CSX surges on earnings beat, strong margin expansion

Investing.com -- CSX Corporation (NASDAQ: CSX) reported third quarter results that exceeded analyst expectations, with adjusted earnings per share of $0.57 beating the consensus estimate of $0.53 and revenue of $4.02 billion topping expectations of $3.95 billion. Revenue increased 12% YoY from $3.59 billion in the prior year period.

Shares rose 4% in after-hours trading Wednesday following the results.

The railroad operator delivered operating income of $1.57 billion, up 44% YoY, while operating margin expanded 880 basis points to 39.1%. Total volume rose 5%, with intermodal volume increasing 7%. The revenue growth was driven by increased fuel surcharge revenue along with higher volume and pricing across merchandise, intermodal, and coal segments.

"CSX delivered strong earnings growth in the third quarter as disciplined execution helped us move more freight, for more customers, while maintaining our high standards for safety and service," said Steve Angel, president and chief executive officer. "The hard work of our railroaders has positioned us well as we enter the fourth quarter, and we look forward to making continued progress toward best-in-class performance in 2027."

Net earnings totaled $1.05 billion, or $0.57 per diluted share, compared to $694 million, or $0.37 per share, in the third quarter of 2025. The prior year results included a non-cash goodwill impairment of $164 million related to Quality Carriers.

Operating expenses decreased 2% to $2.45 billion despite a $170 million increase in fuel costs, which rose due to a 67% increase in locomotive fuel prices. Labor and fringe expenses increased $19 million, while purchased services and other expenses decreased $73 million due to efficiency savings.

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