CSX Corporation (CSX) is listed on NASDAQ and operates in the Railroads industry (Industrials sector).
CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services. The company offers rail services; and transportation of intermodal containers and trailers, as well as other transportation services, such as rail-to-truck transfers and bulk commodity operations. It transports chemicals, agricultural and food products, automotive, minerals, forest products, fertilizers, and metals and equipment; and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants, as well as exports coal to deep-water port facilities. The company also offers intermodal transportation services through a network of approximately 30 terminals transporting manufactured consumer goods in containers; and drayage services, including the pickup and delivery of intermodal shipments. It serves the automotive industry with distribution centers and storage locations, as well as connects non-rail served customers through transferring products, such as plastics and ethanol from rail to trucks. The company operates approximately 19,500 route mile rail network, which serves various population centers in 23 states east of the Mississippi River, the District of Columbia, and the Canadian provinces of Ontario and Quebec, as well as owns and leases approximately 3,500 locomotives. It also serves production and distribution facilities through track connections. CSX Corporation was incorporated in 1978 and is headquartered in Jacksonv...
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 26 |
| Hold | 18 |
| Sell | 2 |
| Strong Sell | 0 |
CSX Corporation, along with its subsidiaries, provides rail-based freight transportation services. The company offers a range of transportation solutions, including rail services, intermodal container and trailer transport, and rail-to-truck transfers. It handles the transportation of various commodities such as chemicals, agricultural and food products, automotive goods, minerals, forest products, fertilizers, metals, equipment, coal, coke, and iron ore. These services cater to electricity-generating power plants, steel manufacturers, industrial plants, and export markets. CSX also operates intermodal transportation through a network of about 30 terminals, facilitating the movement of manufactured consumer goods. Additionally, it provides drayage services for intermodal shipments. The company supports the automotive industry with distribution centers and storage facilities and connects non-rail served customers by transferring products like plastics and ethanol from rail to trucks. CSX operates a rail network of approximately 19,500 route miles across 23 states east of the Mississippi River, the District of Columbia, and parts of Canada, with a fleet of around 3,500 locomotives. Founded in 1978, CSX is headquartered in Jacksonville, Florida.
Over the past three fiscal years, the company has faced a consistent decline in its financial performance. Revenue decreased at a CAGR of -1.9%, from $14.66 billion in 2023 to $14.09 billion in 2025, which was mirrored by a decline in EPS from $1.82 to $1.54, reflecting an 8.0% annual decrease. This decline in revenue and earnings was accompanied by a contraction in profitability margins, with the gross margin decreasing by 5.0pp to 33.2%, operating margin by 5.2pp to 32.1%, and net margin by 4.5pp to 20.5% over the same period. Cash generation also weakened, as operating cash flow fell from $5.51 billion to $4.61 billion, and free cash flow dropped significantly from $3.26 billion to $1.71 billion, with the FCF margin compressing by 10.1pp to 12.1%. Despite these challenges, the company improved its earnings quality, as indicated by a consistent increase in the cash conversion ratio to 1.60, suggesting that earnings are increasingly backed by actual cash. The company also executed a strategic share buyback, reducing its share count by 7.4%, which helped amplify per-share value despite the broader financial declines. However, the company's net debt increased by 2.8% annually, reaching $18.68 billion, while liquidity ratios remained below 1, indicating potential liquidity constraints. The interest coverage ratio, although decreasing, remained adequate at 5.4x, suggesting the company can still meet its interest obligations comfortably.
CSX Corporation is poised for a significant financial update as it prepares to release its Q1 earnings, with expectations of growth despite cost pressures. Analysts are closely watching the upcoming report, which is anticipated to unlock potential insights into the company's performance. In a strategic move, CSX announced a $670 million partnership with Wabtec Corporation to upgrade its locomotive fleet, including 100 new Evolution Series locomotives and 50 modernized units, enhancing its operational capabilities. Additionally, CSX increased its quarterly dividend by 8% to $0.14 per share, reflecting confidence in its financial health. On the analyst front, Evercore ISI downgraded CSX from Outperform to In Line, although it slightly raised the price target to $41, indicating mixed sentiment among investors. Meanwhile, CSX has modernized its data platform with Infosys and Microsoft, achieving significant infrastructure savings and enhancing its analytics capabilities. These developments underscore CSX's strategic focus on long-term growth and operational efficiency, positioning the company to navigate current market challenges effectively.