Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. The company transports agriculture, forest, and consumer products comprising soybeans, wheat, corn, fertilizers, livestock and poultry feed, food products, food oils, flour, sweeteners, ethanol, lumber and wood products, pulp board and paper products, wood fibers, wood pulp, scrap paper, beverages, canned goods, and consumer products; chemicals consist of sulfur and related chemicals, petroleum products, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, and sand; metals and construction materials, such as steel, aluminum products, machinery, scrap metals, cement, aggregates, minerals, clay, transportation equipment, and military-related products; and automotive, including finished motor vehicles and automotive parts, as well as coal. It also transports overseas freight through various Atlantic and Gulf Coast ports; and provides commuter rail passenger transportation services and operates an intermodal network. As of December 31, 2021, the company operated approximately 19,300 route miles in 22 states and the District of Columbia. Norfolk Southern Corporation was incorporated in 1980 and is based in Atlanta, Georgia.
AI Generated Analysis | Feedback
Here are 1-3 brief analogies to describe Norfolk Southern:
- A FedEx or UPS for heavy, bulk freight, transported across a vast network by train.
- Like a major trucking company (e.g., JB Hunt or Schneider), but they own and operate an extensive rail network to move goods.
AI Generated Analysis | Feedback
- Intermodal Transportation: Moving shipping containers and highway trailers across its rail network.
- Coal Transportation: Hauling thermal coal for utility power generation and metallurgical coal for steel production.
- Automotive Transportation: Shipping finished vehicles and automotive parts for manufacturing supply chains.
- Agricultural Products Transportation: Transporting grains, ethanol, and other food and feed ingredients.
- Chemicals Transportation: Moving industrial chemicals, plastics, and petroleum products for various industries.
- Metals & Construction Transportation: Delivering steel, aluminum, aggregates, and other building materials.
- Paper & Forest Products Transportation: Carrying lumber, wood pulp, and paper products for consumer and industrial use.
AI Generated Analysis | Feedback
Norfolk Southern (NSC) primarily sells its freight transportation services to other companies, not individuals. As a Class I freight railroad, its major customers are businesses spanning a wide array of industries that require efficient and reliable movement of goods across its network.
While Norfolk Southern serves thousands of businesses, some of its major customers and categories of customers, including publicly traded companies, are:
* **J.B. Hunt Transport Services, Inc.** (NASDAQ: JBHT) – A leading transportation and logistics company, particularly significant in intermodal freight, relying heavily on rail for long-haul movements of containers.
* **Archer-Daniels-Midland Company** (NYSE: ADM) – A global leader in agricultural processing and food ingredients, which utilizes rail extensively for transporting grains, oilseeds, and processed products.
* **General Motors Company** (NYSE: GM) – One of the world's largest automotive manufacturers, which uses rail to transport finished vehicles, automotive parts, and components across the country.
* **Duke Energy Corporation** (NYSE: DUK) – A major electric power holding company in the Southeast and Midwest, historically a significant customer for coal shipments to its power generation plants.
* **Dow Inc.** (NYSE: DOW) – A global materials science company that relies on rail for the transportation of a wide range of chemical products, a key segment for Norfolk Southern.
These examples represent some of the largest types of businesses and public companies that constitute Norfolk Southern's customer base across its major commodity groups, including intermodal, agriculture, automotive, coal, and chemicals.
AI Generated Analysis | Feedback
- Wabtec Corporation (WAB)
- Caterpillar Inc. (CAT)
- Koppers Holdings Inc. (KOP)
- Steel Dynamics, Inc. (STLD)
AI Generated Analysis | Feedback
Mark R. George President and Chief Executive Officer
Mark R. George was appointed President and Chief Executive Officer of Norfolk Southern in September 2024, having previously served as Executive Vice President and Chief Financial Officer since 2019. Prior to joining Norfolk Southern, he held various leadership roles at United Technologies Corporation and its subsidiaries for over 30 years. This included six years as the regional CFO for the Otis Elevator Company in Asia, and global CFO for both Otis Elevator Company and Carrier Corporation from 2008 to 2019. He also served as interim CEO of Otis Elevator in 2017. George is a member of the Board of Directors for Trane Technologies plc and Junior Achievement of Georgia.
