NSC · Norfolk Southern Q2 FY2026 earnings call record财报电话会记录

“With that backdrop, we delivered a strong second quarter with results that exceeded our own expectations, starting with strong volume and revenue growth, culminating in 7% net income and EPS growth.”

“As demand strengthened in several markets, our team continued to focus on operating safely while serving our customers.”

“Absorbing the higher volumes coming out of the winter disruptions put pressure on the network.”

“Whether it's bouncing back from weather events or absorbing volume surges, we need to deliver the service our customers expect from Norfolk Southern.”

“We remain committed to at least $150 million in cost takeout during 2026, which will deliver at least $650 million in cumulative savings over the three-year period, exceeding our original target.”

“Within Merchandise, volume increased 2% and revenue less fuel achieved another record, increasing 4% from a year ago, driven by continued gains in energy demand in our chemicals markets.”

“Inflationary pressures drove another 190 basis point headwind compared to last year.”

“To summarize our financial results on slide 16, despite the cost headwinds we faced, higher fuel prices, inflationary pressures, and volumetric expenses, we drove a 5% increase in operating income.”

“Neutralizing for the fuel impact, our core operating costs are trending toward the higher end of the prior range due to a stronger volume outlook.”

“How long this persists and the long-term impact of it is the question mark, and I think that's probably the big risk.”

“That's a real hard combination that's had an impact on the overall P&L and profitability.”

“We have to control all the other aspects in our P&L on the cost side while we try to manage the volume growth that we expect if things turn like we think they will.”