Norfolk Southern Improves Efficiency Amid Market Pressure
24.10.2025
Norfolk Southern experienced positive operating results and safety trends during the third quarter, despite missing anticipated top-line revenues due to increasingly fierce competition from BNSF and CSX.
This is reported by the railway transport news portal Railway Supply.
Norfolk Southern Strengthens Operations Despite Revenue Challenges
The company maintained record fuel efficiency, achieved productivity gains, and remained focused on long-term stability and customer service across a shifting freight market.
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The company’s acting Chairman and CEO, Mark George, praised the discipline and cooperation demonstrated by the railroad, citing a record in fuel efficiency and an astute land sale near the Port of Philadelphia.
Operating income on an adj basis improved 2% to $1.13 billion, while revenue also improved to $3.1 billion, with adj EPS also reaching $3.30.
Freight volume remains level. Carloads were up 6% in merchandise shipments, but intermodal volume fell 2% and coal carload volume declined 5%.
The recently formed BNSF-CSX intermodal partnership connecting the Southeast and Southwest regions is starting to attract some traffic from Norfolk Southern, thus presenting near-term challenges in the industry.
Norfolk Southern Expands Strategic Network and Cost Targets
George said the company expects market pressures to persist into 2026, especially in the Southeast region.
However, Norfolk Southern has maintained its key strengths in its terminals located in Georgia, Florida, and the Carolinas. Chief Commercial Officer Ed Elkins highlighted that the 302-mile Meridian Speedway—a joint venture with Canadian Pacific Kansas City—provides the fastest route linking the Southeast and Southwest via Union Pacific.
To offset slower growth, the company increased its 2025 productivity target by $25 million to $200 million. Chief Operating Officer John Orr said the company is already ahead of its cost-reduction goals, managing 4% more gross ton-miles with 3% fewer employees. Safety performance also improved, with injury rates down 7.8% and train accidents down 27.7%.
George restated that the railroad is committed to quality service delivery, efficiency, and discipline in operations. He pointed out that the proposed merger in Union Pacific could open new horizons for its clients, improving the national railway system.
Source: www.trains.com
News on railway transport, industry, and railway technologies from Railway Supply that you might have missed:
What is Norfolk Southern focusing on in 2025?
Norfolk Southern aims to boost productivity by $200 million, enhance service reliability, and expand efficiency through technology and disciplined cost control.
How does the BNSF-CSX alliance affect Norfolk Southern?
The BNSF-CSX partnership captures some freight in the Southeast, but Norfolk Southern retains strong terminal access and customer relationships.
Can Norfolk Southern maintain growth amid competition?
Yes. Its strategic locations and the Meridian Speedway give it long-term advantages for expanding intermodal and merchandise freight services.
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