CSX (CSX) boosts Q1 2026 earnings, margin and free cash flow
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
CSX Corporation reported stronger results for the quarter ended March 31, 2026. Revenue rose to $3.48 billion, up 2% from $3.42 billion a year earlier, as higher merchandise pricing, intermodal volume growth, higher domestic coal revenue and increased fuel surcharges more than offset weaker export coal revenue.
Operating income increased to $1.25 billion from $1.04 billion, lifting operating margin to 36.0% from 30.4%. Net earnings grew to $807 million, or $0.43 per diluted share, compared with $646 million, or $0.34 per share, helped by a 6% decline in total expenses and efficiency savings across labor and purchased services.
Total volume reached 1.56 million units, 3% higher than the prior year quarter, led by 6% growth in intermodal and modest gains in most merchandise categories. Free cash flow before dividends improved to $793 million from $559 million, while CSX repurchased 6 million shares for $222 million and ended the quarter with $964 million in cash and cash equivalents.
Positive
- Strong profit and margin expansion: Operating income rose 20% to $1.25 billion and operating margin improved to 36.0% from 30.4%, while net earnings grew 25% to $807 million and diluted EPS increased 26% to $0.43.
- Robust free cash flow and capital returns: Free cash flow before dividends increased to $793 million from $559 million, supporting $222 million of share repurchases and $260 million of dividends while cash and cash equivalents rose to $964 million.
- Operational and safety gains: Train velocity and dwell both improved 7%, total revenue ton-miles increased 2%, and FRA personal injury and train accident rates improved 13% and 31%, respectively, versus the prior-year quarter.
Negative
- None.
Insights
CSX delivered broad-based profit and cash flow growth on modest revenue gains.
CSX converted a 2% revenue increase to a 20% rise in operating income, reaching $1.25 billion and a 36.0% operating margin. Net earnings climbed 25% to $807 million, while diluted EPS advanced 26% to $0.43, indicating solid operating leverage.
Cost control was a key driver. Total expenses fell 6% to $2.23 billion, with purchased services and other down $158 million, helped by efficiency savings and $44 million of gains on property dispositions. Labor and fringe declined slightly despite inflation, supported by lower headcount.
Cash generation was strong: free cash flow before dividends increased to $793 million from $559 million, allowing $222 million of share repurchases and $260 million of dividends while cash and cash equivalents rose to $964 million as of March 31, 2026. Operational metrics such as train velocity, dwell and safety indices also improved, supporting management’s focus on reliable, efficient service.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Revenue: $3.48 billion
Operating income: $1.25 billion
Net earnings: $807 million
+5 more
8 metrics
Revenue
$3.48 billion
Quarter ended March 31, 2026; up 2% year-over-year
Operating income
$1.25 billion
Q1 2026; up from $1.04 billion in Q1 2025
Net earnings
$807 million
Q1 2026; up 25% from $646 million in prior-year quarter
Diluted EPS
$0.43 per share
Q1 2026; up from $0.34 per share in Q1 2025
Free cash flow
$793 million
Before dividends, three months ended March 31, 2026
Share repurchases
6 million shares, $222 million
Quarter ended March 31, 2026
Cash and cash equivalents
$964 million
Balance as of March 31, 2026
Total volume
1.56 million units
Q1 2026; 3% higher than Q1 2025
Key Terms
Operating margin, Free Cash Flow, Fuel surcharge revenue, Revenue Ton-Miles, +2 more
6 terms
Operating margin financial
"Operating Margin | 36.0 % | 30.4 %"
Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.
Free Cash Flow financial
"Free Cash Flow ("FCF") is supplemental information useful to investors"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Fuel surcharge revenue financial
"Fuel surcharge revenue is included in the individual markets and does not include amounts for trucking."
An extra fee companies add to invoices to offset changing fuel costs, collected alongside regular sales rather than as a separate product. For investors it matters because it directly affects revenue and profit margins—when fuel prices rise the surcharge can protect margins, and when they fall it can reduce billed amounts—so tracking it helps assess how resilient a business’s cash flow and pricing power are, much like a restaurant raising menu prices when ingredient costs spike.
Revenue Ton-Miles technical
"Revenue Ton-Miles (RTM's) - The movement of one revenue-producing ton of freight"
FRA Personal Injury Frequency Index regulatory
"FRA Personal Injury Frequency Index - Number of FRA-reportable injuries per 200,000 man-hours."
Non-GAAP measures regulatory
"The Company also uses certain non-GAAP measures that fall within the meaning of Securities and Exchange Commission Regulation G"
Financial results that companies present using formulas or adjustments different from standard accounting rules (GAAP) to highlight what management considers the business’s ongoing performance. Investors care because these figures can make trends or profitability look clearer—like showing a car’s fuel efficiency after removing unusual trips—but they can also hide one‑time costs or aggressive assumptions, so comparing them with GAAP numbers helps judge reliability.
