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Norfolk Southern — Q3 2026 Earnings Call
Norfolk Southern (NSC) · 0 slides · Filed Oct 22, 2026
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Slide 1 — Q3 2026
October 22, 2026 Q3 2026 EARNINGS CALL
Slide 2 — FORWARD-LOOKING STATEMENTS / NON-GAAP MEASURES
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, 2025 filed with the Securities and Exchange Commission (the “SEC”), 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 22 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
Slide 3 — 01
01 OPENING REMARKS President & Chief Executive Officer Mark George
Slide 4 — OPERATIONS
OPERATIONS OVERVIEW 02 Chief Operating Officer Brian Barr
Slide 5 — INVESTMENT IN
5 1.08 1.25 1.13 1.08 2023 2024 2025 2026 4.37 3.76 2.52 1.74 2023 2024 2025 2026 The amounts above are reported through YTD through September 30th, 2026 and remain subject to future adjustment due to updated medical reports (with respect to the FRA Personal Injury Index) or cost information (with respect to the FRA Accident Rate) or other FRA review. The amounts provided for 2026 are preliminary and include data not yet reported to the FRA. INVESTMENT IN SAFETY CONTINUES TO DRIVE RESULTS WHILE BUILDING LONG-TERM CULTURE CHANGE FRA Personal Injury Index Better FRA 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. Better 9M 9M 9M 9M 9M 9M 9M 9M
Slide 6 — NETWORK HEALTH AND SERVICE UPDATE
6 NETWORK HEALTH AND SERVICE UPDATE AAR Terminal Dwell (Hours) Train Speed (MPH) Maintaining cost reductions by reducing dwell and increasing speed Intermodal Svc Composite Merch Plan Compliance Improving resilience to regain network health despite significant washouts in our service region 19.5 19.7 19.6 17.5 18.5 22.0 22.0 21.8 19.9 20.9 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 22.4 22.3 21.8 24.0 23.2 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 80% 80% 79% 68% 74% Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 92% 86% 85% 85% 84% Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Delivered 5% GTM growth while improving fluidity Better Better Better Better System Merch. Additional information regarding how these metrics are defined and calculated is set forth on slide 23 hereto.
Slide 7 — 7
7 MEANINGFUL PROGRESS IMPROVING OPERATING PERFORMANCE, DESPITE UNUSUAL Q3 CONDITIONS Origin Train Performance Train Speed Terminal Dwell 5% 3% 18% Q2 to Q3 Operating Improvement Additional information regarding how these metrics are defined and calculated is set forth on slide 23 hereto.
Slide 8 — ASSET EFFICIENCY & PRODUCTIVITY UPDATE
8 ASSET EFFICIENCY & PRODUCTIVITY UPDATE 132 130 127 130 129 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Locomotive Productivity (GTMs / Avail HP) 146 147 147 138 140 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Car Miles per Day 4,657 4,546 4,578 5,019 4,911 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 77% 76% 79% 67% 79% Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Absorbing 7-year high GTMs with existing resources Discipline on running the plan key to restoring resilience while delivering growth Workforce Productivity (GTMs / Railroad Employee) Origin Train Performance Delivering record workforce productivity while protecting capacity for growth Better Better Better Better Additional information regarding how these metrics are defined and calculated is set forth on slide 23 hereto.
Slide 9 — MARKET
MARKET OVERVIEW 03 Executive Vice President & Chief Commercial Officer Ed Elkins
Slide 10 — 3RD QUARTER 2026 RESULTS
10 $3,103 $3,526 $100 $46 $17 $260 (1) Please see reconciliation to GAAP posted on our website on the Investors page under Events and Presentations for this event. 3RD QUARTER 2026 RESULTS Q3 2026 vs. Q3 2025 / Revenue change $ in millions / favorable / unfavorable Merchandise Intermodal Coal Fuel Total Volume 611,500 3% 1,060,600 3% 181,400 3% -- -- 1,853,500 3% Revenue $2,188M 11% $919M 21% $419M 12% -- -- $3,526M 14% RPU $3,579 8% $866 18% $2,311 9% -- -- $1,902 11% Revenue (less fuel)(1) $1,996M 5% $674M 7% $388M 5% $468M $3,058M 6% RPU (less fuel) (1) $3,264 2% $635 4% $2,145 2% $1,650 3% Q3 2025 Q3 2026 RECORD RECORD RECORD RECORD RECORD RECORD
Slide 11 — 2026
11 Merchandise • Vehicle Production • Industrial Activity • Global Energy Prices Intermodal • Truck Market • Consumer Demand • Import Demand Coal • Seaborne Prices • Export Demand • Utility Demand 2026 MARKET OUTLOOK
Slide 12 — ENHANCED CUSTOMER
12 • Improved online functionality provides customers more accurate data they can use to plan their business. • Streamlined rate request and publication enables shippers get the pricing they need quickly to make decisions. • Enhanced shipment visibility and ETA (Estimated Time of Availability) accuracy means less time spent chasing shipments. ENHANCED CUSTOMER EXPERIENCE
Slide 13 — FINANCIAL
FINANCIAL RESULTS 04 Executive Vice President & Chief Financial Officer Jason Zampi
Slide 14 — RECONCILIATION OF THIRD QUARTER 2026 NON-GAAP RESULTS
14 $ in millions, except per share RECONCILIATION OF THIRD QUARTER 2026 NON-GAAP RESULTS GAAP Q3’26 Revenues $3,526 Operating expenses $2,376 Operating ratio 67.4% Operating income $1,150 Income tax expense $228 Net income $759 EPS – diluted $3.37 Adjusted (1) Q3’26 $3,526 $2,306 65.4% $1,220 $242 $815 $3.62 (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 – ($28) (80 bps) $28 $7 $21 $0.09 Non-GAAP adjustment Increase / (Decrease) (1) Adjusted results modifies Q3’26 GAAP results for merger-related expenses and the overall impact associated with the Eastern Ohio incident. 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. Merger-Related Expenses – ($42) (120 bps) $42 $7 $35 $0.16 E. Ohio Detail Legal & other $31 Recoveries ($3)
Slide 15 — ADJUSTED(1) RESULTS
15 Third quarter 2026 vs. 2025 ADJUSTED(1) RESULTS Revenues Operating expenses Operating ratio Operating income Net income EPS – diluted Adjusted (1) Q3’26 Q3’25 $3,526 $3,103 $2,306 $1,965 65.4% 63.3% $1,220 $1,138 $815 $741 $3.62 $3.30 Q3’26 vs. Q3’25 Variances $423 14% $341 17% 210 bps $82 7% $74 10% $0.32 10% favorable / unfavorable $ millions, except per share (1) Adjusted results modifies Q3’26 GAAP results for merger-related expenses and the overall impact associated with the Eastern Ohio incident (as reflected on the preceding slide). Adjusted Q3’25 results modifies Q3’25 GAAP results for the overall impact associated with the Eastern Ohio incident, merger-related expenses, and restructuring and other charges (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.
