CSX has raised its full-year revenue guidance to high single-digit growth after delivering a strong third quarter defined by broad operational gains.
The railroad company reported earnings per share of $0.57, representing a 30% increase compared to last year’s adjusted results, signaling robust financial momentum across the business.
CEO, President and Director Stephen Angel expressed confidence in the results, stating: “I’m pleased to report that CSX has delivered another quarter of strong financial performance, earnings of $0.57 per share increased 30% compared to last year’s adjusted results.”
Revenue climbed 12% during the quarter, driven by higher fuel surcharges, a 5% increase in volume, and solid pricing gains across merchandise, intermodal, and coal markets.
Operating margin reached 39.1%, reflecting 420 basis points of expansion in the third quarter alone, a result that underscores management’s sustained focus on efficiency improvements.
CSX now expects full-year operating margin expansion of more than 350 basis points, with free cash flow growth projected to exceed 80% for the year.
Capital expenditure discipline remains a priority, with the company committing to keep capex below $2.4 billion even as it continues to invest in network capacity and service quality.
Operational highlights during the quarter included record fuel efficiency and a 17% reduction in FRA injury rates, though intermodal trip plan compliance saw a notable decline during the period.
As CSX heads into the fourth quarter, management anticipates the typical seasonal increase in purchased services and other expenses, alongside weather-related reductions in fuel efficiency consistent with prior years.
Despite those seasonal headwinds, the company expects to deliver year-over-year margin improvement above 350 basis points in the fourth quarter, extending the momentum built throughout the year.
Looking further ahead, key risks flagged by management include service variability, local capacity constraints in markets such as Atlanta, and continued hiring requirements to support growth.
Merchandise softness, particularly in fertilizers, and sustaining intermodal-driven growth momentum into 2027 also remain areas of focus as CSX charts its longer-term operational path.
