CSX Corporation

What they do

CSX provides rail-based freight transportation through its principal subsidiary CSX Transportation, Inc., hauling merchandise, intermodal containers and trailers, coal and trucking freight. Its network reaches major eastern U.S. population centers, more than 70 ocean, river and lake ports, and about 250 short-line and regional railroads. Subsidiaries include Quality Carriers (bulk liquid chemicals trucking), CSX Intermodal Terminals, TDSI, TRANSFLO and CSX Technology.

Revenue drivers

• Merchandise — Shipped 2.6 million carloads, 41% of 2025 volume, and generated $8.8 billion, or 62% of 2025 revenue; markets include chemicals, agricultural and food products, automotive, minerals, forest products, metals and equipment, and fertilizers.
• Intermodal — Shipped 3.0 million units, 48% of 2025 volume, and generated $2.1 billion, or 15% of 2025 revenue, moving mainly manufactured consumer goods in containers through roughly 30 terminals east of the Mississippi River.
• Coal — Shipped 718 thousand carloads, 11% of 2025 volume, and generated $1.9 billion, or 13% of 2025 revenue, transporting domestic coal, coke and iron ore to power plants, steel manufacturers and industrial plants.
• Trucking — One of the four primary lines of business reported for 2025 alongside merchandise, intermodal and coal; the 10-K excerpt describing its 2025 volume and revenue share is truncated.

Recent performance

Second quarter 2026 revenue was a record $3.94 billion, up 10% year over year, on total volume of 1.68 million units, up 6%. Operating income rose 17% to $1.51 billion and operating margin expanded 240 basis points to 38.3%; net earnings were $1.00 billion, or $0.54 per diluted share, up 23% in EPS. Growth came from higher fuel surcharge revenue plus higher volume and pricing across merchandise, intermodal and coal, with intermodal volume up 9%. Full-year 2025 revenue was $14.09 billion, down 3%, operating income fell 14% to $4.5 billion and operating margin declined 400 basis points to 32.1%.

Strategy

CSX says it is focused on a scheduled service plan emphasizing customer service, asset optimization and employee engagement, which it expects to lower costs and support free cash flow. Planned 2026 capital investment is expected to be less than $2.4 billion, prioritizing core infrastructure safety and reliability plus growth projects including locomotives and freight cars, funded primarily from operations. The company remains committed to returning cash to shareholders while maintaining an investment-grade credit profile, with capital structure and distributions reviewed at least annually by the Board. Management describes the second quarter as solid progress and says it will strengthen service execution in the second half of the year.

Risks

• New regulation or price constraints — Legislation, agency rules or executive orders that impose price constraints, restrict access to government funding or affect rail-to-rail competition could reduce earnings.
• Multi-agency regulatory compliance — CSX is subject to the STB, FRA, PHMSA, TSA, EPA and other agencies, and new or modified rules could raise operating costs, hurt revenue or reduce efficiency.
• Hazardous materials obligations — As a common carrier by rail, CSXT is legally required to transport certain hazardous materials and could be hurt by non-compliance or regulatory and legislative changes.
• Labor negotiations — About 16,600 of roughly 22,200 employees are unionized; agreements effective January 1, 2025 are ratified by unions representing nearly 75% of that workforce, while others remain under prior agreements during negotiations.

Outlook

Management said the second quarter results reflect solid progress and that CSX will strengthen service execution as it builds momentum across the business in the second half of the year. The company plans capital investments of less than $2.4 billion in 2026 and intends to fund them primarily from cash generated by operations. It continues to point to its revolving credit facility, commercial paper program and shelf registration statement as sources of financial capacity.