Norfolk Southern Corporation has recently released its 10-K report, providing a detailed overview of its financial performance and operations in 2024. The company, incorporated in 1980 and headquartered in Atlanta, Georgia, is primarily engaged in rail transportation of raw materials, intermediate products, and finished goods in the United States. As of December 31, 2023, the company operated approximately 19,100 route miles in 22 states and the District of Columbia. Norfolk Southern also transports overseas freight through various Atlantic and Gulf Coast ports and operates an extensive intermodal network.
In 2024, Norfolk Southern reported railway operating revenues of $12,123 million, a slight decrease from the $12,156 million reported in 2023. However, the company achieved an operating ratio of 66.4% in 2024, a significant improvement from the 76.5% reported in 2023. Income from railway operations, net income, and diluted earnings per share all increased in 2024 compared to 2023, primarily due to lower railway operating expenses. The reduction in operating expenses included lower net expenses related to the Eastern Ohio Incident and $433 million of gains on the sale of railway lines. However, in 2023, income from railway operations, net income, and diluted earnings per share declined compared to 2022, driven by expenses incurred with the response efforts to the Incident, lower railway operating revenues, and higher non-Incident-related railway operating expenses.
The company's detailed results of operations for 2024 showed that merchandise revenues increased, driven by higher volumes and pricing gains that more than offset lower fuel surcharge revenue. However, intermodal revenues decreased due to lower average revenue per unit and volume declines. Coal revenues also decreased in 2024. In contrast, in 2023, merchandise revenues were slightly higher, with pricing and volume gains nearly offset by lower fuel surcharge revenue and unfavorable mix. Intermodal and coal revenues also declined in 2023 due to lower fuel surcharge revenue and volume declines.
Looking ahead to 2025, Norfolk Southern expects revenue to increase driven by higher volumes. The company's financial report provides a comprehensive breakdown of revenues, volumes, and average revenue per unit by commodity group, offering investors and stakeholders a detailed understanding of the company's performance in 2024. As a result of these announcements, the company's shares have moved 0.7% on the market, and are now trading at a price of $250.94. If you want to know more, read the company's complete 10-K report here.
