Benchmark Reiterates Hold Rating on Norfolk Southern (NSC) Amid Regulatory Challenges

Benchmark analyst Nathan Martin reiterated a Hold rating on Norfolk Southern (NYSE: NSC).

The analyst commented, "Norfolk Southern (NSC) ended the year strong with 4Q adjusted EPS of $3.22, easily topping the $2.76 consensus. Notably, another large land sale benefitted expenses by $85M and a state tax resolution increased net income by $50M or $0.22. Looking ahead to full-year 2026, management emphasized the macro backdrop remains hard to read. Therefore, it’s focused on providing safe, reliable service while continuing to drive efficiency gains. NSC is now targeting ~$150M+ of y/y productivity savings in 2026, adding $50M to the original commitment. Management also pointed out the company is facing a roughly 1% revenue headwind related to competition that’s resulted from the merger announcement. Regardless, CEO Mark George noted NSC is going to “fight like hell” for quality revenue with multiple new service products in the pipeline. As for the merger, the company is working to provide the additional information requested by the STB. While an initial rejection was not what NSC wanted, it was not based on merits, and the company now knows exactly what the path to application completeness is. We continue to believe potential regulatory approval won’t be an easy hurdle to clear with concessions a strong likelihood."

For an analyst ratings summary and ratings history on Norfolk Southern click here. For more ratings news on Norfolk Southern click here.

Shares of Norfolk Southern closed at $290.16 yesterday.

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