Norfolk Southern Corporation
- Open
- 340.77
- Day high
- 341.99
- Day low
- 334.68
- Prev close
- 340.16
- Volume
- 977K
- Mkt cap
- $75.2B
- P/E (TTM)
- 28.2
- EPS (TTM)
- $11.87
- P/B
- 4.8
- P/S
- 6.2
- Yield
- 1.61%
- Per share
- $5.40
Norfolk Southern Corporation (NSC) is a Industrials company listed on NYSE. The stock is up 21% over the past year.
Norfolk Southern Corporation (NSC) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 10 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
NSC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 24, 2026 | $2.49 | $2.65 | +6.4% | $3.0B | +0.1% |
| Jan 29, 2026 | $2.76 | $3.22 | +16.7% | $3.0B | -0.9% |
| Oct 23, 2025 | $3.19 | $3.30 | +3.4% | $3.1B | -0.3% |
| Jul 29, 2025 | $3.31 | $3.29 | -0.6% | $3.1B | -0.6% |
| Apr 23, 2025 | $2.66 | $2.69 | +1.1% | $3.0B | +0.7% |
| Jan 29, 2025 | $2.94 | $3.04 | +3.4% | $3.0B | +0.3% |
| Oct 22, 2024 | $3.11 | $3.25 | +4.5% | $3.1B | -1.1% |
| Jul 25, 2024 | $2.86 | $3.06 | +7.0% | $3.0B | +0.2% |
| Jan 26, 2024 | $2.87 | $2.83 | -1.4% | $3.1B | -0.2% |
| Oct 25, 2023 | $2.69 | $2.65 | -1.5% | $3.0B | +0.8% |
| Jul 27, 2023 | $3.15 | $2.95 | -6.3% | $3.0B | -3.1% |
| Jan 25, 2023 | $3.44 | $3.42 | -0.6% | $3.2B | +1.0% |
NSC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 1, 2026 | ANDERSON RICHARD Hdirector | Grant | 251 | — |
| Jul 1, 2026 | Huffard John C Jrdirector | Grant | 168 | — |
| May 22, 2026 | Huffard John C Jrdirector | Grant | 22 | — |
| May 22, 2026 | LAMPHERE GILBERT Hdirector | Grant | 3 | — |
| May 22, 2026 | Clyburn William Jr.director | Grant | 8 | — |
| May 22, 2026 | Jones Christopher Tdirector | Grant | 22 | — |
| May 22, 2026 | DeBiase Francesca A.director | Grant | 9 | — |
| May 22, 2026 | ANDERSON RICHARD Hdirector | Grant | 10 | — |
| May 22, 2026 | Huffard John C Jrdirector | Grant | 13 | — |
| May 22, 2026 | Fahmy Samehdirector | Grant | 8 | — |
| May 22, 2026 | ANDERSON RICHARD Hdirector | Grant | 7 | — |
| May 22, 2026 | Donadio Marcela Edirector | Grant | 37 | — |
| May 22, 2026 | Ryerkerk Loridirector | Grant | 3 | — |
| May 22, 2026 | Davidson Phillip Sdirector | Grant | 11 | — |
| May 22, 2026 | Heitkamp Mary Kathryndirector | Grant | 8 | — |
Source: NSC SEC Form 4 filings, latest Jul 1, 2026. For informational purposes only — not investment advice.
See the full NSC insider & 13F page →Norfolk Southern Corporation company profile
Overview
Norfolk Southern Corporation (NYSE:NSC) is one of the major Class I freight railroads in the United States, incorporated in 1980 and publicly traded since 1982. The company operates an extensive rail network spanning approximately 19,300 route miles across 22 states and the District of Columbia, with headquarters in Atlanta, Georgia. Norfolk Southern has evolved from regional railroad consolidations into a major transportation infrastructure provider, connecting the industrial heartland with Atlantic and Gulf Coast ports. The company has undergone significant operational transformation in recent years, implementing precision scheduled railroading principles and recovering from major operational disruptions including the 2023 East Palestine derailment.
Business
Norfolk Southern operates as a freight railroad company, providing rail transportation services for raw materials, intermediate products, and finished goods across the eastern United States. The railroad industry serves as a critical component of the nation's transportation infrastructure, moving large volumes of heavy commodities over long distances more efficiently than trucking for many types of cargo. The company's business is organized into three primary segments. The Merchandise segment represents the largest portion of revenue, transporting diverse manufactured goods, chemicals, agriculture products, forest products, metals, and construction materials. This segment includes everything from automotive parts and finished vehicles to industrial chemicals, food products, and steel. The Intermodal segment handles containerized freight, primarily moving shipping containers from ports to inland destinations and facilitating truck-to-rail conversions for long-haul transportation. The Coal segment transports coal from mining regions to utilities, export terminals, and industrial customers, though this segment has declined significantly due to the shift away from coal-fired power generation. Based on recent financial data, Merchandise appears to generate approximately 60-65% of total revenue, Intermodal accounts for roughly 20-25%, and Coal represents about 10-15% of revenue. The company also operates commuter rail services and maintains an extensive intermodal network of terminals and facilities that enable the transfer of cargo between rail, truck, and ship transportation modes.
