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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 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.

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