CSX Corporation is a leading transportation company headquartered in Jacksonville, Florida, specializing in rail-based freight transportation services. The company operates through four main lines of business, offering a range of services that include the transportation of merchandise, intermodal solutions, coal, and trucking services . CSX's merchandise business is the largest segment, shipping a variety of products such as chemicals, agricultural and food products, automotive, minerals, forest products, metals and equipment, and fertilizers . The company also provides intermodal services that combine rail and truck transportation to serve the manufactured consumer goods markets . Additionally, CSX transports coal, coke, and iron ore to various industrial sectors and offers trucking services through Quality Carriers .
- Merchandise - Ships a diverse range of products including chemicals, agricultural and food products, automotive, minerals, forest products, metals and equipment, and fertilizers.
- Coal - Transports coal, coke, and iron ore to various industrial sectors.
- Intermodal - Combines rail and truck transportation to serve the manufactured consumer goods markets.
- Trucking - Includes operations from Quality Carriers, providing trucking services.
- Other Revenue Sources - Comprises regional subsidiary railroads and incidental charges.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Joseph R. Hinrichs ExecutiveBoard | President and Chief Executive Officer | Board Member at The Goodyear Tire & Rubber Company; Chairman of Exide Technologies; Venture Partner at First Move Capital; Automotive Advisory Board Member at Luminar Technologies; Strategic Advisor at microDrive. | Former President of Ford's global automotive business; joined CSX in 2022; driving operational improvements and cultural initiatives. | View Report → |
Angela C. Williams Executive | Vice President and Chief Accounting Officer | None | Joined CSX in 2006; appointed CAO in March 2018; oversees financial reporting and accounting processes. | |
Diana B. Sorfleet Executive | Executive Vice President and Chief Administrative Officer | None | Joined CSX in 2011; oversees HR, facilities, and aviation; appointed CAO in July 2018. | |
Kevin S. Boone Executive | Executive Vice President and Chief Commercial Officer | None | Joined CSX in 2017; led sales and marketing teams to achieve significant revenue growth; appointed CCO in June 2021. | |
Michael A. Cory Executive | Executive Vice President and Chief Operating Officer | None | Joined CSX in September 2023; former COO of Canadian National Railway; focuses on operational excellence and employee engagement. | |
Michael S. Burns Executive | Senior Vice President, Chief Legal Officer, and Corporate Secretary | None | Appointed January 2025; joined CSX in 2006; previously served as Vice President and General Counsel. | |
Nathan D. Goldman Executive | Executive Vice President, Chief Legal Officer, and Corporate Secretary | None | Retiring effective January 1, 2025; joined CSX in 2002; led legal, risk management, and governance functions. | |
Sean R. Pelkey Executive | Executive Vice President and Chief Financial Officer | None | Joined CSX in 2005; appointed CFO in January 2022; led financial efficiencies and sustainability initiatives, including hydrogen locomotives. | |
Stephen Fortune Executive | Executive Vice President and Chief Digital & Technology Officer | None | Joined CSX in April 2022; former CIO at BP; leads digital transformation and cybersecurity initiatives. | |
Ann Begeman Board | Independent Director | None | Appointed January 2025; former Chair of the Surface Transportation Board; expertise in transportation policy. | |
Anne H. Chow Board | Independent Director | Lead Director at Franklin Covey Co.; Director at 3M; CEO of The Rewired CEO; Senior Fellow at Northwestern University. | Director since May 2024; former CEO of AT&T Business; expertise in business operations and governance. | |
David M. Moffett Board | Independent Director | Trustee at Columbia Threadneedle Mutual Funds; Trustee at University of Oklahoma Foundation; Director at PayPal Holdings, Inc.. | Director since 2015; former CEO of Freddie Mac; expertise in finance and governance. | |
Donna M. Alvarado Board | Independent Director | President of Aguila International; Board Member at CoreCivic, Inc.; Board Member at Park National Corporation. | Director since 2006; expertise in governance, risk management, and human capital management. | |
J. Steven Whisler Board | Independent Director | Board Member at Brunswick Corporation. | Director since 2011; former CEO of Phelps Dodge Corporation; expertise in safety and environmental initiatives. | |
James L. Wainscott Board | Independent Director | Lead Director at Parker-Hannifin Corporation; Chair of Council of Chief Executives. | Director since 2020; former CEO of AK Steel; expertise in finance and governance. | |
John J. Zillmer Board | Chair of the Board | CEO of Aramark; Board Member at Ecolab Inc.; Advisory Board Member at CVC Partners. | Chair of CSX since 2019; extensive leadership experience in corporate governance and business transformation. | |
Linda H. Riefler Board | Independent Director | Board Member at MSCI, Inc.; Board Member at North American Partners in Anesthesia; Executive Leadership Team Member at Stanford Women on Boards. | Director since 2017; former Chair of Global Research at Morgan Stanley; expertise in governance and sustainability. | |
Paul C. Hilal Board | Vice Chair of the Board | CEO of Mantle Ridge LP; Vice Chair of Dollar Tree; Board of Overseers at Columbia Business School. | Director since 2017; founder of Mantle Ridge; extensive experience in corporate governance and finance. | |
Steven T. Halverson Board | Independent Director | Director at Gilbane, Inc.. | Director since 2006; former CEO of The Haskell Company; expertise in governance and business operations. | |
Suzanne M. Vautrinot Board | Independent Director | Board Member at Ecolab Inc., Parsons Corporation, and Wells Fargo & Company. | Director since 2019; retired U.S. Air Force Major General; expertise in cybersecurity and technology. | |
Thomas P. Bostick Board | Independent Director | CEO of Bostick Global Strategies; Trustee at Fidelity Investments; Board Member at Perma-Fix Environmental Services, Inc.; Board Member at Allonnia; Board Member at HireVue. | Director since 2020; retired U.S. Army Major General; expertise in sustainability and human capital management. |
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Given the expected $200 million year-over-year revenue headwinds from lower fuel surcharge and softer coal markets in Q4, how do you plan to offset these impacts to maintain revenue and margin growth, especially considering additional expenses from hurricane rebuilding efforts?
