Question · Q3 2025
Brandon Oglinski from Barclays asked how Norfolk Southern plans to manage its cost structure amidst potential share loss and trade headwinds, especially considering the need to maintain excess capacity for the proposed merger.
Answer
President and CEO Mark George emphasized a careful approach, highlighting productivity gains like moving 4% more GTMs with a 3% reduction in headcount, and mid-single-digit improvements in fuel efficiency. Chief Operating Officer John Orr detailed ongoing PSR 2.0 transformation efforts, including a zero-based train service plan that reduced intermodal crew starts by 14% year-to-date, aiming for a cumulative $600 million in efficiency targets by 2026.