CSX reported mixed fourth-quarter results, with revenue declining slightly due to subdued industrial demand, while operating income remained flat year-over-year. The company is focusing on productivity, cost control, and capital discipline for improved performance in 2026.
Operating income was $1.11 billion, flat year-over-year, demonstrating resilience in a challenging demand environment.
neutralOperating margin was 31.6%, slightly improved from 31.3% in the prior year quarter.
positiveHigher pricing in merchandise and intermodal, along with increased intermodal volume and fuel surcharge revenue, partially offset lower merchandise and export coal volumes.
neutralRevenue decreased 1% year-over-year to $3.51 billion, reflecting subdued industrial demand.
negativeFourth quarter operating income and EPS include approximately $50 million and $0.02, respectively, in expenses related to severance and technology rationalization.
attentionFull year adjusted operating income was $4.69 billion, down from $4.69 billion in the prior year, indicating flat performance over the full year.
attentionFull year adjusted EPS was $1.61, down from $1.61 in the prior year, indicating flat performance over the full year.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Our quarterly results reflect the subdued industrial demand environment and actions taken to adjust our cost structure.
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.
Revenue totaled $3.51 billion for the quarter, decreasing 1% year-over-year, as the effects of 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.
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