CSX Signs $670M Upgrade Deal with Wabtec
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 09 2026
0mins
CSX (CSX) announced that it has signed a $670M deal with Wabtec Corporation (WAB) to upgrade its fleet with 100 new Evolution Series locomotives, 50 modernized locomotives, and a suite of digital solutions and services. The new Evolution Series locomotives will support CSX's fleet by improving fuel efficiency, tractive effort, and overall reliability. The locomotives are designed to reduce fuel consumption while maintaining performance for long-haul and heavy-duty operations. In addition, CSX will modernize aging D9 locomotives by converting them from DC to AC traction. These upgrades extend service life, improve fleet standardization, and enable the use of advanced control and diagnostic technologies, with expected improvements in fuel efficiency, tractive effort, and reliability. The order also includes digital capabilities designed to support more efficient locomotive operations. The new and modernized locomotives will be equipped with Trip Optimizer with Smart Horsepower per Ton, an EPA-certified system intended to support fuel efficiency.
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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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See More
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- Project Resumption: The funding freeze had triggered a work stoppage threatening nearly 1,000 jobs, but contractors are now instructed to prepare for construction resumption next week, ensuring the project stays on track.
- 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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- 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
