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JACKSONVILLE, Fla. - CSX Corp. (NASDAQ:CSX) reported second quarter earnings that exceeded analyst expectations despite a slight revenue miss, as the railroad company showed significant sequential improvements in network efficiency.
The transportation giant posted adjusted earnings per share of $0.44 for the second quarter of 2025, beating the analyst consensus estimate of $0.42. However, revenue came in at $3.57 billion, slightly below the consensus estimate of $3.58 billion and down 3% compared to the same period last year. CSX shares were trading marginally higher, up 0.3%, following the announcement.
The revenue decline was attributed to lower export coal prices, reduced fuel surcharge, and a decrease in merchandise volume. These factors were partially offset by higher merchandise pricing, increased other revenue, and growth in intermodal volume. Total (EPA:TTEF) shipping volume of 1.58 million units was flat YoY but increased 4% sequentially.
"The skill and commitment of CSX railroaders enabled us to deliver significant sequential improvements in network fluidity and cost efficiency that are apparent in our financial results," said Joe Hinrichs, president and chief executive officer of CSX.
Operating income decreased 11% to $1.28 billion compared to the same period in 2024. The company’s operating margin was 35.9% for the quarter, decreasing by 320 basis points YoY but improving by 550 basis points from the previous quarter.
Despite the challenging industrial environment, CSX management remains focused on infrastructure improvements to support future growth. Hinrichs noted, "While uncertainty continues to impact select industrial markets, we remain focused on completing two major infrastructure projects that will strengthen our position to execute on many profitable growth opportunities ahead."
The company’s sequential performance showed notable improvement, with EPS increasing 29% from the previous quarter, demonstrating CSX’s ability to enhance operational efficiency despite ongoing market challenges.
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