceeds to increase its procurement and use of low-carbon biofuels across its operations.

The program is designed to scale across Norfolk Southern’s 22-state network, allowing customers to implement it wherever they move freight by rail.

According to Ed Elkins, Executive Vice President and Chief Commercial Officer at Norfolk Southern, “RailGreen reduces customers’ emissions, increases our biofuel use and solves a long-term industry challenge.”

Jeroen Van Heningen, Managing Director at 123Carbon, stated that the program provides a verifiable and transparent approach to emissions reduction. He emphasized the role of EACs in providing shippers with confidence and credibility in their sustainability reporting.

RailGreen aligns with Norfolk Southern’s broader commitment to sustainable freight solutions, which includes:
- Doubling biofuel usage since 2022
- Joining the Clean Fuels Alliance America
- Increasing transport of biofuels and feedstocks
- Using technologies that enhance locomotive fuel efficiency
- Supporting community-focused sustainability initiatives

With supply chain emissions being one of the most difficult to track and reduce, RailGreen offers a practical and credible path for customers to meet climate goals while leveraging rail’s inherent emissions advantage over trucking.

More information is available at www.norfolksouthern.com/railgreen.

Norfolk Southern Corporation (NYSE: NSC) announced its fourth-quarter and full-year 2024 financial results, highlighting improved operational performance and efficiency gains.

Fourth Quarter 2024 Highlights
- Railway operating revenues were $3.0 billion, down 2 percent year-over-year.
- Excluding lower fuel surcharge revenue, adjusted revenues were $2.8 billion, up 2 percent.
- Income from railway operations was $1.1 billion, up 40 percent year-over-year.
- Adjusted income from railway operations was $1.1 billion, up 11 percent.
- Operating ratio was 62.6 percent, compared to 73.7 percent in the fourth quarter of 2023.
- Adjusted operating ratio was 64.9 percent, an improvement of 390 basis points.
- Diluted earnings per share were $3.23, up 39 percent year-over-year.
- Adjusted diluted earnings per share were $3.04, up 7 percent.

Full Year 2024 Highlights
- Railway operating revenues were $12.1 billion, down slightly from 2023.
- Excluding lower fuel surcharge revenue, adjusted revenues were $11.2 billion, up 2 percent.
- Income from railway operations was $4.1 billion, up 43 percent year-over-year.
- Adjusted income from railway operations was $4.1 billion, up 5 percent.
- Operating ratio was 66.4 percent, an improvement of 1010 basis points.
- Adjusted operating ratio was 65.8 percent, an improvement of 160 basis points.
- Diluted earnings per share were $11.57, up 44 percent year-over-year.
- Adjusted diluted earnings per share were $11.85, up 1 percent.

CEO Commentary
Mark George, President and CEO, credited the company's productivity initiatives and operational improvements for driving financial performance. He highlighted network efficiency, steady service metrics, and increased customer business as key factors in the company's momentum heading into 2025.

Operational Improvements
- The company met its commitments for second-half and full-year 2024 operating ratio targets.
- Insurance recoveries for the Eastern Ohio incident exceeded incremental costs for the third consecutive quarter.
- Productivity and safety initiatives continue to drive efficiency gains.

About Norfolk Southern
Norfolk Southern operates a 22-state freight transportation network and serves major ports across the Atlantic, Gulf of Mexico, and Great Lakes. The company helps customers avoid approximately 15 million tons of yearly carbon emissions by shipping via rail.

Norfolk Southern's 2024 results demonstrate continued efficiency gains, strategic improvements, and disciplined cost management. The company remains focused on safety, productivity, and long-term value creation for stakeholders.