Key facts
- Norfolk Southern's adjusted profit was $3.62 per share, beating estimates.
- Railway operating income rose 12.9% to $3.5 billion.
- Operating ratio worsened by 280 basis points to 67.4%.
Norfolk Southern reported third-quarter earnings that surpassed analyst expectations, driven by robust freight demand. The company managed to recover increased fuel costs, exacerbated by the conflict in the Middle East, through surcharges. This strategy, combined with operational efficiencies and steady intermodal volumes, allowed the railroad operator to maintain strong performance despite rising transportation costs. Tight trucking capacity due to a driver shortage has also encouraged shippers to utilize rail services, particularly in the intermodal segment.