Bank of Nova Scotia lifted its position in Norfolk Southern Corporation (NYSE:NSC – Free Report) by 73.3% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 588,472 shares of the railroad operator’s stock after acquiring an additional 248,965 shares during the quarter. Bank of Nova Scotia owned approximately 0.26% of Norfolk Southern worth $168,891,000 at the end of the most recent reporting period.
A number of other large investors also recently made changes to their positions in NSC. JPL Wealth Management LLC purchased a new stake in Norfolk Southern in the 3rd quarter valued at about $25,000. Meeder Asset Management Inc. lifted its position in shares of Norfolk Southern by 239.3% during the 4th quarter. Meeder Asset Management Inc. now owns 95 shares of the railroad operator’s stock worth $27,000 after buying an additional 67 shares in the last quarter. BNP Paribas purchased a new position in shares of Norfolk Southern in the 2nd quarter worth approximately $26,000. Financial Life Planners purchased a new position in shares of Norfolk Southern in the 1st quarter worth approximately $33,000. Finally, Bayban bought a new position in shares of Norfolk Southern in the fourth quarter valued at approximately $34,000. 75.10% of the stock is owned by institutional investors.
Norfolk Southern Stock Performance NYSE:NSC opened at $347.70 on Friday. The company has a debt-to-equity ratio of 1.04, a current ratio of 0.91 and a quick ratio of 0.81. The business has a fifty day simple moving average of $316.67 and a two-hundred day simple moving average of $305.84. Norfolk Southern Corporation has a 1 year low of $268.23 and a 1 year high of $358.60. The company has a market capitalization of $78.09 billion, a P/E ratio of 29.29, a P/E/G ratio of 6.05 and a beta of 1.27.
Norfolk Southern (NYSE:NSC – Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The railroad operator reported $3.52 EPS for the quarter, beating analysts’ consensus estimates of $3.32 by $0.20. The firm had revenue of $3.46 billion for the quarter, compared to analysts’ expectations of $3.38 billion. Norfolk Southern had a return on equity of 18.30% and a net margin of 21.91%.The business’s revenue for the quarter was up 12.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $3.29 EPS. On average, analysts expect that Norfolk Southern Corporation will post 12.24 earnings per share for the current year.
Norfolk Southern Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 20th. Investors of record on Friday, August 7th will be paid a $1.35 dividend. This represents a $5.40 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date is Friday, August 7th. Norfolk Southern’s payout ratio is currently 45.49%.
Wall Street Analyst Weigh In A number of analysts recently commented on NSC shares. Sanford C. Bernstein decreased their price target on Norfolk Southern from $322.00 to $313.00 and set an “outperform” rating for the company in a research report on Tuesday, March 31st. Wells Fargo & Company boosted their price objective on Norfolk Southern from $350.00 to $365.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 8th. UBS Group set a $327.00 price objective on Norfolk Southern in a research note on Thursday, May 7th. Weiss Ratings cut Norfolk Southern from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, April 27th. Finally, Jefferies Financial Group cut their price target on shares of Norfolk Southern from $350.00 to $310.00 and set a “hold” rating on the stock in a report on Monday, April 6th. Six analysts have rated the stock with a Buy rating and seventeen have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Norfolk Southern has a consensus rating of “Hold” and a consensus price target of $331.29.
Read Our Latest Analysis on Norfolk Southern
Key Norfolk Southern News Here are the key news stories impacting Norfolk Southern this week:
Positive Sentiment: Norfolk Southern reported second-quarter adjusted earnings of $3.52 per share, topping estimates, while revenue rose to a record roughly $3.5 billion and increased 12.5% year over year. Article: Norfolk Southern (NSC) Q2 Earnings and Revenues Top Estimates Positive Sentiment: Management pointed to stronger freight demand, higher fuel surcharges, volume growth, and intermodal gains as key drivers of the quarter, which helped boost investor confidence in operating momentum. Article: Norfolk Southern rides freight demand, fuel surcharges to quarterly profit beat Positive Sentiment: The company said it achieved record quarterly revenue, and several outlets noted the stock rose as the revenue surge and earnings beat outweighed margin compression. Article: Norfolk Southern Stock Rises as Revenue Surge Offsets Margin Compression Neutral Sentiment: Norfolk Southern also announced a quarterly dividend of $1.35 per share, reinforcing shareholder returns but not changing the main earnings-driven stock move. Article: Norfolk Southern earnings report and conference call Norfolk Southern Profile (Free Report)
Norfolk Southern Corporation is a major U.S. freight railroad company that provides rail transportation and related logistics services. As a Class I carrier, the company operates an extensive network across the eastern United States and offers scheduled freight service for a broad range of industries. Its core operations include long-haul and regional rail freight transportation, intermodal services that move containers and trailers between rail and other modes, and terminal and switching services that support efficient rail shipments for industrial and port customers.
The company transports a variety of commodities, serving sectors such as coal and energy, automotive and automotive parts, chemicals, agriculture, metals and construction materials, and consumer goods.
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SummaryNorfolk Southern Corporation is fundamentally strong but currently overvalued, trading at a premium P/E above historical norms.Recent NSC operational gains were largely driven by external energy market shocks, not sustainable core improvements; GAAP net income and FCF declined despite record revenues.Heavy reliance on adjusted earnings masks recurring costs; GAAP metrics reveal persistent margin compression and profit headwinds.I maintain a Hold rating on NSC stock with a $220/share price target, awaiting a more attractive entry point aligned with normalized earnings and valuation.Looking for more investing ideas like this one? Get them exclusively at Wolf of Value. Learn More » Gary Yeowell/DigitalVision via Getty Images
Sometimes you are very sure about the appeal, or lack of appeal, of a company at a certain valuation. I will say that this is still the case for me with Norfolk Southern Corporation (
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OMAHA, Neb. & MONTREAL--(BUSINESS WIRE)--Union Pacific Railroad (NYSE: UNP) and CN (NYSE: CNI) announced today that they have signed a binding Memorandum of Understanding establishing a framework for CN to secure competitive access in connection with the proposed transaction between Union Pacific and Norfolk Southern (NYSE: NSC). The settlement agreement preserves customer options and resolves terminal railroad ownership issues, while expanding CN's presence in the Midwest and reaffirming gatew.
Shares of Union Pacific (UNP +4.02%) rallied on Thursday after the railroad operator raised its full-year profit growth forecast.
Image source: Getty Images.
Solid Q2 performance Union Pacific's operating revenue climbed 12% year over year to $6.9 billion in the second quarter. Excluding fuel surcharges, the railroad giant's freight revenue rose 4%, driven by volume gains and price increases.
Union Pacific's efficiency initiatives are also producing positive results. Trains are moving more quickly through its rail network. Freight car velocity increased 5% to 231 daily miles per car, while average terminal dwell decreased 7% to 19.7 hours. Fuel consumption rate also improved by 1% to 1.051 gallons per thousand gross ton-miles.
Still, higher fuel costs negatively impacted the company's operating ratio -- operating expenses as a percentage of revenue -- which came in at 59.7% compared to 59% in the year-ago quarter.
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All told, Union Pacific's adjusted net income jumped 12% to $2 billion. Its adjusted earnings per share, aided by stock buybacks, increased 13% to $3.41.
Raised outlook Union Pacific now expects high-single-digit earnings-per-share growth in 2026, up from a prior forecast of mid-single-digit growth.
During a conference call with analysts, CEO Jim Vena said the primarily Western U.S.-based rail network is progressing through the regulatory process for its proposed merger with Eastern U.S.-based Norfolk Southern (NSC +5.32%).
