Norfolk Southern Corporation announced Wednesday its fourth quarter and full-year 2024 financial results. For the quarter, revenue was $3.0 billion, income from railway operations was $1.1 billion, operating ratio was 62.6%, and diluted earnings per share were $3.23. For full-year 2024, revenue was $12.1 billion, income from railway operations was $4.1 billion, operating ratio was 66.4%, and diluted earnings per share were $11.57.

After adjusting the results to exclude the impact of railway line sales, the Eastern Ohio incident, restructuring and other charges, as well as shareholder advisory costs, fourth quarter income from railway operations was $1.1 billion, the operating ratio was 64.9%, and diluted earnings per share were $3.04. Excluding the same items, as well as a deferred income tax benefit, full-year income from railway operations was $4.1 billion, operating ratio was 65.8%, and diluted earnings per share were $11.85.

For the third consecutive quarter, insurance recoveries related to the Eastern Ohio incident exceeded incremental costs.

Fourth Quarter Summary

• Railway operating revenues of $3.0 billion, down $49 million, or 2%, compared to the fourth quarter 2023.
  • Excluding the impact of lower fuel surcharge revenue, railway operating revenues were $2.8 billion, up $60 million, or 2%, on volume growth of 3% compared to the fourth quarter of 2023.
• Income from railway operations was $1.1 billion, an increase of $323 million, or 40%, compared to fourth quarter 2023.
  • Adjusting for the impact of railway line sales, restructuring and other charges, and the Eastern Ohio incident, income from railway operations was $1.1 billion, up $104 million, or 11%, compared to adjusted fourth quarter 2023.
• Operating ratio in the quarter was 62.6% compared to 73.7% in fourth quarter 2023.
  • On an adjusted basis, the operating ratio for the quarter was 64.9%. This represents 390 basis points of improvement from adjusted fourth quarter 2023 which was 68.8%.
• Diluted earnings per share were $3.23, an increase of 39% compared to fourth quarter 2023.
  • Adjusting for the impact of railway line sales, restructuring and other charges, the Eastern Ohio incident, and shareholder advisory costs, diluted earnings per share were $3.04, up $0.21, or 7%, compared to adjusted fourth quarter 2023.

Full Year Summary

• Railway operating revenues of $12.1 billion, down $33 million, compared to full year 2023.
  • Excluding the impact of lower fuel surcharge revenue, railway operating revenues were $11.2 billion, up $228 million, or 2%, on volume growth of 5% compared to the full year 2023.
• Income from railway operations was $4.1 billion, an increase of $1.2 billion, or 43%, compared to full year 2023.
  • Adjusting for the impact of railway line sales, restructuring and other charges, and the Eastern Ohio incident, income from railway operations was $4.1 billion, up $179 million, or 5%, compared to adjusted 2023.
• Operating ratio in 2024 was 66.4%, an improvement of 1,010 basis points, compared to 76.5% in 2023.
  • On an adjusted basis, the operating ratio for 2024 was 65.8%. This represents 160 basis points of improvement from adjusted 2023 which was 67.4%.
• Diluted earnings per share were $11.57, an increase of 44% compared to 2023.
  • Adjusting for the impact of railway line sales, restructuring and other charges, the Eastern Ohio incident, shareholder advisory costs, and a deferred tax adjustment, diluted earnings per share were $11.85, up $0.11, or 1%, compared to adjusted 2023.

-via Press Release