Norfolk Southern (NSC) investor relations material

Executive summary

• Record Q3 revenue of $3.526B rose 14% YoY; adjusted net income increased 10% to $815M and adjusted diluted EPS rose 10% to $3.62.

• Productivity gains supported growth and service improvement amid higher fuel costs, inflation and weather-related network disruptions.

Financial highlights

• GAAP revenue was $3.526B, operating income $1.150B, net income $759M and diluted EPS $3.37; adjusted operating income was $1.220B, up 7%.

• Adjusted net income rose to $815M from $741M, and adjusted diluted EPS rose to $3.62 from $3.30; adjusted results exclude $42M of merger costs and $28M of net Eastern Ohio incident costs.

• Adjusted operating expenses increased 17% to $2.306B; fuel, inflation, volume-related costs and lower property-sale gains pressured comparisons.

• Revenue less fuel was $3.058B, up 6%; fuel surcharge revenue was $468M versus $208M, while RPU less fuel increased 3%.

• For 9M, revenue rose 9% to $9.989B, but reported net income and diluted EPS each fell 8%, partly reflecting prior-year incident recoveries.

Outlook and guidance

• FY2026 adjusted operating expenses are expected at ~$9.0B, versus original guidance of $8.2B–$8.4B, including ~$700M of incremental fuel impact.

• FY2026 property additions are expected at ~$2.1B, below 2025 levels, to support safety, service, growth and network resilience.

• Management expects Q4 volume, revenue and earnings growth; fuel-price volatility remains a key influence on the operating ratio.

• Coal outlook is positive for the rest of 2026, led by exports; utility opportunities may include replenishment, tempered by low natural gas prices.

• Priorities include safe, reliable service, productivity, disciplined execution and cost control while absorbing higher volumes.