CSX(US:CSX)2025-04-16 20:02Financial 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]