Jason Zampi Executive Vice President, Chief Financial Officer and Treasurer
Jason Zampi was appointed Executive Vice President, Chief Financial Officer and Treasurer in September 2024. He brings over 28 years of finance and accounting expertise, with 13 of those years at Norfolk Southern where he progressed through key roles in forecasting, budgeting, and corporate accounting. Before his tenure at Norfolk Southern, Zampi was a senior manager with KPMG LLP.
Ed Elkins Executive Vice President and Chief Commercial Officer
Ed Elkins serves as Executive Vice President and Chief Commercial Officer, a role he assumed in 2021. He began his career at Norfolk Southern in 1988 as a Road Brakeman and held various operational positions including Conductor, Locomotive Engineer, and Relief Yardmaster. Elkins spent two decades in Intermodal Marketing and was later named Group Vice President of Chemicals Marketing in 2016, and Vice President of Industrial Products in 2018. He also serves on the boards of the East Lake Foundation, National Association of Manufacturers, and TTX Company, and is Vice Chair of the Georgia Chamber of Commerce.
Annie Adams Chief Human Resources Officer
Annie Adams is the Chief Human Resources Officer, a position she returned to in December 2024 at the request of the new CEO. She joined Norfolk Southern in 2001 and previously served as Executive Vice President & Chief Transformation Officer, overseeing various departments including Human Resources, Labor Relations, Corporate Communications, Information Technology, Sustainability, and Corporate Giving. Before joining Norfolk Southern, Adams founded "The Ultimate Accessory," a business that developed customized database applications for retail and sold them to over 150 businesses. She has experience in managing culture change, headquarters relocation, and national rail labor negotiations. Adams also serves on the Board of Directors for Specialty Building Products, the Midtown Improvement District, and the Woodruff Arts Center.
Anil Bhatt Executive Vice President and Chief Information and Digital Officer
Anil Bhatt serves as Executive Vice President and Chief Information and Digital Officer at Norfolk Southern Corporation. He is responsible for overseeing the company's information and digital strategy.
AI Generated Analysis | Feedback
The emerging threat of widespread adoption of autonomous trucking technology, which could significantly lower operating costs and increase efficiency for long-haul trucking, thereby intensifying competition for certain freight volumes that currently utilize rail services.
AI Generated Analysis | Feedback
Norfolk Southern Corporation (NSC) primarily offers rail transportation services for various commodities across the Eastern, Southeast, and Midwest United States, also facilitating transport to the rest of the U.S. through interchanges and serving Atlantic and Gulf Coast ports for overseas transport needs.
The addressable markets for Norfolk Southern's main products and services are sized as follows:
- Overall U.S. Rail Freight Transport Market: The United States rail freight transport market was valued at approximately USD 117.23 billion in 2024. This market is projected to grow to USD 282.66 billion by 2034, with a compound annual growth rate (CAGR) of 9.20% during the forecast period of 2025-2034.
- Intermodal Freight Transportation: The North American intermodal freight market is estimated to be worth approximately USD 51 billion. Another source states the North America intermodal freight transportation market generated a revenue of USD 15,278.8 million in 2023 and is expected to reach USD 31,588.0 million by 2030, growing at a CAGR of 10.9% from 2024 to 2030. North America held the largest share of 35.6% in the global intermodal freight transportation market in 2023.
- Chemicals Rail Transport (as part of Chemical Logistics): The United States Chemical Logistics Market, which includes rail transportation as a mode, is estimated at USD 93.86 billion in 2025 and is expected to reach USD 105.63 billion by 2030, growing at a CAGR of 2.39% (United States). Rail cars play a significant role, with over 2.3 million freight rail cars of chemical products moved in 2023.
- Automotive Rail Transport: Rail freight is a critical component of the automotive supply chain. U.S. Class I railroads typically carry 1.8 million carloads of motor vehicles and parts annually across North America. While a specific market size solely for automotive rail transport in dollar value is not readily available, rail constitutes more than half of the revenue generated in the broader U.S. automotive logistics sector, which is projected to grow at a 5.3% CAGR from 2023 to 2030 (United States).
- Agricultural Products Rail Transport: For the agricultural sector, railroads in the U.S. move 1.6 million carloads of grain and 1.7 million carloads of food annually. In 2023, agricultural commodities accounted for 26.73% of the total cargo moved by rail in the U.S. and Mexico. A specific market size in dollar value for rail transport of agricultural products is not explicitly available.
