CSX (CSX) Q3 2024 earnings summary

Executive summary

• Revenue rose 1% year-over-year to $3.62 billion in Q3 2024, driven by higher merchandise and intermodal volumes and pricing gains, partially offset by lower coal revenue and fuel recovery.

• Operating income increased 7% to $1.35 billion, with operating margin improving 180 basis points to 37.4%.

• Net earnings for Q3 2024 were $894 million, up 8% year-over-year, and diluted EPS rose 12% to $0.46.

• Total volume increased 3% to 1.59 million units, led by merchandise and intermodal growth.

• The network remained resilient despite hurricanes, maintaining service reliability and safety improvements.

Financial highlights

• Q3 2024 revenue: $3.62 billion (+1% YoY); operating income: $1.35 billion (+7% YoY); operating margin: 37.4%.

• Net earnings: $894 million ($0.46 per diluted share), up from $828 million ($0.41) in Q3 2023.

• Free cash flow for nine months: $2.22 billion, down from $2.52 billion prior year.

• Shareholder distributions YTD: $2.22 billion; economic profit YTD: $1.87 billion.

• Total assets increased $857 million from year end, mainly due to higher net property and cash balances.

Outlook and guidance

• Q4 volume expected to grow modestly, but revenue projected to decline by ~$200 million due to lower fuel and coal prices.

• Sequential operating margin in Q4 likely to decrease due to lower revenue and storm impacts.

• Capex guidance at ~$2.5 billion for 2024, excluding hurricane-related rebuilds.

• Management remains focused on operational improvements, cost control, and balanced capital returns.

• Additional capital needs for hurricane rebuilding may extend into 2024.