CSX Announces $670M Locomotive Fleet Upgrade with Wabtec
Rhea-AI Summary
CSX (NASDAQ: CSX) agreed to a $670 million fleet upgrade with Wabtec, covering 100 new Evolution Series locomotives, 50 modernized D9 locomotives, and digital solutions.
Deliveries of new locomotives begin in 2026, modernized units begin in 2027. Upgrades target fuel efficiency, tractive effort, reliability, service‑life extension, and advanced diagnostics.
Positive
- Signed a $670 million agreement to upgrade locomotives
- Order includes 100 new Evolution Series locomotives
- Adds 50 modernized D9 locomotives converted from DC to AC
- Equips fleet with Trip Optimizer and digital diagnostics to improve fuel performance
Negative
- Capital commitment of $670 million represents a significant near‑term cash outlay
- Modernized locomotive deliveries begin in 2027, delaying full fleet benefits
Key Figures
Market Reality Check
Peers on Argus
CSX gained 1.86% with major rail peers also higher: NSC +0.99%, CNI +1.43%, CP +1.4%, UNP +0.29%. Supplier WAB rose 1.73%, indicating the upgrade news fits within a broadly positive rail/industrial tape rather than an isolated move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 03 | Leadership changes | Neutral | +2.0% | Executive retirement and new Chief Human Resources Officer appointment. |
| Jan 22 | Earnings results | Negative | -2.0% | Q4 and full-year 2025 results with lower revenue and impairment charge. |
| Dec 22 | Earnings date set | Neutral | +0.1% | Announcement of timing for Q4 2025 earnings release and call. |
| Nov 25 | Conference appearance | Neutral | +1.5% | CFO and COO scheduled to present at UBS industrials conference. |
| Nov 24 | CSR initiative | Positive | +1.5% | Toy Express program reaching 70 communities and over 26,000 children. |
Recent CSX headlines have generally seen price moves aligned with the apparent tone of the news, including earnings and corporate updates.
Over the last few months, CSX has reported several notable events. A January 22, 2026 earnings release showed mixed fundamentals, with Q4 2025 revenue of $3.51 billion and full-year revenue of $14.09 billion, and the stock moved -2.05%. Management and governance items, such as executive leadership changes on February 3, 2026, saw a +1.98% reaction. Investor-focused communication around conference appearances and earnings dates, plus CSR initiatives, all triggered modest positive moves. The current locomotive upgrade fits into an ongoing operational and efficiency-focused narrative.
Market Pulse Summary
This announcement details a $670 million fleet upgrade with 100 new and 50 modernized locomotives plus digital optimization tools, aimed at fuel efficiency and reliability. It follows recent earnings and management updates that have generally seen price moves aligned with news tone. Investors may monitor execution on delivery timelines beginning in 2026 and 2027, integration of digital systems, and how efficiency gains contribute to operating metrics in future results.
AI-generated analysis. Not financial advice.
JACKSONVILLE, Fla., Feb. 09, 2026 (GLOBE NEWSWIRE) -- CSX (NASDAQ: CSX) today announced that it has signed a
“Our locomotive fleet is a fundamental element of our safe and reliable railroad,” said Mike Cory, Executive Vice President and Chief Operating Officer at CSX. “Modernizing these critical assets strengthens network performance and supports the level of service our customers depend on.”
The new Evolution Series locomotives will support CSX’s fleet by improving fuel efficiency, tractive effort, and overall reliability. The locomotives are designed to reduce fuel consumption while maintaining performance for long-haul and heavy-duty operations.
In addition, CSX will modernize aging D9 locomotives by converting them from DC to AC traction. These upgrades extend service life, improve fleet standardization, and enable the use of advanced control and diagnostic technologies, with expected improvements in fuel efficiency, tractive effort, and reliability.
“CSX’s fleet modernization initiative underscores its strong commitment to enhancing operational efficiency and delivering reliable customer service,” said Rogerio Mendonca, President, Freight Equipment at Wabtec. “Our unique partnership supports CSX’s strategic approach to long term fleet planning. By combining new and modernized locomotives with our industry-proven digital solutions, we expect to continue supporting improvements in fuel performance, operational efficiency, and reliability across CSX’s rail operations.”
The order also includes digital capabilities designed to support more efficient locomotive operations. The new and modernized locomotives will be equipped with Trip Optimizer with Smart Horsepower per Ton, an EPA-certified system intended to support fuel efficiency.
Delivery of the new Evolution Series locomotives is expected to begin this year, with deliveries of the modernized locomotives beginning in 2027.
About CSX
CSX, based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural and consumer products. For nearly 200 years, CSX has played a critical role in the nation’s economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation’s population resides. It also links more than 240 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike. More information about CSX Corporation and its subsidiaries is available at www.csx.com. Like us on Facebook (http://facebook.com/OfficialCSX) and follow us on X, formerly known as Twitter (http://twitter.com/CSX).
Contact:
Matthew Korn, CFA, Investor Relations
904-366-4515
Austin Staton, Corporate Communications
855-955-6397
FAQ
What did CSX (CSX) announce on February 9, 2026 regarding its locomotive fleet?
How many new and modernized locomotives will CSX (CSX) receive and when will deliveries start?
What fuel and performance benefits does the CSX (CSX) order promise for its fleet?
What digital capabilities are included in CSX's (CSX) Wabtec locomotive order?
How does CSX (CSX) expect modernization to affect older D9 locomotives?
