CSX Inks $670M Deal With Wabtec to Expand Fleet Modernization

Core Insights - CSX Corporation has signed a $670 million deal with Westinghouse Air Brake Technologies to modernize its fleet and enhance network performance [1][9] - The deal includes the acquisition of 100 new Evolution Series locomotives and the modernization of 50 existing units [1][9] - The new locomotives aim to improve fuel efficiency, tractive effort, and overall reliability, particularly for long-haul and heavy-haul operations [2] Fleet Modernization - CSX will convert aging D9 locomotives from DC to AC traction, extending their service life and improving fleet standardization [3] - Upgrades will enable the deployment of advanced control and diagnostic technologies to enhance fuel performance and operational productivity [3] - Both new and modernized locomotives will be equipped with Trip Optimizer and Smart Horsepower per Ton systems to optimize fuel usage [4] Delivery Timeline - Deliveries of the new locomotives will begin this year, with modernization efforts expected to roll out by 2027 [4] Share Price Performance - CSX's shares have increased by 24.3% over the past year, outperforming the Transportation - Rail industry's growth of 8.4% [7][9]