Slides
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January 29, 2026 Q4 2025 EARNINGS CALL
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2 This presentation and the related materials contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements relate to future events or future performance of Norfolk Southern Corporation (NYSE: NSC) (“Norfolk Southern,” “NS,” the “Company,” “we,” “our,” or “us”) 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. The Company has based these forward-looking statements on management’s current expectations, assumptions, estimates, beliefs, and projections. 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 the Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission (the “SEC”), as supplemented in Part II, Item 1A of our Form 10-Q ended September 30, 2025 and filed with the SEC on October 23, 2025, may cause actual results, benefits, performance, or achievements to differ materially from those expressed or implied by these forward-looking statements. Please refer to these and our subsequent SEC filings for a full discussion of those risks and uncertainties we view as most important. Forward-looking statements are not, and should not be relied upon as, a guarantee of future events or performance, nor will they necessarily prove to be accurate indications of the times at or by which any such events or performance will be achieved. As a result, actual outcomes and results may differ materially from those expressed in 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, we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying presentation contains non-GAAP financial measures. These non-GAAP measures should be viewed as a supplement to and not a substitute for our U.S. GAAP measures, and the financial results calculated in accordance with U.S. GAAP and reconciliations from these results should be carefully evaluated. Reconciliations to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP can be found on slides 14 and 23-26 hereto, as well as on our website at www.norfolksouthern.com on the Investors page under Events and Presentations for this event. FORWARD-LOOKING STATEMENTS / NON-GAAP MEASURES
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01 OPENING REMARKS President & Chief Executive Officer Mark George
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OPERATIONS OVERVIEW 02 Executive Vice President & Chief Operating Officer John Orr
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5 0.92 0.58 0.38 0.43 2022 2023 2024 2025 1.04 1.09 1.18 1.00 2022 2023 2024 2025 4.50 4.04 3.19 2.19 2022 2023 2024 2025 The amounts above are reported through December 31st, 2025 and remain subject to future adjustment due to updated medical report s (with respect to the FRA Personal Injury Index) or cost information (with respect to the FRA Accident Rate and the FRA Mainline Accident Rate) or other FRA review. The amounts provided for 2025 are preliminary and include data not yet reported to the FRA. Five- Year Averages as presented are provided through December 31, 2025. Ongoing Commitment to Safety Yields Results SAFETY FRA Personal Injury Index Better FRA Accident Rate FRA Mainline Accident Rate FRA Personal Injury Index calculates the number of reportable injuries/illnesses per year per 200,000 hours worked. FRA Train Accident Rate calculates the total number of reportable accidents per million train miles. FRA Mainline Accident Rate calculates the total number of reportable events occurring on that portion of the track that connects stations (other than auxiliary track) on which trains operate (a “Mainline”) per one million Mainline miles. Better Better Leveling Up: From Foundational Skills to Advanced Capabilities 5-Year FY Average 5-Year FY Average5-Year FY Average
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6 NETWORK UPDATE 80% 79% 78% 80% 80% Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 20.3 19.9 19.2 19.5 19.7 22.5 22.3 21.6 22.0 22.0 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 118 116 115 118 118 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Car Miles per Day 22.1 22.5 22.7 22.4 22.3 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 AAR Terminal Dwell (Hours) Train Speed (MPH) 130 130 131 132 130 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Locomotive Productivity (GTMs / Avail HP) BetterBetter Better Better 86% 85% 89% 92% 86% Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Intermodal Svc Composite Merch Plan Compliance Better Better NETWORK HEALTH ASSET EFFICIENCY CUSTOMER FACING 5-Year FY Average 5-Year FY Average 5-Year FY Average 5-Year FY Average 5-Year FY Average 5-Year FY Average
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7 PSR 2.0 PRODUCTIVITY AND FUEL AGILITY All Time Annual Fuel Efficiency Record Accelerated ~$66M in cost reduction in 2025… and adding ~$50M to 2026 commitment % Fuel Consumed per 1000 GTMs Better $150M $150M $250M Original 3-yr Commitment ~$150M+ $216M $292M Current Revised Projection $550M ~$650M+ 2026 2025 2024 0.95 1 1.05 1.1 1.15 1.2 1.25 1.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 2024 20252019 2020 2021 2022 2023 2024 2025
