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 ...

CSX (CSX) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on April 16, 2025, might help the stock move higher if these key numbers are better than expectations. ...

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].