Revenue model
Norfolk Southern generates revenue primarily through freight transportation services, charging customers based on the volume of cargo shipped, distance traveled, and type of commodity transported. The company operates on a revenue per unit (RPU) model, where pricing varies significantly by commodity type, with higher-value manufactured goods typically commanding premium rates compared to bulk commodities like coal. The railroad's paying customers include manufacturers, agricultural producers, mining companies, chemical companies, automotive manufacturers, and logistics providers who need to move large quantities of goods over long distances. Intermodal customers also include ocean carriers and trucking companies seeking rail transportation for the long-haul portion of their shipments. Several factors significantly impact Norfolk Southern's profitability margins. Fuel costs represent a major variable expense, though the company typically passes these through to customers via fuel surcharges with some lag time. Labor costs are substantial and largely fixed in the short term due to union contracts, making crew productivity improvements critical for margin expansion. Volume density is crucial since railroads have high fixed costs for infrastructure maintenance - higher volumes spread these costs over more units, improving margins significantly. Operational efficiency drives margin expansion through reduced crew starts, improved locomotive utilization, and faster network velocity. Commodity mix affects margins substantially, as manufactured goods and chemicals generate higher margins than coal or grain shipments. Competitive dynamics with trucking companies influence pricing power, particularly for shorter-haul shipments where trucks maintain cost advantages. Economic cycles heavily influence volumes across all segments, with industrial production, construction activity, and consumer spending directly impacting freight demand.
Competitive moat
Norfolk Southern possesses a substantial infrastructure moat built around its extensive rail network that would be prohibitively expensive and practically impossible to replicate. The company's 19,300 route miles of track, terminals, bridges, and right-of-way represent decades of capital investment and regulatory approvals that create formidable barriers to entry. Railroad infrastructure benefits from natural monopoly characteristics in many corridors, as building parallel competing lines is economically unfeasible. The company's strategic geographic positioning connecting major population centers, manufacturing regions, and ports provides competitive advantages that are difficult to circumvent. Norfolk Southern's network links the industrial Midwest with Southeast markets and Atlantic/Gulf Coast ports, creating valuable franchise routes for specific origin-destination pairs. However, the moat faces meaningful competitive pressures. Trucking competition remains intense for shorter-haul shipments and time-sensitive freight, with trucks offering superior flexibility and door-to-door service. Pipeline competition affects certain commodity movements, particularly petroleum products. Barge transportation competes for bulk commodities along river systems. The railroad industry also faces secular headwinds from the decline of coal transportation and potential shifts in manufacturing patterns. Regulatory oversight constrains pricing flexibility and operational decisions, while labor relations can significantly impact service reliability and costs. The capital-intensive nature of the business requires continuous investment to maintain the infrastructure moat, and service disruptions can quickly erode customer relationships in favor of more flexible transportation alternatives. Overall, Norfolk Southern maintains a strong but not impregnable moat, with infrastructure advantages partially offset by competitive and regulatory constraints.
Risks & safety
Norfolk Southern demonstrates a moderate margin of safety with solid financial fundamentals but some leverage concerns. **Liquidity and Solvency:** - Cash position of $1.6 billion provides adequate liquidity buffer - Current ratio of 0.90 indicates tight working capital management - Debt-to-equity ratio of 1.22 shows moderate leverage levels - Strong operating cash flow of $4.0 billion annually supports debt service - No immediate solvency concerns given stable cash generation **Valuation Metrics:** - P/E ratio of 18.1x appears reasonable for a utility-like infrastructure business - EV/EBITDA of 11.7x suggests modest valuation relative to infrastructure peers - Price-to-book ratio of 3.7x reflects premium to asset value - Graham number suggests potential overvaluation relative to conservative metrics **Other Considerations:** - Capital-intensive business requires continuous reinvestment ($2.2B annually) - Cyclical earnings exposure to economic downturns - Regulatory oversight limits financial flexibility - Strong free cash flow generation provides financial stability
Recent development
Norfolk Southern has undergone significant operational transformation over the past several years, implementing what management calls "PSR 2.0" - an evolution of precision scheduled railroading principles focused on network efficiency and service reliability. The company has systematically reduced its active locomotive fleet by over 500 units while improving asset utilization, demonstrating the effectiveness of these operational changes. Following the February 2023 East Palestine derailment, Norfolk Southern has intensified its safety initiatives, partnering with Atkins Nuclear Solutions to enhance safety protocols and commissioning additional inspection portals throughout the network. The company restored double-track mainline operations through the affected area and has achieved significant improvements in safety metrics, with injury frequency ratios declining substantially. The company has pursued aggressive cost reduction programs, achieving nearly $300 million in cost takeouts in 2024 against a target of $250 million, with an additional $150 million targeted for 2025. These savings come from labor productivity improvements, reduced overtime, fuel efficiency programs, and operational optimization including the elimination of hundreds of unnecessary train starts and car handlings daily. Network optimization efforts have yielded measurable results, with system-wide train speeds improving by 10%, car velocity increasing significantly, and terminal dwell times decreasing. The company has also strategically divested non-core rail lines, generating $380 million in gains while focusing resources on higher-return corridors. Norfolk Southern has positioned itself for potential nearshoring and reshoring trends, exploring opportunities to capture freight from Mexico trade via the Meridian Speedway and supporting domestic manufacturing growth, particularly in electric vehicle supply chains and infrastructure projects.
NSC company profile · for informational purposes only — not investment advice.
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