Norfolk Southern Corporation · NYSE:NSC
Norfolk Southern — Q4 2025 Earnings Presentation
26 slides from Norfolk Southern's earnings presentation, Jan 29, 2026
Slide 1: Q4 2025 Earnings Call
Q4 2025 EARNINGS CALL January 29, 2026
Slide 2: Forward-Looking Statements / Non-GAAP Measures
FORWARD-LOOKING STATEMENTS / NON-GAAP MEASURES This presentation and the related materials contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements relate to future events or future p
Slide 3: Opening Remarks
01 OPENING REMARKS Mark George President & Chief Executive Officer
Slide 4: Operations Overview
02 OPERATIONS OVERVIEW John Orr Executive Vice President & Chief Operating Officer
Slide 5: Safety
SAFETY Ongoing Commitment to Safety Yields Results FRA Personal Injury Index FRA Accident Rate FRA Mainline Accident Rate 4.50 0.92 4.04 1.18 5-Year FY Average 5-Year FY Average 1.09 5-Year FY Average 1.04 3.19 1.00 0.58 Better Better Better 0.43 0.38 2.19 2022 2023 2024 2025 2022 2023 2024 2025 202
Slide 6: Network Update
NETWORK UPDATE NETWORK HEALTH ASSET EFFICIENCY CUSTOMER FACING AAR Terminal Dwell (Hours) Car Miles per Day Intermodal Svc Composite 5-Year FY Average 92% 118 118 118 89% 22.7 116 22.5 22.4 115 86% 85% 86% 22.3 22.1 Better Better Better 5-Year FY Average 5-Year FY Average Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3
Slide 7: PSR 2.0 Productivity and Fuel Agility
PSR 2.0 PRODUCTIVITY AND FUEL AGILITY Accelerated ~$66M in cost reduction in 2025… and adding ~$50M to 2026 commitment ~$650M+ All Time Annual Fuel Efficiency Record $550M 1.3 ~$150M+ % Fuel Consumed per 1000 GTMs 1.25 $150M 1.2 $216M 1.15 Better $150M 1.1 2026 1.05 $292M 2025 1 $250M 2024 0.95 Q1 Q
Slide 8: Market Overview
03 MARKET OVERVIEW Ed Elkins Executive Vice President & Chief Commercial Officer
Slide 9: 4th Quarter 2025 Results
4TH QUARTER 2025 RESULTS Q4 2025 vs. Q4 2024 / Revenue change $ in millions / favorable / unfavorable $35 $3,024 Volume growth, mix ($51) $10 $2,974 tailwinds, and price drove higher revenue Soft intermodal ($44) Chem Rev +7% volumes due to Soft revenue was driven Q4 2024 market factors, by weak sea
Slide 10: Volume Growth Offset by Adverse Mix Impacted FY Results
VOLUME GROWTH OFFSET BY ADVERSE MIX IMPACTED FY RESULTS Overall revenue flat for the year despite higher shipments due to mix and lower fuel surcharge Revenue Change ($ millions) 7.1 Million Units 0.1% ($140) $287 $12 ($108) $12.2 Billion Revenue 0.5% $12,180 $12,123 ($134) $1,724 Revenue per Unit 0
Slide 11: Market Outlook
Merchandise • Vehicle Production • Manufacturing Activity • Marcellus & Utica Gas Fracking Activity 2026 MARKET Intermodal • Import Demand OUTLOOK • Warehouse Inventories • Truck Capacity Enhanced competitive environment as a result of the merger announcement will continue to have an adverse impact
Slide 12: Norfolk Southern Partnership with Warrior Met Coal
NORFOLK SOUTHERN PARTNERSHIP WITH WARRIOR MET COAL 12
Slide 13: Financial Results
04 FINANCIAL RESULTS Jason Zampi Executive Vice President & Chief Financial Officer
Slide 14: Reconciliation of Fourth Quarter 2025 Non-GAAP Results
RECONCILIATION OF FOURTH QUARTER 2025 NON-GAAP RESULTS $ in millions, except per share Non-GAAP adjustment Increase / (Decrease) E. Ohio Adjusted (1) GAAP Merger-related Incident - Q4’25 net impact expenses Q4’25 Revenues $2,974 – – $2,974 Operating expenses $2,037 ($29) ($65) $1,943 Operating ratio
