Norfolk Southern

Norfolk Southern helps businesses move goods and raw materials by rail. It runs a major freight network across the eastern United States. These services link factories, farms, and ports to the country's population centers.

What is Inside the Railcars?

• Merchandise Group: Transports agriculture, chemicals, metals, and automotive products for industrial and consumer use; accounted for 63% of railway operating revenues in 2025.
• Intermodal Network: Moves shipping containers and trailers for steamship lines and trucking companies; accounted for 25% of railway operating revenues in 2025.
• Coal Services: Carries coal to power plants and export terminals from eastern and western basins; accounted for 12% of railway operating revenues in 2025.

A National Growth Strategy

• Entered into a merger agreement on July 28, 2025, to be acquired by Union Pacific Corporation for a mix of stock and cash.
• Reached a transformational step toward creating the first transcontinental railroad by joining two complementary rail networks.
• Acquired assets of the Cincinnati Southern Railway in 2024 to strengthen core infrastructure.
• Continued a multi-year program to modernize the locomotive fleet and improve track capacity across 22 states.

What Makes This Network Different

The company operates the most extensive intermodal network in the eastern half of the country, connecting every major container port on the Atlantic coast. Its rail system reaches roughly 19,100 route miles and serves a majority of the United States manufacturing base.

The Recent Financial Record

• Railway operating revenues reached $12.2 billion in 2025, remaining flat compared to 2024.
• Net income rose to $2.9 billion in 2025, up 10% from the previous year.
• Free cash flow reached $2.5 billion in Q4 2025, up 819.6% from Q4 2024.
• Operating ratio, a measure of efficiency where a lower number is better, improved to 64.2% in 2025 from 66.4% in 2024.
• Railway operating expenses dropped to $7.8 billion in 2025, a 3% decrease from the prior year.

Evolution of the Rails

Norfolk Southern has transitioned from a regional hauler into a vital link in the global supply chain. Its proposed merger with Union Pacific marks a shift toward a unified national rail network.