STB Releases 2025 Railroad Revenue Adequacy Determinations

On October 7, 2026, the Surface Transportation Board (STB) issued its annual determination of railroad revenue adequacy for 2025. The STB found that four of six Class I railroads (BNSF Railway Company (BNSF), CSX Transportation, Inc. (CSXT), Norfolk Southern Combined Railroad Subsidiaries (NS), and Union Pacific Railroad Company (UP)) were revenue adequate, meaning each railroad earned a rate of return on net investment (ROI) equal to or greater than the railroad industry's 2025 cost of capital of 9.79%.

UP recorded the highest ROI at 17.09%, followed by CSXT at 11.40%, BNSF at 10.91%, and NS at 10.29%. Canadian National Railway's U.S. affiliates (reported under Grand Trunk Corporation) recorded an ROI at 6.09% and SOO Line Corporation & Kansas City Southern Railway (CPKC) reported an ROI at 5.30%, meaning both railroads' ROIs were below the railroad industry's 2025 cost of capital of 9.79%.

Click here to read the STB's October 7, 2026 decision.