Slide 16 — ADJUSTED(1) OPERATING EXPENSES
16 $1,965 $183 $77 $39 $27 $15 $2,306 Purchased Svcs & Rents Depreciation Compensation & Benefits 2025 Materials & Other 2026 Fuel Third quarter 2026 vs. 2025 ADJUSTED(1) OPERATING EXPENSES Land sales & other ($58) Claims ($12) Materials ($7) ↑52% ↑5% Purch. Svcs. ($19) Rents ($8) $341 ↑17% ↑77% (1) Price ($161) Usage ($14) (1) ↑5% favorable / unfavorable $ millions Pay rates ($23) Inc. comp ($17) H&W rates ($6) ↑4% Higher fuel prices and other inflationary pressures coupled with lower land sales drove higher operating expenses (1) Adjusted results modifies Q3’26 and Q3’25 for the overall impact associated with the Eastern Ohio incident and merger-related expenses. Additionally, adjusted results modifies Q3’25 for expenses associated with restructuring and other charges. Please see the reconciliation to GAAP posted on our website on the Investors page under Events and Presentations for this event.
Slide 17 — ADJUSTED(1) FINANCIAL RESULTS
17 ADJUSTED(1) FINANCIAL RESULTS Third quarter 2026 vs. 2025 favorable / unfavorable $ millions, except per share 1 1 1 $3.30 $3.62 2025 2026 $3,103 $3,526 2025 2026 $423 14% $1,965 $2,306 2025 2026 63.3% 65.4% 2025 2026 210 bps $1,138 $1,220 2025 2026 $741 $815 2025 2026 Operating Expense Operating Ratio Operating Income Net Income Earnings Per Share Revenue $341 17% (1) Adjusted results modifies Q3’26 and Q3’25 for the overall impact associated with the Eastern Ohio incident and merger-related expenses. Additionally, adjusted results modifies Q3’25 for restructuring and other charges. 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. $82 7% $74 10% $0.32 10%
Slide 18 — 05
05 CLOSING REMARKS President & Chief Executive Officer Mark George
Slide 19 — UPDATING 2026 GUIDANCE
19 UPDATING 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 now expected to be ~$9.0B vs Original Guide of $8.2 - 8.4B • ~$700M incremental fuel impact vs. Original Guidance • Absorbing higher volumes Capex Expected to be ~$2.1B in 2026 • Continue to expect spend below 2025 level • Reinvestment supports safety, service, and an improved growth outlook
Slide 20 — Thank You
Thank You www.NorfolkSouthern.com
Slide 21 — APPENDIX
21 APPENDIX
Slide 22 — RECONCILIATION OF THIRD QUARTER 2025 NON-GAAP RESULTS
22 $ 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) (1) Adjusted results modifies Q3’25 GAAP results for overall expenses 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. E. Ohio Detail Legal & other $29 Recoveries ($16) Restructuring & other charges – ($12) (40 bps) $12 $3 $9 $0.04 Merger-related expenses – ($15) (50 bps) $15 $4 $11 $0.05
Slide 23 — NETWORK METRICS (DEFINITIONS)
23 NETWORK METRICS (DEFINITIONS) • Terminal Dwell: The average time a car resides at the specified terminal location expressed in hours. The measurement begins with a customer release, received interchange, or train arrival event and ends with a customer placement (actual or constructive), delivered or offered in interchange, or train departure event. Cars that move through a terminal on a run-through train are excluded, as are stored, bad ordered, and maintenance of way cars. • Train Speed: Measures line-haul movement between terminals. The average speed is calculated by dividing train-miles by total hours operated, excluding yard and local trains, passenger trains, maintenance of way trains, and terminal time. • Car Miles per Day: Daily mileage per car in the operating inventory. Beginning in Q2 2026, calculated excluding cars at Lambert’s Point (given nexus of customer control), and, to more closely align with industry practice, using three (rather than one) snapshots per day, with articulated intermodal well cars counted based on the total number of wells (rather than a single car). Prior period results have been updated to align with these changes. • GTMs per Available Horsepower: Average gross ton miles moved each day divided by locomotive horsepower available for use in transportation service. • Intermodal Svc Composite: Measures container level trip plan performance in our three lines of Intermodal business: Premium, Domestic, and International, weighted by the proportion of revenue each represents. • MER Plan Compliance: Percentage of loaded shipments delivered no later than +24hrs of the First NS Trip Plan ETA. • Origin Train Performance: Percentage of scheduled trains that depart their starting location on time or within a defined time period.