Vena believes the combination will lead to greater competition among freight transport providers, better overall service, and a stronger national supply chain.
"Now, versus almost one year ago when we first announced our plans to merge, we have even more conviction that our transaction is in the public interest and will deliver benefits for our stakeholders, especially our customers," Vena said. "The case for our transcontinental railroad is clear, and we're ready to go."
This Railroad Stock Is Chugging Along to a New All-Time HighNorfolk Southern NYSE: NSC reported a stronger-than-expected second quarter, with executives pointing to a sharp rebound in freight volumes, higher energy-related demand and improving intermodal trends, while also acknowledging service pressures caused by the rapid increase in traffic.
President and Chief Executive Officer Mark George said the company delivered “a strong second quarter” after volumes improved sharply, initially driven by energy markets tied to the Iran conflict and later spreading into domestic intermodal and industrial products. George said the quarter produced 7% growth in both net income and earnings per share.
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These 3 industrial stocks just got upgraded ahead of earningsThe railroad’s adjusted operating ratio was 65.5%, according to Chief Financial Officer Jason Zampi. Adjusted earnings per share were $3.52. Zampi said operating income increased 5% from a year earlier, despite higher fuel costs, inflationary pressures and volume-related expenses.
Volumes Improve Across Key Markets Chief Commercial Officer Ed Elkins said overall volume increased 4% year over year. He said that even excluding fuel surcharge impacts, Norfolk Southern achieved record revenue in the quarter.
All Aboard! The Sell-Side Has Railroads In Reversal Within merchandise, volume increased 2%, while revenue excluding fuel rose 4% to another record. Elkins said the gains were driven by energy demand in the company’s chemicals markets, with revenue per unit excluding fuel up 3% due to price and mix.
Intermodal volume rose 5%, supported by firm consumer demand, favorable trucking market conditions and recent business wins in domestic intermodal. Intermodal revenue excluding fuel increased 7%, while revenue per unit excluding fuel rose 1%, which Elkins described as “the beginning of a positive shift in Intermodal pricing.”
Coal volume increased 3%, helped by the ramp-up of a new metallurgical coal export customer and additional export thermal opportunities tied to volatile global energy markets. Revenue per unit excluding fuel increased 1%, reflecting favorable seaborne coal pricing, partly offset by negative mix.
Elkins said the company is “positive on the growth potential” across its served markets, while noting that energy prices, consumer demand and interest rates remain variables. He said Norfolk Southern has a cautious but optimistic outlook for merchandise, a bullish view of intermodal and continued strength in export metallurgical coal.
Service Pressures Follow Volume Surge George said higher volumes following winter disruptions put pressure on the network, but he said the company has addressed the issues “head-on.” He said Norfolk Southern is already seeing acceleration in the network in July and expects continued progress.
New Chief Operating Officer Brian Barr said demand remained strong throughout the quarter, but recovering from network disruptions while handling higher volumes created pressure on crew resources and variability in parts of the system.
Barr said the company is focused on improving originations, reducing terminal dwell, increasing velocity and running the railroad to plan. He said on-time originations increased 20% over the past month, terminal performance is improving and train velocity is rising as recrews decline.
During the question-and-answer session, Barr described tactical operating changes, including work at the Chattanooga terminal that removed handling for about 150 cars per day. He said similar efforts are helping create capacity, reduce time in route and return resources to the network.
George said the company does not expect a “massive” addition of resources, though it needs to hire in certain tight locations and continue replacing attrition in train and engine ranks. He said accelerating the network reduces the need for incremental labor and locomotives.
Safety Metrics Improve Barr said safety remains the foundation of Norfolk Southern’s operations. In the second quarter, the company’s personal injury index declined 16% year over year, while the accident rate fell approximately 25%. Its mainline accident rate remained flat and near best-in-class levels, according to Barr.
He also highlighted the mechanical department, which he previously led, for going two consecutive months injury-free across shops and yards on the network. Barr said the company is pleased with the progress but “not satisfied,” adding that safety has no finish line.
Fuel Costs Drive Expense Outlook Higher Zampi said total costs rose 15% in the quarter, with more than two-thirds of the increase driven by a substantial rise in fuel expense. Inflation also pressured compensation and benefits, purchased services and materials, while volume and network fluidity issues contributed to higher overtime, rents and materials.
Norfolk Southern incurred $51 million in merger-related expenses during the quarter, $15 million of costs related to the Eastern Ohio incident and $6 million of restructuring costs, Zampi said.
George said the company is updating its 2026 operating expense outlook to $8.8 billion to $8.9 billion, up from the prior range of $8.2 billion to $8.4 billion. He attributed the increase largely to an estimated $400 million to $500 million of incremental fuel expense compared with the company’s view at the beginning of the year. Excluding fuel, he said core operating costs are trending toward the high end of the previous range because of a stronger volume outlook.
Capital expenditure guidance remains unchanged at approximately $1.9 billion. George said the company is maintaining discipline while investing in safety, reliability and network capacity.
Barr reaffirmed Norfolk Southern’s target of at least $150 million in cost reductions in 2026, which he said would bring cumulative savings to at least $650 million over three years, exceeding the company’s original target.
Executives See Pricing Opportunity as Truck Market Tightens Elkins said trucking market conditions have become increasingly supportive for rail conversion. He cited rising dry van rates, tightening truck capacity and elevated outbound tender rejections. He said higher fuel prices also make intermodal conversion more attractive to customers.
In response to analyst questions, Elkins said upward pressure in spot trucking rates typically needs three to six months before influencing contract pricing. He said Norfolk Southern has restructured contracts in recent years to respond more quickly to movements in truck pricing, reducing the lag from many months or a year to “a couple quarters.”
Elkins also said industrial development remains a key strategic priority. He said the number of new manufacturing and expansion projects expected to enter design and construction in 2026 is projected to be nearly double last year’s level. He cited projects from Sodecia Aapico JV in South Carolina, Virginia Transformer in Alabama and Silvi Materials cement terminals in several markets.
George said the company remains focused on the proposed combination with Union Pacific and is confident the transaction can strengthen supply chains through single-line service. He also referenced Norfolk Southern’s agreement with CN, calling it a “win-win-win” that further enhances competition in freight rail.
Looking ahead, George said Norfolk Southern is cautiously optimistic. He said higher fuel prices could become a risk if sustained long enough to hurt consumer demand, but he added that the current environment is more favorable for rail after what he described as a prolonged freight recession.
About Norfolk Southern (NYSE:NSC)Norfolk Southern Corporation is a major U.S. freight railroad company that provides rail transportation and related logistics services. As a Class I carrier, the company operates an extensive network across the eastern United States and offers scheduled freight service for a broad range of industries. Its core operations include long-haul and regional rail freight transportation, intermodal services that move containers and trailers between rail and other modes, and terminal and switching services that support efficient rail shipments for industrial and port customers.
The company transports a variety of commodities, serving sectors such as coal and energy, automotive and automotive parts, chemicals, agriculture, metals and construction materials, and consumer goods.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Key Takeaways Norfolk Southern's adjusted EPS rose 7% as record revenue climbed 11% on volume and pricing gains.Intermodal revenue jumped 22%, led by 11% growth in domestic units and a 16% rise in revenue per unit.NSC raised its 2026 expense outlook as higher fuel costs and volumes pressured the operating ratio. Norfolk Southern Corporation (NSC - Free Report) ) reported adjusted second-quarter 2026 earnings of $3.52 per share, up 7% year over year and 9% above the Zacks Consensus Estimate of $3.23. Railway operating revenues rose 11% to a record $3.47 billion, beating the consensus mark of $3.32 billion by 4.4%.
