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Norfolk Southern Corporation (NSC) is a major transportation company primarily engaged in the rail transportation business, operating 19,100 route miles across the Southeast, East, and Midwest of the United States. The company transports a variety of commodities, categorized into three main groups: merchandise, intermodal, and coal . NSC's operations include handling agricultural, chemical, metal, construction, automotive products, intermodal shipments, and coal, contributing to its total railway operating revenues of $12.156 billion in 2023 .
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Merchandise - Transports a diverse range of products, including agriculture, forest and consumer products; chemicals; metals and construction materials; and automotive goods, accounting for the largest share of NSC's railway operating revenues.
- Agriculture, Forest, and Consumer Products - Includes the transportation of agricultural goods, forest products, and various consumer items.
- Chemicals - Involves the shipment of chemical products across the rail network.
- Metals and Construction - Handles metals and construction materials for various industrial applications.
- Automotive - Focuses on the transportation of vehicles and automotive parts.
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Intermodal - Involves the shipment of domestic and international containers and trailers, serving intermodal marketing companies and international steamship lines, contributing significantly to the company's revenues.
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Coal - Supports the electric generation and other industrial markets by transporting coal, making up a substantial portion of NSC's railway operating revenues.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Anil Bhatt Executive | EVP and Chief Information and Digital Officer | None | Joined NSC on August 19, 2024. Former Global CIO at Elevance Health. Recognized for advancing AI-powered tools and machine vision systems at NSC. Named a 2022 Forbes Top 100 CIO. | |
Ann A. Adams Executive | Chief Human Resources Officer | Board Member at Specialty Building Products; Member of Midtown Improvement District and Woodruff Arts Center | Joined NSC in 2001, became CHRO on December 9, 2024. Previously served as Chief Transformation Officer and VP of HR. Recognized for leading culture change and sustainability efforts. | |
Claiborne L. Moore Executive | VP and Controller | None | Joined NSC in 2017 as Director of Investor Relations. Became VP and Controller on March 1, 2022. Previously served as Assistant VP of Corporate Accounting. | |
Claude E. Elkins, Jr. Executive | EVP and Chief Marketing Officer | None | Joined NSC in 2018 as VP of Industrial Products. Became CMO on December 1, 2021. Focuses on marketing strategies and customer engagement. | |
Jason A. Zampi Executive | EVP, Chief Financial Officer, and Treasurer | None | Joined NSC in 2011. Appointed CFO on September 24, 2024. Previously served as VP of Financial Planning and Analysis and Controller. Former Senior Manager at KPMG LLP. | |
John F. Orr Executive | EVP and Chief Operating Officer | None | Appointed COO on March 20, 2024. Former EVP at CPKC and KCS, with extensive experience in rail operations and safety improvements. Began his career at CN in 1985. | |
Mark R. George Executive | President and Chief Executive Officer | Board Member at Trane Technologies plc; Board Member at Junior Achievement of Georgia | Former CFO of NSC, appointed CEO on September 11, 2024, after Alan H. Shaw's termination. Previously held leadership roles at United Technologies Corporation. Holds a BS in Finance and an MBA. | View Report → |
Amy E. Miles Board | Independent Chair of the Board | Board Member at The Gap, Inc.; Board Member at Amgen, Inc. | Independent director since 2014, became Chair on May 1, 2022. Former CEO and Chair of Regal Entertainment Group. CPA with extensive leadership experience in corporate governance. | |
Claude Mongeau Board | Independent Chair of the Board | Director at Cenovus Energy Inc.; Director at Toronto-Dominion Bank | Independent director since 2019, became Chair on May 28, 2024. Former CEO of Canadian National Railway, recognized for driving operational and safety improvements. | |
Lori J. Ryerkerk Board | Board Member | Board Member at Eaton Corp. | Appointed to NSC's Board on January 27, 2025. Former CEO and Chair of Celanese Corp. with over 30 years of experience in the energy industry, including leadership roles at Shell, Hess, and ExxonMobil. |
- You mentioned improvements in safety despite volume increases and weather events, but John Orr noted that the FRA personal injury rate has increased—can you explain the reasons behind this increase and what steps you're taking to address it?
