Overview
- The railroad posted fourth-quarter operating income of $1.11 billion, net earnings of $720 million ($0.39 per share) and $3.51 billion in revenue, missing consensus on revenue and EPS.
- Results included roughly $50 million of severance and technology rationalization costs that reduced earnings by about $0.02 per share.
- Management cited soft industrial demand and lower export coal, while stronger intermodal volumes, pricing and fuel surcharges supported results; quarterly operating margin reached 31.6%, up 30 basis points year over year.
- CSX guided to 200–300 basis points of operating margin expansion in 2026 with an emphasis on productivity, cost control and capital discipline.
- Network performance improved after recent infrastructure work, with average train speed at 19.6 mph and 87% on-time shipments, and shares rose in extended trading.