Aureus
AExcellent

Norfolk Southern Corporation(NSC)

A

Financial data as of Dec 31, 2025Improving · Industrials

FCF Margin17.7%Free Cash Flow / Revenue
Cash Conversion151.8%Operating CF / Net Income
Free Cash Flow$2.2B
Revenue$12.2B
Net Cash-$15.8BNet debt position
Debt / FCF8.0xElevated debt burden
Current Ratio0.85Tight short-term liquidity
YoY FCF Growth+21.0%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
-1High debt-to-FCF ratio (8.0x)
→
+0.5Healthy FCF margin with manageable debt (17.7%, 8.0x)
→
-1Current ratio below 1.0 (0.85)
→
+1Strong YoY FCF growth (21.0% YoY)
→
FinalA

Analysis Summary

Strengths

  • Strong FCF margin (17.7%)
  • Excellent cash conversion (152%)
  • Strong YoY FCF growth (+21.0%)
  • FCF trend is improving

Concerns

  • Heavy debt position ($15.8B)
  • High debt-to-FCF ratio (8.0x)
  • Current ratio below 1.0 — tight short-term liquidity

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin17.7%
Net Margin23.6%
Operating CF Margin35.8%
CapEx Ratio18.1%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$15.8BNet debt position
Debt / FCF8.0xElevated debt burden
Current Ratio0.85Tight liquidity
Debt / Equity1.11Moderate leverage

Quarterly FCF Trend

+21.0% YoYImproving (+21.0%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameNorfolk Southern Corporation
SectorIndustrials
Free Cash Flow$2.2B
Revenue$12.2B
Net Income$2.9B
Operating Cash Flow$4.4B
Capital Expenditure$2.2B
FCF Margin17.7%
Cash Conversion Rate151.8%
Net Margin23.6%
Total Debt$17.3B
Total Cash$1.5B
Net Cash-$15.8B
Current Ratio0.85
Debt / Equity1.11
Debt / FCF8.0x
YoY FCF Growth+21.0%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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