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CSX Corporation (CSX) reported disappointing first-quarter 2025 results, wherein both earnings and revenues lagged the Zacks Consensus Estimate. Quarterly earnings per share of 34 cents missed the Zacks Consensus Estimate of 37 cents and decreased 26% on a year-over-year basis on the back of lower revenues.
Total revenues of $3.42 million missed the Zacks Consensus Estimate of $3.47 million and declined 7% year over year. The downside was owing to a decline in coal revenues, fuel surcharge, and merchandise volume. This was partially offset by the effects of higher merchandise pricing and growth in intermodal volume.
First-quarter operating income decreased 22% year over year to $1.04 billion. Total expenses were up 2% year over year to $2.38 billion. Overall volumes declined 1% year over year.
CSX Corporation Price, Consensus and EPS Surprise
CSX Corporation price-consensus-eps-surprise-chart | CSX Corporation Quote
Joe Hinrichs, president and chief executive officer, stated, “CSX faced operational challenges to start the year, which contributed to first quarter results that did not meet our expectations. In response, our talented and dedicated team of railroaders are working together to lift our performance and drive success through an uncertain market outlook. We are taking targeted actions to address the network constraints posed by two major ongoing infrastructure projects, and we remain committed to safely and reliably serving our customers.”
Q1 Segmental Performance of CSX
Merchandise revenues fell 2% year over year to $2.15 billion in the reported quarter, lower than our estimate of $2.20 billion. Merchandise volumes fell 2% year over year to $630 million. Segmental revenue per unit increased 1% year over year.
Intermodal revenues decreased 3% year over year to $493 million, lower than our estimate of $498 million. Segmental volumes increased 2% while revenue per unit decreased 5% year over year.
Coal revenues fell 27% year over year to $461 million in the reported quarter, lower than our estimate of $472.8 million. Coal volumes decreased 9% year over year, and segmental revenue per unit fell 20% year over year.
Trucking revenues totaled $202 million, down 6% year over year. Other revenues fell 20% year over year to $115 million in the reported quarter.
Liquidity
CSX exited the first quarter of 2025 with cash and cash equivalents of $1.14 billion compared with $933 million at the end of the prior quarter. Long-term debt totaled $18.5 billion compared with $17.8 billion at the prior-quarter end.
CSX generated $1.25 billion of cash from operating activities in the reported quarter.