Norfolk Southern’s fourth-quarter earnings were impacted by heightened intermodal competition, leading to a 7% drop in intermodal volume and a 4% decline in overall traffic. Despite softer volumes, NS CEO Mark George emphasized cost control and safety. NS plans to file a revised merger application with Union Pacific in March.

Quarterly operating income for Norfolk Southern decreased by 17%, to $937 million, with revenue falling by 2%, to $3 billion. Adjusted operating income was down 3%, to $1 billion, and earnings per share declined 11%. Intermodal traffic decreased but gains were seen in merchandise and coal business.

NS executives are focused on fighting competition with initiatives like the UP-NS interline service and double-stack service to New England. Safety figures improved in 2025 with zero mainline derailments in the fourth quarter. The railroad aims to reduce capital spending by 14% this year.

For the full year, NS operating income was up 7% to $4.4 billion, with flat revenue at $12.2 billion. Earnings per share increased 10% to $12.75. The operating ratio was 64.2%, a 2.2-point improvement over 2024. NS is targeting $650 million in cost reductions over three years.

Read more at Yahoo Finance: Intermodal competition weighs on Norfolk Southern quarterly earnings