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JACKSONVILLE - CSX Corporation (NASDAQ:CSX), a prominent player in the Ground Transportation industry with a market capitalization of $60.6 billion, announced Wednesday that its locomotive engineers, represented by the Brotherhood of Locomotive Engineers and Trainmen (BLET), have ratified a new five-year collective bargaining agreement. According to InvestingPro data, CSX maintains strong financial health with an EBITDA of $6.8 billion over the last twelve months.
The agreement covers approximately 3,400 locomotive engineers, who make up about 20 percent of CSX’s frontline workforce. This marks the first ratification between BLET and a Class I freight railroad.
"This is a significant milestone for our people and the future of our railroad," said Joe Hinrichs, President and CEO of CSX, in a press release statement.
The newly ratified agreement includes general wage increases and health and welfare improvements that mirror agreements CSX has reached with 13 other unions. With this ratification, nearly 75 percent of CSX’s unionized workers are now covered by new agreements reached within the past 10 months.
The only major workgroup at CSX still without a new agreement are trainmen and conductors represented by SMART-TD. The company stated it is currently engaged in bargaining with SMART-TD to consolidate separate territories and workforces under a single-system collective agreement.
CSX, headquartered in Jacksonville, Florida, provides rail, intermodal and rail-to-truck transload services across the eastern United States. The company’s network connects major metropolitan areas where nearly two-thirds of the nation’s population resides, along with more than 240 short-line railroads and over 70 ports. With annual revenue of $14.3 billion and a gross profit margin of 47.5%, CSX demonstrates strong operational efficiency. Discover detailed insights and Fair Value analysis in CSX’s comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, CSX Corporation reported a 7% earnings miss for the first quarter of 2025, attributed to adverse weather, an unfavorable product mix, and network outages. This led Bernstein SocGen Group to lower its price target for CSX shares to $31, retaining a Market Perform rating due to ongoing network challenges. BMO Capital Markets also adjusted its price target to $35, maintaining an Outperform rating, citing temporary challenges but expressing confidence in CSX’s long-term growth potential. Meanwhile, Goldman Sachs downgraded CSX from Buy to Neutral, maintaining a price target of $35, due to potential economic challenges and industry-specific headwinds. The firm highlighted risks such as fuel surcharges, regulatory impacts, and tariff concerns that could affect CSX’s operations. Additionally, CSX has secured new labor agreements with the Brotherhood of Railroad Signalmen and the International Brotherhood of Boilermakers, covering 54% of its unionized workforce. In legal matters, the U.S. Supreme Court declined to hear CSX’s appeal in an antitrust case against Norfolk Southern, which involved allegations of restricted access to a crucial terminal. These developments reflect the array of challenges and strategic moves currently shaping CSX’s business landscape.
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