Norfolk Southern Q1 Revenue Flat, EPS Up

Norfolk Southern reported first-quarter 2025 revenue of $2.99 billion, flat year over year and meeting analyst expectations despite winter storm disruptions and lower fuel surcharges. Adjusted earnings per share were $2.69, up from $2.49 last year but slightly below consensus estimates. The company saw significant year-over-year improvement in operating margin and adjusted operating ratio due to cost controls and reduced fuel expenses. Merchandise and intermodal revenues were stable or modestly higher, while coal revenues declined because of lower volumes and prices. Management reaffirmed its annual outlook, emphasizing resilience despite weather-related headwinds. However, long-term revenue growth has been sluggish, with a 1.8% compound annual growth rate over the past five years.