Norfolk Southern Stock Rises Amid Board Member Dismissal and Financial Health Analysis

Norfolk Southern (NSC) shares rose 3% to $279.32 after the US presidential administration dismissed board member Robert Primus. Primus expressed concerns over the dismissal, labeling it problematic and potentially unlawful. He intends to continue fulfilling his board responsibilities and is considering legal action. Norfolk Southern is a Class-I railroad operating in the Eastern United States, managing over 20,000 miles of track and transporting a diverse range of goods. The company reported a trailing twelve-month revenue of $12.178 billion, with a modest 0.8% growth over the past year.

Norfolk Southern (NSC) shares rose 3% to $279.32 on Wednesday, July 2, 2025, following the dismissal of board member Robert Primus by the U.S. presidential administration. Primus, who had expressed concerns over the dismissal, labeled it problematic and potentially unlawful. He intends to continue fulfilling his board responsibilities and is considering legal action.

Primus was the only board member to oppose the merger of Canadian Pacific and Kansas City Southern, the last megamerger in the railroad sector that was approved in 2023. He was appointed by Trump in 2020 and began serving in 2021. Last year, Biden elevated him to the position of chairman of the board, but he was removed from the position after Trump named Republican Patrick Fuchs as the new chair.

The dismissal of Primus comes as the Surface Transportation Board (STB) is set to consider Union Pacific's $85 billion acquisition of Norfolk Southern in the next two years. The merger would create a giant coast-to-coast railroad, better able to compete with trucks. However, the sheer size of the deal and concerns among some customers have invited scrutiny.

Primus described his termination as "deeply troubling and legally invalid." He added that he intends to continue his duties as a board member and would resort to legal options if he were prevented from fulfilling his responsibilities. Trump has previously removed Democratic appointees from several regulatory bodies, raising concerns about the independence of U.S. regulatory bodies.

Union Pacific stock has fallen nearly 4% this year, while Norfolk Southern stock has gained 14.7%.

References:
[1] https://stocktwits.com/news-articles/markets/equity/trump-boots-out-railroad-regulator-board-member-as-85-b-union-pacific-norfolk-southern-deal-hangs-in-balance/chsCzcsRdls
[2] https://newsable.asianetnews.com/markets/trump-boots-out-railroad-regulator-board-member-as-85b-union-pacific-norfolk-southern-deal-hangs-in-balance-report-articleshow-29v8rr3
[3] https://www.pbs.org/newshour/politics/trump-fires-democratic-surface-transportation-board-member-before-huge-rail-merger-decision
[4] https://www.freightwaves.com/news/trump-fires-rail-regulator-board-member-primus-ahead-of-merger-decision