Norfolk Southern agrees to Union Pacific merger at $320 a share; Q2 EPS rose to $3.41
Norfolk Southern reported second-quarter 2025 revenue of $3.1 billion and diluted earnings per share of $3.41, up from $3.25 a year earlier, and narrowed its full-year revenue growth outlook to 2%-3%. The same day, it agreed to combine with Union Pacific in a stock and cash deal valued at an implied $320 per share, which would change what Norfolk Southern shareholders receive.
Key points
- Under the agreement, Norfolk Southern shareholders receive 1.0 Union Pacific common share and $88.82 in cash per share; the implied total enterprise value is $85 billion, based on Union Pacific's July 16, 2025 closing price.
- Q2 2025 net income was $768 million, up from $737 million; railway operating revenues were $3.1 billion, an increase of $66 million.
- For 2025, the company expects revenue growth of 2%-3% and an adjusted operating ratio improvement of 100-150 basis points versus 2024, but says third-quarter 2025 is expected to be pressured.
- Norfolk Southern will not hold a second-quarter 2025 earnings call because of the announcement; a joint investor call with Union Pacific is set for 8:30 AM ET on July 29, 2025.
The filing
Written by AI (Anthropic Claude, claude-haiku-5-5) on Nov 8, 2026, 1:42 AM ET, from the text of the filing and its press-release exhibits only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on July 29, 2025.
Briefs are written by AI from the filing text (each brief's own page names the model) and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the model's reading of the filing for shareholders, not a price forecast. Not investment advice.