Earnings Snapshot
Revenue: $3.48 billion
Q1 2026
Revenue
$3.48 billion
+2% year-over-year
Operating income
$1.25 billion
+20% year-over-year
Net earnings
$807 million
+25% year-over-year
Diluted EPS
$0.43
+26% year-over-year
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 22, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction | (Commission File No.) | (I.R.S. Employer | ||||||
| of incorporation) | Identification No.) | |||||||
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(904 ) 359-3200
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
_☐ _ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
_☐ _ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
_☐ _ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
_☐ _ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company _☐ _
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. _☐ _
Item 2.02. Results of Operations and Financial Condition
On April 22, 2026, CSX Corporation issued a press release and its CSX Quarterly Financial Report on financial and operating results for the quarter ended March 31, 2026. A copy of the press release is attached as Exhibit 99.1 and a copy of the CSX Quarterly Financial Report is attached as Exhibit 99.2, each of which is incorporated by reference herein. These documents are available on the Company's website, www.csx.com.*
The information contained in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 hereto, has been “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that section. The information in this Current Report shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.
Item 9.01. Financial Statements and Exhibits
(d) The following exhibits are being furnished herewith:
99.1 Press Release dated April 22, 2026 from CSX Corporation
99.2 CSX Quarterly Financial Report
104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL
| * | Internet addresses are provided for informational purposes only and are not intended to be hyperlinks. | ||||
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CSX CORPORATION
By: /s/ ANGELA C. WILLIAMS
Angela C. Williams
Vice President and
Chief Accounting Officer
(Principal Accounting Officer)
Date: April 22, 2026
Exhibit 99.1
CSX Corp. Announces First Quarter 2026 Results
JACKSONVILLE, Fla. – April 22, 2026 – CSX Corp. (NASDAQ: CSX) today announced first quarter 2026 operating income of $1.25 billion and net earnings of $807 million, or $0.43 per diluted share. In the first quarter of 2025, the company reported operating income of $1.04 billion and net earnings of $646 million, or $0.34 per diluted share.
Total volume of 1.56 million units for the quarter was 3% higher compared to first quarter 2025. Revenue totaled $3.48 billion for the quarter, increasing 2% year-over-year, as higher merchandise pricing, intermodal volume growth, higher domestic coal revenue, and increased fuel surcharge revenue were partially offset by a decrease in export coal revenue, including the impact of lower benchmark rates.
“CSX performed well this quarter by providing reliable and efficient service to our customers through changing market conditions, while improving our expense profile,” said Steve Angel, president and chief executive officer. “As we remain disciplined on costs and take advantage of opportunities for profitable growth, we continue to make progress toward best-in-class performance. I am encouraged by our railroad’s prospects for this year and over the long term.”
CSX executives will conduct a conference call with the investment community this afternoon, April 22, at 4:30 p.m. Eastern Time. Investors, media and the public may listen to the conference call by dialing 1-888-510-2008. For callers outside the U.S., dial 1-646-960-0306. Participants should dial in 10 minutes prior to the call and enter in 3368220 as the passcode.
In conjunction with the call, a live webcast will be accessible and presentation materials will be posted on the company’s website at investors.csx.com. Following the earnings call, a webcast replay of the presentation will be archived on the company website.
This earnings announcement, as well as additional detailed financial information, is contained in the CSX Quarterly Financial Report available through the company’s website at investors.csx.com and on Form 8-K with the Securities and Exchange Commission.
About CSX and its Disclosures
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 approximately 250 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike.
This announcement, as well as additional financial information, is available on the company's website at investors.csx.com. CSX also uses social media channels to communicate information about the company. Although social media channels are not intended to be the primary method of disclosure for material information, it is possible that certain information CSX posts on social media could be deemed to be material. Therefore, we encourage investors, the media, and others interested in the company to review the information we post on X, formerly known as Twitter, (x.com/CSX) and on Facebook (facebook.com/OfficialCSX). The social media channels used by CSX may be updated from time to time. More information about CSX Corporation and its subsidiaries is available at www.csx.com.
Non-GAAP Disclosure
CSX reports its financial results in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). CSX also uses certain non-GAAP measures that fall within the meaning of Securities and Exchange Commission Regulation G and Regulation S-K Item 10(e), which may provide users of the financial information with additional meaningful comparison to prior reported results. Non-GAAP measures do not have standardized definitions and are not defined by U.S. GAAP. Therefore, CSX’s non-GAAP measures are unlikely to be comparable to similar measures presented by other companies. The presentation of these non-GAAP measures should not be considered in isolation from, as a substitute for, or as superior to the financial information presented in accordance with GAAP.