The top-line gain reflected 4% volume growth, stronger revenue per unit and higher fuel surcharges. Total units reached 1.86 million, while adjusted income from railway operations increased 5% to $1.20 billion.
NSC’s Revenue Mix Shows Broad-Based StrengthMerchandise revenues increased 8% year over year to $2.13 billion. Units rose 2%, while revenue per unit advanced 6%, supported by higher fuel surcharge revenue and favorable rate and mix.
Chemicals revenues climbed 18%, agriculture, forest and consumer products increased 4% and metals and construction rose 5%. Automotive revenues advanced 3%, with units remaining essentially flat.
Norfolk Southern's Intermodal Leads GrowthIntermodal revenues jumped 22% to $908 million, with units up 5% and revenue per unit rising 16%. Domestic intermodal units grew 11%, more than offsetting a 3% decline in international units.
Coal revenues climbed 7% to $424 million as units increased 3% and revenue per unit improved 4%. Export coal tonnage surged 25%, while utility and domestic metallurgical tonnage declined 8% and 15%, respectively.
NSC's Costs Weigh on EfficiencyAdjusted railway operating expenses rose 15% to $2.27 billion. Fuel expense surged 85%, or $186 million, mainly because of higher prices. Compensation and benefits increased 8%, while purchased services and rents climbed 6%.
The adjusted operating ratio, which measures operating expenses as a percentage of revenues, deteriorated 210 basis points to 65.5%. Higher fuel expense and the related surcharge revenues created a 110-basis-point year-over-year headwind. Excluding fuel, revenues grew 5%, while revenue per unit increased 1%.
Norfolk Southern's Network Metrics Face PressureService and network measures weakened during the quarter. Train speed declined to 19.9 miles per hour from 21.6 a year ago, while terminal dwell increased to 24.0 hours from 22.7 hours. Car miles per day fell to 138 from 142.
Customer-facing metrics also softened. Merchandise plan compliance dropped to 68% from 78%, and the intermodal service composite declined to 85% from 89%. Management said that network velocity was regaining momentum in the third quarter and reiterated that NSC remains on track for at least $650 million of three-year cost reductions.
NSC's Safety Progress Remains IntactSafety performance provided a counterweight to the service pressure. The first-half FRA accident rate improved to 1.61 from 2.37 in the prior-year period, while the FRA mainline accident rate declined to 0.49 from 0.56.
The first-half personal injury index improved to 1.03 from 1.08. Management emphasized continued investment in safety and linked the progress to longer-term culture change across the railroad.
Norfolk Southern's Cash Flow Funds PrioritiesNet cash provided by operating activities totaled $1.40 billion in the first six months of 2026, down from $2.03 billion a year earlier. Property additions were $821 million, while dividends totaled $606 million. Norfolk Southern did not repurchase shares during the period.
NSC ended June with $1.07 billion in cash and cash equivalents. Total debt declined to $16.62 billion from $17.09 billion at year-end 2025, while the debt-to-total-capitalization ratio improved to 50.6% from 52.4%.
NSC Raises Its Expense OutlookManagement now expects adjusted operating expenses of $8.8 billion to $8.9 billion for 2026. The revised view includes a projected $400 million to $500 million incremental fuel impact versus the original guidance, along with higher volumes.
Capital spending is expected to be $1.9 billion, about $300 million or 14% below the 2025 level. The program is expected to support network reliability and capability as the company prioritizes safety, consistent service and disciplined execution.
Currently, NSC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q2 Performances of Other Transportation CompaniesDelta Air Lines (DAL - Free Report) reported second-quarter 2026 earnings (excluding 88 cents from non-recurring items) of $1.56 per share, beating the Zacks Consensus Estimate of $1.51. Earnings declined in double digits (% wise) from a year ago as sharply higher fuel costs pressured profitability.
Revenues rose on a year-over-year basis to $17.67 billion but missed the consensus estimate of $17.76 billion. Broad demand strength lifted adjusted total revenue per available seat mile, or TRASM, 12.4%, while premium and diversified revenue streams continued to expand.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.
Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68-billion consensus mark. A 12.1% increase in total revenue per available seat mile, or TRASM, and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%.
Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads.
Norfolk Southern Corporation (NSC) Q2 2026 Earnings Call July 23, 2026 10:00 AM EDT
Company Participants
Luke Nichols - Senior Director of Investor Relations
Mark George - President, CEO & Director
Brian Barr - Chief Operating Officer
Ed Elkins - Executive VP & Chief Commercial Officer
Jason Zampi - Executive VP & CFO
Conference Call Participants
Christian Wetherbee - Wells Fargo Securities, LLC, Research Division
Scott Group - Wolfe Research, LLC
Brian Ossenbeck - JPMorgan Chase & Co, Research Division
Jason Seidl - TD Cowen, Research Division
Jonathan Chappell - Evercore ISI Institutional Equities, Research Division
David Vernon - Bernstein Institutional Services LLC, Research Division
Madison Pasterchick - Morgan Stanley, Research Division
Stephanie Benjamin Moore - Jefferies LLC, Research Division
Bascome Majors - Stephens Inc., Research Division
Richa Talwar - Deutsche Bank AG, Research Division
Eric Morgan - Barclays Bank PLC, Research Division
Ariel Rosa - Citigroup Inc., Research Division
Presentation
Operator
Good morning, ladies and gentlemen, and welcome to the Norfolk Southern Corporation Q2 2026 Earnings Conference Call. [Operator Instructions] Also note that this call is being recorded on Thursday, July 23, 2026. And I would like to turn the conference over to Luke Nichols. Please go ahead, sir.
Luke Nichols
Senior Director of Investor Relations
Thank you, and good morning, everyone. Please note that during today's call, we will make certain forward-looking statements within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or future performance of Norfolk Southern Corporation, which are subject to risks and uncertainties and may differ materially from actual results.
Please refer to our annual and quarterly reports filed with the SEC for a full discussion of those risks and uncertainties we view as most important. Our presentation slides are available at norfolksouthern.com in the Investors Section along with a reconciliation of any non-GAAP measures
Norfolk Southern Corp (NSC) released its 8-K filing on July 23, 2026, revealing positive financial results for the second quarter of 2026. The company reported
Norfolk Southern (NSC - Free Report) came out with quarterly earnings of $3.52 per share, beating the Zacks Consensus Estimate of $3.23 per share. This compares to earnings of $3.29 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +8.98%. A quarter ago, it was expected that this railroad would post earnings of $2.51 per share when it actually produced earnings of $2.65, delivering a surprise of +5.58%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Norfolk Southern, which belongs to the Zacks Transportation - Rail industry, posted revenues of $3.47 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.42%. This compares to year-ago revenues of $3.11 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Norfolk Southern shares have added about 14.6% since the beginning of the year versus the S&P 500's gain of 9.6%.
What's Next for Norfolk Southern?While Norfolk Southern has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Norfolk Southern was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.34 on $3.33 billion in revenues for the coming quarter and $12.24 on $12.79 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Rail is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Canadian Pacific Kansas City (CP - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on July 29.
This railroad is expected to post quarterly earnings of $0.89 per share in its upcoming report, which represents a year-over-year change of +9.9%. The consensus EPS estimate for the quarter has been revised 0.7% lower over the last 30 days to the current level.
Canadian Pacific Kansas City's revenues are expected to be $2.91 billion, up 9% from the year-ago quarter.
