In March 2024, Norfolk Southern completed the acquisition of a 337-mile railway line from Cincinnati to Chattanooga from the Cincinnati Southern Railway (CSR) for $1.7 billion. This strategic acquisition aims to enhance the company's network and operational capabilities.

Norfolk Southern consummated a transaction with the Virginia Passenger Rail Authority (VPRA) to sell a railway line for $357 million. This sale supports the expansion of passenger rail service and aligns with the company's strategy to optimize its asset portfolio.

The company expects property additions to approximate $2.2 billion in 2025. This indicates a continued investment in infrastructure and capacity enhancements.

In 2024, Norfolk Southern implemented voluntary and involuntary separation programs, resulting in the separation of approximately 350 management employees. This restructuring aims to improve efficiency and reduce costs.

The company made significant progress in resolving the Eastern Ohio Incident, including receiving $650 million in insurance recoveries during 2024. This demonstrates effective management of the crisis and recovery efforts.

John Orr was appointed as Executive Vice President and Chief Operating Officer, indicating a strategic move to enhance operational efficiency and leadership.

The costs, liabilities, fines, penalties, and/or financial impact resulting from or related to the Incident or the Incident Proceedings have been significant to date, may exceed expected or accrued amounts, and have and can be expected to continue to negatively affect our financial results.

A significant cybersecurity incident or other disruption to our technology infrastructure resulting from internal and external threats could disrupt our business operations.

Severe weather and disasters have caused, and could again cause, significant business interruptions and expenditures. Shifts in weather patterns caused by climate change are expected to increase the frequency, severity, or duration of certain adverse weather conditions, which could cause more significant business interruptions that result in increased costs, increased liabilities, and decreased revenues.

The company faces competition from motor carriers, railroads, and, to a lesser extent, ships, barges, and pipelines, on the basis of transit time, pricing, and quality and reliability of service.

Certain marketing strategies to expand reach and shipping options among railroads and between railroads and motor carriers enable railroads to compete more effectively in specific markets.

The company have experienced and may again experience capacity constraints on our rail network related to employee or equipment shortages, increased demand for rail services, severe weather, congestion on other railroads, including passenger activities, or impacts from changes to our network structure or composition.

The railway operating ratio improved to 66.4% in 2024, compared to 76.5% in 2023, indicating enhanced operational efficiency and cost management.

Lower locomotive fuel prices and relatively flat locomotive fuel consumption contributed to a decrease in fuel expense by $159 million in 2024.

Equipment rents, which includes our cost of using equipment (mostly freight cars) owned by other railroads or private owners less the rent paid to us for the use of our equipment, increased in both periods. In 2024, the increase was due to increased automotive and intermodal equipment expenses as a result of higher volumes.

During 2024, we made strategic decisions to cease development of certain technology projects that had not been placed into service and which resulted in a write-down of these assets.

The decrease in purchased services in 2024 was due to lower lease costs and declines in technology-related and operational expenses, partially offset by higher volume-related expenses and Conrail-related activity.

Depreciation expense increased in both periods compared to the prior years, reflecting reinvestment in our infrastructure, rolling stock, and technology.

The company did not repurchase any Common Stock during 2024, while $622 million and $3.1 billion were repurchased in 2023 and 2022, respectively.

As of December 31, 2024, $6.9 billion remains authorized by our Board of Directors for repurchase.

For 2025, we expect property additions to approximate $2.2 billion. This indicates a continued investment in infrastructure and capacity enhancements.

Our dedicated team members deliver a wide variety of commodities annually for our customers, from agriculture products to consumer goods, and help them reduce carbon emissions by shipping via rail.

Safety is a core value at Norfolk Southern. We are dedicated to providing employees with a safe workplace and the knowledge and tools they need to work safely and return home safely every day.

Workplace Experience – As a leading transportation service company, we recognize that success in the global marketplace relies on the recruitment and retention of top-tier talent, as well as leveraging the expertise and experiences of individuals from all backgrounds.

We may be negatively impacted by changes in general economic conditions. Because our business is dependent on the rail shipping needs of our customers, negative changes in domestic and global economic conditions, including reduced import and export volumes, could affect the producers and consumers of the freight we carry.

Efforts have been made over the past several years to increase federal economic regulation of the rail industry, and such efforts may continue in 2025. We will continue to oppose efforts to reimpose increased economic regulation.

There is continuing strong competition among rail, water, and highway carriers. Price is usually only one factor of importance as shippers and receivers choose a transport mode and specific hauling company.