Norfolk Southern Corporation · NYSE:NSC
Norfolk Southern — Q2 2026 Earnings Presentation
22 slides from Norfolk Southern's earnings presentation, Jul 23, 2026
Slide 1: Q2 2026 Earnings Call
Q2 2026 EARNINGS CALL July 23, 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 Brian Barr Chief Operating Officer
Slide 5: Safety Update
SAFETY UPDATE Investment in Safety continues to drive results while building long-term culture change FRA Personal Injury Index FRA Accident Rate FRA Mainline Accident Rate 1.22 4.31 4.21 1.08 1.03 0.94 Better Better Better 2.37 0.56 0.52 0.49 1.61 0.37 2023 2024 2025 2026 2023 2024 2025 2026 2023 2
Slide 6: Network Update
NETWORK UPDATE NETWORK HEALTH ASSET EFFICIENCY CUSTOMER FACING AAR Terminal Dwell (Hours) Car Miles per Day Intermodal Svc Composite 92% 24.0 89% 22.7 86% 85% 85% 22.4 22.3 146 147 147 Better Better 21.8 Better 142 138 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2025 2025 2025 2026 2026 2025 2025 2
Slide 7: Velocity Drives Capacity, Efficiency & Service Performance
VELOCITY DRIVES CAPACITY, EFFICIENCY & SERVICE PERFORMANCE • Leading from the front to drive safety culture • Focusing on simple principles to drive velocity • Originate trains on time, reduce dwell, run the plan • Leveraging productivity to drive growth • Clean-sheeting local operations creates cre
Slide 8: Market Overview
03 MARKET OVERVIEW Ed Elkins Executive Vice President & Chief Commercial Officer
Slide 9: 2nd Quarter 2026 Results
2ND QUARTER 2026 RESULTS Q2 2026 vs. Q2 2025 / Revenue change $ in millions / favorable / unfavorable $212 $3,465 Q2 2026 $42 $16 $85 $3,110 Q2 2025 Merchandise Intermodal Coal Fuel Total Volume 610,700 2% 1,064,100 5% 187,300 3% 1,862,100 4% Revenue $2,133M 8% $908M 22% $424M 7% $3,465M 11% RECORD
Slide 10: Market Outlook
Merchandise • Vehicle Production 2026 • Industrial Activity • Global Energy Prices MARKET OUTLOOK Intermodal • Truck Market Enhanced competitive environment as a result of the merger • Consumer Demand announcement will continue to have an adverse impact on volumes in the short and medium term. • Imp
Slide 11: Industrial Customer Investment Activity Accelerates Significantly in 1H26
INDUSTRIAL CUSTOMER INVESTMENT ACTIVITY ACCELERATES SIGNIFICANTLY IN 1H26 Customer Projects Moved to Design & Construction Phase Broad-based capital spending across Chemicals, Construction, Food & Beverage, and Automotive sectors Q1:2025 Q2:2025 Q3:2025 Q4:2025 Q1:2026 Q2:2026 11
Slide 12: Financial Results
04 FINANCIAL RESULTS Jason Zampi Executive Vice President & Chief Financial Officer
Slide 13: Reconciliation of Second Quarter 2026 Non-GAAP Results
RECONCILIATION OF SECOND QUARTER 2026 NON-GAAP RESULTS $ in millions, except per share Non-GAAP adjustment Increase / (Decrease) E. Ohio Restructuring Adjusted (1) GAAP Merger-Related Incident – and Other Q2’26 Expenses Net Impact Charges Q2’26 Revenues $3,465 – – – $3,465 Operating expenses $2,341
Slide 14: Adjusted Results
ADJUSTED (1) RESULTS Second quarter 2026 vs. 2025 favorable / unfavorable $ millions, except per share Adjusted (1) Q2’26 vs. Q2’25 Q2’26 Q2’25 Variances Revenues $3,465 $3,110 $355 11% Operating expenses $2,269 $1,972 $297 15% Operating ratio 65.5% 63.4% 210 bps Operating income $1,196 $1,138 $58 5
Slide 15: Adjusted Operating Expenses
ADJUSTED (1) OPERATING EXPENSES Second quarter 2026 vs. 2025 favorable / unfavorable $ millions ↑9% ↑3% ↑6% ↑8% $17 $12 $2,269 ↑85% $52 $30 $186 $297 ↑15% $1,972 Price ($169) Pay rates ($22) Purch. Svcs. ($26) Materials ($15) Usage ($6) Inc. Comp ($20) Rents ($4) Claims ($10) H&W rates ($9) Other $8
Slide 16: Adjusted Financial Results
ADJUSTED (1) FINANCIAL RESULTS Second quarter 2026 vs. 2025 favorable / unfavorable $ millions, except per share Revenue Operating Operating Operating Net Earnings $355 Expense Ratio Income Income Per Share 11% $297 $3,465 15% 210 $3,110 bps $0.23 $2,269 $58 7% 65.5% 5% $1,972 $52 $3.52 63.4% $3.29
Slide 17: Closing Remarks
05 CLOSING REMARKS Mark George President & Chief Executive Officer
Slide 18: Updating 2026 Guidance
UPDATING 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 now expected to be $8.8B – $8.9B • $400M – $500M incremental fuel impact vs.
Slide 19: Thank You
Thank You www.NorfolkSouthern.com
Slide 20: Appendix
APPENDIX 20
Slide 21: Reconciliation of Second Quarter 2025 Non-GAAP Results
RECONCILIATION OF SECOND QUARTER 2025 NON-GAAP RESULTS $ in millions, except per share Non-GAAP adjustment Increase / (Decrease) E. Ohio Restructuring Adjusted (1) GAAP Incident and other Q2’25 net recovery charges Q2’25 Revenues $3,110 – – $3,110 Operating expenses $1,935 $47 ($10) $1,972 Operating
Slide 22: Network Metrics (Definitions)
NETWORK METRICS (DEFINITIONS) • Terminal Dwell: The average time a car resides at the specified terminal location expressed in hours. The measurement begins with a customer release, received interchange, or train arrival event and ends with a customer placement (actual or constructive), delivered or