Rail

Norfolk Southern Posts Record Q3 Revenue Despite Margin Compression

Norfolk Southern delivered stronger third-quarter results Thursday, with revenue climbing 14% and diluted earnings per share rising 7%. Railway operating income increased 5% to approximately $1.2 billion, while adjusted earnings per share grew 10% to $3.62 when excluding merger-related and derailment-related charges. The railroad's operating ratio deteriorated 2.4 percentage points, signaling margin pressure despite the revenue milestone. Chief Executive Mark George attributed performance gains to productivity improvements and noted that a constrained trucking market strengthened rail's competitive position. "Demand for rail service increased during the quarter, as a tighter trucking market highlighted rail's competitive advantages," George said. The results underscore rail's resilience but reveal challenges in converting volume growth into improved profitability.