Norfolk Southern

NSC · NYSE · Industrials · Financials, fiscal 2016 to 2025

NSC · Last close · October 26, 2026

$333.99

Norfolk Southern's revenue rose 0.5% to $12.2 billion in fiscal 2025. Its operating margin was 35.8%, up from 33.6% a year earlier. Free cash flow was $2.2 billion, up 29.1%. It paid out $1.7 billion in dividends and buybacks, 81% of free cash flow. The diluted share count fell 0.5%.

NORFOLK SOUTHERN CORP Latest fiscal year ended December 31, 2025 10-K filed February 9, 2026 · 0001628280-26-006268 Updated October 22, 2026

Revenue

$12.2B

0.5%

Operating margin

35.8%

2.2 pts

Net income

$2.9B

9.6%

Free cash flow

$2.2B

29.1%

Return on capital

11.2%

0.2 pts

Market cap

$75.2B

Oct 26 close

P/E

28.0x

On $11.93 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

What Norfolk Southern does

Norfolk Southern owns a major freight railroad, Norfolk Southern Railway. It hauls raw materials, parts and finished goods mainly across the Southeast, East and Midwest, and to the rest of the country through connections with other railroads. It also moves freight to and from several Atlantic and Gulf Coast ports. At the end of 2025 it ran about 19,100 route miles of track in 22 states and the District of Columbia.

Railway operating revenue was $12.2 billion in 2025. Merchandise freight, such as farm and forest products, chemicals, metals, construction materials and cars and car parts, brought in 63%. Intermodal freight, which moves in shipping containers and trailers, brought in 25%. Coal brought in 12%. It sets most prices through private contracts or exempt quotes, which the federal Surface Transportation Board does not regulate. Its main rail competitor is CSX, and it also competes with trucks and barges.

The company had about 19,300 employees at the end of 2025, and roughly 80% of its railroad employees are covered by union agreements. In July 2025 it agreed to be acquired by Union Pacific. The deal needs approval from the Surface Transportation Board, among other conditions.

Its biggest risks, as it describes them

The pending merger with Union Pacific may be delayed or not completed, which could bring added costs and lost revenue.
Government actions and liabilities that followed the Eastern Ohio derailment incident.
Environmental liability and fines if it cannot comply with environmental laws, including for contamination.
Higher insurance costs, or losing insurance for some losses, including those from terrorism.

From Norfolk Southern's annual report on Form 10-K, filed February 9, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2016 to 2025, earnings per share grew 9.5% a year and net income 6.2% a year, as buybacks cut the share count by 24%.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Norfolk Southern yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Norfolk Southern's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Norfolk Southern's cash from operations minus depreciation in fiscal 2025 (free cash flow before spending to grow: capital spending was 1.6 times depreciation, which holds its free cash flow down) of $3.0B, net cash of −$15.6B at December 31, 2025 and 225 million diluted shares, from its filings. The scenarios are fitted to Norfolk Southern: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, -1.5% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 10%: 9% for a business of moderate risk (Rail Transportation), plus 1 point for unsteady results (revenue fell in two of the last five years); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus depreciation in fiscal 2025: a rough guide to cash flow before spending to grow, for a company building heavily.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Norfolk Southern's own revenue growth, as above. Cautious: growth of -2% then 0% a year, 2% after year 10, a 11% discount rate. Base: growth of 0% then 1% a year, 2.5% after year 10, a 10% discount rate. Optimistic: growth of 2% then 2.5% a year, 3% after year 10, a 9% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $333.99
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Norfolk Southern's earnings per share of $11.93 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 28×, the middle of Norfolk Southern's own P/E today, its peers' median and its sector's median (Norfolk Southern's own P/E today) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 11%, 10% and 9%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to September 30, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: CSX, Union Pacific, Jacobs Solutions, J.B. Hunt.

Earnings growth in the years ahead (% a year) Starts at Norfolk Southern's revenue growth over the last 3 years, -1.5% a year, kept between 0% and 20%, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $333.99
Value at this multiple, against the last close: —
Norfolk Southern's P/E at the last close: 28.0×

Company	Last close	Earnings per share	P/E today
Jacobs SolutionsJ	$147.14	$2.85	51.6×
J.B. HuntJBHT	$224.48	$7.10	31.6×
Norfolk SouthernNSC	$333.99	$11.93	28.0×
CSXCSX	$51.31	$1.92	26.7×
Union PacificUNP	$296.97	$12.83	23.1×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	839	456	1,568	1,641	1,530
Debt incl. finance leases	13,840	15,182	17,179	17,206	17,087
Net debt (negative means net cash)	13,001	14,726	15,611	15,565	15,557
Net debt to EBITDA	2.3x	2.4x	3.8x	2.9x	2.7x
Debt to equity	1.0x	1.2x	1.3x	1.2x	1.1x
Interest coverage	6.9x	7.0x	4.0x	5.0x	5.5x
Current ratio	0.9x	0.8x	1.2x	0.9x	0.8x
Quick ratio	0.9x	0.8x	1.2x	0.9x	0.8x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, 3 insiders bought $1.3 million of Norfolk Southern shares on the open market, and 1 insider sold $253,440.

