CSX in Q1: Higher revenue, lower costs

CSX made some headway with cost-cutting and revenue growth goals in the first quarter.

Yesterday, the Class I announced it registered operating income of $1.25 billion and net earnings of $807 million in the quarter versus operating income of $1.04 billion and net earnings of $646 million in first-quarter 2025. 

Revenue rose 2% to $3.48 billion and total volume increased 3% to 1.56 million units. Higher merchandise pricing, intermodal volume growth, increased domestic coal revenue and additional fuel surcharge revenue were partially offset by a drop in export coal revenue, CSX officials said in a press release. 

Total expenses dropped 6% to $2.2 billion due to steps taken to improve the railroad’s cost structure and network fluidity, and the Class I’s operating margin clocked in at 36% compared with 30.4% in first-quarter 2025. 

“As we remain disciplined on costs and take advantage of opportunities for profitable growth, we continue to make progress toward best-in-class performance,” said CSX President and CEO Steve Angel. 

Chemical traffic was driven by higher frac sand shipments as data center demand drives natural-gas production, plus there was strength in plastics as domestic producers benefited from overseas supply-chain disruptions, CSX officials said.  

In terms of intermodal business, CSX posted a 5% revenue gain and 6% volume increase mostly due to gains from business wins, new service products and tighter trucking supply.