Norfolk Southern saw its profits dip 12% year-over-year in the fourth quarter of 2025, as added costs from a proposed mega-merger with Union Pacific and ongoing fallout from the 2023 East Palestine, Ohio, derailment strained the railway's finances.

According to the Associated Press, Norfolk Southern reported $644 million in profits in Q4 of 2025, down from $733 million in that same quarter the previous year. However, one-time charges were largely to blame for the dip, with the proposed merger tacking on $58 million, and costs from the East Palestine derailment adding another $23 million. Without those charges, Norfolk estimates that it would have brought in $725 million for the quarter, which would have represented a far more modest dip from 2024.

Speaking to the AP, Norfolk Southern CEO Mark George described how the company is looking to improve its efficiency as it works with UP on the application for their proposed $85 billion merger. The U.S. Surface Transportation Board rejected the original application submitted by the railways, due to a lack of projected market-share data, and the failure to include the complete agreement between the two companies. UP and Norfolk have until June 22 to submit an updated application that meets the STB's requirements.