- Coal Rail Transport: Coal is a significant commodity for rail transport. In 2018, coal accounted for 16.1% of rail revenue for Class I railroads in the U.S. Norfolk Southern's operating revenue from coal was 14% of its total in 2022. Given the U.S. rail freight sector revenue of $80.42 billion in 2024, applying the 2018 percentage for Class I railroads, the coal rail transport market would be approximately $12.9 billion in the U.S.
AI Generated Analysis | Feedback
Norfolk Southern (NSC) is poised for future revenue growth over the next 2-3 years, driven by several strategic initiatives and market dynamics:
-
Integration with Union Pacific and Modal Conversion: The proposed merger with Union Pacific is anticipated to be a significant driver of future revenue growth. This integration aims to create the first transcontinental railroad in the U.S., unlocking substantial revenue synergies estimated at $1.75 billion. These synergies are expected to come primarily from modal conversion, where single-line rail service becomes more competitive against trucking, attracting new freight, particularly on key lanes like the Pacific Northwest to the Ohio Valley and Southern California to the Ohio Valley. The combined network is projected to enhance competition and increase growth opportunities by offering greater market reach and faster service.
-
Service Enhancements and Operational Efficiency: Norfolk Southern's balanced strategy emphasizes safe and reliable service, along with continuous productivity improvements. The company has demonstrated improved on-time delivery, train speed, and reduced terminal dwell times, which are being applied across its intermodal and merchandise networks. These operational efficiencies and improved service quality are expected to increase customer confidence, enabling Norfolk Southern to gain market share and win back freight from the trucking industry.
-
Growth in Key Merchandise Segments: The merchandise freight segment has shown consistent strength and is expected to continue contributing to revenue growth. In Q3 2025, merchandise volume increased by 6%, driven by strong performance in the automotive, chemical, and metals and construction markets. Norfolk Southern's efforts to expand railcar capacity for automakers and focus on these robust industrial sectors are key to sustaining this growth.
-
Intermodal Market Recovery and Expansion: Despite facing challenges such as an oversupply of truck capacity, Norfolk Southern remains bullish on its intermodal division, expecting it to lead growth in 2025. The company anticipates strong import and export demand, new business wins, and increased empty container repositioning as economic opportunities arise from rising consumer spending and tightening truck capacity. Strategic expansions, including key inland ports, are also aimed at connecting more customers to the efficiency of rail.
-
Industrial Development and Pricing Discipline: Norfolk Southern is reinvigorating its industrial development program to help customers expand their businesses along its rail lines, thereby attracting new freight volumes. Furthermore, the company has demonstrated pricing discipline, with revenue excluding fuel growing by 7% in Q3 2025, indicating an ability to effectively manage pricing. Analysts also anticipate higher freight prices for Norfolk Southern.
AI Generated Analysis | Feedback
Share Repurchases
- Norfolk Southern's Board of Directors authorized a new program for the repurchase of up to $10 billion of its common stock, effective April 1, 2022.
- The company repurchased $3.11 billion in 2022 and $622 million in 2023.
- In the first six months of 2025, Norfolk Southern repurchased 1.9 million shares of common stock at a cost of $455 million.
Share Issuance
- Norfolk Southern's common shares outstanding were approximately 226.32 million for the fiscal year ending December 31, 2024.
- The weighted average diluted shares outstanding were 225.2 million for Q2 2025, slightly down from 226.3 million in Q2 2024, indicating net repurchases rather than issuance.
Inbound Investments
- Union Pacific has proposed to acquire Norfolk Southern in a stock and cash transaction. The implied value of the transaction is $320 per share, representing an $85 billion enterprise value for Norfolk Southern based on Union Pacific's unaffected closing stock price on July 16, 2025.
Capital Expenditures
- Norfolk Southern's capital expenditures were approximately $1.494 billion in 2020, $1.470 billion in 2021, $1.948 billion in 2022, $2.349 billion in 2023, and $4.024 billion in 2024.
- Expected capital expenditures are forecast to be around $2.117 billion for 2025 and $2.136 billion for 2026.
- A primary focus of capital expenditures includes investing in infrastructure, technology, and customer partnerships to support long-term economic growth, supply chain efficiency, and safe, reliable rail transportation services. In 2025, the company plans to invest over $200 million in Alabama's 3B Corridor to expand capacity through terminal and track-based infrastructure improvements.