Forward-looking Statements
This information and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, margins, volumes, rates, cost-savings, expenses, taxes, liquidity, capital expenditures, dividends, share repurchases or other financial items, statements of management's plans, strategies and objectives for future operations, and management's expectations as to future performance and operations and the time by which objectives will be achieved, statements concerning proposed new services, and statements regarding future economic, industry or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as “will,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate,” “preliminary” and similar expressions. Forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise any forward-looking statement. If the company updates any forward-looking statement, no inference should be drawn that the company will make additional updates with respect to that statement or any other forward-looking statements.
Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by any forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by any forward-looking statements include, among others: (i) the company's success in implementing its financial and operational initiatives; (ii) changes in domestic or international economic, political or business conditions, including those affecting the transportation industry (such as the impact of industry competition, conditions, performance and consolidation); (iii) legislative or regulatory changes; (iv) the inherent business risks associated with safety and security; (v) the outcome of claims and litigation involving or affecting the company; (vi) natural events such as severe weather conditions or pandemic health crises; (vii) changes in fuel prices, surcharges for fuel and the availability of fuel; (viii) adverse economic or operational effects from actual or threatened war or terrorist activities and any government response; and (ix) the inherent uncertainty associated with projecting economic and business conditions.
Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the company's SEC reports, accessible on the SEC's website at www.sec.gov and the company's website at www.csx.com.
Contact:
Matthew Korn, CFA, Investor Relations
904-366-4515
Austin Staton, Corporate Communications
855-955-6397
Exhibit 99.2
CSX Corp. Announces First Quarter 2026 Results
JACKSONVILLE, Fla. – April 22, 2026 – CSX Corp. (NASDAQ: CSX) today announced first quarter 2026 operating income of $1.25 billion and net earnings of $807 million, or $0.43 per diluted share. In the first quarter of 2025, the company reported operating income of $1.04 billion and net earnings of $646 million, or $0.34 per diluted share.
Total volume of 1.56 million units for the quarter was 3% higher compared to first quarter 2025. Revenue totaled $3.48 billion for the quarter, increasing 2% year-over-year, as higher merchandise pricing, intermodal volume growth, higher domestic coal revenue, and increased fuel surcharge revenue were partially offset by a decrease in export coal revenue, including the impact of lower benchmark rates.
“CSX performed well this quarter by providing reliable and efficient service to our customers through changing market conditions, while improving our expense profile,” said Steve Angel, president and chief executive officer. “As we remain disciplined on costs and take advantage of opportunities for profitable growth, we continue to make progress toward best-in-class performance. I am encouraged by our railroad’s prospects for this year and over the long term.”
CSX executives will conduct a conference call with the investment community this afternoon, April 22, at 4:30 p.m. Eastern Time. Investors, media and the public may listen to the conference call by dialing 1-888-510-2008. For callers outside the U.S., dial 1-646-960-0306. Participants should dial in 10 minutes prior to the call and enter in 3368220 as the passcode.
In conjunction with the call, a live webcast will be accessible and presentation materials will be posted on the company’s website at investors.csx.com. Following the earnings call, a webcast replay of the presentation will be archived on the company website.
This earnings announcement, as well as additional detailed financial information, is contained in the CSX Quarterly Financial Report available through the company’s website at investors.csx.com and on Form 8-K with the Securities and Exchange Commission.
| Table of Contents | The accompanying unaudited | CSX CORPORATION | CONTACTS: | ||||||||
| financial information should be | 500 Water Street, C900 | INVESTOR RELATIONS | |||||||||
Consolidated Financial Statements..….p. 3 | read in conjunction with the | Jacksonville, FL 32202 | Matthew Korn, CFA | ||||||||
Operating Statistics...............................p. 10 | Company’s most recent | www.csx.com | (904) 366-4515 | ||||||||
Non-GAAP Measures............................p. 12 | Annual Report on Form 10-K, | MEDIA | |||||||||
| Quarterly Reports on Form 10-Q, and | Austin Staton | ||||||||||
| any Current Reports on Form 8-K. | (855) 955-6397 | ||||||||||
1
About CSX and its Disclosures
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 approximately 250 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike.
This announcement, as well as additional financial information, is available on the company's website at investors.csx.com. CSX also uses social media channels to communicate information about the company. Although social media channels are not intended to be the primary method of disclosure for material information, it is possible that certain information CSX posts on social media could be deemed to be material. Therefore, we encourage investors, the media, and others interested in the company to review the information we post on X, formerly known as Twitter, (x.com/CSX) and on Facebook (facebook.com/OfficialCSX). The social media channels used by CSX may be updated from time to time. More information about CSX Corporation and its subsidiaries is available at www.csx.com.
