CSX CORP Annual Report, Year Ended Dec 31, 2024

CSX Corporation reported revenues of $14.5 billion for the fiscal year ended December 30, 2024, a slight decrease of 1% compared to the previous year. This dip was primarily attributed to lower fuel recovery and reduced coal revenues, partially offset by favorable pricing in the merchandise segment and increased volumes in merchandise and intermodal transport. Operating income saw a 5% decline to $5.2 billion, resulting in earnings per diluted share of $1.79, down 2% year-over-year. The company experienced an increase in operating expenses, largely driven by higher labor and fringe costs due to inflation and increased headcount, alongside higher purchased services and other expenses. Notably, CSX recorded a $108 million goodwill impairment charge for its Quality Carriers trucking subsidiary, impacting overall profitability. Despite the modest revenue and profit decline, CSX demonstrated a strong commitment to returning capital to shareholders. The company continued its share repurchase program, with $2.6 billion in repurchase authority remaining at year-end 2024, and authorized an 8% increase in its quarterly cash dividend, marking the 21st consecutive annual increase. Capital expenditures were significant, totaling $2.5 billion, with a substantial portion allocated to infrastructure maintenance and strategic projects, including the rebuilding of the Blue Ridge subdivision impacted by Hurricane Helene. The company maintains a stable investment-grade credit rating and ample liquidity through its revolving credit facility and commercial paper program, positioning it to manage ongoing operations and strategic investments.