Norfolk Southern Q3 Profit Rises 7% on Record Revenue, Fuel Surcharges

Norfolk Southern (NYSE: NSC) reported third-quarter earnings per share rose 7% to $3.37, as revenue climbed 14% to a record $3.52 billion and volume grew 3%, the railroad said on its earnings call. Operating income increased 5% to $1.15 billion. Fuel surcharges accounted for 8 of the 14 points of revenue growth, and higher fuel costs lifted the operating ratio 2.8 points to 67.4%; adjusted for East Palestine derailment costs and expenses tied to the proposed Union Pacific (NYSE: UNP) merger, the ratio was 65.4%. Merchandise, intermodal and coal volume each rose 3%. CEO Mark George said a tightening truck market is making rail more competitive, while Chief Commercial Officer Ed Elkins said Norfolk Southern is broadly optimistic for the rest of 2026 despite trade uncertainty weighing on international intermodal. Terminal dwell improved 3% and train speed rose 5% from the second quarter, though intermodal service composite fell to 84% from 92% a year ago.