Norfolk Southern Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)
|
|
|
|
|
|
|
|
First Quarter |
|
|
2026 |
|
2025 |
|
|
(in millions, except per share amounts) |
|
Railway operating revenues |
|
|
|
|
Merchandise |
$ |
1,885 |
|
$ |
1,863 |
|
Intermodal |
749 |
|
760 |
|
Coal |
364 |
|
370 |
|
Total railway operating revenues |
|
2,998 |
|
|
2,993 |
|
Railway operating expenses |
|
|
|
|
Compensation and benefits |
740 |
|
739 |
|
Purchased services and rents |
522 |
|
498 |
|
Fuel |
256 |
|
244 |
|
Depreciation |
352 |
|
346 |
|
Materials and other |
189 |
|
205 |
|
Merger-related expenses |
52 |
|
|
— |
|
Eastern Ohio incident |
10 |
|
|
(185 |
) |
Total railway operating expenses |
|
2,121 |
|
|
1,847 |
|
Income from railway operations |
877 |
|
|
1,146 |
|
Other income – net |
35 |
|
31 |
|
Interest expense on debt |
197 |
|
199 |
|
Income before income taxes |
715 |
|
978 |
|
Income taxes |
168 |
|
228 |
|
Net income |
$ |
547 |
|
$ |
750 |
|
Earnings per share – diluted |
$ |
2.43 |
|
$ |
3.31 |
|
Weighted average shares outstanding – diluted |
|
225.0 |
|
226.5 |
|
See accompanying notes to consolidated financial statements.
Norfolk Southern Corporation and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
2026 |
|
|
2025 |
|
|
($ in millions) |
|
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
1,341 |
|
|
$ |
1,530 |
|
Accounts receivable – net |
|
1,123 |
|
|
988 |
|
Materials and supplies |
312 |
|
|
271 |
|
Other current assets |
248 |
|
|
409 |
|
Total current assets |
|
3,024 |
|
|
|
3,198 |
|
Investments |
|
4,116 |
|
|
|
4,089 |
|
Properties less accumulated depreciation of $14,769 and $14,617, respectively |
36,442 |
|
|
36,479 |
|
Other assets |
|
1,531 |
|
|
|
1,470 |
|
Total assets |
$ |
45,113 |
|
|
$ |
45,236 |
|
Liabilities and stockholders’ equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
1,695 |
|
|
$ |
1,863 |
|
Income and other taxes |
320 |
|
|
340 |
|
Other current liabilities |
711 |
|
|
965 |
|
Current maturities of long-term debt |
609 |
|
|
607 |
|
Total current liabilities |
|
3,335 |
|
|
|
3,775 |
|
Long-term debt |
|
16,492 |
|
|
|
16,480 |
|
Other liabilities |
|
1,724 |
|
|
|
1,723 |
|
Deferred income taxes |
|
7,758 |
|
|
|
7,711 |
|
Total liabilities |
|
29,309 |
|
|
|
29,689 |
|
Stockholders’ equity: |
|
|
|
|
|
Common stock $1.00 per share par value, 1,350,000,000 shares authorized;
outstanding 224,594,001 and 224,420,699 shares, respectively, net of
treasury shares |
226 |
|
|
226 |
|
Additional paid-in capital |
|
2,312 |
|
|
|
2,296 |
|
Accumulated other comprehensive loss |
|
(211 |
) |
|
|
(210 |
) |
Retained income |
|
13,477 |
|
|
|
13,235 |
|
Total stockholders’ equity |
|
15,804 |
|
|
|
15,547 |
|
Total liabilities and stockholders’ equity |
$ |
45,113 |
|
|
$ |
45,236 |
|
See accompanying notes to consolidated financial statements.
Norfolk Southern Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
|
|
|
|
|
|
First Three Months |
|
|
2026 |
|
|
2025 |
|
|
($ in millions) |
|
Cash flows from operating activities |
|
|
|
|
|
Net income |
$ |
547 |
|
|
$ |
750 |
|
Reconciliation of net income to net cash provided by operating activities: |
|
|
|
|
|
Depreciation |
352 |
|
|
346 |
|
Deferred income taxes |
48 |
|
|
57 |
|
Gains and losses on properties |
|
(17 |
) |
|
|
(23 |
) |
Changes in assets and liabilities affecting operations: |
|
|
|
|
|
Accounts receivable |
|
(135 |
) |
|
|
(165 |
) |
Materials and supplies |
|
(41 |
) |
|
4 |
|
Other current assets |
45 |
|
|
31 |
|
Current liabilities other than debt |
|
(388 |
) |
|
22 |
|
Other – net |
|
(67 |
) |
|
|
(72 |
) |
Net cash provided by operating activities |
344 |
|
|
950 |
|
Cash flows from investing activities |
|
|
|
|
|
Property additions |
|
(382 |
) |
|
|
(449 |
) |
Property sales and other transactions |
162 |
|
|
18 |
|
Investment purchases |
|
(3 |
) |
|
|
(609 |
) |
Investment sales and other transactions |
10 |
|
|
19 |
|
Net cash used in investing activities |
|
(213 |
) |
|
|
(1,021 |
) |
Cash flows from financing activities |
|
|
|
|
|
Dividends |
|
(303 |
) |
|
|
(306 |
) |
Common stock transactions |
|
(11 |
) |
|
|
(9 |
) |
Purchase and retirement of common stock |
|
(5 |
) |
|
|
(248 |
) |
Debt repayments |
|
(1 |
) |
|
|
(1 |
) |
Net cash used in financing activities |
|
(320 |
) |
|
|
(564 |
) |
Net decrease in cash and cash equivalents |
|
(189 |
) |
|
|
(635 |
) |
Cash and cash equivalents |
|
|
|
|
|
At beginning of year |
|
1,530 |
|
|
|
1,641 |
|
At end of period |
$ |
1,341 |
|
|
$ |
1,006 |
|
Supplemental disclosures of cash flow information |
|
|
|
|
|
Cash paid during the period for: |
|
|
|
|
|
Interest (net of amounts capitalized) |
$ |
185 |
|
|
$ |
192 |
|
Income taxes (net of refunds) |
138 |
|
|
1 |
|
See accompanying notes to consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Merger-Related Expenses
During the first quarter of 2026, we incurred $52 million in merger-related expenses primarily related to costs associated with employee retention agreements, third-party advisor fees, and legal fees.
2. Eastern Ohio Incident
On February 3, 2023, a train operated by us derailed in East Palestine, Ohio (the Incident). During the first quarter of 2026, we incurred net expenses of $10 million, as compared to $185 million of net recoveries for the same period last year. The total amounts recognized include the impact of $1 million and $224 million in recoveries during the first quarter of 2026 and 2025, respectively.
3. Stock Repurchase Program
We did not repurchase any shares of common stock in the first three months of 2026, while we repurchased and retired 1.0 million shares of common stock under our stock repurchase program during the same period last year at a cost of $250 million, inclusive of accrued excise taxes. “Purchase and retirement of common stock” in 2026 as presented on the Consolidated Statements of Cash Flows reflects the payment of excise taxes on shares repurchased in 2025.