CSX (CSX) Q1 2025 earnings summary

Executive summary

• Revenue declined 7% year-over-year to $3.42 billion, with operating income down 22% to $1.04 billion and EPS falling 24% to $0.34 per diluted share; net income was $646 million, a 27% decrease from the prior year period.

• Total volume decreased 1% year-over-year, with intermodal volume up 2% but coal volume down 8-9%; merchandise and trucking volumes also declined.

• Operational disruptions from major infrastructure projects and severe winter weather increased costs and impacted results.

• Safety improved, with personal injury and train accident rates declining both sequentially and year-over-year.

• Leadership emphasized accountability and outlined immediate actions to stabilize operations, improve efficiency, and enhance customer service.

Financial highlights

• Net earnings for Q1 2025 were $646 million, down from $880 million in Q1 2024; EPS was $0.34, down from $0.45.

• Operating margin decreased to 30.4% from 36.3% in the prior year; operating income fell 22% to $1.04 billion.

• Operating expenses increased 2% year-over-year to $2.38 billion, driven by higher labor, purchased services, and depreciation.

• Free cash flow before dividends was $559 million, nearly flat year-over-year.

• Cash and cash equivalents rose to $1.14 billion at quarter-end, up from $933 million at year-end.

Outlook and guidance

• FY25 volume growth is still expected, but market uncertainty and trade policy changes widen the outcome range.

• CapEx forecast remains roughly flat year-over-year, with additional spending for Blue Ridge Subdivision rebuild.

• Management remains confident in achieving long-term growth targets and is committed to operational improvements.

• Forward-looking statements caution that results may be affected by economic, regulatory, and industry conditions.