10-KPeriod: FY2024

NORFOLK SOUTHERN CORP Annual Report, Year Ended Dec 31, 2024

Filed February 10, 2025For Securities:NSC

Summary

Norfolk Southern Corporation (NSC) reported total railway operating revenues of $12.123 billion for the year ended December 31, 2024, a slight decrease of 0.26% compared to the prior year. Despite a 5% increase in handled volumes, revenue per unit declined, primarily due to lower fuel surcharge revenue and adverse traffic mix, partially offset by improved pricing. The company managed to significantly reduce its railway operating ratio to 66.4% from 76.5% in 2023, largely driven by a substantial decrease in railway operating expenses. This reduction in expenses was primarily attributed to lower net expenses related to the Eastern Ohio Incident and gains from the sale of railway lines, which more than offset increased depreciation and restructuring charges. Net income saw a significant increase of 44% to $2.622 billion, with diluted earnings per share rising to $11.57 from $8.02 in the prior year. This improvement was largely due to the aforementioned decrease in operating expenses, particularly the $1.1 billion reduction in Eastern Ohio Incident-related costs. The company's outlook for 2025 anticipates revenue growth driven by higher volumes. Key strategic initiatives in 2024 included the acquisition of the Cincinnati Southern Railway and continued efforts to improve operational efficiency and safety.

Financial Highlights

46 data points
Beta

Revenue

$12.12B

Net Income

$2.62B

21.6% Net Margin

EPS (Diluted)

$11.57

Total Assets

$43.68B

Cash & Equivalents

$1.64B

Free Cash Flow

$1.67B

Financial Statements
Beta
Revenue$12.12B
Operating Expenses$8.05B
Operating Income$4.07B
Interest Expense$807.00M
Net Income$2.62B
EPS (Basic)$11.58
EPS (Diluted)$11.57
Shares Outstanding (Basic)226.10M
Shares Outstanding (Diluted)226.40M

Key Highlights

  • 1Total railway operating revenues were $12.123 billion, a slight decrease of 0.26% year-over-year, despite a 5% increase in volume.
  • 2Railway operating ratio improved significantly to 66.4% from 76.5% in 2023 due to expense reductions.
  • 3Net income increased by 44% to $2.622 billion, and diluted EPS rose to $11.57 from $8.02.
  • 4Railway operating expenses decreased by 13% to $8.052 billion, largely due to $325 million in net expenses related to the Eastern Ohio Incident (a significant reduction from $1.116 billion in 2023) and $433 million in gains from the sale of railway lines.
  • 5The company acquired the Cincinnati Southern Railway for $1.7 billion in March 2024.
  • 6Capital expenditures totaled $4.024 billion, including $1.711 billion for road and other property, and $1.643 billion for the CSR acquisition.
  • 7As of December 31, 2024, $6.9 billion remains authorized for common stock repurchases.

Frequently Asked Questions

In 2024, Norfolk Southern reported $12.123 billion in railway operating revenues and $2.622 billion in net income. The company saw a significant improvement in its operating ratio, decreasing to 66.4% from 76.5% in 2023, primarily driven by lower operating expenses, including reduced costs associated with the Eastern Ohio Incident and gains from asset sales.

The decrease in operating expenses was largely due to a significant reduction in net expenses related to the Eastern Ohio Incident, which fell to $325 million in 2024 from $1.116 billion in 2023. Additionally, gains from the sale of railway lines totaling $433 million contributed to lower overall expenses.

In 2024, net expenses associated with the Eastern Ohio Incident were $325 million, a substantial decrease from $1.116 billion in 2023. This reduction, along with insurance recoveries of $650 million, significantly improved the company's financial results compared to the prior year.

In 2024, capital expenditures totaled $4.024 billion, with a significant portion allocated to property additions ($1.711 billion) and the acquisition of the Cincinnati Southern Railway ($1.643 billion). The company expects capital additions to approximate $2.2 billion in 2025.