CSX Corporation Reports Second Quarter 2025 Financial Results, Highlights Network Improvements and Strategic Infrastructure Focus
CSX Corporation, one of the nation’s leading transportation companies, has announced its financial and operational performance for the second quarter of 2025. The results reflect both challenges in the macroeconomic environment and notable progress in the company’s operational efficiency and network performance.
Financial Performance Overview
For the second quarter ended June 30, 2025, CSX reported an operating income of $1.28 billion, a decrease of 11% compared to $1.45 billion in the same period in 2024. Net income for the quarter came in at $829 million, representing a 14% decline from $963 million in the second quarter of the prior year. Earnings per diluted share were $0.44, down from $0.49 year-over-year. However, on a sequential basis, the company showed a solid rebound, with EPS up 29% from the previous quarter, indicating a positive trend in short-term performance.
The total volume transported by CSX during the quarter amounted to 1.58 million units, which remained essentially flat compared to the second quarter of 2024. Nonetheless, this volume marked a 4% increase from the first quarter of 2025, suggesting a gradual recovery in demand and improved network fluidity.
CEO Perspective on Performance
Joe Hinrichs, President and Chief Executive Officer of CSX, expressed his appreciation for the dedication and resilience of CSX’s workforce in navigating a complex operating landscape. “The skill and commitment of CSX’s railroaders enabled us to deliver significant sequential improvements in network fluidity and cost efficiency that are apparent in our financial results,” Hinrichs stated. “While uncertainty continues to impact select industrial markets, we remain focused on completing two major infrastructure projects that will strengthen our position to execute on many profitable growth opportunities ahead.”
Hinrichs emphasized the company’s ability to enhance internal efficiencies and drive long-term value despite near-term market challenges. He added that CSX’s strategic investments in infrastructure are laying the groundwork for sustainable growth and increased competitiveness.
Detailed Financial Highlights
During the second quarter of 2025, CSX generated total revenue of $3.57 billion. This marked a 3% year-over-year decline, attributed largely to a combination of factors including lower export coal prices, decreased fuel surcharge revenues, and a reduction in merchandise volume. These pressures were only partially offset by positive developments, including improved pricing in the merchandise segment, increased intermodal volumes, and growth in other revenue categories.
Operating income of $1.28 billion represented an 11% decline from the second quarter of 2024. The company’s operating margin for the quarter was 35.9%, down by 320 basis points compared to the same period last year. However, in a positive development, the margin showed a 550 basis point increase compared to the first quarter of 2025 — a strong indicator of the company’s successful efforts to stabilize and improve performance within the current operating environment.
Diluted earnings per share of $0.44 reflected a 10% decrease from the second quarter of 2024. However, as previously mentioned, this figure rebounded significantly from the previous quarter’s results, driven by increased volumes and internal cost management improvements.
Volume and Market Segment Trends
CSX’s volume performance remained flat year-over-year at 1.58 million units. While certain industrial markets such as chemicals and forest products experienced lingering uncertainty, other segments showed relative stability or modest improvement. Intermodal traffic, for example, posted growth, helping offset some of the declines in other areas of the business. The company also continued to see solid merchandise pricing, which helped mitigate revenue declines caused by volume weakness.
Export coal, historically a significant contributor to CSX’s revenue base, was adversely affected during the quarter by weaker global coal prices. This had a tangible impact on revenue, even as the company made gains in operational performance in other areas.
Strategic Focus and Infrastructure Investments
Hinrichs highlighted that CSX remains committed to long-term strategic initiatives designed to boost capacity, efficiency, and reliability. Two major infrastructure projects currently underway are expected to significantly improve the company’s ability to serve high-growth markets and capitalize on freight opportunities.
Although specific project details were not disclosed in the earnings release, analysts believe these could involve terminal expansions and modernization of key rail corridors. These capital investments are expected to support both current and future demand, providing CSX with a stronger foundation to pursue long-term growth across multiple freight categories.
Cost Management and Operational Discipline
Throughout the second quarter, CSX intensified its focus on managing controllable costs and enhancing operational discipline. Efficiency initiatives have helped reduce expenses across various functions, allowing the company to improve its operating ratio sequentially even in a softer revenue environment.
These efforts have included optimizing train crew assignments, increasing equipment utilization, and improving on-time performance metrics. As network fluidity improves, CSX aims to unlock further value for customers while reducing dwell times and ensuring reliable service delivery.
Engagement with the Investment Community
CSX’s management team, including CEO Joe Hinrichs and CFO Sean Pelkey, will host a live conference call with investors and analysts today, July 23, at 4:30 p.m. Eastern Time. The call will provide further insight into the company’s financial results, market trends, and future strategic direction.
Members of the investment community, media representatives, and the general public are invited to join the call by dialing 1-888-510-2008 (U.S. callers) or 1-646-960-0306 (international callers). Participants are encouraged to dial in at least 10 minutes before the call starts and use the passcode 3368220 to access the discussion.
Despite the challenges faced in the second quarter — including macroeconomic headwinds, commodity pricing fluctuations, and volume softness in select segments — CSX remains optimistic about its long-term growth trajectory. With a strong leadership team, disciplined operational approach, and strategic infrastructure investments, the company is positioning itself to respond effectively to market changes and drive shareholder value.
The remainder of 2025 will likely see CSX continuing to focus on execution, operational reliability, and customer service, while laying the groundwork for expansion into new markets and logistics partnerships. As economic conditions evolve and industrial activity stabilizes, the company believes it is well-prepared to capture new freight opportunities across its extensive rail network.