Norfolk Southern (NSC) JPMorgan Industrials Conference 2026 summary

Network performance and operational resilience

• Severe winter storms in late January and early February caused increased dwell times, reduced train speeds, and lower service metrics, but the network rebounded quickly, demonstrating strong resiliency and recovery by March.

• Incremental costs from storm cleanup and recovery were estimated at $0.04-$0.05 per share.

• Utility coal and industrial products volumes remained strong, while intermodal volumes declined about 6% due to weak international imports.

• Delays in coal plant closures and potential recommissioning of plants have supported coal volumes.

Commercial strategy and organizational changes

• New commercial structure implemented with specialized sales roles and incentive plans to drive top-line growth and improve customer focus.

• Recent wins include partnerships with Warrior Met Coal and CMA CGM, achieved through tailored solutions and service reliability.

• Operations team members are now directly involved in customer discussions, enhancing trust and collaboration.

Financial impacts and fuel management

• Volatility in oil prices is expected to create a $20–$30 million expense headwind in Q1, with fuel surcharge mechanisms offsetting costs in later quarters.

• Improved fuel efficiency achieved by converting locomotive fleet from DC to AC technology, now over 70% AC, resulting in a 5% year-over-year improvement.

• Further gains in fuel efficiency are planned, leveraging operational discipline and technology.