See accompanying notes to consolidated financial statements.
Norfolk Southern Corporation and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
March 31,
December 31,
2026
2025
($ in millions)
Assets
Current assets:
Cash and cash equivalents
$
1,341
$
1,530
Accounts receivable – net
1,123
988
Materials and supplies
312
271
Other current assets
248
409
Total current assets
3,024
3,198
Investments
4,116
4,089
Properties less accumulated depreciation of $14,769 and $14,617, respectively
36,442
36,479
Other assets
1,531
1,470
Total assets
$
45,113
$
45,236
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$
1,695
$
1,863
Income and other taxes
320
340
Other current liabilities
711
965
Current maturities of long-term debt
609
607
Total current liabilities
3,335
3,775
Long-term debt
16,492
16,480
Other liabilities
1,724
1,723
Deferred income taxes
7,758
7,711
Total liabilities
29,309
29,689
Stockholders’ equity:
Common stock $1.00 per share par value, 1,350,000,000 shares authorized; outstanding 224,594,001 and 224,420,699 shares, respectively, net of treasury shares
226
226
Additional paid-in capital
2,312
2,296
Accumulated other comprehensive loss
(211
)
(210
)
Retained income
13,477
13,235
Total stockholders’ equity
15,804
15,547
Total liabilities and stockholders’ equity
$
45,113
$
45,236
See accompanying notes to consolidated financial statements.
Norfolk Southern Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
First Three Months
2026
2025
($ in millions)
Cash flows from operating activities
Net income
$
547
$
750
Reconciliation of net income to net cash provided by operating activities:
Depreciation
352
346
Deferred income taxes
48
57
Gains and losses on properties
(17
)
(23
)
Changes in assets and liabilities affecting operations:
Accounts receivable
(135
)
(165
)
Materials and supplies
(41
)
4
Other current assets
45
31
Current liabilities other than debt
(388
)
22
Other – net
(67
)
(72
)
Net cash provided by operating activities
344
950
Cash flows from investing activities
Property additions
(382
)
(449
)
Property sales and other transactions
162
18
Investment purchases
(3
)
(609
)
Investment sales and other transactions
10
19
Net cash used in investing activities
(213
)
(1,021
)
Cash flows from financing activities
Dividends
(303
)
(306
)
Common stock transactions
(11
)
(9
)
Purchase and retirement of common stock
(5
)
(248
)
Debt repayments
(1
)
(1
)
Net cash used in financing activities
(320
)
(564
)
Net decrease in cash and cash equivalents
(189
)
(635
)
Cash and cash equivalents
At beginning of year
1,530
1,641
At end of period
$
1,341
$
1,006
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest (net of amounts capitalized)
$
185
$
192
Income taxes (net of refunds)
138
1
See accompanying notes to consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Merger-Related Expenses
During the first quarter of 2026, we incurred $52 million in merger-related expenses primarily related to costs associated with employee retention agreements, third-party advisor fees, and legal fees.
2. Eastern Ohio Incident
On February 3, 2023, a train operated by us derailed in East Palestine, Ohio (the Incident). During the first quarter of 2026, we incurred net expenses of $10 million, as compared to $185 million of net recoveries for the same period last year. The total amounts recognized include the impact of $1 million and $224 million in recoveries during the first quarter of 2026 and 2025, respectively.
3. Stock Repurchase Program
We did not repurchase any shares of common stock in the first three months of 2026, while we repurchased and retired 1.0 million shares of common stock under our stock repurchase program during the same period last year at a cost of $250 million, inclusive of accrued excise taxes. “Purchase and retirement of common stock” in 2026 as presented on the Consolidated Statements of Cash Flows reflects the payment of excise taxes on shares repurchased in 2025.