CSX (CSX) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 volume increased 1% year-over-year, but total revenue declined 1% and operating income decreased 1% on a GAAP basis, with $50 million in severance and technology rationalization expenses.

• Adjusted operating income for Q4 2025 fell 9% year-over-year, and adjusted earnings per share dropped 7%.

• Full year 2025 revenue reached $14.09 billion, with adjusted operating income of $4.69 billion and adjusted EPS of $1.61, excluding a $164 million goodwill impairment charge.

• Leadership renewal and disciplined execution have stabilized service and improved productivity, positioning the company for future growth.

Financial highlights

• Q4 2025 revenue was $3.51 billion (down 1% YoY); operating income was $1.11 billion; net earnings were $720 million; adjusted operating margin was 31.6% (down 270 bps YoY); adjusted EPS was $0.39 (down 7% YoY).

• Full year 2025 revenue was $14.09 billion (down 3% YoY); adjusted operating income was $4.69 billion (down 12% YoY); adjusted EPS was $1.61 (down 12% YoY).

• Free cash flow before dividends for 2025 was $1.789 billion, down from $2.784 billion in 2024, impacted by $900 million in Blue Ridge spending and postponed tax payments.

• Expenses rose $73 million (3%) excluding Goodwill Impairment, with $31 million in separation costs and $21 million in technology impairments.

• Ending headcount decreased over 3% year-over-year.

Outlook and guidance

• 2026 guidance calls for low single-digit revenue growth, 200–300 bps operating margin expansion from adjusted FY25, capital expenditures below $2.4 billion, and at least 50% free cash flow growth.

• Operating margin expected to improve to the 64-65 range in 2026.

• Labor inflation expected at 3.75% for 2026, with overall inflation in the 3-3.5% range.

• Depreciation expense expected to remain flat year-over-year.

• Multi-year targets replaced with 2026 guidance only, with ongoing evaluation of longer-term outlook.