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With the upcoming construction on the Howard Street Tunnel next year, which will cause network disruptions and reroutes, how will you mitigate the operational challenges to ensure service levels remain high and that margin improvement goals for 2025 are not adversely affected?
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Can you elaborate on the rationale behind locking in a 5-year labor agreement with 3.5% inflation rates now, especially as inflation is coming down, and how this will impact your operating costs and competitiveness over the agreement period?
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Given that on-time originations and arrivals have eroded into the low 70s and upper 60s, how are you addressing these declines in service levels, and what specific measures are being implemented to improve operational performance and meet customer expectations?
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Considering the stabilization of export coal prices at lower levels and the expected headwinds from lower fuel prices next year, what strategies do you have in place to drive revenue growth in your coal segment, and how sustainable is this demand in the face of global market volatility?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Operates throughout much of the company's territory and is identified as the primary rail competitor. Competing railroads and deregulated motor carriers may exert pressure on price and service levels depending on the specific market. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Pan Am Systems, Inc. | 2022 | CSX acquired Pan Am Systems, Inc. for $601 million, paid through a mix of $422 million in common stock and $179 million in cash (including a $30 million deposit). The deal expanded CSX’s presence in the Northeastern U.S. by adding a 1,200-mile rail network along with a joint interest in a 600-mile system, and involved detailed allocation of purchase considerations and integration via the acquisition method. |
Quality Carriers, Inc. | 2021 | CSX purchased Quality Carriers for $546 million in cash, acquiring assets such as tractors, trailers, equipment, and significant intangible assets including $200 million in goodwill and customer relationships. This strategic move created a multimodal chemicals transportation solution, integrating operations from July 1, 2021, and incurring approximately $16 million in acquisition-related costs. |
Recent press releases and 8-K filings for CSX.
- Q3 volumes +1% YoY, with early signs of chemical and auto production recovery and strong intermodal momentum.
- $20 M labor agreement step-up, $15–20 M one-time restructuring charges, and non-recurring service gains to pressure Q3 margins.
- Howard Street Tunnel reroute completes in Q4, eliminating 2 M out-of-route miles per month and enabling double-stack intermodal by Q2 2026.
- Record-high NPS maintained through focus on preventing consecutive missed switches, fueling weekly truck-to-rail volume conversions.
- 50 industrial development projects online YTD and 30 more expected in H2 2025, moving on existing manifest trains with high incremental margins.
- CSX is exploring potential merger options with assistance from Goldman Sachs in response to industry consolidation following the $85 billion Union Pacific–Norfolk Southern deal, though no talks are confirmed.
- The company’s $3.5 billion share buyback program and stable dividends have underpinned a 24 % stock appreciation last quarter despite macro pressures.
- Ongoing infrastructure investments, such as the Howard Street Tunnel, aim to enhance network fluidity and support 3.6 % annual revenue growth and $3.9 billion earnings by 2028.
- Analysts believe the UP–NS merger may prompt competitive consolidation among major railroads, potentially leading CSX to pursue acquisitions or mergers.
- CSX CEO Joe Hinrichs highlights the opportunity to improve fluidity at interchange points in a potential Union Pacific–Norfolk Southern merger, while emphasizing CSX’s need to adapt and compete effectively.
- He warns of significant regulatory hurdles from the Surface Transportation Board and major stakeholders, including unions and customers, making approval uncertain.
