10-QPeriod: Q1 FY2026

CSX CORP Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 22, 2026For Securities:CSX

Summary

CSX Corporation reported a strong first quarter for 2026, demonstrating solid financial and operational performance. Revenue saw a modest increase of 2% year-over-year, reaching $3.48 billion, driven by pricing gains in merchandise and volume growth in intermodal services. More impressively, total expenses decreased by 6% to $2.23 billion, leading to a significant 20% surge in operating income to $1.25 billion. This robust performance translated into a 26% increase in earnings per diluted share, climbing to $0.43 from $0.34 in the prior year's quarter. The company also highlighted improved operational metrics, with train velocity and dwell time each improving by 7%, and a notable 31% reduction in the FRA train accident rate, underscoring a commitment to safety and efficiency. Financially, CSX maintained a strong liquidity position, with cash and cash equivalents ending the quarter at $964 million. Free Cash Flow before dividends also saw a substantial increase of 31% to $793 million, reflecting effective cash generation. The company continues its commitment to returning capital to shareholders, with $222 million in share repurchases and $260 million in dividends paid during the quarter. Management expressed confidence in future performance, with planned capital investments for 2026 expected to be less than $2.4 billion, primarily focused on sustaining core infrastructure and driving profitable growth.

Financial Highlights

45 data points
Beta

Revenue

$3.48B

Net Income

$807.00M

23.2% Net Margin

EPS (Diluted)

$0.43

Total Assets

$44.23B

Cash & Equivalents

$964.00M

Free Cash Flow

$729.00M

Financial Statements
Beta
Revenue$3.48B
Operating Income$1.25B
Net Income$807.00M
EPS (Basic)$0.43
EPS (Diluted)$0.43
Shares Outstanding (Basic)1.86B
Shares Outstanding (Diluted)1.86B

Key Highlights

  • 1Revenue increased 2% to $3.48 billion, driven by merchandise pricing and intermodal volume growth.
  • 2Total expenses decreased 6% to $2.23 billion, leading to a 20% increase in operating income to $1.25 billion.
  • 3Diluted Earnings Per Share (EPS) rose 26% to $0.43 compared to $0.34 in the prior year.
  • 4Operating margin improved significantly to 36.0% from 30.4% in Q1 2025.
  • 5Free Cash Flow before dividends surged 31% to $793 million.
  • 6Operational efficiency improved with a 7% increase in train velocity and a 7% improvement in dwell time.
  • 7Safety performance showed significant gains with a 31% reduction in the FRA train accident rate.
  • 8Share repurchases and dividends totaling $482 million were distributed to shareholders during the quarter.

Frequently Asked Questions

Revenue increased by 2% to $3.48 billion, primarily due to higher pricing in merchandise segments, volume growth in intermodal services, increased fuel surcharge revenue, and higher domestic coal revenue. These positive factors were partially offset by a decrease in export coal revenue.

CSX effectively reduced its total expenses by 6% to $2.23 billion. This reduction was driven by efficiency savings in purchased services and other, gains on property dispositions, and a decrease in locomotive usage costs related to prior year network disruptions. Labor and fringe expenses also saw a slight decrease due to efficiency savings offsetting inflation.

CSX plans to invest less than $2.4 billion in capital expenditures for 2026, focusing on sustaining core infrastructure, safety, reliability, and profitable growth initiatives. The company remains committed to returning capital to shareholders, as evidenced by $260 million in dividends paid and $222 million in share repurchases during the quarter. Future capital investments are expected to be funded primarily through cash generated from operations.

CSX is prioritizing safety and operational improvements. In Q1 2026, train velocity and dwell time improved by 7% each. Furthermore, the FRA train accident rate saw a significant 31% improvement, and the FRA personal injury frequency index improved by 13%, demonstrating a strong focus on enhancing safety across its operations.