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MARKET OVERVIEW 03 Executive Vice President & Chief Commercial Officer Ed Elkins
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9 $3,024 ($44) $10 $2,974 (1) Please see reconciliation to GAAP posted on our website on the Investors page under Events and Presentations for this event. 4TH QUARTER 2025RESULTS Q4 2025 vs. Q4 2024 / Revenue change $ in millions / favorable / unfavorable Merchandise Intermodal Coal Fuel Total Volume 565,300 1% 989,100 (7%) 171,900 1% 1,726,300 (4%) Revenue $1,880M 2% $747M (6%) $347M (11%) $2,974M (2%) RPU $3,326 1% $755 1% $2,018 (12%) $1,723 2% Revenue (less fuel)(1) $1,806M 2% $611M (8%) $342M (11%) $215M – $2,759M (2%) RPU (less fuel) (1) $3,195 1% $618 (1%) $1,988 (12%) $1,598 2% Q4 2024 ($51) $35 Volume growth, mix tailwinds, and price drove higher revenue Chem Rev +7% Auto Rev +4% Soft intermodal volumes due to market factors, trade volatility, and competitor impacts Soft revenue was driven by weak seaborne pricing despite strong utility volume
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10 7.1 Million Units $12.2 Billion Revenue $1,724 Revenue per Unit $1,607 RPU Less Fuel(1) Record Annual Merchandise Rev, Rev (LF), RPU, RPU (LF) (1) Please see reconciliation to GAAP posted on our website on the Investors page under Events and Presentations for this event. Overall revenue flat for the year despite higher shipments due to mix and lower fuel surcharge VOLUME GROWTH OFFSET BY ADVERSE MIX IMPACTED FY RESULTS 0.1% ($140) $12,123 $287 $12 $12,180 ($108) ($134) 2024 Merchandise Intermodal Coal Fuel 2025 Revenue Change ($ millions) 0.5% 0.3% 1.6% 4.0% 0.5% (6.9%) (13.9%)
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11 Merchandise • Vehicle Production • Manufacturing Activity • Marcellus & Utica Gas Fracking Activity Intermodal • Import Demand • Warehouse Inventories • Truck Capacity Coal • Seaborne Prices • Export Demand • Utility Demand 2026 MARKET OUTLOOK Enhanced competitive environment as a result of the merger announcement will continue to have an adverse impact on volumes in the short and medium term
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12 NORFOLK SOUTHERN PARTNERSHIP WITH WARRIOR MET COAL
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FINANCIAL RESULTS 04 Executive Vice President & Chief Financial Officer Jason Zampi
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14 $ in millions, except per share RECONCILIATION OF FOURTH QUARTER 2025 NON-GAAP RESULTS GAAP Q4’25 Revenues $2,974 Operating expenses $2,037 Operating ratio 68.5% Operating income $937 Income tax expense $121 Net income $644 EPS – diluted $2.87 Adjusted (1) Q4’25 $2,974 $1,943 65.3% $1,031 $134 $725 $3.22 (1) Adjusted results modifies Q4’23 GAAP results for expenses associated with the Eastern Ohio incident. All presentations of revenues above refer to U.S. GAAP revenue. Please see reconciliation to GAAP posted on our website on the Investors page under Events and Presentations for this event. E. Ohio Incident - net impact – ($29) (100 bps) $29 $6 $23 $0.10 Non-GAAP adjustment Increase / (Decrease) (1) Adjusted results modifies Q4’25 GAAP results for overall expenses associated with the Eastern Ohio incident and merger-related expenses. All presentations of revenues above refer to U.S. GAAP revenue. Please see the reconciliation to GAAP posted on our website on the Investors page under Events and Presentations for this event. E. Ohio Detail Legal & other $53 Recoveries ($24) Merger-related expenses – ($65) (220 bps) $65 $7 $58 $0.25
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15 Fourth quarter versus prior year and prior quarter ADJUSTED(1) RESULTS Revenues Operating expenses Operating ratio Operating income Net income EPS – diluted Adjusted(1) Q4’25 Q4’24 Q3’25 $2,974 $3,024 $3,103 $1,943 $1,962 $1,965 65.3% 64.9% 63.3% $1,031 $1,062 $1,138 $725 $688 $741 $3.22 $3.04 $3.30 Q4’25 vs. Q4’24 Variances ($50) 2% $19 1% 40 bps ($31) 3% $37 5% $0.18 6% Q4’25 vs. Q3’25 Variances ($129) 4% $22 1% 200 bps ($107) 9% ($16) 2% ($0.08) 2% favorable / unfavorable $ millions, except per share (1) Adjusted Q4’25 results modifies Q4’25 GAAP for the overall impact on operating expenses from costs and recoveries associated with the Eastern Ohio incident and merger-related expenses (as reflected on the preceding slides). Adjusted Q4’24 results modifies Q4’24 GAAP for expenses associated with the Eastern Ohio incident, gains on railway line sales, restructuring and other charges, and shareholder advisory costs (as reflected in the appendix). Adjusted Q3’25 results modifies Q3’25 GAAP for the overall impact on operating expenses from costs and recoveries associated with the associated with the Eastern Ohio incident, restructuring and other charges, and merger-related expenses (as reflected in the appendix). All presentations of revenues above refer to U.S. GAAP revenue. Please see the reconciliation to GAAP posted on our website on the Investors page under Events and Presentations for this event.
