Norfolk Southern Corporation · NYSE:NSC
Norfolk Southern — Q2 2025 Earnings Presentation
19 slides from Norfolk Southern's earnings presentation, Jul 29, 2025
Slide 1: Q2 2025 Earnings
Exhibit 99.3 Q2 2025 EARNINGS July 29, 2025
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: Operations Overview
OPERATIONS OVERVIEW
Slide 4: Safety: Investment in Safety continues to produce results
SAFETY Investment in Safety continues to produce results FRA Personal Injury Index FRA Accident Rate FRA Mainline Accident Rate 4.53 0.93 5-Year FY Average 5-Year FY Average 5-Year FY Average 3.95 1.16 1.09 1.04 0.62 1.01 3.07 0.56 0.38 2.03 2022 2023 2024 YTD 2022 2023 2024 YTD 2022 2023 2024 YTD 2
Slide 5: Network Update
NETWORK UPDATE NETWORK HEALTH ASSET EFFICIENCY CUSTOMER FACING AAR Terminal Dwell (Hours) Car Miles per Day Intermodal Svc Composite 91% 118 22.9 89% 89% 22.7 117 22.5 22.5 116 22.1 115 86% 85% 113 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2024 2024 2024 2025 2025 2024 2024 2024 2025 2025 2024 20
Slide 6: PSR 2.0 Transformation and Fuel Efficiency
Fuel Efficiency PSR 2.0 % Fuel Consumed per 1000 GTM’s TRANSFORMATION 1.30 1.25 1.20 Delivering Financial Commitment Cost Takeout 1.15 1.10 ~$550M On Track To Exceed Exceeded 1.05 ~$150M $292M 1.00 0.95 0.90 2019 2020 2021 2022 2023 2024 2025 2024 2025 2026 6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 7: Market Overview
MARKET OVERVIEW
Slide 8: 2nd Quarter 2025 Results
2ND QUARTER 2025 RESULTS Q2 2025 vs. Q2 2024 / Revenue change $ in millions / favorable / unfavorable Q2 2024 Q2 2025 40 out of 41 Merchandise Intermodal Coal Fuel Total consecutive quarters of y-o-y 600,600 4% 1,010,900 1% 181,700 12% 1,793,200 3% Volume (1) RPU (less fuel) growth in $1,972M 4% $74
Slide 9: Financial Results
FINANCIAL RESULTS
Slide 10: 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 (1) GAAP Adjusted Incident and other Q2’25 Q2’25 net recovery charges $3,110 Revenues $3,110 – – Operating expenses $1,935 $47 ($10) $1,972 Operating
Slide 11: Reconciliation of Second Quarter 2024 Non-GAAP Results
RECONCILIATION OF SECOND QUARTER 2024 NON-GAAP RESULTS $ in millions, except EPS Non-GAAP adjustments Increase / (Decrease) (1) Shareholder E. Ohio Restructuring GAAP Adjusted Incident and Other Advisory Q2’24 Q2’24 Costs Charges Costs Revenues $3,044 - - - $3,044 Operating expenses $1,913 $65 $3 -
Slide 12: Reconciliation of First Quarter 2025 Non-GAAP Results
RECONCILIATION OF FIRST QUARTER 2025 NON-GAAP RESULTS $ in millions, except per share Non-GAAP adjustment Increase / (Decrease) E. Ohio (1) GAAP Adjusted Incident Q1’25 Q1’25 net recovery Revenues $2,993 – $2,993 Operating expenses $1,847 $185 $2,032 Operating ratio 61.7% 620 bps 67.9% Operating inc
Slide 13: Adjusted Results: Second quarter versus prior year and prior quarter
(1) ADJUSTED RESULTS Second quarter versus prior year and prior quarter favorable / unfavorable $ millions, except per share (1) Adjusted Q2’25 vs. Q2’24 Q2’25 vs. Q1’25 Q2’25 Q2’24 Q1’25 Variances Variances Revenues $3,110 $3,044 $2,993 $66 2% $117 4% ($60) (3%) Operating expenses $1,972 $1,981 $2,
Slide 14: Adjusted Operating Expenses
(1) ADJUSTED OPERATING EXPENSES Second quarter 2025 vs. 2024 favorable / unfavorable $ millions $22 $11 $1,981 $1,972 $4 ↑13% ↑3% ↑1% $38 $8 ↓15% $9 ↓1% ↓--% Price $36 Productivity $28 Purch. Svcs. $10 Claims ($9) Efficiency $11 Benefits $5 Rents ($14) Materials ($6) Pay rates ($24) Other ($7) Volum
Slide 15: Adjusted Financial Results
(1) ADJUSTED FINANCIAL RESULTS Second quarter 2025 vs. 2024 favorable / unfavorable $ millions, except per share Revenue Operating Operating Operating Net Earnings $66 Expense Ratio Income Income Per Share 2% $9 $0.23 $3,110 $3,044 --% 8% $75 $3.29 $1,981 $1,972 $47 7% $3.06 170 7% bps $1,138 65.1%
Slide 16: 2025 Guidance
2025 GUIDANCE Comparison of 2025 Guidance Previous Current Productivity / $150M+ $175M+ Annual Cost-Savings Revenue Growth 3% 2% – 3% Adjusted Operating Ratio 150 bps 100 – 150 bps (1) Improvement Y-o-Y ➢ Expecting Q3 2025 adjusted operating ratio to be pressured after a soft revenue environment to
Slide 17: Thank You
Thank You www.NorfolkSouthern.com
Slide 18: Appendix
APPENDIX 18
Slide 19: 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