Norfolk Southern Reports $750 Million Q1 Profit Boosted by Insurance Payments

Norfolk Southern reported a significant increase in first-quarter profits, largely due to insurance payments related to the 2023 East Palestine derailment, with net earnings at $750 million, or $3.31 per share, compared to $53 million, or $0.23 per share, last year. Excluding the $141 million in insurance payments, adjusted earnings were $609 million, or $2.69 per share, still showing growth over the prior year’s comparable figure. Revenue remained mostly flat, just under $3 billion, but the company beat Wall Street expectations for both earnings and revenue. The railroad also improved operational efficiency and service despite winter disruptions, resulting in about 1% more shipments during the quarter. CEO Mark George emphasized that stronger service performance is boosting customer confidence and helping Norfolk Southern gain market share. The company has also recently undergone board changes and a CEO transition following pressure from activist investors.