NSC
Norfolk Southern Posts Record Revenue as Freight Demand Strengthens
Article Summary
BUY- Norfolk Southern Corporation (NYSE: SO) reported record Q2 revenue of $3.5 billion, up 11% year over year as freight volumes increased and fuel surcharge revenue climbed alongside higher fuel prices, with fuel surcharges contributing roughly six percentage points of the revenue increase.
- Norfolk Southern reported income from railway operations declined 4% to $1.12 billion, while operating ratio worsened to 67.6% from 62.2% a year earlier, and diluted earnings per share slipped 4%.
- Excluding merger-related expenses, restructuring charges, and the financial impact of the 2023 Eastern Ohio derailment, adjusted operating income rose 5% and diluted EPS increased 7%.
- The company expects encouraging freight demand trends to continue into the second half of 2026 as it remains focused on operating a safe and reliable railroad, delivering consistent service to customers, and executing with financial discipline.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 3.0% | 25% | 20.0 ptsMinimal (3.0%) - Very weak |
| EPS Growth Next 5Y ? | 7.3% | 25% | 20.0 ptsWeak (7.3%) - Low expectations |
| Target Price Upside ? | 0.6% | 20% | 20.0 ptsMinimal Upside (0.6%) - Target: $350.50 vs Current: $348.55 |
| Gross Margin % ? | 32.0% | 15% | 40.0 ptsModerate (32.0%) - Adequate margins |
| Drawdown from 52-Wk High ? | 1.8% | 15% | 20.0 ptsBarely a Dip (1.8%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About NSC
- Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States.
- The company transports agriculture, forest, and consumer products comprising soybeans, wheat, corn, fertilizers, livestock and poultry feed, food products, food oils, flour, sweeteners, ethanol, lumber and wood products, pulp board and paper products, wood fibers, wood pulp, beverages, and canned goods; chemicals, including sulfur and related chemicals, petroleum products comprising crude oil, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, sand, and natural gas liquids; metals and construction materials, such as steel, aluminum products, machinery, scrap metals, cement, aggregates, minerals, clay, transportation equipment, and military-related products; and automotive, including finished motor vehicles and automotive parts, as well as coal.
- It also transports overseas freight through various Atlantic and Gulf Coast ports; and operates an intermodal network.
- Norfolk Southern Corporation was incorporated in 1980 and is headquartered in Atlanta, Georgia.