Core Insights - CSX Corp reported a decline in first quarter 2025 operating income to $1.04 billion, down from $1.34 billion in the same period last year [1] - Net income for the quarter was $646 million, or $0.34 per diluted share, compared to $880 million, or $0.45 per diluted share in the prior year [1] - Total volume decreased by 1% year-over-year to 1.52 million units, with revenue falling 7% to $3.42 billion due to declines in coal revenue, fuel surcharge, and merchandise volume [1] Financial Performance - Operating income for Q1 2025 was $1.04 billion, a decrease of 22.4% from $1.34 billion in Q1 2024 [1] - Net income dropped to $646 million from $880 million, reflecting a decline of 26.5% year-over-year [1] - Revenue for the quarter was $3.42 billion, down 7% compared to the same quarter last year [1] Operational Challenges - CSX faced operational challenges at the beginning of the year, impacting first quarter results [2] - The company is addressing network constraints due to two major ongoing infrastructure projects [2] - CSX's management is focused on improving performance amid an uncertain market outlook [2] Communication and Investor Relations - CSX executives held a conference call with the investment community on April 16, 2025, to discuss the earnings results [2] - A live webcast and presentation materials were made available on the company's investor relations website [3] - Detailed financial information is accessible through the CSX Quarterly Financial Report and Form 8-K filed with the SEC [4]

Financial Performance - CSX Corp. reported first quarter 2025 operating income of $1.04 billion, a decrease of 22% from $1.34 billion in the prior year period[2]. - Net income for the quarter was $646 million, or $0.34 per diluted share, down 27% from $880 million, or $0.45 per diluted share, in the same period last year[2][14]. - Total revenue for the quarter was $3.42 billion, representing a 7% decline year-over-year from $3.68 billion[2][14]. - Total revenue decreased by 7% in Q1 2025 compared to Q1 2024, primarily due to declines in coal revenue and merchandise volume[28]. - Operating income for Q1 2025 was $1,041 million, down 22.1% from $1,337 million in Q1 2024[63]. - Gross cash earnings decreased to $1,269 million in Q1 2025 from $1,509 million in Q1 2024, reflecting a decline of 17.9%[63]. - Economic profit (non-GAAP) fell to $320 million in Q1 2025, a decrease of 46% compared to $594 million in Q1 2024[63]. - Free cash flow before dividends remained stable at $559 million in Q1 2025, slightly down from $560 million in Q1 2024[68]. - Net cash provided by operating activities increased to $1,255 million in Q1 2025, up 17.7% from $1,066 million in Q1 2024[68]. Volume and Revenue Declines - Total volume decreased by 1% year-over-year to 1.52 million units in the first quarter of 2025[2]. - Coal volume decreased by 8%, with domestic coal tonnage down 4% and export coal tonnage down 12%[35]. - Merchandise volume decreased by 2%, with notable declines in automotive (down 7%) and forest products (down 4%) segments[31]. - Fuel surcharge revenue decreased to $217 million from $277 million, reflecting a 22% decrease[30]. - The company reported a decrease in other revenue by $28 million, primarily due to prior year payments from customers not meeting volume commitments[37]. Operational Challenges - CSX is addressing operational challenges and network constraints due to ongoing infrastructure projects to improve performance[3]. - Train velocity decreased by 3% and dwell time increased by 19% compared to the prior year, indicating operational challenges[45]. Safety Improvements - The personal injury frequency index improved by 22% to 0.95, and the FRA train accident rate improved by 16% to 3.43, highlighting safety improvements[46]. Capital Expenditures and Investments - CSX's capital expenditures for property additions in the first quarter of 2025 included $133 million related to rebuilding efforts from Hurricane Helene[24]. - Property additions rose to $719 million in Q1 2025, compared to $517 million in Q1 2024, indicating a 38.9% increase[68]. Cash and Liquidity - Cash and cash equivalents increased to $1.14 billion as of March 31, 2025, up from $933 million at the end of 2024[16]. - Total expenses increased by $38 million, or 2%, to $2.4 billion in Q1 2025, driven by inflation and higher union employee benefits[39]. - Estimated locomotive fuel expense decreased to $225 million from $276 million, a reduction of $51 million due to a 15% decrease in fuel prices[42]. Share Repurchase - The company repurchased 24 million shares at a cost of $751 million during the first quarter of 2025, compared to 7 million shares for $247 million in the same period last year[22].

