NORFOLK SOUTHERN CORP (NSC)

Norfolk Southern Corporation, incorporated in Virginia in 1980 and headquartered in Atlanta, Georgia, is a holding company whose primary asset is Norfolk Southern Railway Company (NSR), a major U.S. freight railroad trading on the NYSE under "NSC." The company operates approximately 19,100 route miles across 22 states and the District of Columbia, primarily serving the Southeast, East, and Midwest, with interchange connections to the rest of the U.S. and overseas freight moving through Atlantic and Gulf Coast ports; it also offers the most extensive intermodal network in the eastern U.S. On July 28, 2025, Norfolk Southern entered a Merger Agreement with Union Pacific Corporation under which Union Pacific will acquire Norfolk Southern in a stock-and-cash transaction (one share of Union Pacific common stock plus $88.82 in cash per Norfolk Southern share), subject to Surface Transportation Board approval and a $2.5 billion termination fee provision. In 2025, total railway operating revenues were $12.2 billion, generated from three commodity groups: merchandise (63% of revenue, 2.3 million carloads, spanning agriculture/forest/consumer products, chemicals, metals/construction, and automotive), intermodal (25% of revenue, 4.1 million units), and coal (12% of revenue, 78.0 million tons), with a railway operating ratio of 64.2%. The company is capital intensive, with net properties of approximately $36 billion and 2025 property additions of $2.2 billion; its equipment fleet includes 3,258 locomotives, 36,564 freight cars, and over 56,000 units of intermodal equipment (chassis and containers), with the freight car fleet averaging 24.1 years and locomotive fleet averaging 30.5 years in age.

Norfolk Southern maintains 28,200 of the 35,000 total track miles it operates, with over 85% of main line trackage using heavy 131-155 lb/yard rail, and dispatches 16,200 route miles, over half of which are signalized. The company employed an average of 19,400 people in 2025 (19,300 at year-end), with about 80% of railroad employees covered by collective bargaining agreements, and emphasizes safety through its Risk Reduction Program and Board-level Safety Committee oversight. Approximately 90% of revenue comes from exempt shipments or contract-based transportation, reflecting the deregulated environment established by the Staggers Rail Act of 1980, though the company remains subject to Surface Transportation Board jurisdiction over rates, mergers, and service conditions, as well as broader DOT, FRA, and DHS/TSA regulation.

Its principal rail competitor is CSX Corporation, with which it shares much of its operating territory, alongside competition from motor carriers, water carriers, and private shipping alternatives. The company maintains a comprehensive security program modeled on the Association of American Railroads' post-9/11 security plan, addressing operational, cybersecurity, and hazardous materials risks, including specific protocols for High Threat Urban Areas and coordination with federal and state security agencies. Environmental compliance is a stated priority, though the company notes a material exception related to its response to the Eastern Ohio Incident, detailed elsewhere in its filings.