For the quarter ended June 2026, Norfolk Southern (NSC - Free Report) reported revenue of $3.47 billion, up 11.4% over the same period last year. EPS came in at $3.52, compared to $3.29 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $3.32 billion, representing a surprise of +4.42%. The company delivered an EPS surprise of +8.98%, with the consensus EPS estimate being $3.23.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Norfolk Southern performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Railway Operating Ratio: 67.6% versus the three-analyst average estimate of 66.7%.Revenue ton miles: 49.7 billion compared to the 48.58 billion average estimate based on two analysts.Carloads (Units) - Volume - Merchandise: 610.7 thousand compared to the 612.51 thousand average estimate based on two analysts.Carloads (Units) - Volume - Intermodal: 1.06 million versus the two-analyst average estimate of 1.07 million.Revenue per Carload (Unit) - Total: $1,861.00 versus the two-analyst average estimate of $1,765.63.Railway operating revenues- Merchandise- Agriculture, forest and consumer products: $673 million versus $674.63 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +4.3% change.Railway operating revenues- Coal: $424 million versus the two-analyst average estimate of $393.37 million. The reported number represents a year-over-year change of +7.3%.Railway operating revenues- Merchandise- Chemicals: $646 million versus $585.34 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +18.3% change.Railway operating revenues- Intermodal: $908 million versus $821.41 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +22.2% change.Railway operating revenues- Merchandise- Automotive: $334 million versus the two-analyst average estimate of $332.44 million. The reported number represents a year-over-year change of +3.4%.Railway operating revenues- Merchandise: $2.13 billion versus the two-analyst average estimate of $2.08 billion. The reported number represents a year-over-year change of +8.2%.Railway operating revenues- Merchandise- Metals and construction: $480 million versus the two-analyst average estimate of $491.94 million. The reported number represents a year-over-year change of +4.8%.View all Key Company Metrics for Norfolk Southern here>>>
Shares of Norfolk Southern have returned +8.9% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
, /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) announced Thursday its second quarter 2026 financial results. For the quarter, revenue was $3.5 billion, income from railway operations was $1.1 billion, operating ratio was 67.6%, and diluted earnings per share were $3.26.
Adjusting the results to exclude merger-related expenses, restructuring and other charges, and the effects of the Eastern Ohio incident, second quarter income from railway operations was $1.2 billion, the operating ratio was 65.5%, and diluted earnings per share were $3.52.
"Norfolk Southern delivered a strong second quarter, exceeding our expectations as demand improved across key markets," said Mark George, President and Chief Executive Officer. "Our team adapted to a dynamic operating environment with focus and an unwavering commitment to safety. The progress we achieved reflects the dedication of our railroaders and the strength of our franchise."
George added, "As we look to the second half of the year, our priorities remain clear: operating a safe, reliable railroad, providing high-quality, consistent service for our customers, and executing with discipline to capitalize on emerging opportunities. With encouraging demand trends, we are well positioned to create value for our customers, shareholders, and the communities we serve."
Second Quarter Summary
Railway operating revenues of $3.5 billion were an all-time quarterly record, up $355 million, or 11% compared to the second quarter 2025, on a volume increase of 4% year-over-year, and higher fuel surcharges representing six points of the revenue growth. Income from railway operations was $1.1 billion, a decrease of $51 million, or 4%, compared to second quarter 2025. Adjusting for the effects of merger-related expenses in 2026 and restructuring and other charges and the Eastern Ohio incident in both years, income from railway operations was $1.2 billion, an increase of $58 million, or 5%, compared to adjusted second quarter 2025. Operating ratio in the quarter was 67.6% compared to 62.2% in second quarter 2025. Adjusting for the effects of merger-related expenses in 2026 and restructuring and other charges and the Eastern Ohio incident in both years, the operating ratio for second quarter 2026 was 65.5%, 210 basis points higher than adjusted second quarter 2025. Higher fuel expense and the corresponding growth in fuel surcharge revenues translated to 110 basis points of headwind to the operating ratio on a year-over-year basis. Diluted earnings per share were $3.26, down $0.15, or 4%, compared to second quarter 2025. Adjusting for the effects of merger-related expenses in 2026 and restructuring and other charges and the Eastern Ohio incident in both years, diluted earnings per share were $3.52, up $0.23, or 7%, compared to adjusted second quarter 2025. About Norfolk Southern
Since 1827, Norfolk Southern Corporation (NYSE: NSC) and its predecessor companies have safely moved the goods and materials that drive the U.S. economy. Today, it operates a 22-state freight transportation network. Committed to furthering sustainability, Norfolk Southern helps its customers avoid approximately 15 million tons of yearly carbon emissions by shipping via rail. Its dedicated team members deliver approximately 7 million carloads annually, from agriculture to consumer goods. Norfolk Southern also has the most extensive intermodal network in the eastern U.S. It serves a majority of the country's population and manufacturing base, with connections to every major container port on the Atlantic coast as well as major ports across the Gulf Coast and Great Lakes. Learn more by visiting www.NorfolkSouthern.com.
Cautionary Statement on Forward-Looking Statements
Certain statements in this press release are "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 our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or our achievements or those of our industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements may be identified by the use of words like "may," "will," "could," "would," "should," "expect," "anticipate," "believe," "project," or other comparable terminology. While the Company has based these forward-looking statements on those expectations, assumptions, estimates, beliefs, and projections it views as reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which involve factors or circumstances that are beyond the Company's control, including but not limited to: (i) changes in domestic or international economic, political or business conditions, including those impacting the transportation industry; (ii) the Company's ability to successfully implement its operational, productivity, and strategic initiatives; (iii) a significant adverse event on our network, including but not limited to a mainline accident, discharge of hazardous material, or climate-related or other network outage; (iv) the outcome of claims, litigation, governmental proceedings, and investigations involving the Company, including those with respect to the Eastern Ohio incident; (v) new or additional governmental regulation and/or operational changes resulting from or related to the Eastern Ohio incident; (vi) a significant cybersecurity incident or other disruption to our technology infrastructure; and (vii) those pertaining to the Merger. These and other important factors, including those discussed under "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 9, 2026, may cause actual results, performance, or achievements to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements herein are made only as of the date they were first issued, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Non-GAAP Financial Measures
Information included within this press release contains non-GAAP financial measures, including adjusted income from railway operations, adjusted operating ratio, and adjusted diluted earnings per share. Non-GAAP financial measures should be considered in addition to, not as a substitute for, the financial measures reported in accordance with U.S. generally accepted accounting principles (GAAP).
Our non-GAAP financial results for the second quarters of 2026 and 2025 exclude restructuring and other charges and the effects from the Eastern Ohio Incident (the Incident). Our non-GAAP financial results for the second quarter of 2026 also exclude merger-related expenses. The following tables adjust our GAAP financial results for the second quarters of 2026 and 2025 to exclude the effects of those items. The income tax effects of the non-GAAP adjustments were calculated based on the applicable tax rates to which the non-GAAP adjustments related. We use these non-GAAP financial measures internally and believe this information provides useful supplemental information to investors to facilitate making period-to-period comparisons by excluding these costs. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant to be considered in isolation from, or as a substitute for, the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similar measures presented by other companies. Information about the adjustments that are not currently available to us could have a potentially unpredictable and significant impact on future GAAP results. Further information about the Company's non-GAAP measures are available on our website at www.norfolksouthern.com on the Investors page under Events and Presentations.
