CSX Corp Earnings
In the third quarter of 2025, CSX Corporation, one of the largest railroad transportation companies in the United States, delivered results that reflected a challenging operating environment. The company faced pressures from several fronts, including economic uncertainties and disruptions in coal services. Despite these challenges, CSX continued to demonstrate a commitment to its financial health, strategic investments, and shareholder returns through its dividend and share repurchase activities.
CSX Corp Results
| Metric | Q3 2025 | Q3 2024 | Change |
|---|---|---|---|
| Total Revenue (millions) | $2,928 | $2,960 | -1% |
| Operating Income (millions) | $1,109 | $1,376 | -20% |
| Earnings Per Share (EPS) | $0.37 | $0.46 | -20% |
The total revenue for the third quarter of 2025 was $2,928 million, slightly down by 1% year-over-year. Operating income saw a more significant decline of 20%, amounting to $1,109 million compared to $1,376 million in the third quarter of 2024. Earnings per share also fell by 20%, highlighting the pressure on operational efficiency and profitability.
Revenue Breakdown
The following table provides a breakdown of CSX's revenue performance across its major segments for the third quarter of 2025:
| Segment | Change from Q3 2024 |
|---|---|
| Trucking | -$7 million |
| Other | +$43 million |
In-Depth Analysis of Segment Performance
- Intermodal : Notably, intermodal volumes increased due to higher port volumes and more substantial relationships with key customers. However, exact revenue numbers were not provided.
- Merchandise : Although specific details regarding merchandise revenue were not disclosed, the segment saw performance fluctuation, with certain areas such as chemicals experiencing declines due to reduced shipments.
- Coal : Export coal revenue decreased due to reduced production and lower benchmark rates, affecting the overall revenue from this segment.
- Trucking : The trucking segment, comprising revenue from Quality Carriers, faced a decrease due to lower rates and fuel surcharge adjustments.
- Other Revenue : This segment saw a significant increase of $43 million, primarily driven by higher carload demurrage and compensation from customers who did not meet volume commitments.
Key Developments
CSX encountered several significant developments during the quarter: - Operating Challenges : The company faced operational disruptions impacting costs, notably network disruptions which required rerouting. - Goodwill Impairment : A $164 million impairment charge related to Quality Carriers was recorded, reflecting the prolonged recession within the trucking market and its impact on financial performance. - New Leadership : In a strategic move, Stephen F. Angel was appointed as the new President and CEO in September 2025, aiming to steer the company towards stronger future performance.
Comments from Company Officers
During the earnings call, executives expressed a cautious outlook reflecting the current economic climate. They emphasized their focus on operational efficiency and prioritized strategic investments, ensuring that CSX remains resilient in challenging market conditions. The appointment of Stephen F. Angel as CEO marked a potential shift in leadership strategy, with expectations of leveraging his experience to solidify and expand CSX’s market position.
Dividends and Share Repurchases
CSX continues its commitment to returning value to shareholders. In February 2025, the Board authorized an 8% increase in the quarterly cash dividend, taking it to $0.13 per share. Moreover, CSX has a significant share repurchase program in place, with $1.3 billion of authority remaining as of September 30, 2025.
CSX Corp Stock Forecast
Given the current financial performance and market conditions, the stock forecast for CSX could vary significantly. Analysts remain wary, projecting a broad range for the next 12 months:
- High Projection : Analysts optimistic about a market rebound and operational improvements might set a target price of $35.
- Low Projection : Conversely, if economic pressures persist and operational challenges continue, the stock could dip to around $25.
CSX stands at a crossroad, with its future direction hinging heavily on global economic conditions and its operational adaptability under new leadership. Investors should keep an eye on strategic developments and market conditions that could have profound impacts on CSX’s financial trajectory.