Earnings Report - CSX Corporation is set to release its first-quarter earnings results on April 16, with analysts expecting earnings of 37 cents per share, a decrease from 46 cents per share in the same period last year [1] - Projected quarterly revenue is $3.45 billion, down from $3.68 billion a year earlier [1] Dividend Information - On February 12, CSX raised its quarterly dividend from 12 cents to 13 cents per share [1] Stock Performance - CSX shares fell 1.3% to close at $27.90 on Tuesday [2] Analyst Ratings - Stifel analyst Benjamin Nolan maintained a Buy rating and reduced the price target from $37 to $34 [7] - Raymond James analyst Patrick Brown maintained an Outperform rating and cut the price target from $37 to $34 [7] - Citigroup analyst Ariel Rosa maintained a Buy rating and lowered the price target from $39 to $36 [7] - UBS analyst Thomas Wadewitz maintained a Buy rating and reduced the price target from $39 to $36 [7] - Barclays analyst Brandon Oglenski maintained an Overweight rating and cut the price target from $38 to $35 [7]

Core Points - CSX Corporation has awarded 62 customers with the 31st Annual Chemical Safety Excellence Award for their commitment to safely transporting hazardous materials in 2024 [1][3] - The award highlights the importance of safety in the transportation of hazardous materials and recognizes customers who have achieved zero non-accidental releases [2][3] - The 2024 award recipients collectively shipped 164,438 carloads of hazardous materials safely, showcasing operational excellence [3] Company Commitment - CSX emphasizes that safety is central to its operations and recognizes the awarded customers as partners in enhancing safety and reducing risks [4] - The company aims to foster lasting partnerships that promote safety and innovation within the rail industry [4] Award Criteria - To qualify for the Chemical Safety Excellence Award, customers must ship at least 600 carloads of hazardous materials with zero non-accidental releases during the year [3] - Special recognition was given to Citgo Petroleum and Westlake Corporation for achieving five consecutive years of accident-free shipments [3] Company Overview - CSX, based in Jacksonville, Florida, is a leading transportation company providing rail and intermodal services across various markets [7] - The company has played a significant role in the economic expansion and industrial development of the United States for nearly 200 years [7]

Wall Street analysts expect CSX (CSX) to post quarterly earnings of $0.38 per share in its upcoming report, which indicates a year-over-year decline of 17.4%. Revenues are expected to be $3.52 billion, down 4.3% from the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Prior to a company's earnings release, it is of utmost importance to ...

CSX Corporation (CSX) is scheduled to report first-quarter 2025 results on April 16, after market close. Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The Zacks Consensus Estimate for first-quarter earnings is currently pegged at 38 cents per share, which has been revised 2.6% downward over the past 60 days.  The consensus mark implies a 17.4% year-over-year decline. The Zacks Consensus Estimate for CSX’s first-quarter 2025 revenues is pegged at $3.54 billion, indicating a 3.9% decl ...

Core Viewpoint - CSX is anticipated to report a year-over-year decline in earnings and revenues for the quarter ended March 2025, which could significantly influence its stock price depending on the actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on April 16, 2025, with a consensus estimate of $0.38 per share, reflecting a year-over-year decrease of 17.4% [3]. - Revenues are projected to be $3.55 billion, down 3.7% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.2% higher in the last 30 days, indicating a slight reassessment by analysts [4]. - The Most Accurate Estimate for CSX is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.79%, suggesting a bearish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a strong predictive power for positive readings [7][8]. - CSX currently holds a Zacks Rank of 3, which complicates the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, CSX was expected to post earnings of $0.43 per share but delivered $0.42, resulting in a surprise of -2.33% [12]. - Over the past four quarters, CSX has beaten consensus EPS estimates two times [13]. Conclusion - CSX does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16].