($ in millions, except per share amounts)
Second
Quarter 2026
Income from railway operations
$
1,124
Merger-related expenses, restructuring
and other charges, and effect of the
Incident
72
Adjusted income from railway operations
$
1,196
Operating ratio
67.6 %
Merger-related expenses, restructuring
and other charges, and effect of the
Incident
(2.1 %)
Adjusted operating ratio
65.5 %
Diluted earnings per share
$
3.26
Merger-related expenses, restructuring
and other charges, and effect of the
Incident
0.26
Adjusted diluted earnings per share
$
3.52
($ in millions, except per share amounts)
Second
Quarter 2025
Income from railway operations
$
1,175
Restructuring and other charges and
effect of the Incident
(37)
Adjusted income from railway operations
$
1,138
Operating ratio
62.2 %
Restructuring and other charges and
effect of the Incident
1.2 %
Adjusted operating ratio
63.4 %
Diluted earnings per share
$
3.41
Restructuring and other charges and
effect of the Incident
Norfolk Southern logo is seen in this illustration taken August 5, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
July 23 (Reuters) - Norfolk Southern (NSC.N), opens new tab beat Wall Street expectations for second-quarter adjusted profit on Thursday, as stronger freight demand and increased fuel surcharges billed to customers helped counter fuel-cost pressures.
Fuel costs have remained a headwind for transportation companies, though railroads have partly offset the pressure by passing costs to shippers via fuel surcharges, operational efficiencies and steady intermodal demand.
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U.S. gasoline prices topped $4 a gallon in March for the first time in more than three years and have remained near that level, keeping pressure on fuel-intensive industries.
Atlanta, Georgia-based Norfolk reported an adjusted profit of $3.52 per share, compared with $3.29 per share a year earlier. Analysts expected an adjusted profit of $3.31 per share, according to data compiled by LSEG.
The company's railway operating income for the second quarter rose 11% to $3.5 billion from a year earlier.
On an adjusted basis, the company's operating ratio - a key measure of efficiency - was 65.5% for the quarter, deteriorating by 210 basis points from a year earlier.
Union Pacific outperforms peers since FebruaryReporting by Apratim Sarkar in Bengaluru; Editing by Vijay Kishore
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Stripping out one-time costs, such as expenses related to its tie-up with Union Pacific and continued costs from its freight-train derailment in Ohio, earnings were $3.52 a share in the second quarter.
Union Pacific UNP reached a deal with Canadian National Railway CNR to give the Montreal railroad further access in the Midwest in exchange for ending its opposition to Union Pacific’s $71.5 billion merger with Norfolk Southern NSC .
Under the proposed agreement, CN would get rights to run its trains on tracks between Tuscola and East St. Louis, Ill., as well as rights to serve customers between St. Louis and Kansas City, Mo., the companies said Wednesday.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Norfolk Southern (NSC - Free Report) , which belongs to the Zacks Transportation - Rail industry, could be a great candidate to consider.
When looking at the last two reports, this railroad has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 10.70%, on average, in the last two quarters.
For the most recent quarter, Norfolk Southern was expected to post earnings of $2.51 per share, but it reported $2.65 per share instead, representing a surprise of 5.58%. For the previous quarter, the consensus estimate was $2.78 per share, while it actually produced $3.22 per share, a surprise of 15.83%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Norfolk Southern lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Norfolk Southern currently has an Earnings ESP of +0.21%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 23, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) announced today a quarterly dividend of $1.35 per share on its common stock.
The dividend is payable August 20, 2026, to shareholders of record on August 7, 2026.
The company has paid a dividend on its common stock for 176 consecutive quarters since its formation in 1982.
About Norfolk Southern
Since 1827, Norfolk Southern Corporation (NYSE: NSC) and its predecessor companies have safely moved the goods and materials that drive the U.S. economy. Today, it operates a 22-state freight transportation network. Committed to furthering sustainability, Norfolk Southern helps its customers avoid approximately 15 million tons of yearly carbon emissions by shipping via rail. Its dedicated team members deliver approximately 7 million carloads annually, from agriculture to consumer goods. Norfolk Southern also has the most extensive intermodal network in the eastern U.S. It serves a majority of the country's population and manufacturing base, with connections to every major container port on the Atlantic coast as well as major ports across the Gulf Coast and Great Lakes. Learn more by visiting www.NorfolkSouthern.com.
In its upcoming report, Norfolk Southern (NSC - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $3.23 per share, reflecting a decline of 1.8% compared to the same period last year. Revenues are forecasted to be $3.32 billion, representing a year-over-year increase of 6.7%.
The current level reflects an upward revision of 0.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Given this perspective, it's time to examine the average forecasts of specific Norfolk Southern metrics that are routinely monitored and predicted by Wall Street analysts.
Based on the collective assessment of analysts, 'Railway operating revenues- Merchandise- Agriculture, forest and consumer products' should arrive at $674.63 million. The estimate indicates a year-over-year change of +4.6%.
The collective assessment of analysts points to an estimated 'Railway operating revenues- Coal' of $393.37 million. The estimate indicates a year-over-year change of -0.4%.
The consensus among analysts is that 'Railway operating revenues- Merchandise- Chemicals' will reach $585.34 million. The estimate indicates a year-over-year change of +7.2%.
Analysts forecast 'Railway operating revenues- Merchandise' to reach $2.08 billion. The estimate indicates a change of +5.7% from the prior-year quarter.
Analysts predict that the 'Railway Operating Ratio' will reach 66.7%. Compared to the present estimate, the company reported 62.2% in the same quarter last year.
It is projected by analysts that the 'Revenue ton miles' will reach 48.58 billion. The estimate compares to the year-ago value of 47.00 billion.
According to the collective judgment of analysts, 'Carloads (Units) - Volume - Merchandise' should come in at 612.51 thousand. The estimate is in contrast to the year-ago figure of 600.60 thousand.
The average prediction of analysts places 'Carloads (Units) - Volume - Intermodal' at 1.07 million. The estimate is in contrast to the year-ago figure of 1.01 million.
Analysts' assessment points toward 'Revenue per Carload (Unit) - Total' reaching $1765.63 . The estimate is in contrast to the year-ago figure of $1734.00 .
Analysts expect 'Revenue per Carload (Unit) - Coal' to come in at $2089.82 . The estimate is in contrast to the year-ago figure of $2173.00 .
The combined assessment of analysts suggests that 'Revenue per Carload (Unit) - Merchandise' will likely reach $3403.00 . The estimate is in contrast to the year-ago figure of $3282.00 .
The consensus estimate for 'Revenue per Carload (Unit) - Intermodal' stands at $769.28 . The estimate compares to the year-ago value of $735.00 .
View all Key Company Metrics for Norfolk Southern here>>>
Shares of Norfolk Southern have experienced a change of +13.4% in the past month compared to the +0.6% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), NSC is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways Norfolk Southern will report Q2 results July 23, with earnings estimated at $3.23 per share. Intermodal revenues are expected to rise 5.7%, aided by freight demand and e-commerce volumes. Cost cuts and Precision Scheduled Railroading may support efficiency as revenues are seen falling 6.7%. Norfolk Southern Corporation (NSC - Free Report) is scheduled to report second-quarter 2026 results on July 23, before market open.
The Zacks Consensus Estimate for NSC’s second-quarter 2026 earnings has been revised upward by 3.53% over the past 60 days to $3.23 per share. The consensus mark for earnings implies a 1.8% decline from the year-ago actuals. The Zacks Consensus Estimate for NSC's second-quarter 2026 revenues is pegged at $3.32 billion, indicating a 6.7% fall year over year.
Norfolk Southern has an encouraging earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 6.45%.
Let’s see how things are likely to have shaped up for Norfolk Southern this earnings season.