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16 $1,962 $99 $2 $11 $16 $51 $1,943 Compensation & Benefits Materials & Other Fuel4Q 2024 Purchased Svcs. & Rents 4Q 2025Depreciation Fourth quarter 2025 vs. 2024 ADJUSTED(1) OPERATING EXPENSES ↑10% ↑1% Purch. Svcs. $40 Rents $11 $19 ↑2% (1) Adjusted results modifies Q4’25 for the overall impact on operating expenses from costs and recoveries associated with the Eastern Ohio incident and merger-related expenses. Adjusted results modifies Q4’24 for expenses associated with the Eastern Ohio incident, gains on railway line sales, restructuring and other charges, and shareholder advisory costs (as reflected in the appendix). Please see the reconciliation to GAAP posted on our website on the Investors page under Events and Presentations for this event. (1) Pay rates $21 Benefits $9 (1) ↑3% Land sales & other $101 In-year recoveries $31 Claims $8 Materials $26 favorable / unfavorable $ millions Major land sale in the quarter resulted in an ~$85M impact on operating expenses Price $7 Efficiency $8 ↓53% ↓1%
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17 $11.85 $12.49 2024 2025 $0.64 5% ADJUSTED(1) FULL-YEAR RESULTS 2025 vs. 2024 favorable / unfavorable $ millions except per share $12,123 $12,180 2024 2025 $57 –% $7,977 $7,912 2024 2025 65.8% 65.0% 2024 2025 80 bps Revenue Operating Expense Operating Ratio $65 1% 1 $4,146 $4,268 2024 2025 $122 3% $2,684 $2,816 2024 2025 $132 5% (1) Adjusted 2025 results modifies 2025 results for the overall impact on operating expenses from costs and recoveries associated with the Eastern Ohio incident, restructuring and other charges, and merger-related expenses (as reflected in the appendix). Adjusted 2024 results modifies 2024 results for expenses associated with the Eastern Ohio incident, gains on railway line sales, restructuring and other charges, shareholder advisory costs, and a deferred tax adjustment (as reflected in the appendix). Please see the reconciliation to GAAP posted on our website on the Investors page under Events and Presentations for this event. Operating Income Net Income Earnings Per Share Delivered $216 million in annualized productivity, exceeding our $150 million commitment
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18 FREE CASH FLOW & FREE CASH FLOW CONVERSION Full Year / $ millions $4,361 $2,204 $2,157 Property additions Cash from operations Free cash flow $309M $177M $486M 64% 75% 2024 2025 (1) Please see reconciliation to GAAP posted on the Invest in NS page under Events for this event. 2024 Free Cash Flow and Free Cash Flow Conversion does not include the impact of the acquisition of the assets of the CSR. 2025 Free Cash Flow(1) Free Cash Flow Conversion(1) Vs. Prior Year Highest FCF Conversion since 2021 2nd Year of Double-Digit Y-o-Y Improvement
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05 CLOSING REMARKS President & Chief Executive Officer Mark George
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20 2026 GUIDANCE Prioritize Safety and Service • Continued momentum on safety culture and performance • Deliver consistent and reliable service Disciplined Execution and Cost Control • 2026 Adjusted Operating Expense expected to be $8.2B – $8.4B Capex Expected to be $1.9B in 2026 • Lowering capital spending by ~$300M or 14% • Continues to support reliability and safety of our network
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Thank You www.NorfolkSouthern.com
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22 APPENDIX
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23 $ in millions, except EPS RECONCILIATION OF FOURTH QUARTER 2024 RESULTS GAAP Q4’24 Revenues $3,024 Operating expenses $1,893 Operating ratio 62.6% Operating income $1,131 Other income - net ($4) Income taxes $195 Net income $733 EPS - diluted $3.23 Adjusted (1) Q4’24 $3,024 $1,962 64.9% $1,062 $4 $179 $688 $3.04 Gains on Railway Line Transactions - $53 180 bps ($53) - ($13) ($40) ($0.17) E. Ohio Incident - $43 140 bps ($43) - ($11) ($32) ($0.14) Restructuring and Other Charges - ($27) (90 bps) $27 - $6 $21 $0.09 Non-GAAP adjustments Increase / (Decrease) Shareholder Advisory Costs - - - - $8 $2 $6 $0.03 (1) Adjusted results modifies Q4’24 GAAP results for expenses associated with the Eastern Ohio incident, gains on railway line transactions, restructuring and other charges, and shareholder advisory costs (as reflected on the preceding slide). Please see the reconciliation to GAAP posted on our website on the Investors page under Events and Presentations for this event. (1) Adjusted results modifies Q4’24 GAAP results for expenses associated with the Eastern Ohio incident, gains on railway line transactions, restructuring and other charges, and shareholder advisory costs (as reflected on the preceding slide). Please see the reconciliation to GAAP posted on our website on the Investors page under Events and Presentations for this event.