- Hinrichs points to CSX’s strong Southeast footprint and customer relationships—being the only Class I railroad in Florida—as key competitive advantages if consolidation occurs.
- He refrains from speculating on the government’s or STB’s stance, noting CSX’s solid relationship with regulators but acknowledging an unclear path forward.
- Network performance rebounded with improved velocity, dwell and trip-plan compliance; Howard Street Tunnel and Blue Ridge rebuild projects remain on track for Q4 completion, unlocking key capacity constraints.
- Q2 revenue was $3.6 B (–3% YoY, +4% QoQ) on flat volume; operating margin declined 320 bps YoY but expanded 550 bps sequentially; EPS down 10% YoY, up 29% QoQ.
- Coal revenue fell 15% on 1% higher volume amid lower Australian benchmark pricing; intermodal volume rose 2% (revenue –3%) and merchandise revenue/volume each declined 2%; industrial development pipeline reached 49 new projects YTD with 30 more nearing completion.
- Guidance unchanged for full-year volume growth; focus on operational fluidity and efficiency to offset lower coal and fuel price headwinds.
- Jim Cramer notes CSX is having a real good quarter with solid performance to date.
- He remains bullish on transport names including CSX, Union Pacific (UNP) and Norfolk Southern (NSC) amid strong industrial fundamentals.
- Recent capital-equipment legislation is expected to trigger a boom in onshore machinery investment, benefiting rail carriers.
- The thesis of shorting transports overlooks internal U.S. trade growth, suggesting rail demand is being underestimated.
- CSX ratified a landmark five-year collective bargaining agreement with the Brotherhood of Locomotive Engineers and Trainmen covering approximately 3,400 engineers (about 20% of its frontline workforce).
- The deal includes wage increases and health and welfare improvements aligned with agreements made with 13 other unions, bringing nearly 75% of CSX’s unionized employees under new contracts in the last 10 months.
- Negotiations are ongoing with the SMART-TD union for trainmen and conductors as CSX seeks to consolidate its workforce under a single agreement.
- CSX’s strong financial position is highlighted by a $60.6 billion market capitalization, $6.8 billion LTM EBITDA, $14.3 billion annual revenue, and a 47.5% gross profit margin.
- Market analysts rate CSX as “Outperform” with an average brokerage recommendation of 2.2 and average price targets of $32.78, indicating modest upside potential.
- Volume trends are improving with intermodal performance exceeding expectations, and strong domestic coal volumes supporting near-term activity.
- Key investments like the Howard Street Tunnel project are on schedule, promising incremental benefits from Q2 through later quarters and into 2027.
- Network challenges from recent weather and infrastructure construction are being addressed through operational adjustments and improved service metrics, positioning the company for enhanced pricing and margin recovery moving forward.
- Q1 operational challenges were discussed with a focus on resolving network congestion and enhancing trip plan compliance, while major projects like the Blue Ridge rebuild and Howard Street Tunnel remain on track or slightly ahead of schedule.
- The call highlighted key tariff policy uncertainties leading to pre-shipping adjustments, alongside discussions on labor contracts, including wage increases and streamlined agreements for engineers versus conductors.
- CSX emphasized ongoing investments in capacity and technology, with new industrial projects and partnership developments underpinning a steady growth outlook despite near-term headwinds.
- Revenue declined by 7% to approximately $3.4B (from $3,681M) with EPS falling from $0.45 to $0.34—a drop of 24%—reflecting lower commodity prices and reduced export coal benchmarks .
- CSX reported net income of $646M (down from $880M) and operating income of $1.04B, underscoring a notable drop in profitability .
- Operational challenges—including severe weather, network disruptions, and projects like the Howard Street Tunnel and Blue Ridge rebuild—led to performance shortfalls and increased expenses by 2%, with rising labor and purchased services costs .
- Updated guidance emphasizes efforts to improve network fluidity and capitalize on upcoming revenue opportunities, with CEO Joe Hinrichs addressing ongoing network constraints .
- Total volume declined by 1% year-over-year, though CSX remains cautiously optimistic on FY25 volume growth with nearly flat capex (excluding hurricane rebuild spending) .
- Management highlighted improvements in safety metrics and strong customer relationships, as demonstrated by stable net promoter scores .
- CSX highlighted a challenging Q1 with near‐trough earnings, attributing performance to weather impacts, slower-than-expected volumes in January and February, and ongoing network adjustments including tariff-related initiatives.
- The company emphasized cost management efforts such as reducing road crew starts—saving approximately $1 million per week—and maintaining service levels near 95% despite disruptions.
- Strategic initiatives were underscored, including the accelerated $500 million Howard Street Tunnel project (with CSX funding about $140 million) and a growing industrial development pipeline with nearly 600 active projects, positioning the company for capacity expansion in upcoming years.