- With the sale of major rail lines providing cash proceeds to accelerate balance sheet repair, can you provide details on which lines were sold and how these sales will affect your long-term operational capacity?
- Given the reductions in capital expenditures, including postponing locomotive purchases and reevaluating IT projects, how will these cost-saving measures impact your ability to maintain service quality and handle future growth?
- Considering the ongoing headwinds in markets like automotive, metals, and coal, how do you plan to mitigate these challenges and drive revenue growth in the face of tempered demand?
- Despite volume growth, ARPU has declined due to pricing pressures, especially in the intermodal segment—what strategies are you implementing to address these pricing challenges and improve profitability in this area?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Our primary rail competitor; both we and CSX operate throughout much of the same territory. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Cincinnati Southern Railway | 2024 | Completed on March 15, 2024, the acquisition of a 337-mile railway line was executed for $1.7 billion (with $0.1 billion paid in 2023), involving termination of the previous lease arrangement and approvals from both voters and regulatory bodies; it strategically connects Chicago to Macon, serving as one of Norfolk Southern’s key heavy-volume freight corridors. |
Cincinnati, New Orleans and Texas Pacific Railway Company | 2022 | Acquired via an Asset Purchase and Sale Agreement with the CSR Board of Trustees, this transaction for approximately 337 miles of track and 9,500 acres of property is valued at roughly $1.62 billion (including a non-refundable fee of $4.5 million and a deferred fee of $20 million); it secures a critical segment of the network linking the Midwest and Southeast and is expected to close in the first half of 2024 pending voter, regulatory, and state law condition approvals. |
Recent press releases and 8-K filings for NSC.
- Norfolk Southern Corporation established a new series of 5.100% Senior Notes due 2035 with an aggregate principal amount of $400,000,000 as detailed in the Thirteenth Supplemental Indenture dated May 2, 2025.
- The Notes provide for semiannual interest payments starting November 1, 2025 and include specific optional redemption provisions under the Indenture, supplementing the Base Indenture from February 28, 2018.
- Legal counsel confirmations support the execution and compliance of the offering documents, affirming the validity of the issuance.
- Norfolk Southern Corp entered into an underwriting agreement with BofA Securities, SMBC Nikko Securities, and Wells Fargo Securities to issue and sell $400,000,000 5.1% Senior Notes due 2035 at a public offering price of 99.83% of par value.
- The offering is expected to close on or about May 2, 2025, with net proceeds estimated at approximately $395.75 million to be used for general corporate purposes.
- Norfolk Southern reported Q1 2025 revenue of $3.0 billion with railway operating revenues of approximately $2,993 million .
- The company achieved a diluted EPS of $3.31, a significant jump from $0.23 in Q1 2024, with an adjusted EPS of $2.69 excluding the Eastern Ohio incident .
- Operating efficiency improved dramatically to 61.7% from 92.9% in Q1 2024, contributing to 8% EPS growth on an adjusted basis .
- Despite a challenging winter, storm restoration costs were contained at $35 million, highlighting resilient network operations .
- Productivity initiatives delivered $55 million in labor savings and nearly $250 million in share buybacks, underpinning full-year guidance of 3% revenue growth and a 150 bps operating ratio improvement .
- Operational Resilience: The company faced abnormal winter weather with over 17 major storms and significant flooding, resulting in extensive track damage that was restored twice over a 4‐day period to maintain operations at over 1 billion GTMs within a week.
- First Quarter Challenges: Due to storm-related disruptions, NS expects a 200 basis point operating ratio headwind and approximately $40 million in incremental expenses during the first quarter, with some revenue recovery deferred beyond Q1.
- Service and Pricing Improvements: NS is leveraging its strong service product to sustain momentum in pricing across its coal, industrial products, and intermodal segments while managing limited rebound expectations in the truck market.
- Strategic Initiatives: The company is actively investing in fuel efficiency enhancements and strengthening cargo protection measures, alongside decentralized field leadership to boost safety and operational agility.