CSX Reports Fourth Quarter and Full-Year 2025 Financial Results

CSX Corp. Reports Fourth-Quarter and Full-Year 2025 Results Amid Modest Industrial Demand

CSX Corp.today reported its financial results for the fourth quarter and full year of 2025, reflecting the company’s performance amid a subdued industrial demand environment and strategic actions to align costs with market realities.

For the fourth quarter of 2025, CSX posted an operating income of $1.11 billion and net earnings of $720 million, or $0.39 per share. These results included approximately $50 million in expenses related to severance and rationalization of certain technology investments, which contributed roughly $0.02 per share to the quarter’s financial outcomes.

In comparison, Q4 2024 results included operating income of $1.11 billion and net earnings of $733 million, or $0.38 per share. Adjusted for a pre-tax, non-cash goodwill impairment charge in the prior-year period, adjusted operating income was $1.21 billion, and adjusted net earnings were $815 million, or $0.42 per share.

Our quarterly results reflect the subdued industrial demand environment and actions taken to adjust our cost structure,” said Steve Angel, President and Chief Executive Officer of CSX. “CSX has a strong operational foundation, and we are positioned to deliver improved financial performance in 2026 as we focus on driving productivity, cost control, and capital discipline while continuing to provide safe and reliable service.

Fourth-Quarter 2025 Financial Highlights

• Revenue: CSX generated $3.51 billion in revenue for Q4 2025, down 1% year-over-year. The decline was driven primarily by lower merchandise volumes and reduced export coal revenue. These headwinds were partially offset by higher pricing in merchandise and intermodal services, increased intermodal volumes, and higher fuel surcharge revenue.
• Operating Income and Margins: Operating income remained at $1.11 billion, with an operating margin of 31.6%, compared to 31.3% in Q4 2024 and adjusted operating margin of 34.3% in the prior-year period.
• Earnings per Share (EPS): Q4 EPS stood at $0.39, compared with adjusted EPS of $0.42 in the prior-year quarter. The slight reduction in EPS reflects both volume declines and the incremental severance and technology rationalization charges.
• One-Time Expenses: The quarter’s operating results included $50 million in severance and technology rationalization costs, contributing approximately $0.02 per share to the reduction in earnings.

These figures highlight CSX’s ability to maintain profitability and operational efficiency despite a challenging market environment, underscoring the company’s ongoing focus on cost management and strategic investment in its network.

Full-Year 2025 Financial Performance

For the full year 2025, CSX achieved total revenue of $14.09 billion, reflecting the company’s broad exposure across merchandise and intermodal transportation sectors.

• Operating Income: Full-year operating income totaled $4.52 billion, with adjusted operating income of $4.69 billion after excluding a $164 million goodwill impairment charge recorded in Q3 2025. The operating margin for the year was 32.1%, while the adjusted margin was 33.2%.
• Earnings per Share: CSX reported EPS of $1.54 for 2025, with adjusted EPS of $1.61, reflecting consistent operational performance and disciplined cost management throughout the year.
• These results demonstrate CSX’s ability to navigate a slower industrial environment, maintain margin discipline, and generate significant free cash flow for reinvestment in its network and shareholder returns.

Operational and Strategic Highlights

CSX continues to prioritize operational excellence, productivity gains, and strategic capital allocation. The company has implemented actions to optimize its cost structure, including workforce rationalization and targeted technology investment reductions, while maintaining investments in network capacity, safety, and reliability.

The results also reflect the ongoing evolution of CSX’s intermodal business, which benefited from increased volumes and favorable pricing dynamics. Intermodal services remain a key driver of both revenue and margin growth, providing diversified sources of income less sensitive to fluctuations in industrial commodity demand.

Despite macroeconomic headwinds, including softening industrial production and volatility in coal exports, CSX has maintained strong operational foundations across its network. This positions the company to capitalize on market recovery and to deliver enhanced financial performance in 2026.

Financial Reporting and Non-GAAP Measures

Detailed financial information, including reconciliations of GAAP to non-GAAP measures, can be found in CSX’s Quarterly Financial Report on the company’s investor website. Non-GAAP adjustments are designed to provide investors with additional insight into the company’s underlying operational performance, excluding certain non-recurring or non-cash items, such as goodwill impairments, severance charges, and technology rationalization costs.

Investors are encouraged to review these reconciliations to better understand CSX’s performance trends and to support comparison with prior periods.

CSX’s management team emphasized several key priorities for 2026, including:

1. Driving Productivity: Continued focus on network efficiency, asset utilization, and technology deployment to optimize operational performance.
2. Cost Control: Ongoing measures to rationalize expenses and align the cost structure with market demand, particularly in merchandise and coal transportation.
3. Capital Discipline: Strategic investment in network capacity, intermodal infrastructure, and safety initiatives to sustain long-term growth.
4. Safe and Reliable Service: Maintaining high service standards to strengthen customer relationships and support revenue growth in key markets.

These priorities are intended to position CSX for sustained financial improvement, even in the face of economic or industry-specific headwinds.

Key Takeaways from 2025 Results

• Stable Revenue Base: Despite a 1% year-over-year decline in Q4, CSX maintained a revenue base of $14.09 billion for the full year, reflecting diversified operations across merchandise, intermodal, and coal transport.
• Consistent Operating Margins: Operating margins remained above 31% in Q4 and exceeded 32% for the full year, demonstrating effective cost management.
• Profitability Resilience: Fourth-quarter EPS of $0.39 and full-year EPS of $1.54 indicate that CSX continues to generate strong earnings despite macroeconomic challenges.
• Strategic Cost Management: Severance and technology rationalization expenses were deliberately incurred to align the company’s cost structure with evolving demand patterns.
• Adjusted Performance Metrics: Excluding goodwill impairments and non-recurring charges, CSX’s adjusted operating income and EPS show a stable underlying performance trend and provide comparability with prior-year results.

CSX Corp. is a leading North American railroad company delivering rail-based freight transportation services across multiple industries. With a focus on safety, efficiency, and customer service, CSX operates a robust network connecting producers, manufacturers, and consumers.

The company is publicly traded on NASDAQ under the ticker CSX and provides comprehensive investor information and filings through its website: http://investors.csx.com.

Certain statements in this release are forward-looking and subject to risks and uncertainties, including economic conditions, market demand, regulatory changes, and operational challenges. Forward-looking statements often include terms such as “expects,” “anticipates,” “plans,” “believes,” or “will.” Actual results may differ materially from those projected due to unforeseen factors.

Investors are advised to review CSX’s filings with the Securities and Exchange Commission, including Form 8-K and annual reports, for additional information on risk factors and assumptions underlying forward-looking statements.

CSX Corp.’s fourth-quarter and full-year 2025 results reflect a resilient railroad business navigating a soft industrial environment, coupled with deliberate cost rationalization and capital discipline measures. The company remains well-positioned to capitalize on market recovery in 2026, supported by a robust operational foundation, strong intermodal growth, and a disciplined approach to managing expenses and strategic investments.

CSX’s performance underscores the enduring value of rail transportation in North America and its capacity to provide consistent financial returns in both favorable and challenging market conditions.

Source link: https://investors.csx.com