Core Viewpoint - CSX Corporation is actively rewarding shareholders through dividends and buybacks, but faces significant challenges from high debt levels and a struggling coal market [1]. Factors Favoring CSX - CSX has demonstrated a shareholder-friendly approach by paying dividends of $852 million in 2022, $882 million in 2023, and $930 million in 2024, with a current dividend yield of 1.75% [2] - The company repurchased shares worth $4.73 billion in 2022, $3.48 billion in 2023, and $2.24 billion in 2024, indicating a strong commitment to returning capital to shareholders [2]. Safety and Operational Improvements - CSX has made commendable progress in workplace safety, with the FRA Personal Injury Frequency Index improving to 0.89 in 2023 from 1.01 in 2022, and the FRA train accident rate improving to 3.32 in 2023 from 3.37 in 2022 [3]. - The company plans to launch a new safety training program for operations leaders in the current year [3]. Key Risks for CSX - Rail network issues, including locomotive and crew shortages, pose significant challenges that could adversely impact service levels and operational efficiency [4]. - High labor costs, projected to increase by 4% in 2024, contribute to elevated operating expenses, affecting profitability [4]. Financial Concerns - CSX's total net capital expenditures are expected to reach $2.5 billion for 2025, indicating high debt levels, with long-term debt at $17.9 billion and a long-term debt-to-capitalization ratio of 59% [5]. - The company's times interest earned ratio of 6.5 is below the industry average of 7, raising concerns about financial stability [5]. Coal Market Challenges - The coal market weakness has led to a 10% year-over-year decline in coal revenues to $2.24 billion in 2024, with coal volumes decreasing by 3% [6]. - For 2025, CSX anticipates further declines in coal volumes due to facility shutdowns and mine production issues [6]. - Over the past six months, CSX shares have decreased by 16.8%, underperforming the Zacks Transportation-Rail industry's decline of 5.8% [6].

CSX Corporation Developments - CSX Corporation has announced new five-year tentative collective bargaining agreements with the Brotherhood of Railroad Signalmen and the International Brotherhood of Boilermakers, which are subject to ratification by union members [2][3][4] - The agreement with the Brotherhood of Railroad Signalmen covers 1,215 signalmen, while the deal with the International Brotherhood of Boilermakers involves 59 members [2][3] - CSX has ratified agreements with 11 labor unions, covering 14 different work groups, which represent 47% of its unionized workforce [5] Employee Relations and Benefits - The new agreements aim to provide improved wages, health care, and paid time off benefits, reflecting CSX's employee-friendly approach [5] - Joe Hinrichs, CEO of CSX, emphasized the importance of safety, respect, and operational excellence in the agreements, aiming for greater efficiency and service for customers [3][4] Industry Context - Other companies in the rail industry, such as Union Pacific Corporation, Canadian Pacific Railway Limited, and Canadian National Railway Company, have also entered into collective bargaining agreements recently [7] - Union Pacific has reached a tentative agreement with the National Conference of Firemen & Oilers, which includes wage increases and additional vacation time [8] - Canadian Pacific has ratified a new four-year collective agreement with Unifor, covering approximately 1,200 mechanical employees, which includes improved wages and benefits [10] - Canadian National's new four-year agreement with the International Brotherhood of Electric Workers includes annual wage increases of 3% [12]

Group 1 - CSX Corporation has secured a new five-year tentative collective bargaining agreement with the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers & Helpers [1] - The agreement emphasizes CSX's commitment to valuing and empowering employees, focusing on safety, respect, and excellence [2] - The tentative agreement is subject to ratification by the union's membership, which consists of 59 members [2] Group 2 - CSX has ratified agreements with 11 labor unions, covering 14 different work groups, which accounts for 47 percent of its unionized workforce [3] - The terms of the agreements provide equivalent packages of improved wages, health care, and paid time off benefits [3] - CSX aims to work with other unions to reach similar agreements and improve the work environment for employees [3] Group 3 - CSX is a premier transportation company based in Jacksonville, Florida, providing rail, intermodal, and rail-to-truck transload services [4] - The company plays a critical role in the economic expansion and industrial development of the nation, connecting major metropolitan areas in the eastern United States [4] - CSX's network links over 240 short-line railroads and more than 70 ocean, river, and lake ports with major population centers and farming towns [4]