Norfolk Southern Q3: Revenue Up, Results Mixed

Norfolk Southern reported Q3 2025 revenue of $3.103 billion, up 2% year‑over‑year, and adjusted EPS of $3.30, modestly beating estimates; adjusted operating income was about $1.13 billion with an adjusted operating ratio of 63.3%. On a GAAP basis, net income was $711 million, or $3.16 a share, down as higher operating expenses and lower insurance recoveries reduced reported results. Merchandise was the main growth driver (revenues +6%, automotive units +18%), while intermodal and coal volumes and revenues declined. Management said efficiency, service and safety improved, raised its three‑year cost‑takeout target to roughly $600 million (with $292 million achieved in 2024), and completed a $90 million land sale at Mustin Yard. The quarter was the company’s first report since announcing the proposed $85 billion transaction with Union Pacific; the companies expect to file with the Surface Transportation Board soon and warned that competitor responses could pressure non‑premium intermodal volumes. Shares dipped about 1.66% after hours as analysts and investors focused on management commentary and near‑term volume outlook given mixed segment trends and competitive headwinds.