CSX CORP (NASDAQ:CSX) Reports Mixed Q2 2025 Earnings Amid Revenue Decline and EPS Beat

CSX CORP (NASDAQ:CSX) reported its second-quarter 2025 earnings, revealing mixed results compared to analyst expectations. The railroad operator posted revenue of $3.57 billion, a 3% year-over-year decline, falling short of the consensus estimate of $3.62 billion. Earnings per share (EPS) came in at $0.44, slightly above the $0.42 forecasted by analysts but down 10% from the same period last year.

Key Financial Highlights

• Revenue Miss: The $3.57 billion figure was below expectations, primarily due to lower export coal prices, reduced fuel surcharges, and a decline in merchandise volume. These headwinds were partially offset by higher merchandise pricing and growth in intermodal volume.
• Operating Income Decline: Operating income dropped 11% year-over-year to $1.28 billion, with the operating margin contracting by 320 basis points to 35.9%. However, the company noted sequential improvements in cost efficiency.
• Sequential Improvement: Despite the yearly decline, EPS rose 29% from the previous quarter, reflecting some operational improvements.

Market Reaction

Following the earnings release, CSX shares saw modest gains in after-hours trading, rising approximately 0.97%, suggesting a cautiously optimistic response from investors. The stock has also shown positive momentum in recent weeks, gaining 5.23% over the past month, likely in anticipation of the earnings report.

Outlook vs. Analyst Estimates

Management highlighted progress in network fluidity and cost efficiency but did not provide explicit forward guidance. Analysts currently expect Q3 2025 revenue of $3.65 billion and EPS of $0.44, while full-year 2025 revenue is projected at $14.4 billion. The lack of a formal outlook from CSX leaves investors reliant on broader economic conditions and execution of ongoing infrastructure projects.

Press Release Summary

• CEO Joe Hinrichs emphasized improvements in operational efficiency and network performance.
• The company remains focused on two major infrastructure projects aimed at supporting future growth.
• Intermodal volume growth and higher merchandise pricing provided some offset to weaker coal and fuel surcharge revenues.

For a deeper dive into CSX’s earnings and analyst estimates, visit the earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.