Norfolk Southern Reports Strong Q3 and 9M 2024 Results with Increased Revenues and Reduced Expenses

Norfolk Southern Corporation reported significant financial improvements in its third quarter and first nine months of 2024, driven by increased revenues and reduced operating expenses. For the third quarter of 2024, railway operating revenues reached $3,051 million, a 3% increase from $2,971 million in the same period of 2023. Year-to-date revenues for the first nine months were stable at $9,099 million, compared to $9,083 million in 2023.

Total railway operating expenses for the third quarter decreased sharply to $1,455 million, down 34% from $2,215 million in the prior year. For the first nine months, expenses also fell to $6,159 million from $7,040 million. This reduction in expenses contributed to a substantial rise in income from railway operations, which surged to $1,596 million in the third quarter, up 111% from $756 million in the same quarter of 2023. For the first nine months, income from railway operations increased by 44% to $2,940 million.

Net income for the third quarter of 2024 was $1,099 million, a 130% increase from $478 million in the same quarter of 2023. For the first nine months, net income rose 45% to $1,889 million from $1,300 million. Basic earnings per share for the third quarter were $4.86, compared to $2.11 in the previous year, while diluted earnings per share increased to $4.85 from $2.10.

The company also reported a notable increase in merchandise revenue, which reached $1,861 million in the third quarter, up from $1,800 million in the same period of 2023. For the first nine months, merchandise revenue was $5,628 million, compared to $5,504 million in 2023. However, ancillary services revenue represented a smaller portion of total revenues, decreasing from 5% in 2023 to approximately 4% in 2024.

Strategically, Norfolk Southern completed the sale of the Manassas Line to the Virginia Passenger Rail Authority for $357 million and a railway line between Charlotte and Mecklenburg County, NC for $74 million, resulting in gains of $323 million and $57 million, respectively. The company also incurred $60 million in restructuring charges during the third quarter related to software development write-downs and asset dispositions.

As of September 30, 2024, total current assets decreased to $2,690 million from $3,271 million at the end of 2023, while total assets increased to $43,255 million from $41,652 million. Total stockholders’ equity rose to $13,785 million, up from $12,781 million at the end of 2023. Cash flows from operating activities for the first nine months of 2024 were $1,889 million, compared to $1,300 million in the same period of 2023.