CSX Reports Q4 Earnings Miss, Yet Investors Optimistic About Future Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 16 2025
0mins
Should l Buy CSX?
Source: TipRanks
CSX Corp's stock rose by 3.10% as it reached a 20-day high, despite the broader market decline with the Nasdaq-100 and S&P 500 down 0.25% and 0.24%, respectively.
The company's Q4 earnings report revealed a revenue decline of 1% year-over-year, with net earnings of $720 million falling short of analysts' expectations. However, CSX's forecast for low single-digit revenue growth in 2026 and anticipated operating margin expansion of 200-300 basis points has generated optimism among investors, leading to a positive stock reaction.
This performance indicates that while CSX faces challenges in the current economic environment, its strategic focus on cost control and productivity enhancement may position it for improved financial performance in the future.
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Analyst Views on CSX
Wall Street analysts forecast CSX stock price to fall
13 Analyst Rating
9 Buy
4 Hold
0 Sell
Moderate Buy
Current: 41.030
Low
30.00
Averages
39.08
High
43.00
Current: 41.030
Low
30.00
Averages
39.08
High
43.00
About CSX
CSX Corporation is a transportation company. The Company provides rail, intermodal and rail-to-truck transload services and solutions to customers across an array of markets, including energy, industrial, construction, agricultural and consumer products. It provides rail-based freight transportation services, including traditional rail service, the transport of intermodal containers and trailers, as well as other transportation services such as rail-to-truck transfers and bulk commodity operations. Through its subsidiary, CSX Transportation, Inc. (CSXT), it provides a link to the transportation supply chain through its approximately 20,000 route-mile rail network and serves major population centers in 26 states east of the Mississippi River, the District of Columbia and the Canadian provinces of Ontario and Quebec. CSXT is also engaged in real estate sales, leasing, acquisition and management and development activities. It serves merchandise, intermodal, coal, and trucking businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Legal Obligation: Governor Hochul emphasized that the federal government has a legal obligation to fully fund the Gateway project, highlighting the importance of continuous funding support to prevent future disruptions for workers and commuters.
- Infrastructure Significance: The Gateway project is one of the most critical infrastructure initiatives in the U.S., with the existing North River Tunnel carrying 200,000 passengers daily and in urgent need of repairs to meet growing transportation demands.
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- Upgrade Agreement Signed: CSX has signed a $670 million deal with Wabtec to acquire 100 new Evolution Series locomotives and 50 modernized units, which is expected to significantly enhance fleet fuel efficiency and reliability, thereby strengthening operational capabilities.
- Locomotive Modernization: CSX plans to convert aging D9 locomotives from DC to AC traction, with this upgrade anticipated to extend the service life of the locomotives and improve fleet standardization, further supporting performance in long-haul and heavy-duty operations.
- Digital Solutions Integration: The new locomotives will come equipped with a suite of digital solutions and services aimed at enhancing overall operational efficiency through advanced control and diagnostic technologies, ensuring the service levels that customers depend on are maintained.
- Future Outlook: CSX's COO Mike Cory stated that modernizing these critical assets will strengthen network performance and lay the groundwork for a targeted margin expansion of 200-300 basis points by 2026, reflecting the company's confidence in future growth.
See More
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- Deal Announcement: CSX has signed a $670 million agreement with Wabtec Corporation to acquire 100 new Evolution Series locomotives and 50 modernized units, aimed at enhancing overall transportation efficiency and service capabilities.
- Modernization Program: The initiative will convert aging D9 locomotives from DC to AC traction, which not only extends the service life of the locomotives but also significantly improves fuel efficiency and reliability, positively impacting operational costs.
- Digital Solutions: The agreement includes a suite of digital tools designed to support more efficient locomotive operations, thereby enhancing CSX's competitiveness in a fiercely contested transportation market.
- Delivery Timeline: Deliveries of the new locomotives are expected to begin in 2026, with modernized units starting in 2027, providing CSX with a phased opportunity to enhance operational capabilities and support future business growth.
See More
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- Investment Scale: CSX's $670 million agreement with Wabtec will introduce 100 new Evolution Series locomotives and 50 modernized units to its fleet, significantly enhancing transport capacity and service quality.
- Fuel Efficiency Improvement: The new locomotives are designed to reduce fuel consumption while maintaining performance for long-haul and heavy-duty operations, which is expected to greatly enhance overall operational efficiency and customer satisfaction.
- Technological Modernization: CSX will convert aging D9 locomotives from DC to AC traction, extending their service life and enabling the use of advanced control and diagnostic technologies, thereby improving fleet standardization and reliability.
- Digital Solutions: The new locomotives will be equipped with the Trip Optimizer system, aimed at supporting more efficient locomotive operations, which is expected to further drive improvements in fuel performance and operational efficiency.
See More
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- Technical Pattern Analysis: The weekly chart reveals a breakout from a larger bullish cup-and-handle pattern, which, combined with the shorter-term bullish setup on the daily chart, suggests a potential approach to all-time highs in early 2024, enhancing investor conviction.
- Risk Management Advice: For trading strategies, a suggested stop-loss at the 33.5 area is recommended to prevent a breach of critical support levels that could jeopardize the current bullish patterns, thereby improving the overall risk-reward profile for investors.
- Long-Term Trend Outlook: CSX's price action has formed a trading range over the past five years, and the current breakout may signal a continuation of the long-term uptrend, drawing increased attention from investors to this railroad stock's potential opportunities.
See More
