Costs landed exactly in line with the guidance we provided last quarter, reflecting disciplined execution across the company. Year-over-year, unscheduled stops declined 31%, and through zero-based plan migrations, Q4 2024 versus Q4 2025, we reduced qualified T&E headcount by 7% and 6% for the full year. In 2025, we delivered our $2.2 billion capital programs on time and on budget. Even after raising our cost takeout commitment to $200 million during the year, we outperformed that higher target, delivering $216 million in full-year savings.

Overall volume for the fourth quarter was down 4%, driving a 2% reduction in total revenue. Merchandise revenue, less fuel, grew 2% year-over-year, reflecting strength in both volume and price, supported by our strong service product that John mentioned. RPU, less fuel, grew 1% year-over-year within the segment as negative mix offset core pricing, most notably mixed within the chemicals franchise. RPU was up slightly at 1% as we continue to compete in an unexceptional pricing environment, leading to a 6% decline in revenue.

Volume was up as increased electricity demand, favorable natural gas prices, and regulatory support gave strength to our utility markets, which was partially offset by reduced volume in export. So while volume was up 1%, revenue was down 11% as lower seaborne coal prices drove RPU, less fuel, down by 12%. If you'll turn with me now to slide 10, let's review the full year. Walking left to right on the waterfall chart, we achieved an outstanding year in our merchandise business, growing revenue, less fuel, by $287 million, or 4%, through volume growth and pricing discipline.

More on Norfolk Southern Corp

Reported 2026-01-29 · figures from the Norfolk Southern Corp Q4 2025 earnings call.

See how VectorShift works for your firm

Request Demo