Norfolk Southern Stock Rallies Despite Mixed Q4 Results, Forecasts Growth In 2025

Norfolk Southern Corp NSC stock surges post mixed fourth-quarter 2024 results.

 Norfolk Southern’s railway operating revenue declined 2% year-over-year to $3.024 billion, versus the consensus of $3.025 billion. Excluding lower fuel surcharges, revenue rose 2% to $2.8 billion on 3% volume growth.

Adjusted EPS was $3.04 (+7% Y/Y), above the consensus of $2.95.

Sales by segments: Merchandise $1.84 billion (flat Y/Y), Intermodal $792 million (flat Y/Y), and Coal $390 million (-9% Y/Y).

Railway operating income rose 40% to $1.1 billion. Adjusted for one-time impacts, it increased 11% to $1.1 billion. The operating ratio improved to 62.6% from 73.7% year-ago quarter. On an adjusted basis, it was 64.9%, a 390-basis-point improvement.

Operating cash flow for fiscal 2024 totaled $4.05 billion, compared to $3.179 billion a year ago. Norfolk Southern held $1.641 billion in cash and cash equivalents at the end of the quarter.

“We closed 2024 with another quarter of solid performance, building on the success of Q3. Our network is running fast; our terminals are more efficient; and service metrics are steady. Our customers are noticing and rewarding us with more business,” stated President and CEO Mark George.

2025 Outlook: Norfolk Southern expects revenue growth of ~3% year over year and Capex is expected to be ~$2.2 billion in 2025.

The operating ratio is expected to improve by 150 basis points year-over-year, with a focus on narrowing the gap with industry peers.

Price Action: NSC shares are trading higher by 4.38% at $263.37 on the last check Wednesday.

Photo via Shutterstock.