Non-GAAP Disclosure
CSX reports its financial results in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). CSX also uses certain non-GAAP measures that fall within the meaning of Securities and Exchange Commission Regulation G and Regulation S-K Item 10(e), which may provide users of the financial information with additional meaningful comparison to prior reported results. Non-GAAP measures do not have standardized definitions and are not defined by U.S. GAAP. Therefore, CSX’s non-GAAP measures are unlikely to be comparable to similar measures presented by other companies. The presentation of these non-GAAP measures should not be considered in isolation from, as a substitute for, or as superior to the financial information presented in accordance with GAAP.
Forward-looking Statements
This information and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, margins, volumes, rates, cost-savings, expenses, taxes, liquidity, capital expenditures, dividends, share repurchases or other financial items, statements of management's plans, strategies and objectives for future operations, and management's expectations as to future performance and operations and the time by which objectives will be achieved, statements concerning proposed new services, and statements regarding future economic, industry or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as “will,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate,” “preliminary” and similar expressions. Forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise any forward-looking statement. If the company updates any forward-looking statement, no inference should be drawn that the company will make additional updates with respect to that statement or any other forward-looking statements.
Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by any forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by any forward-looking statements include, among others: (i) the company's success in implementing its financial and operational initiatives; (ii) changes in domestic or international economic, political or business conditions, including those affecting the transportation industry (such as the impact of industry competition, conditions, performance and consolidation); (iii) legislative or regulatory changes; (iv) the inherent business risks associated with safety and security; (v) the outcome of claims and litigation involving or affecting the company; (vi) natural events such as severe weather conditions or pandemic health crises; (vii) changes in fuel prices, surcharges for fuel and the availability of fuel; (viii) adverse economic or operational effects from actual or threatened war or terrorist activities and any government response; and (ix) the inherent uncertainty associated with projecting economic and business conditions.
Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the company's SEC reports, accessible on the SEC's website at www.sec.gov and the company's website at www.csx.com.
2
CSX Corporation
CONSOLIDATED INCOME STATEMENTS (Unaudited)
(Dollars in Millions, Except Per Share Amounts)
| Quarters Ended | |||||||||||||||||
| Mar. 31, 2026 | Mar. 31, 2025 | $ Change | % Change | ||||||||||||||
| Revenue | $ | 3,482 | $ | 3,423 | $ | 59 | 2 | % | |||||||||
| Expense | |||||||||||||||||
| Labor and Fringe | 812 | 821 | 9 | 1 | |||||||||||||
| Purchased Services and Other | 616 | 774 | 158 | 20 | |||||||||||||
| Depreciation and Amortization | 415 | 425 | 10 | 2 | |||||||||||||
| Fuel | 302 | 275 | (27) | (10) | |||||||||||||
| Equipment and Other Rents | 84 | 87 | 3 | 3 | |||||||||||||
| Total Expense | 2,229 | 2,382 | 153 | 6 | |||||||||||||
| Operating Income | 1,253 | 1,041 | 212 | 20 | |||||||||||||
| Interest Expense | (213) | (209) | (4) | (2) | |||||||||||||
| Other Income - Net | 23 | 26 | (3) | (12) | |||||||||||||
| Earnings Before Income Taxes | 1,063 | 858 | 205 | 24 | |||||||||||||
| Income Tax Expense | (256) | (212) | (44) | (21) | |||||||||||||
| Net Earnings | $ | 807 | $ | 646 | $ | 161 | 25 | % | |||||||||
| Operating Margin | 36.0 | % | 30.4 | % | |||||||||||||
| Per Common Share | |||||||||||||||||
| Net Earnings Per Share, Assuming Dilution | $ | 0.43 | $ | 0.34 | $ | 0.09 | 26 | % | |||||||||
Average Shares Outstanding, Assuming Dilution (Millions) | 1,862 | 1,892 | |||||||||||||||
3
CSX Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Millions)
| (Unaudited) | ||||||||
| Mar. 31, 2026 | Dec. 31, 2025 | |||||||
| ASSETS | ||||||||
| Cash and Cash Equivalents | $ | 964 | $ | 670 | ||||
| Short-Term Investments | 145 | 5 | ||||||
| Other Current Assets | 2,002 | 1,875 | ||||||
| Properties - Net | 36,816 | 36,811 | ||||||
| Investment in Affiliates and Other Companies | 2,653 | 2,634 | ||||||
| Other Long-Term Assets | 1,652 | 1,687 | ||||||