Date	Insider	Trade	Shares	Price	Value	Filing
Dec 5, 2025	William Clyburn Jr.Director	Bought	204	$294.79	$60,137	Form 4
Nov 19, 2025	Anil BhattEVP & Cido	Sold	900	$281.60	$253,440	Form 4
Nov 5, 2025	Sameh FahmyDirector	Bought	1,650	$282.97	$466,901	Form 4
Oct 27, 2025	Richard H AndersonDirector	Bought	2,600	$281.86	$732,836	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Pass	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Fail	Pass	Pass
Current ratio rose	Pass	Fail	Fail
Share count didn't rise	Pass	Pass	Pass
Gross margin rose	—	—	—
Revenue rose relative to assets	Fail	Fail	Fail
F-score	5 of 8	6 of 8	6 of 8
Accruals ratio	−3.4%	−3.4%	−3.4%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Norfolk Southern side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Norfolk Southern	FY25	0.5%	35.8%	17.7%	11.2%	2.7x	6
CSX	FY25	−3.1%	32.1%	12.1%	11.3%	2.9x	4	Compare
Union Pacific	FY25	1.1%	40.2%	22.4%	15.9%	2.5x	7	Compare
Jacobs Solutions	FY25	4.6%	7.2%	5.0%	10.1%	1.1x	7	Compare
J.B. Hunt	FY25	−0.7%	7.2%	7.9%	13.1%	0.9x	6	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	9,888	10,551	11,458	11,296	9,789	11,142	12,745	12,156	12,123	12,180
Revenue growth	−5.9%	6.7%	8.6%	−1.4%	−13.3%	13.8%	14.4%	−4.6%	−0.3%	0.5%
Gross profit	—	—	—	—	—	—	—	—	—	—
Research and development	—	—	—	—	—	—	—	—	—	—
Operating income	3,009	3,522	3,959	3,989	3,002	4,447	4,809	2,851	4,071	4,356
Net income	1,668	5,404	2,666	2,722	2,013	3,005	3,270	1,827	2,622	2,873
Diluted EPS (US$)	5.62	18.61	9.51	10.25	7.84	12.11	13.88	8.02	11.57	12.75
Diluted shares (millions)	296	290	280	266	257	248	236	227	226	225
Cash flow
Cash from operations	3,034	3,253	3,726	3,892	3,637	4,255	4,222	3,179	4,052	4,361
Capital expenditure	1,887	1,723	1,951	2,019	1,494	1,470	1,948	2,327	2,381	2,204
Free cash flow	1,147	1,530	1,775	1,873	2,143	2,785	2,274	852	1,671	2,157
Dividends paid	695	703	844	949	960	1,028	1,167	1,225	1,221	1,215
Share buybacks	803	1,012	2,781	2,099	1,439	3,390	3,110	622	0	534
Acquisitions	0	0	0	0	0	0	0	0	0	0
Stock-based compensation	42	45	47	53	28	54	53	40	40	63
Balance sheet at fiscal year end
Cash and short-term investments	956	690	358	580	1,115	839	456	1,568	1,641	1,530
Debt incl. finance leases	10,212	9,836	11,145	12,196	12,681	13,840	15,182	17,179	17,206	17,087
Total assets	34,892	35,711	36,239	37,923	37,962	38,493	38,885	41,652	43,682	45,236
Total liabilities	22,483	19,352	20,877	22,739	23,171	24,852	26,152	28,871	29,376	29,689
Shareholders' equity	12,409	16,359	15,362	15,184	14,791	13,641	12,733	12,781	14,306	15,547
Margins and ratios
Gross margin	—	—	—	—	—	—	—	—	—	—
Operating margin	30.4%	33.4%	34.5%	35.3%	30.7%	39.9%	37.7%	23.4%	33.6%	35.8%
Net margin	16.9%	51.2%	23.3%	24.1%	20.6%	27.0%	25.7%	15.0%	21.6%	23.6%
Free cash flow margin	11.6%	14.5%	15.5%	16.6%	21.9%	25.0%	17.8%	7.0%	13.8%	17.7%
Return on capital	9.1%	14.9%	11.8%	11.8%	9.0%	13.0%	14.1%	8.0%	11.0%	11.2%
Return on equity	13.6%	37.6%	16.8%	17.8%	13.4%	21.1%	24.8%	14.3%	19.4%	19.2%
Return on assets	4.8%	15.3%	7.4%	7.3%	5.3%	7.9%	8.4%	4.5%	6.2%	6.5%
Net debt to EBITDA	2.3x	2.0x	2.1x	2.3x	2.8x	2.3x	2.4x	3.8x	2.9x	2.7x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Norfolk Southern's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Norfolk Southern.