Early Access

10-KPeriod: FY2022

CSX CORP Annual Report, Year Ended Dec 31, 2022

Filed February 15, 2023For Securities:CSX

Summary

CSX Corporation reported solid financial performance in 2022, with revenue increasing by 19% to $14.9 billion, primarily driven by higher fuel recovery and pricing gains, alongside the full-year inclusion of Quality Carriers. Despite a significant 27% increase in expenses, largely due to higher fuel, labor, and purchased services costs, operating income grew by 8% to $6.0 billion. Diluted earnings per share rose by 16% to $1.95. The company completed the strategic acquisition of Pan Am Systems, Inc. in June 2022, expanding its network reach in the Northeast. CSX continues its focus on operational efficiency, safety, and returning capital to shareholders, announcing a 10% increase in its quarterly dividend. While facing challenges such as inflationary pressures, supply chain constraints, and a decline in train velocity, CSX maintains a strong liquidity position and an investment-grade credit profile.

Financial Statements
Beta
Revenue$14.85B
Operating Income$5.95B
Net Income$4.11B
EPS (Basic)$1.93
EPS (Diluted)$1.92
Shares Outstanding (Basic)2.14B
Shares Outstanding (Diluted)2.14B

Key Highlights

  • 1Revenue increased 19% to $14.9 billion in 2022, driven by higher fuel recovery, pricing, and the inclusion of Quality Carriers.
  • 2Operating income grew 8% to $6.0 billion, despite a 27% increase in total expenses.
  • 3Diluted Earnings Per Share (EPS) rose 16% to $1.95.
  • 4Acquisition of Pan Am Systems, Inc. completed on June 1, 2022, expanding network reach in the Northeast.
  • 5The company announced a 10% increase in its quarterly cash dividend, effective March 2023.
  • 6Free cash flow before dividends was $3.7 billion, a decrease from the prior year, mainly due to higher property additions.
  • 7Train velocity decreased by 10% year-over-year, while on-time originations and arrivals also declined, though service metrics improved in the last quarter of 2022.

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