Slide 15: Adjusted Results
ADJUSTED (1) RESULTS Fourth quarter versus prior year and prior quarter favorable / unfavorable $ millions, except per share Adjusted (1) Q4’25 vs. Q4’24 Q4’25 vs. Q3’25 Q4’25 Q4’24 Q3’25 Variances Variances Revenues $2,974 $3,024 $3,103 ($50) 2% ($129) 4% Operating expenses $1,943 $1,962 $1,965 $19
Slide 16: Adjusted Operating Expenses
ADJUSTED (1) OPERATING EXPENSES Fourth quarter 2025 vs. 2024 favorable / unfavorable $ millions ↓53% ↑10% $1,962 $99 $51 $1,943 ↑3% ↑2% ↑1% $11 $16 $19 $2 ↓1% Land sales Price $7 Pay rates $21 Purch. Svcs. $40 & other $101 Efficiency $8 Benefits $9 Rents $11 In-year recoveries $31 Claims $8 Material
Slide 17: Adjusted Full-Year Results
ADJUSTED(1) FULL-YEAR RESULTS 2025 vs. 2024 favorable / unfavorable $ millions except per share Revenue Operating Operating Operating Net Earnings Expense Ratio Income Income Per Share $57 –% $65 $12,123 $12,180 1% $0.64 $7,977 $7,912 80 5% bps $122 $132 65.8% 3% 5% $12.49 65.0% $11.85 $4,146 $4,268
Slide 18: Free Cash Flow & Free Cash Flow Conversion
FREE CASH FLOW & FREE CASH FLOW CONVERSION Full Year / $ millions 2025 Free Cash Flow (1) Free Cash Flow Conversion (1) Highest FCF $4,361 Conversion since 2021 75% $2,204 64% $2,157 2nd Year of Double-Digit Y-o-Y Improvement Cash from Property Free cash 2024 2025 operations additions flow Vs. Prior
Slide 19: Closing Remarks
05 CLOSING REMARKS Mark George President & Chief Executive Officer
Slide 20: 2026 Guidance
2026 GUIDANCE Prioritize Safety and Service • Continued momentum on safety culture and performance • Deliver consistent and reliable service Disciplined Execution and Cost Control • 2026 Adjusted Operating Expense expected to be $8.2B – $8.4B Capex Expected to be $1.9B in 2026 • Lowering capital spe
Slide 21: Thank You
Thank You www.NorfolkSouthern.com
Slide 22: Appendix
APPENDIX 22
Slide 23: Reconciliation of Fourth Quarter 2024 Results
RECONCILIATION OF FOURTH QUARTER 2024 RESULTS $ in millions, except EPS Non-GAAP adjustments Increase / (Decrease) (1) GAAP Gains on Restructuring Shareholder Adjusted E. Ohio Railway Line and Other Advisory Incident Q4’24 Transactions Charges Costs Q4’24 Revenues $3,024 - - - - $3,024 Operating exp
Slide 24: Reconciliation of Third Quarter 2025 Non-GAAP Results
RECONCILIATION OF THIRD QUARTER 2025 NON-GAAP RESULTS $ in millions, except per share Non-GAAP adjustment Increase / (Decrease) E. Ohio Adjusted (1) GAAP Restructuring & Merger-related Incident Q3’25 net impact other charges expenses Q3’25 Revenues $3,103 – – – $3,103 Operating expenses $2,005 ($13)
Slide 25: Reconciliation of 2025 Non-GAAP Measures
RECONCILIATION OF 2025 NON-GAAP MEASURES $ in millions, except EPS Non-GAAP adjustments Increase / (Decrease) GAAP E. Ohio Restructuring Merger- Adjusted (1) Incident net and Other related 2025 impact Charges expenses 2025 Revenues $12,180 - - - $12,180 Operating expenses $7,824 $190 ($22) ($80) $7,
Slide 26: Reconciliation of 2024 Non-GAAP Measures
RECONCILIATION OF 2024 NON-GAAP MEASURES $ in millions, except EPS Non-GAAP adjustments Increase / (Decrease) GAAP E. Ohio Gains on Restructuring Shareholder Favorable Adjusted (1) Railway Line and Other Advisory Deferred Tax 2024 Incident 2024 Transactions Charges Costs Adjustment Revenues $12,123