Financial Performance - Total revenue decreased by 7% from $3,681 million in Q1 2024 to $3,423 million in Q1 2025[14] - Earnings per share decreased by 24% from $0.45 in Q1 2024 to $0.34 in Q1 2025[15] - Net earnings decreased by 27% from $880 million in Q1 2024 to $646 million in Q1 2025[56] - Operating margin decreased by 590 basis points from 364% in Q1 2024 to 304% in Q1 2025[56] - Free cash flow before dividends remained relatively stable at $559 million in Q1 2025 compared to $560 million in Q1 2024[62,69] Volume and Operations - Total volume decreased by 1% from 1,534k units in Q1 2024 to 1,518k units in Q1 2025[12] - Intermodal volume increased by 2% from 701k units in Q1 2024 to 716k units in Q1 2025[17] - Merchandise volume decreased by 2% from 645k units in Q1 2024 to 630k units in Q1 2025[39] - Coal volume decreased by 9% from 188k units in Q1 2024 to 172k units in Q1 2025[43] Safety and Service - The company's FRA Personal Injury Frequency Index increased from 122 in Q1 2024 to 133 in Q1 2025[23] - Velocity decreased by 3% in Q1 2025 compared to Q1 2024[28]

Financial Data and Key Metrics Changes - Total revenue for the quarter was $3.4 billion, down 7% from the same period last year, primarily due to lower benchmark coal prices and reduced fuel surcharge [10][44] - Earnings per share decreased by 24%, reflecting the impact of reduced revenues and network performance challenges [10][44] - Total volume decreased by 1% compared to last year, with intermodal volumes increasing by 2% [9][10] Business Line Data and Key Metrics Changes - Merchandise business saw both revenue and volume decline by 2%, while revenue per unit (RPU) increased by 1% year-over-year [30] - Coal revenue declined by 27% on a 9% lower volume, with RPU down 20% year-over-year [36] - Intermodal revenue decreased by 3% despite a 2% increase in volume, with RPU lower by 5% [39] Market Data and Key Metrics Changes - Fertilizer volume increased by 2%, but revenue remained flat due to a negative mix shift [31] - Automotive production was slow, with volume and revenue declining by 7% and 8% respectively [34] - Minerals volume decreased by 1%, while cement volume increased by 4% due to new production ramp-up [32] Company Strategy and Development Direction - The company is focused on improving operational efficiency and stabilizing network performance amid ongoing infrastructure projects [6][21] - There is a commitment to enhancing customer service and maintaining strong relationships with clients [8][24] - The company aims to capitalize on the long-term trend toward the expansion of U.S. manufacturing capacity [56] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the first quarter represented an earnings trough, with expectations for improvement as operational challenges are addressed [45][57] - The company is closely monitoring macroeconomic conditions and trade policies, which are impacting demand and operational performance [27][28] - There is confidence in the potential for improved network performance to capture more demand in key markets [35][56] Other Important Information - The company is investing in infrastructure projects, with significant capital expenditures planned for the Blue Ridge rebuild [52][57] - Free cash flow remained stable, with nearly a billion dollars returned to shareholders in the first quarter [54] Q&A Session Summary Question: Can you break down the operational challenges? - Management indicated that the challenges stem from a series of compounding events, including severe weather and infrastructure projects, which have affected capacity [65][70] Question: Will Q2 see a typical margin improvement? - Management expects Q2 results to be better than Q1, but the pace of improvement will depend on macro conditions and operational enhancements [76][79] Question: What about lost customer contracts? - Management clarified that there have been no lost contracts, but missed opportunities due to operational disruptions [89] Question: Can you quantify the revenue opportunities? - Management noted that some revenue opportunities were perishable, but there is potential for recovery in Q2 as demand stabilizes [102] Question: What is the outlook for coal contracts? - Management stated that coal contracts have unique pricing structures, with current prices above floor levels [136] Question: What is the run rate for other revenues? - Management indicated that the current run rate for other revenues is around $115 million, with some variability expected [137]

Financial Performance - Total revenue decreased by $258 million, or 7%, year over year, totaling $3.423 billion in Q1 2025[154] - Operating income fell to $1.041 billion, a decrease of $296 million, or 22%, compared to the previous year[154] - Earnings per diluted share decreased to $0.34, down $0.11, or 24%, year over year[154] - Total volume decreased by 16 thousand units, or 1%, totaling 1,518 thousand units in Q1 2025[153] - Expenses increased by $38 million, or 2%, year over year, totaling $2.382 billion[154] - Coal revenue decreased significantly by 27%, contributing to overall revenue decline[156] - Economic Profit decreased to $320 million, down from $594 million in the previous year[182] - The operating margin decreased by 590 basis points to 30.4% compared to the prior year[154] Operational Metrics - In Q1 2025, train velocity decreased by 3% to 17.6 miles per hour, while dwell time increased by 19% to 11.5 hours compared to the prior year[190] - Intermodal volume increased, driven by higher international shipments, while domestic shipments remained flat[163] - The personal injury frequency index improved by 22% to 0.95, and the FRA train accident rate improved by 16% to 3.43 compared to the prior year[191] Cash Flow and Investments - Free Cash Flow before dividends was $559 million, slightly down from $560 million in the prior year[188] - Operating cash flows increased by $189 million year over year, despite lower cash-generating net earnings, due to $387 million of tax payments postponed from 2023[204] - CSX used $161 million more cash for investing activities, primarily due to higher property additions, including $133 million for rebuilding the Blue Ridge subdivision[204] - Planned capital investments for 2025 are expected to be approximately $2.5 billion, including over $400 million for the Blue Ridge rebuild[208] Balance Sheet - Total assets increased by $435 million, driven by a $206 million increase in cash and cash equivalents and a $200 million increase in net property[210] - Total liabilities increased by $767 million, primarily due to the issuance of $600 million in long-term debt[211] - Working capital improved by $55 million to a deficit of $401 million as of March 31, 2025, primarily due to a $206 million increase in cash[212] Financial Instruments and Risk Management - CSX has a $1.2 billion unsecured revolving credit facility, with no outstanding balances as of March 31, 2025[207] - CSX entered into two fixed-to-floating interest rate swaps to hedge interest rate risk for 10 years on $250 million of fixed rate outstanding notes due in 2055[231] - As of March 31, 2025, the fair value of these interest rate swaps was an $8 million asset included in other long-term assets[231] Risks and Challenges - The company faces risks from legislative, regulatory, and legal developments affecting transportation, including environmental regulations and taxation[225] - Competition from other freight transportation modes, such as trucking, poses a significant challenge to CSX's market position[225] - Changes in fuel prices and availability could impact operational costs and profitability[225] - The company is subject to risks associated with natural events, including severe weather and pandemics, which could disrupt operations[225] - Labor costs and difficulties in hiring and retaining qualified employees are ongoing concerns for the company[225] - The impact of inflation and commodity concentrations may affect operating conditions and costs[228] - The company’s strategic initiatives, including acquisitions, are critical for future growth and operational success[228] - The fair value of long-term debt may be influenced by changes in interest rates, necessitating the use of financial instruments for risk management[230]

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].