10-KPeriod: FY2023

CSX CORP Annual Report, Year Ended Dec 31, 2023

Filed February 14, 2024For Securities:CSX

Summary

CSX Corporation reported $14.7 billion in revenue for 2023, a slight 1% decrease from the prior year, primarily driven by lower intermodal volumes and a decline in export coal pricing. Operating income saw an 8% decrease year-over-year to $5.6 billion, resulting in an operating ratio of 62.1%, an increase from 59.5% in 2022. Earnings per diluted share were $1.85, down 5% from the previous year, reflecting increased expenses, particularly in labor and purchased services, which outpaced revenue declines. The company emphasized improvements in operational efficiency, with key metrics like train velocity and dwell time showing significant year-over-year improvement, alongside enhanced on-time performance for both carload and intermodal shipments. CSX continued its commitment to capital returns through share repurchases and a recently authorized 9% increase in its quarterly dividend. The company also maintained a strong liquidity position and an investment-grade credit profile, with Moody's upgrading its rating to A3 during the year.

Financial Highlights

51 data points
Beta

Revenue

$14.66B

Net Income

$3.67B

25.0% Net Margin

EPS (Diluted)

$1.82

Total Assets

$42.20B

Cash & Equivalents

$1.35B

Free Cash Flow

$3.26B

Financial Statements
Beta
Revenue$14.66B
Operating Income$5.50B
Net Income$3.67B
EPS (Basic)$1.83
EPS (Diluted)$1.82
Shares Outstanding (Basic)2.01B
Shares Outstanding (Diluted)2.01B

Key Highlights

  • 1Revenue of $14.7 billion, a 1% decrease year-over-year.
  • 2Operating income decreased 8% to $5.6 billion.
  • 3Operating ratio increased to 62.1% from 59.5% in the prior year.
  • 4Earnings per diluted share were $1.85, a 5% decrease.
  • 5Significant improvements in operational metrics such as train velocity (+12%) and dwell time (-17%).
  • 6On-time originations improved to 77% and on-time arrivals to 71%.
  • 7Continued capital returns to shareholders via dividends and share repurchases, with a 9% dividend increase authorized.

Frequently Asked Questions

CSX's revenue was primarily generated from four lines of business: merchandise ($8.7 billion, up 5% driven by automotive, minerals, and metals), intermodal ($2.1 billion, down 11% due to lower international shipments), coal ($2.5 billion, up 2% with higher export coal volume offset by lower pricing), and trucking ($882 million, down 9% due to lower fuel surcharges). Overall revenue saw a slight 1% decrease to $14.7 billion.

Total expenses increased by 3% to $9.1 billion. Key drivers for this increase included higher labor and fringe expenses ($163 million increase, largely due to inflation and increased headcount), and higher purchased services and other expenses ($79 million increase, mainly due to inflation and increased repair/maintenance costs). Fuel expenses decreased significantly due to lower prices, partially offsetting other cost increases.

CSX plans to invest approximately $2.5 billion in capital expenditures for 2024, focusing on sustaining core infrastructure, safety, reliability, and profitable growth initiatives. The company demonstrated its commitment to shareholder returns by completing a $5 billion share repurchase program and authorizing a 9% increase in its quarterly cash dividend, reflecting confidence in its financial position and future cash generation.