| Total Assets | $ | 44,232 | $ | 43,682 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current Maturities of Long-Term Debt | $ | 710 | $ | 708 | ||||
| Other Current Liabilities | 2,511 | 2,425 | ||||||
| Long-Term Debt | 18,158 | 18,165 | ||||||
| Deferred Income Taxes - Net | 7,965 | 7,914 | ||||||
| Other Long-Term Liabilities | 1,307 | 1,310 | ||||||
| Total Liabilities | 30,651 | 30,522 | ||||||
| Total Shareholders' Equity | 13,581 | 13,160 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 44,232 | $ | 43,682 | ||||
4
CSX Corporation
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Unaudited)
(Dollars in Millions)
Three Months Ended | ||||||||
| Mar. 31, 2026 | Mar. 31, 2025 | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net Earnings | $ | 807 | $ | 646 | ||||
| Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: | ||||||||
| Depreciation and Amortization | 415 | 425 | ||||||
| Deferred Income Tax Expense | 51 | 13 | ||||||
| Other Operating Activities - Net | (1) | 171 | ||||||
| Net Cash Provided by Operating Activities | 1,272 | 1,255 | ||||||
| INVESTING ACTIVITIES | ||||||||
Property Additions (a) | (543) | (719) | ||||||
| Purchases of Short-Term Investments | (140) | — | ||||||
| Proceeds from Sales of Short-Term Investments | 5 | 67 | ||||||
| Proceeds and Advances from Property Dispositions | 64 | 23 | ||||||
| Other Investing Activities | 47 | (18) | ||||||
| Net Cash Used in Investing Activities | (567) | (647) | ||||||
| FINANCING ACTIVITIES | ||||||||
Shares Repurchased (b) | (222) | (751) | ||||||
| Dividends Paid | (260) | (245) | ||||||
| Long-term Debt Repaid | (2) | (2) | ||||||
| Long-term Debt Issued | — | 600 | ||||||
| Other Financing Activities | 73 | (4) | ||||||
| Net Cash Used in Financing Activities | (411) | (402) | ||||||
| Net Increase in Cash and Cash Equivalents | 294 | 206 | ||||||
| CASH AND CASH EQUIVALENTS | ||||||||
| Cash and Cash Equivalents at Beginning of Period | 670 | 933 | ||||||
| Cash and Cash Equivalents at End of Period | $ | 964 | $ | 1,139 | ||||
5
CSX Corporation
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
a)Property Additions: First quarter 2025 property additions include $133 million related to rebuilding the Blue Ridge subdivision, which was reopened in September 2025.
b)Shares Repurchased: During first quarters 2026 and 2025, the Company engaged in the following repurchase activities:
| Quarters Ended | |||||||||||
| Mar. 31, 2026 | Mar. 31, 2025 | ||||||||||
Shares Repurchased (Millions) | 6 | 24 | |||||||||
Cost of Shares (Dollars in Millions) (1) | $ | 222 | $ | 751 | |||||||
| Average Cost per Share Repurchased | $ | 39.02 | $ | 31.66 | |||||||
(1) Amounts exclude the impact of excise tax on net share repurchases imposed as part of the Inflation Reduction Act of 2022. | |||||||||||
6
CSX Corporation
VOLUME AND REVENUE (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| Volume (Thousands of Units); Revenue (Dollars in Millions); Revenue Per Unit (Dollars) | ||||||||||||||||||||||||||||||||||||||
Quarters Ended March 31, 2026 and March 31, 2025 | ||||||||||||||||||||||||||||||||||||||
| Volume | Revenue | Revenue Per Unit | ||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||||||||||||||
| Chemicals | 168 | 166 | 1 | % | $ | 722 | $ | 698 | 3 | % | $ | 4,298 | $ | 4,205 | 2 | % | ||||||||||||||||||||||
| Agricultural and Food Products | 116 | 115 | 1 | 409 | 408 | — | 3,526 | 3,548 | (1) | |||||||||||||||||||||||||||||
| Automotive | 87 | 87 | — | 275 | 271 | 1 | 3,161 | 3,115 | 1 | |||||||||||||||||||||||||||||
| Minerals | 82 | 79 | 4 | 192 | 181 | 6 | 2,341 | 2,291 | 2 | |||||||||||||||||||||||||||||
| Metals and Equipment | 65 | 65 | — | 220 | 209 | 5 | 3,385 | 3,215 | 5 | |||||||||||||||||||||||||||||
| Forest Products | 64 | 70 | (9) | 229 | 249 | (8) | 3,578 | 3,557 | 1 | |||||||||||||||||||||||||||||
| Fertilizers | 49 | 48 | 2 | 141 | 136 | 4 | 2,878 | 2,833 | 2 | |||||||||||||||||||||||||||||
| Total Merchandise | 631 | 630 | — | 2,188 | 2,152 | 2 | 3,468 | 3,416 | 2 | |||||||||||||||||||||||||||||
| Intermodal | 757 | 716 | 6 | 518 | 493 | 5 | 684 | 689 | (1) | |||||||||||||||||||||||||||||
| Coal | 171 | 172 | (1) | 458 | 461 | (1) | 2,678 | 2,680 | — | |||||||||||||||||||||||||||||
| Trucking | — | — | — | 202 | 202 | — | — | — | — | |||||||||||||||||||||||||||||
| Other | — | — | — | 116 | 115 | 1 | — | — | — | |||||||||||||||||||||||||||||
| Total | 1,559 | 1,518 | 3 | % | $ | 3,482 | $ | 3,423 | 2 | % | $ | 2,233 | $ | 2,255 | (1) | % | ||||||||||||||||||||||
7
CSX Corporation
VOLUME AND REVENUE
Total revenue increased 2% in first quarter 2026 when compared to first quarter 2025 due to higher pricing in merchandise, volume growth in intermodal, higher domestic coal revenue, and increased fuel surcharge revenue. These increases were partially offset by a decrease in export coal revenue, including the impact of lower benchmark rates.
