CSX Corporation (CSX)

CSX reported record third-quarter 2026 revenue of $4.02 billion, up 12 percent from a year earlier, and net earnings of $1.05 billion, or $0.57 per diluted share 1.

Operating income rose to $1.57 billion from $1.09 billion, and the operating margin, the share of revenue left after operating costs, widened 880 basis points to 39.1 percent 1.

The company said revenue rose because of higher fuel surcharge revenue, meaning fees that follow diesel costs, together with higher volume and pricing in merchandise, intermodal and coal 1.

Fuel expense rose to $451 million from $281 million, which the quarterly report ties mostly to a 67 percent increase in locomotive fuel prices 2.

Trains ran slower: velocity fell 2 percent and dwell, the time cars sit in yards, rose 12 percent from a year earlier 2.

On 12 October the company announced that chief operating officer Mike Cory is retiring 4.

The open question is the proposed Union Pacific and Norfolk Southern merger, which needs approval from the Surface Transportation Board 3.

CSX describes itself as a company with nearly 200 years of history 1.

Its eastern network grew by acquisition: the purchase of key portions of Conrail linked the northeast with Chicago and the midwestern markets 3.

CSX and Norfolk Southern still own Conrail together through a limited liability company, with CSX holding a 42 percent economic interest and a 50 percent voting interest 3.

Joe Hinrichs, a former Ford president, joined as chief executive in late September 2022 5.

FreightWaves reported that the railroad's metrics trailed the other Class I carriers, the largest freight railroads, and that activist investor Ancora Holdings called for Hinrichs to step down 5.

The board named Steve Angel, the former chief executive of Linde, to lead CSX effective 28 September 2025, and FreightWaves reported the news on 29 September 2025 5.

That same Friday the company had marked the reopening of the Howard Street Tunnel in Baltimore, a project to clear room for double-stack container trains 56.

Trains.com staff reported the project cost $450 million and could generate up to 125,000 new intermodal loads a year, according to CSX 6.

The work had a cost in 2025: the annual report ties a $53 million rise in purchased services to network disruptions, mainly work on the tunnel and severe winter weather 3.

CSX also spent about $470 million in 2025 rebuilding its Blue Ridge subdivision after damage from Hurricane Helene 3.

Revenue for 2025 was $14.1 billion, down $448 million or 3 percent, mainly because export coal revenue fell, along with lower merchandise volume and lower fuel recovery 3.

Operating margin fell to 32.1 percent from 36.1 percent, and net earnings were $2.89 billion against $3.47 billion a year earlier 3.

A $164 million non-cash goodwill impairment at the trucking subsidiary Quality Carriers, bought in 2021, weighed on the third quarter of 2025 23.

Capital spending on property rose to $2.90 billion in 2025 from $2.53 billion in 2024, partly because of the Helene rebuild 3.

Earnings per diluted share were $1.54 against $1.79 in 2024, and cash from operations was $4.61 billion against $5.25 billion 3.

In October 2025 Kevin Boone returned as chief financial officer, and Transport Topics reported in February 2026 that Angel had closed an aerospace division, sold corporate jets and cut consultant use 38.

Merchandise: chemicals, farm goods, cars and more

Merchandise is the largest business: 2.6 million carloads and $8.8 billion of revenue in 2025, or 62 percent of the total 3.

It covers chemicals, agricultural and food products, automotive, minerals, forest products, metals and equipment, and fertilizers 3.

Third-quarter merchandise revenue was $2,453 million against $2,208 million a year earlier, led by chemicals at $790 million and farm goods at $430 million 2.

Automotive fell short on volume because of a temporary outage at a customer location while it re-tooled, and fertilizer shipments fell as higher input costs cut demand 2.

Intermodal: containers on trains

Intermodal moves mainly manufactured consumer goods in containers, using about 30 terminals east of the Mississippi, and brought in $2.1 billion in 2025 3.

Third-quarter intermodal revenue was $634 million against $527 million, and volume rose 7 percent 12.

The company says domestic shipments grew on wins with key customers, new service offerings and a tighter truck market, while international shipments slipped slightly 2.

