- Norfolk Southern‘s adjusted earnings per share (EPS) for Q2 2025 came in at $3.29, which is below the estimate of $3.31 but higher than last year’s $3.06.
- Reported EPS increased to $3.41 from $3.25 last year.
- Railway operating revenue for Q2 2025 was $3.11 billion, showing a year-over-year increase of 2.2%, though slightly under the estimate of $3.13 billion.
- The adjusted operating ratio improved to 63.4% from 65.1% last year, narrowly missing the estimated 63.5%.
- Improvements in the adjusted operating ratio for 2025 are expected to be 100-150 basis points better than in 2024, although Q3 2025 might face pressure due to a softer revenue environment.
- The company projects revenue growth of 2-3% for 2025 compared to 2024, adjusting earlier expectations due to economic uncertainties.
- Expected productivity savings for 2025 have been raised to over $175 million, driven by effective cost-control and strategic initiatives.
- President and CEO Mark George highlighted the company’s focus on disciplined execution, safety, and customer service, noting they’re ahead on productivity targets.
- Analyst ratings include 14 buys, 11 holds, and 1 sell.
Norfolk Southern on Smartkarma
Analyst coverage on Norfolk Southern through Smartkarma reveals interesting insights. Baptista Research discusses the potential acquisition talks between Norfolk Southern Corp. and Union Pacific Corp., hinting at a significant reshaping of the North American rail industry. If finalized, this deal would create a coast-to-coast rail giant valued at almost $200 billion, a move supported by key executives from both companies.
Furthermore, in their analysis, Baptista Research highlights Norfolk Southern Corporation’s strong operational performance and resilience during challenging times. The company’s focus on productivity enhancements and pricing strategies has been key to its success, as evidenced by positive financial results. The research report also mentions the use of a Discounted Cash Flow (DCF) methodology to independently evaluate Norfolk Southern‘s valuation in the near future.
A look at Norfolk Southern Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Norfolk Southern is positioned favorably for long-term growth and stability. With consistent scores of 3 in Value, Dividend, Growth, and Resilience, the company demonstrates a balanced performance across key financial indicators. The slightly higher Momentum score of 4 indicates a positive trend in the company’s stock performance. Norfolk Southern Corporation, a provider of rail transportation services, operates primarily in the Southeast, East, and Midwest regions, connecting with other rail carriers for transportation across the United States and overseas through various ports on the Atlantic and Gulf Coasts.
Overall, the Smart Scores suggest that Norfolk Southern is well-rounded in terms of its financial health and market performance. The balanced ratings across Value, Dividend, Growth, and Resilience indicate a stable foundation for future growth, while the Momentum score suggests an upward trajectory in stock performance. As a key player in the transportation sector, Norfolk Southern‘s strategic positioning and diversified service offerings bode well for its long-term outlook in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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