Fuel Surcharge
Fuel surcharge revenue is included in the individual markets and does not include amounts for trucking. Fuel lag is the estimated revenue effect resulting from the difference between highway diesel prices in the quarter and the prices used for fuel surcharge, which are on a two-month lag for non-intermodal traffic.
| Quarters Ended | |||||||||||
| (Dollars in Millions) | Mar. 31, 2026 | Mar. 31, 2025 | |||||||||
| Fuel Surcharge Revenue | $ | 231 | $ | 217 | |||||||
| Fuel Lag (Unfavorable) Favorable | $ | (39) | $ | (5) | |||||||
Merchandise Volume
Chemicals - Increased due to higher shipments of sand, petcoke, and waste, partially offset by lower shipments of crude oil.
Agricultural and Food Products - Increased due to higher shipments of feed ingredients and export grains, partially offset by decreased shipments of domestic feed grain, food and consumer products, and ethanol.
Automotive - Flat despite the impact of a temporary outage at a customer location associated with re-tooling efforts.
Minerals - Increased due to higher shipments of cement and salt.
Metals and Equipment - Flat as increased scrap and pipe shipments were offset by lower steel and aluminum shipments, which include the impact of customer plant closures.
Forest Products - Decreased due to lower shipments of pulp and paper products, which include the impacts of both customer plant closures and temporary outages, as well as lower shipments of building products.
Fertilizers - Increased due to higher short-haul phosphates shipments, partially offset by decreases in long-haul shipments.
Intermodal Volume
Domestic shipments increased due to wins with key customers and new service offerings. International shipments were relatively flat to prior year levels.
Coal Volume
Domestic coal increased due to higher shipments to utility plants, partially offset by lower shipments to river terminals. Export coal decreased due to lower shipments of metallurgical coal primarily as a result of weather impacts on the overall supply chain.
| Quarters Ended | |||||||||||
| (Millions of Tons) | Mar. 31, 2026 | Mar. 31, 2025 | Change | ||||||||
| Coal Tonnage | |||||||||||
| Domestic | 9.3 | 9.2 | 1 | % | |||||||
| Export | 10.1 | 10.2 | (1) | ||||||||
| Total Coal | 19.4 | 19.4 | — | % | |||||||
Trucking Revenue
Trucking revenue was flat to prior year results.
Other Revenue
Other revenue increased $1 million.
8
CSX Corporation
EXPENSE
Expenses of $2.2 billion decreased $153 million, or 6%, in first quarter 2026 when compared to first quarter 2025.
Labor and Fringe expense decreased $9 million due to the following:
•Inflation increases of $41 million were almost entirely offset by efficiency savings, which were primarily driven by lower headcount.
•All other net costs decreased $10 million.
Purchased Services and Other expense decreased $158 million due to the following:
•Efficiency savings net of inflation were $50 million, driven by cost reductions across operating and support functions.
•Gains on property dispositions were $44 million in first quarter 2026 compared to no gains in the prior year.
•A decrease of $20 million was due to the effects of network disruptions and congestion in the prior year, which included higher locomotive usage costs and rerouting charges associated with the Howard Street Tunnel project.
•All other net costs decreased $44 million due to several non-significant items, roughly one-third of which relate to prior year costs that did not recur in the current year.
Depreciation and Amortization expense decreased $10 million primarily as a result of an equipment depreciation study.
Fuel costs increased $27 million primarily due to a 14% increase in locomotive fuel prices.