Factors Likely to Have Influenced NSC’s Q2 PerformanceWe expect NSC’s performance in the to-be-reported quarter to have been bolstered by an uptick in freight market demand and robust cost-cutting initiatives.
The Zacks Consensus Estimate for the Railway operating revenues from the intermodal segment is anticipated to have increased 5.7% from the year ago actuals.
E-commerce demand is likely to have driven NSC's shipment volumes in the to-be-reported quarter, thereby boosting the company's top line. Additionally, service quality is expected to have improved through the company's Precision Scheduled Railroading operating plan, enabling more efficient utilization of assets.
What Our Model Says About NSCOur proven model predicts an earnings beat for Norfolk Southern this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Which is not the case here.
NSC has an Earnings ESP of +0.21% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Highlights of NSC’s Q1 ResultsNSC posted earnings (excluding 22 cents from non-recurring items) of $2.65 per share for the first quarter of 2026, topping the Zacks Consensus Estimate of $2.51. The adjusted figure was down 1.5% from $2.69 a year ago.
Railway operating revenues were $3.0 billion, edging past the Zacks Consensus Estimate of $2.99 billion and rising 0.2% year over year. The adjusted operating ratio (operating expenses as a % of revenues) in the quarter landed at 68.7%, as higher costs and fuel headwinds weighed on profitability. The year-ago value of the metric was 67.9%. A lower value of the metric is preferable.
Other Stocks to ConsiderHere are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
CSX Corporation (CSX - Free Report) has an Earnings ESP of +1.31% and a Zacks Rank #2 at present. CSX is scheduled to report second-quarter 2026 results on July 22, after market close.
The Zacks Consensus Estimate for the second-quarter 2026 earnings has been revised upward by 6.38% over the past 60 days to 50 cents per share. The Zacks Consensus Estimate for revenues is pegged at $3.82 billion, indicating a 6.90% increase from the second-quarter 2025 actuals.
Schneider National (SNDR - Free Report) has an Earnings ESP of +1.50% and a Zacks Rank #2 at present. SNDR is scheduled to report second-quarter 2026 earnings on July 30.
The Zacks Consensus Estimate for second-quarter 2026 earnings has been remained flat at 22 cents over the past 60 days. SNDR’s earnings beat the Zacks Consensus Estimate in one of the preceding four quarters (missing the mark twice and met the mark once in the remaining three quarters). The average miss is 17.97%.
Norfolk Southern (NSC - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 23. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis railroad is expected to post quarterly earnings of $3.23 per share in its upcoming report, which represents a year-over-year change of -1.8%.
Revenues are expected to be $3.32 billion, up 6.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.26% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Norfolk Southern?For Norfolk Southern, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.21%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Norfolk Southern will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Norfolk Southern would post earnings of $2.51 per share when it actually produced earnings of $2.65, delivering a surprise of +5.58%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Norfolk Southern appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
OMAHA, Neb. & ATLANTA--(BUSINESS WIRE)--Union Pacific Corporation (NYSE: UNP) and Norfolk Southern Corporation (NYSE: NSC) today submitted the first portion of their responses to the Surface Transportation Board’s (STB) May 28, 2026, request for additional information to support their accepted merger application.
Today’s filing addresses the STB’s questions regarding Terminal Railroad Association of St. Louis (TRRA), Kansas City Terminal Railway (KCT) and TTX Company. These entities are jointly owned with other Class I railroads, operated by independent management teams and governed by non-discrimination policies. Union Pacific and Norfolk Southern do not control these companies today and remain firm in their commitment that they will not control them post-merger. The merger application and today’s supplemental filing provide the STB with options to implement this commitment, up to and including divestiture.
In particular, for the TRRA, the filing provides clear evidence that the other Class I railroads who are vocally opposing the merger are using the TRRA as a pawn in their efforts to stop or delay the merger. This includes failing to appear at a properly convened special meeting for the sole purpose of discussing ways to reduce Union Pacific’s ownership in TRRA post-merger. Only Union Pacific and Norfolk Southern board members attended the meeting called by TRRA’s corporate secretary, while members from BNSF, CSX and Canadian National did not show.
Connecting Union Pacific and Norfolk Southern’s end-to-end networks will finally give American shippers single-line transcontinental rail service, creating a stronger alternative to long-haul trucking, making the entire supply chain more competitive, and putting downward pressure on truck and rail prices. The opportunities opened by the merger for shifting freight from truck to rail are projected to save shippers an estimated $3.5 billion annually.
Union Pacific and Norfolk Southern have consistently welcomed rigorous regulatory review of the proposed merger, and today’s submission reflects that commitment. The responses to the STB’s other requests for additional information will follow by July 27, 2026.
The STB accepted as complete the Union Pacific-Norfolk Southern merger application on May 28, a positive step toward creating America’s first transcontinental railroad. The railroads are committed to working constructively with the STB toward a mid-2027 completion. For more information, visit AmericasGreatConnection.com.
About Union Pacific
Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable, and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.
About Norfolk Southern
Since 1827, Norfolk Southern Corporation (NYSE: NSC) and its predecessor companies have safely moved the goods and materials that drive the U.S. economy. Today, it operates a 22-state freight transportation network. Committed to furthering sustainability, Norfolk Southern helps its customers avoid approximately 15 million tons of yearly carbon emissions by shipping via rail. Its dedicated team members deliver approximately 7 million carloads annually, from agriculture to consumer goods. Norfolk Southern also has the most extensive intermodal network in the eastern U.S. It serves a majority of the country's population and manufacturing base, with connections to every major container port on the Atlantic coast as well as major ports across the Gulf Coast and Great Lakes. Learn more by visiting www.NorfolkSouthern.com
Certain statements in this communication are “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 financial performance and involve known and unknown risks, uncertainties, and other factors that may cause Union Pacific’s, Norfolk Southern’s or the combined company’s actual results, levels of activity, performance, or achievements or those of the railroad industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements may be identified by the use of words like “may,” “will,” “could,” “would,” “should,” “expect,” “anticipate,” “believe,” “project,” “estimate,” “intend,” “plan,” “pro forma,” or any variations or other comparable terminology.
While Union Pacific and Norfolk Southern have based these forward-looking statements on those expectations, assumptions, estimates, beliefs and projections they view as reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which involve factors or circumstances that are beyond Union Pacific’s, Norfolk Southern’s or the combined company’s control, including but not limited to, in addition to factors disclosed in Union Pacific’s and Norfolk Southern’s respective filings with the U.S. Securities and Exchange Commission (the “SEC”): the occurrence of any event, change or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between Union Pacific and Norfolk Southern providing for the acquisition of Norfolk Southern by Union Pacific (the “Transaction”); the risk that potential legal proceedings may be instituted against Union Pacific or Norfolk Southern and result in significant costs of defense, indemnification or liability; the possibility that the Transaction does not close when expected or at all because required Surface Transportation Board or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the Transaction); the risk that the combined company will not realize expected benefits, cost savings, accretion, synergies and/or growth from the Transaction, or that such benefits may take longer to realize or be more costly to achieve than expected, including as a result of changes in, or problems arising from, general economic and market conditions, tariffs, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Union Pacific and Norfolk Southern operate; disruption to the parties’ businesses as a result of the announcement and pendency of the Transaction; the costs associated with the anticipated length of time of the pendency of the Transaction, including the restrictions contained in the definitive merger agreement on the ability of Union Pacific and Norfolk Southern, respectively, to operate their respective businesses outside the ordinary course during the pendency of the Transaction; the diversion of Union Pacific’s and Norfolk Southern’s management’s attention and time from ongoing business operations and opportunities on merger-related matters; the risk that the integration of each party’s operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate each party’s businesses into the other’s businesses; the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of Union Pacific’s or Norfolk Southern’s customers, suppliers, employees, labor unions or other business partners, including those resulting from the announcement or completion of the Transaction; the dilution caused by Union Pacific’s issuance of additional shares of its common stock in connection with the consummation of the Transaction; the risk of a downgrade of the credit rating of Union Pacific’s indebtedness, which could give rise to an obligation to redeem existing indebtedness; a material adverse change in the financial condition of Union Pacific, Norfolk Southern or the combined company; changes in domestic or international economic, political or business conditions, including those impacting the transportation industry (including customers, employees and supply chains); Union Pacific’s, Norfolk Southern’s and the combined company’s ability to successfully implement its respective operational, productivity, and strategic initiatives; a significant adverse event on Union Pacific’s or Norfolk Southern’s network, including, but not limited to, a mainline accident, discharge of hazardous materials, or climate-related or other network outage; the outcome of claims, litigation, governmental proceedings and investigations involving Union Pacific or Norfolk Southern, including, in the case of Norfolk Southern, those with respect to the Eastern Ohio incident; the nature and extent of Norfolk Southern’s environmental remediation obligations with respect to the Eastern Ohio incident; new or additional governmental regulation and/or operational changes resulting from or related to the Eastern Ohio incident; and a cybersecurity incident or other disruption to our technology infrastructure.
