Norfolk Southern Corporation (NSC)

Norfolk Southern's stock has appreciated significantly, climbing over 29% since April 2025 and more than 10% over the past year. Key events include Q2 2025 earnings where the company missed revenue expectations but exceeded profit estimates and lowered its full-year revenue growth target. Union Pacific announced plans to acquire Norfolk Southern, leading to increased competitor activity and rating downgrades. Q3 2025 earnings showed adjusted EPS surpassing estimates but revenue slightly below consensus, with the company raising its 2025 productivity target. Norfolk Southern repurchased 289,965 shares for $77.37 million between July 1 and September 30, 2025.

Demand for Norfolk Southern's services is influenced by economic cycles and commodity prices. Overall demand trended below normal seasonality for much of Q3 2025, with a seasonal lift at quarter-end. The company's diversified product mix helps insulate it from sector-specific downturns, but volume pressure is anticipated in the intermodal segment due to competitor activity. Softer import demand is expected in intermodal markets, and the coal segment struggled in Q3 2025. Conversely, the transportation of chemicals, metals and construction, and automotive products saw increases in revenue and units moved. Manufacturing activity has shown signs of rebounding.

Norfolk Southern Corporation is a Class I freight railroad company that transports raw materials, intermediate products, and finished goods across the Eastern United States. It operates within the Industrials sector, Railroads industry, and hauls coal, intermodal traffic, and a range of commodities. The company facilitates overseas freight transport through Atlantic and Gulf Coast ports and operates an intermodal network.

Norfolk Southern operates a freight transportation network spanning 22 states and the District of Columbia, primarily in the Southeast, East, and Midwest regions. It manages approximately 19,200 to 20,000 route miles of track and connects to major container ports on the Atlantic coast, Gulf Coast, and Great Lakes. Its operations extend into Canada via trackage rights over the Albany to Montreal route of the Canadian Pacific Kansas City.

Norfolk Southern's brand reputation has been significantly influenced by the Eastern Ohio incident, leading to ongoing environmental remediation and potential reputational damage. The company is working to improve its safety record and service levels, highlighting improvements in safety practices and liability management. Efficiency gains and strong service levels aim to increase customer confidence. The proposed merger with Union Pacific introduces uncertainties and faces opposition from the largest rail union.

Norfolk Southern Corporation is predominantly owned by institutional shareholders, holding 78.60% of the stock, while individual investors hold 19.82%, and insiders own 1.58%. The largest individual shareholder is Vanguard Group Inc., owning 9.16% of the company. Other major institutional owners include BlackRock, Inc., Price T Rowe Associates Inc /md/, Dodge & Cox, State Street Corp., JPMorgan Chase & Co., Geode Capital Management, Llc, Vanguard Total Stock Market Index Fund Investor Shares (VTSMX), Dodge & Cox Stock Fund (DODGX), and Vanguard 500 Index Fund Investor Shares (VFINX).