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NSC Stock | Norfolk Southern Corporation Q1 2026 Earnings Call

Norfolk Southern reported its Q1 2026 results, emphasizing safety gains, operational efficiency, and modest financial performance. The railroad highlighted a 37% year‑over‑year reduction in its FRA accident ratio, bringing the metric to 1.43, while maintaining a low personal injury rate. Adjusted operating expenses rose slightly, yielding an operating ratio of 68.7% and earnings per share of $2.65. Despite a 1% decline in overall volume, revenue held steady year‑over‑year and revenue per unit increased 2%, driven by stronger pricing in core merchandise and growth in chemicals and automotive segments. Coal volumes rose 9% on utility demand, though revenue fell due to export pricing pressures. The company also incurred $52 million in merger‑related costs and $10 million for the Eastern Ohio incident. Operational highlights included a fuel‑efficiency record, improved train productivity, and a new high‑density short‑line and transload partnership with Jaguar Transport Holdings in the Atlanta market. Technological investments, such as advanced wheel‑integrity detection and data‑driven “Need for Speed” analytics, were credited with boosting reliability and crew productivity. Management expressed confidence that the PSR 2.0 operating system and disciplined cost structure position Norfolk Southern to navigate macro‑economic volatility, including energy price spikes from geopolitical tensions, while delivering continued safety and service improvements.