CSX Corporation announced its financial results for the fourth quarter, revealing revenue and earnings below what analysts had anticipated. The company cited softening industrial demand and diminished export coal volumes as principal factors negating benefits from improved pricing and growing intermodal traffic.
Industrially focused freight operators like CSX have been contending with uneven freight volumes and a slowdown in industrial activity, driving them to adjust cost structures and operational strategies. Steve Angel, CSX’s CEO, noted that the quarterly figures reflect a "subdued industrial demand environment" alongside efforts made to realign the company’s cost base.
Headquartered in Jacksonville, Florida, CSX also provided guidance projecting an expansion in operating margins between 200 to 300 basis points in 2026, relative to the adjusted results for 2025. This positive outlook helped lift the company's shares by over 3% during after-hours trading.
For the quarter, CSX reported an operating margin of 31.6%, a modest increase of 30 basis points compared to the same period in the previous year. Total revenue reached $3.50 billion, slightly under the consensus estimate of $3.54 billion based on LSEG data. This figure represents a 1% decrease year-over-year, driven chiefly by lower merchandise volumes and a decline in coal export revenue.
Reported net earnings amounted to 39 cents per share, marginally missing the forecasted 41 cents per share.
The company found compensation for some revenue dip through increased pricing in merchandise and intermodal services, alongside a rise in intermodal freight volumes and higher fuel surcharge income. Elevated intermodal volumes suggest steadier freight demand and enhanced network efficiency. Meanwhile, firm pricing in merchandise services underscores CSX’s ability to implement rate increases effectively.