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JACKSONVILLE - CSX Corporation (NASDAQ: CSX) has announced a tentative five-year collective bargaining agreement with the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers & Helpers (IBB), pending ratification by its members. The agreement is part of the company’s broader initiative to improve working conditions and benefits for its unionized workforce.
The deal will affect 59 IBB members at CSX and is one of several similar agreements CSX has successfully negotiated. To date, 11 labor unions representing 14 different work groups, which account for 47 percent of CSX’s unionized employees, have ratified agreements with the company. These agreements provide uniform improvements across the board, including better wages, health care, and paid time off. The company’s strong financial position, with annual revenue of $14.5 billion and healthy EBITDA of $7.1 billion, provides a solid foundation for these workforce investments.
CSX’s President and CEO, Joe Hinrichs, emphasized the company’s commitment to its workforce, stating that the agreement underscores CSX’s dedication to safety, respect, and excellence. The company continues to engage in negotiations with other unions to reach agreements that mirror the terms of the current deals.
The transportation company, headquartered in Jacksonville, Florida, has been a significant player in the U.S. economic landscape for nearly two centuries, connecting major urban areas and markets in the eastern United States. Its network also extends to numerous short-line railroads and over 70 ports, supporting a wide range of industries from energy to consumer products. InvestingPro data reveals that CSX has maintained dividend payments for 45 consecutive years and has raised its dividend for 20 straight years, demonstrating its commitment to shareholder returns. For detailed insights and access to comprehensive analysis, including 12 additional ProTips and extensive financial metrics, investors can explore CSX’s dedicated Pro Research Report on InvestingPro.
The ratification process by the IBB members at CSX is the next step to finalize the agreement. CSX remains focused on fostering a collaborative work environment and enhancing employee relations through these ongoing efforts.
This news is based on a press release statement from CSX Corporation.
In other recent news, CSX Corporation has been active with several noteworthy developments. The company recently completed a public offering of $600 million in 5.05% notes due in 2035, part of a strategic initiative to manage its capital structure and support ongoing operations. Analysts have also been adjusting their outlooks on CSX. BofA Securities lowered its price target for CSX from $35 to $33, maintaining a Neutral rating due to underwhelming carload performance. RBC Capital similarly reduced its price target to $33 from $34, highlighting operational challenges and cost pressures anticipated in early 2025. Meanwhile, Benchmark has maintained a Buy rating with a $38 price target, citing the company’s competitive valuation and potential long-term growth despite short-term challenges.
Baird has adjusted its price target to $38 from $39, but continues to rate CSX as Outperform, acknowledging both current operational hurdles and the company’s underlying business strength. CSX’s recent fourth-quarter earnings per share of $0.42 met expectations, despite a revenue shortfall, according to Benchmark. The company is facing significant cost pressures, including those from ongoing infrastructure projects like the Howard Street Tunnel and Blue Ridge Subdivision. These developments reflect the complex landscape CSX is navigating, marked by both market fluctuations and operational challenges.
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