CSX Q4 Earnings & Revenues Lag Estimates, Both Down Year Over Year

Core Insights - CSX Corporation reported disappointing fourth-quarter 2025 results, with earnings per share of 39 cents falling short of the Zacks Consensus Estimate of 42 cents, marking a 7.1% decline year-over-year [1][10] - Total revenues of $3.51 billion missed the Zacks Consensus Estimate of $3.55 billion and decreased by 1% year-over-year, primarily due to lower export coal revenues and a decline in merchandise volume [2][10] Financial Performance - Operating income for the fourth quarter decreased to $1.11 billion year-over-year, while total expenses increased by 1% [3] - CSX's operating margin for the December quarter was reported at 31.6%, with total volumes increasing by 1% year-over-year, driven by intermodal volumes [3] Segment Performance - Merchandise revenues fell by 2% year-over-year to $2.16 billion, slightly below the estimate of $2.2 billion, with merchandise volumes also declining by 2% [4] - Intermodal revenues increased by 7% year-over-year to $562 million, surpassing the estimate of $540.7 million, with segmental volumes up by 5% [4] - Coal revenues decreased by 5% year-over-year to $472 million, falling short of the estimate of $489.8 million, while trucking revenues totaled $196 million, also below the estimate of $223.7 million [5] Liquidity and Debt - CSX ended the fourth quarter of 2025 with cash and cash equivalents of $670 million, down from $933 million at the end of 2024, while long-term debt increased to $18.2 billion from $17.9 billion in 2024 [6] Future Outlook - CSX's guidance for 2025 includes low single-digit revenue growth, an improvement in operating margin by 200 to 300 basis points, and an increase in free cash flow of at least 50%, with capital expenses expected to be below $2.4 billion [7]