This list of important factors is not intended to be exhaustive. These and other important factors, including those discussed under “Risk Factors” in Norfolk Southern’s Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 9, 2026 (available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0000702165/000162828026006268/nsc-20251231.htm) and Norfolk Southern’s subsequent filings with the SEC, Union Pacific’s most recent Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 6, 2026 (available at https://www.sec.gov/ix?doc=/Archives/edgar/data/100885/000010088526000037/unp-20251231.htm) and Union Pacific’s subsequent filings with the SEC, may cause actual results, performance, or achievements to differ materially from those expressed or implied by these forward-looking statements. References to Union Pacific’s and Norfolk Southern’s website are provided for convenience and, therefore, information on or available through the website is not, and should not be deemed to be, incorporated by reference herein. The forward-looking statements herein are made only as of the date they were first issued, and unless otherwise required by applicable securities laws, Union Pacific and Norfolk Southern disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by applicable law or regulation.
Key Takeaways NSC supports shareholders through dividends and buybacks while maintaining a low debt profile. Weak freight revenues, rail network issues, coal market weakness and share price volatility hurt NSC.NSC shares have gained in the past year, and outperforms its industry and peers like CP and CNI. Norfolk Southern Corporation (NSC - Free Report) is currently mired in multiple headwinds. The negative sentiment surrounding Norfolk Southern stock is evident from the fact that the Zacks Consensus Estimate for the second quarter of 2026 and full-year 2026 earnings has been revised downward in the past 90 days. The consensus mark for 2027 earnings has also been projected downward in the past 90 days.
The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
Image Source: Zacks Investment Research
Given this backdrop, the question now arises whether it is worth buying, holding, or selling the Norfolk Southern stock at current prices. Let us delve deeper to find out.
Headwinds Weighing on Norfolk Southern StockMacroeconomic concerns are leading to a tough freight environment. Risks associated with an economic slowdown, geopolitical tensions and tariff-induced economic uncertainty do not bode well for railroad stocks like NSC. As things stand now, consumer spending and business investments remain low, and production levels have decreased in response to reduced demand, affecting demand for goods transportation and resulting in a freight recession (The Cass Freight Shipments Index, which declined 4.4% year over year in April 2026, 4.5% year over year in March 2026, 7.2% year over year in February 2026 and 7.1% in January 2026, deteriorated in each of the 12 months in 2025 and led to sub-par freight rates).
Rail network issues due to headwinds like locomotive or crew/labor shortages and other service disruptions represent a major challenge for NSC. Network issues or supply chain constraints are likely to adversely impact service levels, in turn, hurting operating efficiency or volume of shipments. High labor costs and elevated operating expenses are hurting the bottom line.
Coal market weakness is another headwind for NSC. The coal business remains subject to secular pressures from greener alternatives, which is leading to the planned retirement of coal units. The weak coal market has resulted in below-par coal revenues. Coal revenues fell 8% year over year to $1.48 billion in 2025. Coal revenues per unit declined 9% year over year in 2025. During first-quarter 2026, coal revenues fell 2% year over year, while coal revenues per unit declined 9% year over year.
Stock prices of railroad companies like NSC are notoriously volatile. This is mainly because the health of the company is tied to the economy, which is undergoing a turbulent phase. As such, shares of NSC may not be suitable for investors who are not comfortable with the often substantial day-to-day volatility.
Unattractive Valuation Picture for NSC StockNorfolk Southern looks expensive from a valuation standpoint. Considering the forward 12-month price-to-sales ratio (P/E-F12M), NSC is trading at a premium compared to the industry.
The stock has a forward 12-month P/E-F12M of 24.81X compared with 21.82X for the industry over the past five years. The company’s forward 12-month P/E-F12M ratio is also above the median level of 18.71X over the past five years. These factors indicate that the stock’s valuation is unattractive. NSC has a Value Score of D.
NSC P/E Ratio (Forward 12 Months) Vs. Industry Image Source: Zacks Investment Research
NSC Stock’s Price PerformanceShares of Norfolk Southern stock have gained 20.7% in the past year, outperforming the Zacks Transportation - Rail industry’s 19.5% increase, as well as that of other industry players, Canadian Pacific Kansas City Limited (CP - Free Report) and Canadian National Railway Company (CNI - Free Report) ), within the same time frame.
NSC Stock’s One-Year Price Comparison Image Source: Zacks Investment Research
Factors Working in Favor of NSC StockE-commerce growth is a tailwind for Norfolk Southern. E-commerce demand strength should continue to support growth of railroads like Norfolk Southern. NSC’s AccessNS, an e-commerce tool, gives customers an efficient and convenient one-stop digital platform to conduct business with the railroad operator.
Further, Norfolk Southern’s focus on utilizing the Precision Scheduled Railroading (PSR) operating plan to reduce costs and enhance services for optimal asset utilization is commendable.
Norfolk Southern’s solid balance sheet increases financial flexibility. The company ended first-quarter 2026 with cash and cash equivalents of $1.34 billion, higher than the current debt level of $609 million. This implies that the company has sufficient cash to meet its current debt obligations. Further, NSC’s long-term debt has declined to $16.4 billion at first-quarter 2026 end from $16.6 billion at the end of first-quarter 2025.
A strong balance sheet enables the company to reward shareholders with dividends and share repurchases. As a reflection of its shareholder-friendly stance, during 2025, the company paid dividends worth $1.21 billion and repurchased and retired common stock worth $534 million. During first-quarter 2026, the company paid dividends worth $303 million and repurchased and retired common stock worth $5 million. Norfolk Southern's strong free cash flow-generating ability supports its shareholder-friendly activities. Such shareholder-friendly moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
Time to Retain Norfolk Southern StockIt is understood that NSC stock is currently unattractively valued. Risks associated with an economic slowdown, geopolitical tensions and tariff-induced economic uncertainty do not bode well for railroad stocks like NSC. Rail network issues due to headwinds like locomotive or crew/labor shortages and other service disruptions continue to bother NSC. Weakness pertaining to freight revenues and volumes does not bode well for NSC. Coal market weakness and share price volatility are also causes for worry.