Equipment and Other Rents expense decreased $3 million.
Employee Counts (Estimated)
| Quarters Ended | ||||||||||||||
| Average: | Mar. 31, 2026 | Mar. 31, 2025 (a) | Change | |||||||||||
| Rail | 20,253 | 21,430 | (1,177) | |||||||||||
| Trucking | 2,075 | 1,995 | 80 | |||||||||||
| Total | 22,328 | 23,425 | (1,097) | |||||||||||
| Ending: | ||||||||||||||
| Rail | 20,177 | 21,384 | (1,207) | |||||||||||
| Trucking | 2,072 | 2,030 | 42 | |||||||||||
| Total | 22,249 | 23,414 | (1,165) | |||||||||||
(a) Immaterial revisions have been made to amounts for first quarter 2025. | ||||||||||||||
Fuel Expense
| Quarters Ended | |||||||||||
(Dollars and Gallons in Millions, Except Price Per Gallon) | Mar. 31, 2026 | Mar. 31, 2025 | |||||||||
Estimated Locomotive Fuel Consumption (Gallons) | 91.0 | 92.9 | |||||||||
Price per Gallon (Dollars) | $ | 2.76 | $ | 2.42 | |||||||
| Total Locomotive Fuel Expense | $ | 251 | $ | 225 | |||||||
| Non-Locomotive Fuel Expense | 51 | 50 | |||||||||
| Total Fuel Expense | $ | 302 | $ | 275 | |||||||
9
CSX Corporation
OPERATING STATISTICS (Estimated)
In the first quarter of 2026, velocity and dwell both improved by 7% versus prior year. Carload trip plan performance improved by 7% and intermodal trip plan performance decreased by 2%. The Company continues to focus on operational improvements and executing the operating plan to deliver safe, reliable, and efficient service to customers.
The Federal Railroad Administration (“FRA”) personal injury frequency index of 0.81 in first quarter 2026 improved 13% compared to prior year and the FRA train accident rate of 2.44 improved 31%. Safety is a top priority at CSX, and the Company is committed to reducing risk and enhancing the overall safety of its employees, customers, and communities in which it operates.
| Quarters Ended | |||||||||||||||||
| Mar. 31, 2026 | Mar. 31, 2025 | Improvement / (Deterioration) | |||||||||||||||
| Operations Performance | |||||||||||||||||
Train Velocity (Miles Per Hour) | 18.9 | 17.6 | 7 | % | |||||||||||||
Dwell (Hours) | 10.7 | 11.5 | 7 | % | |||||||||||||
| Cars Online | 123,804 | 132,200 | 6 | % | |||||||||||||
| On-Time Originations | 73 | % | 68 | % | 7 | % | |||||||||||
| On-Time Arrivals | 61 | % | 55 | % | 11 | % | |||||||||||
| Carload Trip Plan Performance | 74 | % | 69 | % | 7 | % | |||||||||||
| Intermodal Trip Plan Performance | 88 | % | 90 | % | (2) | % | |||||||||||
| Fuel Efficiency | 0.97 | 0.99 | 2 | % | |||||||||||||
Revenue Ton-Miles (Billions) | |||||||||||||||||
| Merchandise | 32.6 | 32.3 | 1 | % | |||||||||||||
| Coal | 8.5 | 8.4 | 1 | % | |||||||||||||
| Intermodal | 7.5 | 7.1 | 6 | % | |||||||||||||
| Total Revenue Ton-Miles | 48.6 | 47.8 | 2 | % | |||||||||||||
Total Gross Ton-Miles (Billions) | 93.5 | 93.9 | — | % | |||||||||||||
| Safety | |||||||||||||||||
| FRA Personal Injury Frequency Index | 0.81 | 0.93 | 13 | % | |||||||||||||
| FRA Train Accident Rate | 2.44 | 3.56 | 31 | % | |||||||||||||
Certain operating statistics are estimated and can continue to be updated as actuals settle. The methodology for calculating train velocity, dwell, cars online and trip plan performance differs from that used by the Surface Transportation Board. The Company will continue to report these metrics to the Surface Transportation Board using the prescribed methodology.
10
CSX Corporation
OPERATING STATISTICS (Estimated), continued
Key Performance Measures Definitions
Train Velocity - Average train speed between origin and destination in miles per hour (does not include locals, yard jobs, work trains or passenger trains). Train velocity measures actual train miles and times of a train movement on CSX's network.
Dwell - Average amount of time in hours between car arrival to and departure from the yard.
Cars Online - Average number of active freight rail cars on lines operated by CSX, excluding rail cars that are being repaired, in storage, those that have been sold, or private cars dwelling at a customer location more than one day.
