CSX secures new labor agreements with two unions

JACKSONVILLE, Fla. - CSX Corporation (NASDAQ:CSX), a leading transportation company with a market capitalization of $52.7 billion and annual revenue of $14.3 billion, has announced the ratification of new five-year collective bargaining agreements with two key railroad unions. According to InvestingPro data, CSX maintains a healthy 47.5% gross profit margin, positioning it as a prominent player in the Ground Transportation industry. The agreements were made with the Brotherhood of Railroad Signalmen (BRS) and the International Brotherhood of Boilermakers, Iron Ship Builders, Forgers & Helpers (IBB).

Joe Hinrichs, President and CEO of CSX, expressed that the agreements underscore the mutual trust between the company and union leadership. Hinrichs emphasized the company’s commitment to safety, efficiency, and customer service, as well as fostering a unified workforce under the "ONE CSX" vision.

With these latest agreements, CSX has now successfully negotiated contracts with 13 labor unions, covering 16 different work groups. This represents 54 percent of CSX’s unionized workforce. The terms of the new contracts offer similar benefits across the board, including improved wages, health care, and paid time off.

CSX’s ongoing negotiations with the remaining two national rail unions, representing Trainmen/Conductors and Locomotive Engineers, aim to reach comparable agreements. The company remains dedicated to partnering with its employees to enhance their work environment.

CSX, headquartered in Jacksonville, Florida, has been a cornerstone in the nation’s economic growth and industrial development for nearly two centuries. Its extensive network serves major metropolitan areas in the eastern United States, connecting to over 240 short-line railroads and more than 70 ports. The company’s services are crucial for a wide range of markets, from energy and industrial sectors to consumer products. Currently trading near its 52-week low, InvestingPro analysis suggests CSX may be undervalued, with additional insights available in the comprehensive Pro Research Report covering 1,400+ top US stocks.

The factual information in this article is based on a press release statement from CSX Corporation. For deeper insights into CSX’s financial health, dividend history, and growth potential, explore the full suite of analytical tools available on InvestingPro, where you’ll find exclusive ProTips and comprehensive financial metrics.

In other recent news, CSX Corporation reported a first-quarter earnings miss for 2025, attributed to adverse weather conditions, unfavorable product mix, and network service challenges. These issues have led Bernstein SocGen Group to lower CSX’s stock price target to $31, maintaining a Market Perform rating, while BMO Capital Markets adjusted its target to $35, retaining an Outperform rating. Similarly, UBS revised its price target to $34, but continues to recommend a Buy rating, citing positive performance in agriculture, fertilizers, and minerals segments. Benchmark analysts maintained their Buy rating with a $35 target, despite CSX’s first-quarter EPS of $0.34 missing estimates due to infrastructure project disruptions and severe weather.

The U.S. Supreme Court recently declined to hear CSX’s appeal in its antitrust case against Norfolk Southern, which involved access restrictions to a crucial East Coast terminal. Analysts from various firms have highlighted CSX’s ongoing network challenges and market uncertainties, with some expressing caution while others see potential for long-term growth. BMO Capital Markets noted that CSX’s growth outlook remains positive, with a robust pipeline of projects that could benefit from industrial near-shoring trends. Investors are closely monitoring CSX’s ability to address these challenges and capitalize on strategic growth initiatives.

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