CSX Corp. today announced fourth quarter 2025 operating income of $1.11 billion and net earnings of $720 million, or $0.39 per share, on revenue that was narrowly lower from a year ago.
Earnings released after the close of markets fell short of analysts’ estimates of $.41-.42 for the quarter.
Revenue totaled $3.51 billion for the quarter, down 1% from the year-ago quarter as lower merchandise volume and reduced export coal revenue offset higher pricing in merchandise and intermodal, an increase in intermodal volume, and higher fuel surcharge revenue.
Operating income was $1.11 billion, compared to adjusted operating income of $1.21 billion in the prior year. Operating margin was 31.6%, compared to operating margin of 31.3% and adjusted operating margin of 34.3% in the fourth quarter of 2024.
Earnings per share (EPS) of $.39 was short of adjusted EPS of $.42 y/y. Fourth quarter operating income and EPS include $50 million and $0.02, respectively, in severance and technology rationalization expense. The company earlier this month announced it was eliminating more 166 management jobs, along with furloughs for almost 200 train conductors.
The earnings were the first under new president and chief executive Steve Angel, who replaced Joe Hinrich in late September.
The Jacksonville, Fla., based company (NASDAQ: CSX) said operating income and earnings per share include approximately $50 million and $0.02, respectively, in expenses related to severance and rationalization of specific technology investments. In the fourth quarter of 2024, the company reported operating income of $1.11 billion and net earnings of $733 million, or $0.38 per share. Excluding a pre-tax, non-cash goodwill impairment charge, adjusted operating income was $1.21 billion and adjusted net earnings were $815 million, or $0.42 per share, in the prior year quarter.1
“Our quarterly results reflect the subdued industrial demand environment and actions taken to adjust our cost structure,” said Angel, president and chief executive officer, in a release. “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.”
For all of 2025, revenue totaled $14.09 billion. Operating income was $4.52 billion, and adjusted operating income was $4.69 billion, excluding a $164 million goodwill impairment charge in the third quarter. Operating margin was 32.1% for the full year, and adjusted operating margin was 33.2%. Earnings per share was $1.54, and adjusted EPS was $1.61.
Subscribe to FreightWaves’ Rail e-newsletter and get the latest insights on rail freight right in your inbox.
Find more articles by Stuart Chirls here.
Related coverage:
Norfolk Southern orders first new locomotives since 2022
Rail networks brace for severe weather
Outgoing governor signs New Jersey hazmat rail bill
Cargo theft remains elevated across U.S. and Mexico as organized crime adapts
The post First look: CSX Q4 earnings appeared first on FreightWaves.