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24 $ in millions, except per share RECONCILIATION OF THIRD QUARTER 2025 NON-GAAP RESULTS GAAP Q3’25 Revenues $3,103 Operating expenses $2,005 Operating ratio 64.6% Operating income $1,098 Income tax expense $213 Net income $711 EPS – diluted $3.16 Adjusted (1) Q3’25 $3,103 $1,965 63.3% $1,138 $223 $741 $3.30 (1) Adjusted results modifies Q4’23 GAAP results for expenses associated with the Eastern Ohio incident. All presentations of revenues above refer to U.S. GAAP revenue. Please see reconciliation to GAAP posted on our website on the Investors page under Events and Presentations for this event. E. Ohio Incident net impact – ($13) (40 bps) $13 $3 $10 $0.05 Non-GAAP adjustment Increase / (Decrease) Restructuring & other charges – ($12) (40 bps) $12 $3 $9 $0.04 Merger-related expenses – ($15) (50 bps) $15 $4 $11 $0.05 (1) Adjusted results modifies Q3’25 GAAP results for the overall impact on operating expenses from costs and recoveries associated with the Eastern Ohio incident, restructuring and other charges, and merger-related expenses. All presentations of revenues above refer to U.S. GAAP revenue. Please see the reconciliation to GAAP posted on our website on the Investors page under Events and Presentations for this event.
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25 $ in millions, except EPS RECONCILIATION OF 2025 NON-GAAP MEASURES GAAP 2025 Revenues $12,180 Operating expenses $7,824 Operating ratio 64.2% Operating income $4,356 Income taxes $792 Net income $2,873 EPS - diluted $12.75 Adjusted (1) 2025 $12,180 $7,912 65.0% $4,268 $761 $2,816 $12.49 Restructuring and Other Charges - ($22) (20 bps) $22 $5 $17 $0.07 E. Ohio Incident net impact - $190 160 bps ($190) ($47) ($143) ($0.64) Merger- related expenses - ($80) (60 bps) $80 $11 $69 $0.31 Non-GAAP adjustments Increase / (Decrease) (1) Adjusted results modifies Q3’24 GAAP results for expenses associated with the Eastern Ohio incident, gains on railway line transactions, and restructuring and other charges. All presentations of revenues above refer to U.S. GAAP revenue. Please see reconciliation to GAAP posted on our website on the Investors page under Events and Presentations for this event. (1) Adjusted 2025 results modifies 2025 results for the overall impact on operating expenses from costs and recoveries associated with the Eastern Ohio incident, restructuring and other charges, and merger-related expenses. All presentations of revenues above refer to U.S. GAAP revenue. Please see the reconciliation to GAAP posted on our website on the Investors page under Events and Presentations for this event
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26 $ in millions, except EPS RECONCILIATION OF 2024 NON-GAAP MEASURES GAAP 2024 Revenues $12,123 Operating expenses $8,052 Operating ratio 66.4% Operating income $4,071 Other income – net $65 Income taxes $707 Net income $2,622 EPS - diluted $11.57 Adjusted (1) 2024 $12,123 $7,977 65.8% $4,146 $104 $759 $2,684 $11.85 Gains on Railway Line Transactions - $433 360 bps ($433) - ($106) ($327) ($1.44) E. Ohio Incident - ($325) (270 bps) $325 - $78 $247 $1.09 Restructuring and Other Charges - ($183) (150 bps) $183 ($20) $38 $125 $0.55 Non-GAAP adjustments Increase / (Decrease) Shareholder Advisory Costs - - - - $59 $15 $44 $0.20 Favorable Deferred Tax Adjustment - - - - - $27 ($27) ($0.12) (1) Adjusted results modifies 2024 GAAP results for expenses associated with the Eastern Ohio incident, gains on railway line transactions, restructuring and other charges, shareholder advisory costs, and a favorable deferred tax adjustment. All presentations of revenues above refer to U.S. GAAP revenue. Please see reconciliation to GAAP posted on our website on the Investors page under Events and Presentations for this event. (1) Adjusted results modifies 2024 GAAP results for expenses associated with the Eastern Ohio incident, gains on railway line transactions, restructuring and other charges, shareholder advisory costs, and a favorable deferred tax adjustment. All presentations of revenues above refer to U.S. GAAP revenue. Please see reconciliation to GAAP posted on our website on the Investors page under Events and Presentations for this event.