CSX’s third-quarter earnings elevated resulting from a mixture of quantity progress, increased gas surcharge income, and effectivity features, the railroad stated.
Working revenue elevated 44%, to $1.57 billion, whereas income elevated 12%, to a document $4.02 billion, the corporate stated Wednesday. Earnings per share elevated 54%, to 57 cents. Adjusting for the affect of a one-time goodwill impairment within the third quarter of 2025, working revenue was up 25% and earnings per share rose 30%.
The railroad’s (NASDAQ: CSX) working ratio was 60.9%, an 8.8-point enchancment from a 12 months in the past, as bills declined 2%. CSX set what it referred to as an all-time U.S. quarterly document for gas effectivity, at 0.92 gallons per 1,000 gross ton-miles.
Productiveness improved 6% for the quarter, when measured by million gross ton-miles per worker, with total rail worker headcount down 6.2% in comparison with final 12 months.
“The progress we proceed to make on productiveness has helped drive substantial progress in profitability, earnings, and free money circulation. Our aim is to be the most effective performing railroad in North America, and all the CSX staff is responding to that problem,” Chief Govt Steve Angel stated on the railroad’s earnings name.
The outcomes and outlook for the remainder of the 12 months prompted the railroad to lift its income progress forecast to excessive single-digits, up from prior steerage of mid-single-digit progress.
“As we transfer into 2027, we might be targeted on guaranteeing we’ve ample sources throughout the community to help a rising enterprise, which can embrace including to our prepare and engine worker pipeline,” Angel stated. “We stay dedicated to sizing our workforce to the wants of a protected, dependable, and environment friendly railroad.”
General freight quantity elevated 5% for the quarter. Intermodal was up 7%, merchandise was up 3%, and coal was up 2%.
The intermodal quantity progress was due fully to home shipments, as worldwide visitors declined barely.
“Decreased trucking availability, excessive truck charges, and elevated diesel prices proceed to learn our intermodal section,” stated Maryclare Kenney, the railroad’s chief business officer.
New service choices are attracting truckloads off the freeway, she stated, together with interline service with BNSF via Birmingham, Ala., and with CPKC via Myrtlewood, Ala. Double-stack operations, made doable by completion of the Howard Road Tunnel clearance undertaking in Baltimore within the spring, have helped with quantity progress within the I-95 Hall.
CSX has skilled congestion at its Fairburn terminal outdoors Atlanta and is making investments in observe, switching, and processing capability to deal with elevated intermodal quantity.
Export coal tonnage elevated 7% for the quarter, whereas home coal tonnage declined 3% as elevated metallurgical coal quantity was not sufficient to offset a downturn in utility coal visitors.
Key operations metrics declined for the quarter amid increased quantity. Common prepare velocity was off by 2%, whereas terminal dwell elevated 12%, in comparison with a 12 months in the past.
The railroad’s service metrics declined in comparison with a 12 months in the past, with intermodal and carload trip-plan compliance falling 10 factors every. Intermodal on-time efficiency was 83% for the quarter, whereas carload was 73%.
“We’re dealing with extra quantity safely and effectively, however we all know our community can carry out higher,” Angel stated.
Angel praised former Chief Working Officer Mike Cory, who introduced his retirement on Oct. 12. The railroad’s two operations senior vice presidents, Doug Ryhorchuk and Casey Albright, now report on to Angel.
“Most individuals consider me as an working CEO, and that’s what I love to do,” stated Angel, who joined CSX a 12 months in the past after main industrial fuel firm Linde. “When you return into my early days, I truly ran manufacturing operations for GE, and I put in one of many first lean manufacturing programs in america again in Nineties. So operations all the time has been in my blood.”
Security efficiency improved for the quarter, with the non-public damage charge down 17% and the prepare accident charge down 5%. It was the seventh straight quarter of enchancment within the damage charge, and the fifth consecutive quarter of enchancment within the prepare accident charge.
Why it issues: CSX grew visitors and earnings whereas spending much less, however deteriorating service raised questions on whether or not its leaner operation may sustain.
This text was up to date Oct. 22 to right that earnings per share improved by 57 cents.
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