CSX Q1 Earnings & Revenues Lag Estimates, Decrease Year Over Year

Core Viewpoint - CSX Corporation reported disappointing first-quarter 2025 results, with both earnings and revenues falling short of expectations, indicating operational challenges and market uncertainties [1][3]. Financial Performance - Quarterly earnings per share were 34 cents, missing the Zacks Consensus Estimate of 37 cents, and decreased by 26% year-over-year [1]. - Total revenues amounted to $3.42 billion, missing the Zacks Consensus Estimate of $3.47 billion, and declined by 7% year-over-year [2]. - Operating income decreased by 22% year-over-year to $1.04 billion, while total expenses increased by 2% year-over-year to $2.38 billion [2]. Segmental Performance - Merchandise revenues fell by 2% year-over-year to $2.15 billion, with merchandise volumes also down by 2% [4]. - Intermodal revenues decreased by 3% year-over-year to $493 million, with segmental volumes increasing by 2% but revenue per unit decreasing by 5% [4]. - Coal revenues plummeted by 27% year-over-year to $461 million, with coal volumes down by 9% and segmental revenue per unit falling by 20% [5]. Liquidity Position - CSX ended the first quarter of 2025 with cash and cash equivalents of $1.14 billion, up from $933 million at the end of the previous quarter [6]. - Long-term debt increased to $18.5 billion from $17.8 billion in the prior quarter [6]. - The company generated $1.25 billion in cash from operating activities during the reported quarter [6]. 2025 Guidance - CSX anticipates total volume growth for 2025 despite market uncertainties and trade policy changes, with full-year revenues likely impacted by lower coal benchmarks and diesel prices [7]. - The company will focus on improving fluidity, efficiency initiatives, and labor productivity, with capital expenditures expected to remain flat year-over-year, excluding hurricane rebuild spending [7]. Industry Context - Other companies in the Zacks Transportation-Railroad industry, such as Norfolk Southern Corporation and Union Pacific Corporation, are also expected to report first-quarter earnings soon, with anticipated challenges related to inflation, high interest rates, and weak freight demand [10][12].