Despite the headwinds, we advise investors not to sell NSC stock now due to its environmentally-friendly approach of reducing greenhouse gas emissions and focus on utilizing the PSR operating plan to reduce costs and enhance services for optimal asset utilization. NSC’s solid balance sheet allows it to reward shareholders through dividends and share buybacks. Such shareholder-friendly moves boost investor confidence and positively impact the company's bottom line.
Considering all the aforesaid factors, we advise investors to wait for a better entry point. For those who already own the stock, it will be prudent to stay invested. The company’s current Zacks Rank #3 (Hold) justifies our analysis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) will announce its second quarter 2026 financial results during a live conference call and internet webcast at 10 a.m. ET on Thursday, July 23, 2026. Quarterly earnings results will be released in advance of the call and a press release will be posted on the Investors page of the company's website.
What:
Norfolk Southern Second Quarter 2026 Earnings Conference Call
When:
10 a.m. ET July 23, 2026
How to Participate:
Teleconference: 1-800-836-8184 (Dial in several minutes prior to call start). Live webcast: Via Webcast (Link is also available in the Investors section of the company's website)
Replay:
Following the live broadcast, a replay will be available via web link in the Investors section of the company's website.
For electronic notification of earnings events, subscribe to Investor Alerts, an email distribution list for the latest investor events, reports, news and more from Norfolk Southern.
About Norfolk Southern
Since 1827, Norfolk Southern Corporation (NYSE: NSC) and its predecessor companies have safely moved the goods and materials that drive the U.S. economy. Today, it operates a 22-state freight transportation network. Committed to furthering sustainability, Norfolk Southern helps its customers avoid approximately 15 million tons of yearly carbon emissions by shipping via rail. Its dedicated team members deliver approximately 7 million carloads annually, from agriculture to consumer goods. Norfolk Southern also has the most extensive intermodal network in the eastern U.S. It serves a majority of the country's population and manufacturing base, with connections to every major container port on the Atlantic coast as well as major ports across the Gulf Coast and Great Lakes. Learn more by visiting www.NorfolkSouthern.com.
On June 24, 2026, we present a DCF analysis for Norfolk Southern Corp NSC , which has shown a price performance of +20.4% over the past year, despite a recent decline of -3.5% in the last month. Below are key highlights from our analysis:
DCF Earnings-based intrinsic value of $155.45 vs current price of $303.39 (margin of safety: -95.2%) DCF FCF-based intrinsic value of $123.14 vs current price (second opinion, margin of safety: -146.4%) GF Score™ of 84/100, indicating high reliability of the DCF inputs What Is NSC Worth? DCF Earnings-Based Model The DCF earnings-based model for Norfolk Southern Corp NSC utilizes a two-stage approach to estimate intrinsic value. In the first stage, we project earnings growth over the next ten years, followed by a terminal growth phase. The assumptions used in this model are as follows:
Parameter Value Current EPS (TTM, excl. non-recurring) $12.46 10-Year Growth Rate 6.2% 10-Year Treasury Rate 4.49% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage (Years 1-10), we expect EPS to grow at an annual rate of 6.2%, which is then discounted at a rate of 11%. The value derived from this growth stage is $98.50 per share. In the second stage (Years 11-20), we apply a terminal growth rate of 4%, also discounted at 11%, yielding a terminal stage value of $56.95 per share. The calculation summary is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 6.2%, discounted at 11% $98.50 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $56.95 Intrinsic Value Growth + Terminal $155.45 Comparing the current price of $303.39 with the intrinsic value of $155.45 indicates that NSC is modestly overvalued, with a margin of safety of -95.2%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research shows stock prices correlate more closely with earnings than with free cash flow. For further details, visit the NSC DCF Calculator.
What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based intrinsic value for Norfolk Southern Corp is calculated at $123.14. When compared to the earnings-based intrinsic value of $155.45, the two models provide differing perspectives on valuation. The FCF model also indicates that NSC is significantly overvalued, with a margin of safety of -146.4%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Norfolk Southern Corp is calculated at $254.01, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. While the DCF earnings-based and FCF-based models suggest significant overvaluation, the GF Value™ indicates a lesser degree of overvaluation. For more insights, visit the GF Value™ page.
What Does NSC's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021). The GF Score™ for NSC is 84/100, indicating strong fundamentals. Below is a summary of the GF Score™ metrics:
Metric Rating GF Score™ 84/100 Financial Strength 4/10 Profitability 9/10 Growth 7/10 Valuation 6/10 Momentum 8/10 With a predictability rank of 2/5 stars, the reliability of the DCF model for this stock is moderate. For more details, visit the NSC stock page.
Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as NSC's 2/5 stars, tend to produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not reflect future economic conditions.
What This Means for Investors In summary, all three valuation models (DCF earnings, DCF FCF, and GF Value™) indicate that Norfolk Southern Corp is overvalued at its current price of $303.39. The DCF earnings-based model suggests an intrinsic value of $155.45, while the FCF-based model indicates $123.14. The GF Value™ of $254.01 provides a slightly more favorable view but still aligns with the overall consensus of overvaluation.
For the full DCF analysis, visit the NSC DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is NSC's intrinsic value based on DCF?
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Anchyra Partners LLC acquired a new stake in Norfolk Southern Corporation (NYSE: NSC) during the undefined quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm acquired 8,104 shares of the railroad operator's stock, valued at approximately $2,340,000. Norfolk Southern makes up about 0.7% of Anchyra Partners LLC's
OMAHA, Neb. & ATLANTA--(BUSINESS WIRE)--Union Pacific Corporation (NYSE: UNP) and Norfolk Southern Corporation (NYSE: NSC) today submitted an amended merger application to the Surface Transportation Board (STB) seeking approval to create America's first transcontinental railroad. Additional analysis reinforces that the combination will drive growth, enable substantial cost savings for shippers and strengthen the U.S. supply chain. “After completing the additional work requested by the STB, the.
Latest application says the merged railroad would have a 39% market share and provides conditions under which Union Pacific would walk away from the tie-up.
ATLANTA, May 6, 2026 /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) Executive Vice President and Chief Financial Officer Jason Zampi will present at the Bank of America 2026 Industrials, Transportation & Airlines Key Leaders Conference. Details on how to listen to the discussion are below.
ATLANTA, May 12, 2026 /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) President and CEO Mark George and Executive Vice President and Chief Financial Officer Jason Zampi will present at the Wolfe Research 19th Annual Global Transportation & Industrials Conference. Details on how to listen to the discussion are below.
OMAHA, Neb. & ATLANTA--(BUSINESS WIRE)--Union Pacific Corporation (NYSE: UNP) and Norfolk Southern Corporation (NYSE: NSC) today applauded the Surface Transportation Board (STB)'s decision to accept their merger application, calling it an important step toward a reinvigorated, more competitive U.S. railroad industry. The companies acknowledged the STB's request for additional information on their amended merger application, reiterating their commitment to work constructively with the STB. “We a.
On May 28, 2026, Norfolk Southern Corp (NSC) shares fell by 5.5% to a current price of $307.88. This decline comes amid a 52-week range that saw a high of $326.
ATLANTA, June 1, 2026 /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) has appointed Brian Barr as Chief Operating Officer (COO). Barr has been with Norfolk Southern for two years leading the Mechanical department.
North American railroads like UNP, NSC, CSX, CNI, and CP exhibit HALO traits: irreplaceable heavy assets, low obsolescence, and durable cash flows. Current railroad valuations are rich, with multiples well above historical averages, suggesting limited near-term upside for new investors. Greenbrier offers a contrarian opportunity: trading below normal multiples, with a $2.1B backlog and 2.9% yield despite near-term headwinds.