On-Time Originations - Percent of scheduled road trains that depart the origin yard on-time or ahead of schedule.
On-Time Arrivals - Percent of scheduled road trains that arrive at the destination yard on-time to within two hours of scheduled arrival.
Carload Trip Plan Performance - Percent of measured cars (excludes unit trains and other non-scheduled service as well as empty automotive shipments) destined for a customer that complete their scheduled plan at or ahead of the original estimated time of arrival or interchange (as applicable).
Intermodal Trip Plan Performance - Percent of measured containers (excludes port shipments along with empty containers and other non-scheduled service) destined for a customer that complete their scheduled plan at or ahead of the original estimated time of arrival, notification or interchange (as applicable).
Fuel Efficiency - Gallons of locomotive fuel per 1,000 gross ton-miles.
Revenue Ton-Miles (RTM's) - The movement of one revenue-producing ton of freight over a distance of one mile.
Gross Ton-Miles (GTM's) - The movement of one ton of train weight over one mile. GTM's are calculated by multiplying total train weight by distance the train moved. Total train weight is comprised of the weight of the freight cars and their contents.
FRA Personal Injury Frequency Index - Number of FRA-reportable injuries per 200,000 man-hours.
FRA Train Accident Rate - Number of FRA-reportable train accidents per million train-miles.
11
CSX Corporation
NON-GAAP MEASURES (Unaudited)
The Company reports its financial results in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company also uses certain non-GAAP measures that fall within the meaning of Securities and Exchange Commission Regulation G and Regulation S-K Item 10(e), which may provide users of the financial information with additional meaningful comparison to prior reported results. Non-GAAP measures do not have standardized definitions and are not defined by GAAP. Therefore, the Company’s non-GAAP measures are unlikely to be comparable to similar measures presented by other companies. The presentation of these non-GAAP measures should not be considered in isolation from, as a substitute for, or as superior to the financial information presented in accordance with GAAP. Reconciliations of non-GAAP measures to corresponding GAAP measures are below.
Free Cash Flow
Management believes that Free Cash Flow ("FCF") is supplemental information useful to investors as it is important in evaluating the Company’s financial performance. More specifically, FCF measures cash generated by the business after reinvestment. This measure represents cash available for both equity and bond investors to be used for dividends, share repurchases or principal reduction on outstanding debt. FCF is calculated by using net cash from operations and adjusting for property additions and proceeds and advances from property dispositions. FCF should be considered in addition to, rather than a substitute for, cash provided by operating activities.
The following table reconciles cash provided by operating activities (GAAP measure) to FCF before dividends (non-GAAP measure).
| Three Months Ended | ||||||||
| (Dollars in Millions) | Mar. 31, 2026 | Mar. 31, 2025 | ||||||
Net Cash Provided by Operating Activities | $ | 1,272 | $ | 1,255 | ||||
| Property Additions | (543) | (719) | ||||||
| Proceeds and Advances from Property Dispositions | 64 | 23 | ||||||
| Free Cash Flow (before payment of dividends) | $ | 793 | $ | 559 | ||||
12
FAQ
How did CSX (CSX) perform financially in the first quarter of 2026?
CSX delivered higher profits in Q1 2026, with net earnings of $807 million versus $646 million a year earlier. Revenue rose 2% to $3.48 billion, while operating income increased 20% to $1.25 billion, reflecting improved margins and cost efficiencies.
How did CSX (CSX) revenue and volume change year-over-year in Q1 2026?
For Q1 2026, CSX reported revenue of $3.48 billion, a 2% increase from $3.42 billion in Q1 2025. Total volume reached 1.56 million units, up 3%, supported by 6% intermodal growth, stable merchandise volumes, and roughly flat coal volumes by tonnage.
What drove CSX (CSX) margin improvement in the first quarter of 2026?
CSX’s operating margin improved to 36.0% from 30.4%, driven by a 6% decline in total expenses. Purchased services and other costs fell $158 million, aided by efficiency savings and $44 million in property disposition gains, while labor costs decreased slightly despite inflation.
How strong was CSX (CSX) cash flow and capital return in Q1 2026?
Free cash flow before dividends was $793 million in Q1 2026, up from $559 million. CSX used this cash to repurchase 6 million shares for $222 million and pay $260 million in dividends, while increasing cash and cash equivalents to $964 million by quarter-end.
What operational and safety trends did CSX (CSX) report for Q1 2026?
Operationally, CSX improved train velocity to 18.9 mph and reduced dwell to 10.7 hours, both 7% better year-over-year. Safety metrics also improved, with the FRA personal injury frequency index at 0.81 and the FRA train accident rate at 2.44, reflecting meaningful progress.