Norfolk Southern | 10-K: FY2025 Revenue Misses Estimate at USD 12.18 B

Revenue: As of FY2025, the actual value is USD 12.18 B, missing the estimate of USD 12.21 B.EPS: As of FY2025, the actual value is USD 12.75, beating the estimate of USD 12.7136.EBIT: As of FY2025, the actual value is USD 5.148 B.Overall Railway Operations Segment PerformanceNorfolk Southern Corporation manages its business as one reportable operating segment: railway operations, providing rail transportation services to customers.Unadjusted PerformanceRailway Operating Revenues:2025: $12,180 million2024: $12,123 million2023: $12,156 millionRailway Operating Expenses:2025: $7,824 million2024: $8,052 million2023: $9,305 millionIncome from Railway Operations:2025: $4,356 million2024: $4,071 million2023: $2,851 millionNet Income:2025: $2,873 million2024: $2,622 million2023: $1,827 millionRailway Operating Ratio:2025: 64.2%2024: 66.4%2023: 76.5%Adjusted (Non-GAAP) PerformanceAdjusted performance excludes merger-related expenses, restructuring charges, and Eastern Ohio Incident impacts for 2025⁄2024, and Eastern Ohio Incident impacts for 2023. Adjusted Railway Operating Expenses: 2025: $7,912 million (down 1% from 2024) 2024: $7,977 million (down 3% from 2023) 2023: $8,189 million Adjusted Income from Railway Operations: 2025: $4,268 million (up 3% from 2024) 2024: $4,146 million (up 5% from 2023) 2023: $3,967 million Adjusted Net Income: 2025: $2,816 million (up 5% from 2024) 2024: $2,684 million (up 0% from 2023) 2023: $2,673 million Adjusted Railway Operating Ratio: 2025: 65.0% (down 1% from 2024) 2024: 65.8% (down 2% from 2023) 2023: 67.4%Operational MetricsRevenue Ton Miles (billions):2025: 1842024: 1782023: 176Revenue per Thousand Revenue Ton Miles:2025: $66.312024: $68.092023: $69.05Revenue Ton Miles (thousands) per Railroad Employee:2025: 9,4862024: 8,8462023: 8,719Average Employees:2025: 19,4002024: 20,2002023: 20,300Property Additions:2025: $2,204 million (Road and other property: $1,824 million; Equipment: $380 million)2024: $4,024 million (Road and other property: $1,711 million; Acquisition of assets of CSR: $1,643 million; Equipment: $670 million)2023: $2,349 million (Road and other property: $1,525 million; Acquisition of assets of CSR: $22 million; Equipment: $802 million)Locomotive Fleet (Owned at December 31, 2025):Total units: 3,258Average age in service: 30.5 yearsRetirements in 2025: 27 units (average age 27.5 years)Freight Car Fleet (Owned at December 31, 2025):Total units: 31,128Average age in service: 24.1 yearsRetirements in 2025: 1,182 units (average age 45.6 years)Track Maintenance (2025):Track miles of rail installed: 479Miles of track surfaced: 4,061Crossties installed: 2.0 millionCapitalized Interest:2025: $29 million2024: $26 million2023: $21 millionSegment Revenue by Commodity GroupMerchandise (63% of total railway operating revenues in 2025)Total Merchandise Revenue:2025: $7,684 million (up 3% from 2024)2024: $7,470 million (up 2% from 2023)2023: $7,353 millionTotal Merchandise Units (in thousands):2025: 2,313.2 (up 2% from 2024)2024: 2,264.3 (up 1% from 2023)2023: 2,244.9Total Merchandise Revenue per Unit:2025: $3,322 (up 1% from 2024)2024: $3,299 (up 1% from 2023)2023: $3,275Agriculture, Forest and Consumer Products Revenue:2025: $2,538 million (up 1% from 2024)2024: $2,521 million (down 0% from 2023)2023: $2,530 millionChemicals Revenue:2025: $2,206 million (up 4% from 2024)2024: $2,123 million (up 3% from 2023)2023: $2,054 millionMetals and Construction Revenue:2025: $1,724 million (up 2% from 2024)2024: $1,682 million (up 3% from 2023)2023: $1,634 millionAutomotive Revenue:2025: $1,216 million (up 6% from 2024)2024: $1,144 million (up 1% from 2023)2023: $1,135 millionIntermodal (25% of total railway operating revenues in 2025)Total Intermodal Revenue:2025: $3,009 million (down 1% from 2024)2024: $3,042 million (down 2% from 2023)2023: $3,090 millionTotal Intermodal Units (in thousands):2025: 4,055.0 (down 1% from 2024)2024: 4,107.7 (up 7% from 2023)2023: 3,822.4Total Intermodal Revenue per Unit:2025: $742 (up 0% from 2024)2024: $740 (down 8% from 2023)2023: $808Domestic Intermodal Units (in thousands):2025: 2,450.2 (down 2% from 2024)2024: 2,500.0 (up 5% from 2023)2023: 2,371.6International Intermodal Units (in thousands):2025: 1,604.8 (down 0% from 2024)2024: 1,607.7 (up 11% from 2023)2023: 1,450.8Coal (12% of total railway operating revenues in 2025)Total Coal Revenue:2025: $1,487 million (down 8% from 2024)2024: $1,611 million (down 6% from 2023)2023: $1,713 millionTotal Coal Tonnage (in thousands):2025: 78,046 (up 2% from 2024)2024: 76,702 (up 1% from 2023)2023: 75,892Total Coal Revenue per Unit:2025: $2,139 (down 9% from 2024)2024: $2,352 (down 7% from 2023)2023: $2,530Utility Coal Tonnage (in thousands):2025: 33,126 (up 12% from 2024)2024: 29,577 (down 3% from 2023)2023: 30,419Export Coal Tonnage (in thousands):2025: 31,175 (down 6% from 2024)2024: 33,309 (up 7% from 2023)2023: 31,005Domestic Metallurgical Coal Tonnage (in thousands):2025: 9,989 (down 1% from 2024)2024: 10,088 (down 9% from 2023)2023: 11,096Industrial Coal Tonnage (in thousands):2025: 3,756 (up 1% from 2024)2024: 3,728 (up 11% from 2023)2023: 3,372Cash FlowNet Cash Provided by Operating Activities:2025: $4,361 million2024: $4,052 million2023: $3,179 millionNet Cash Used in Investing Activities:2025: - $2,562 million2024: - $2,780 million2023: - $2,182 millionNet Cash Used in Financing Activities:2025: - $1,910 million2024: - $1,199 million2023: $115 millionCash and Cash Equivalents (End of Year):2025: $1,530 million2024: $1,641 million2023: $1,568 millionOther Key Financial IndicatorsDebt-to-Total Capitalization Ratio:2025: 52.4%2024: 54.6%Common Stock Repurchases:2025: $534 million (2.2 million shares retired)2024: $0 million2023: $622 million (2.8 million shares retired)Authorized Repurchases Remaining (as of December 31, 2025): $6.3 billion, with repurchases suspended due to the Merger Agreement.Operating Leases (ROU Assets):2025: $218 million2024: $271 millionOutlook / GuidanceFor 2026, Norfolk Southern Corporation anticipates property additions to be approximately $1.9 billion and projects an effective income tax rate between 23% and 24%. The company expects to contribute about $23 million to unfunded pension plans and $34 million to other postretirement benefit plans in 2026, with no contribution expected for the funded pension plan.