Coal: power plants, steelmakers and export

Coal shipped 718 thousand carloads and earned $1.9 billion in 2025, mostly domestic coal for power plants and export coal for steelmaking 3.

In the third quarter coal revenue was $537 million against $490 million, as export coal rose on metallurgical and thermal shipments, helped by re-opened mines 2.

Trucking and other services

Trucking is Quality Carriers, which the company calls the largest provider of bulk liquid chemicals truck transportation in North America, with $816 million of revenue in 2025 3.

Other subsidiaries include CSX Intermodal Terminals, which runs terminals and hauls containers short distances, TDSI for car distribution centers, and TRANSFLO, which moves goods from rail to trucks 3.

Third-quarter trucking revenue was $227 million and other revenue, including container storage, was $166 million 2.

The network and the people

The network has about 20,000 route miles in 26 states east of the Mississippi River, the District of Columbia and two Canadian provinces, with access to over 70 port terminals 3.

CSX had about 23,000 employees at the end of 2025, including about 16,900 union members 3.

Steve Angel, 70, became president and chief executive in September 2025 after leading Linde, and began his career at General Electric working with locomotives 3.

After Cory's retirement, Doug Ryhorchuk, who spent nearly four decades at CN, and Casey Albright, with nearly 30 years at CSX, report directly to Angel 4.

Rivals and open problems

The 10-K says Norfolk Southern agreed in 2025 to merge with Union Pacific, and Transport Topics reported that BNSF and CSX, which compete with both, objected to the merger application 37.

Debt is sizeable: long-term debt was $17,102 million at the end of September 2026, with another $1,702 million due within a year 2.

A fuel surcharge lawsuit is on appeal: shippers appealed a 2025 ruling for the railroads, and oral argument is set for 11 December 2026 2.

CSX also indemnifies Pharmacia for cleanup of a 17-mile study area on the Lower Passaic River in New Jersey 2.

The umbrella, in words

The annual report's subsidiaries exhibit lists CSX Transportation, the principal operating subsidiary, as the only significant subsidiary, with all of its common stock owned by CSX 9.

Other subsidiaries named in the annual report include Quality Carriers, CSX Intermodal Terminals, TDSI, TRANSFLO and CSX Technology 3.

CSX has invested in two affiliates: Conrail, carried at $1,301 million, and TTX, carried at $1,055 million at the end of 2025 3.

Its land is mostly track: total track miles were 35,518 at December 2025 3.

CSX owns a 42 percent economic stake in Conrail, shared with Norfolk Southern, which holds the rest of the economic and voting interests 3.

For 2026, CSX expects planned capital investments of less than $2.4 billion, which it plans to fund mainly from cash generated by operations 2.

The board authorized a new share repurchase program in May 2026, adding $5 billion of authority, and total repurchase authority was $5.2 billion at the end of September 2.

Angel said in the results release that the company looks forward to continued progress toward best-in-class performance in 2027 1.

CSX said the Howard Street Tunnel project could generate up to 125,000 new intermodal loads a year, and the Port of Baltimore expects 160,000 containers a year to move through the port 6.

The Union Pacific and Norfolk Southern merger application is under review by the Surface Transportation Board, which rejected the first filing in January 2026 as incomplete while saying it could be refiled 7.

CSX and three other railroads had asked the board to reject the application, and CSX has not been reported to change that position 7.

Angel told Bloomberg on 19 February that he was content to let the approval process play out, noting that the board's approach seemed written to discourage consolidation 8.

Angel intends to build a culture of continuous improvement, making incremental changes in collaboration with staff, Transport Topics reported 8.

After the operations change, the company said its priorities remain operating safely, delivering consistent and reliable service, and driving long-term value 4.

At 30 September 2026 CSX had $1,223 million of cash and no debt outstanding under its commercial paper program 2.

The fuel surcharge appeal is set for oral argument on 11 December 2026 2.

Under labor law, agreements with the remaining unions stay in force while talks go on, and the company reported that nearly 75 percent of its unionized workforce had ratified new agreements 3.