CSX third-quarter revenue rises 12% to $4.02 billion as earnings per share climb 54%

CSX Corporation (CSX) said Wednesday that third-quarter 2026 revenue rose 12% to $4.02 billion, a record quarterly figure, as higher fuel surcharges and volume lifted sales. The railroad disclosed the results in an 8-K filing with the Securities and Exchange Commission.

Net earnings were $1.05 billion, or $0.57 per diluted share, for the quarter ended Sept. 30. The company said the results are also detailed in a press release and a quarterly financial report attached to the filing.

Here's how the company did:

• Earnings per diluted share: $0.57 vs. $0.37 a year earlier
• Revenue: $4.02 billion, up 12% from a year earlier
• Operating income: $1.57 billion vs. $1.09 billion a year earlier
• Net earnings: $1.05 billion vs. $694 million a year earlier

Operating income rose 44%, and operating margin reached 39.1%, up from 30.3%.

The prior-year quarter included a non-cash goodwill impairment of $164 million tied to the remaining goodwill at Quality Carriers. Adjusted for that charge, operating income was $1.25 billion a year earlier, net earnings were $818 million and earnings per share were $0.44.

Comparing against those adjusted figures, the company said operating income rose 25%, net earnings rose 29% and earnings per share rose 30%.

Total volume was 1.69 million units, up 5%. The company said revenue grew on higher fuel surcharge revenue, along with higher volume and pricing across merchandise, intermodal and coal.

Fuel surcharge revenue was $466 million, up from $234 million a year earlier.

"CSX delivered strong earnings growth in the third quarter as disciplined execution helped us move more freight, for more customers, while maintaining our high standards for safety and service," said president and chief executive officer Steve Angel.

Segment volume and revenue

Intermodal revenue rose 20% to $634 million, and volume increased 7%. The company said domestic shipments grew on wins with customers, new service offerings and a tightening truck environment.

Merchandise revenue rose 11% to $2.45 billion on 3% higher volume. Chemicals volume rose 7%, and chemicals revenue rose 13% to $790 million.

Metals and equipment volume rose 12%. Fertilizer volume fell 13% as higher input costs reduced demand, and automotive volume fell 2% after a temporary outage at a customer location tied to re-tooling.

Coal revenue rose 10% to $537 million on 2% higher volume. Export coal tonnage rose 7%, while domestic coal tonnage fell 3%.

Trucking revenue rose 10% to $227 million, and other revenue rose 7% to $166 million.

Costs and headcount

Total expense was $2.4 billion, down $53 million, or 2%, from a year earlier. Fuel expense rose $170 million, mostly because locomotive fuel prices increased 67%.

The company said locomotive fuel cost $4.24 per gallon, compared with $2.54 a year earlier.

Labor and fringe expense rose $19 million. Incentive compensation increased $53 million on higher expected payouts, and wage and healthcare inflation added $38 million. A $50 million net decrease, mostly from lower headcount, offset part of the increase.

The $164 million goodwill impairment recorded in the prior year did not recur. Depreciation and amortization fell $11 million, which the company attributed mainly to an equipment depreciation study.

Ending headcount was 21,870, compared with 23,221 a year earlier. Rail employees totaled 19,745, down from 21,053.

Operations and safety

Train velocity fell 2% to 18.6 miles per hour, and dwell rose 12% to 10.6 hours. Carload trip plan performance was 73%, down from 83%. Intermodal trip plan performance fell to 83% from 93%.

The FRA personal injury frequency index improved 17% to 0.97, and the FRA train accident rate improved 5% to 2.77, the company said.

Nine-month results and cash

For the nine months, revenue was $11.43 billion, up 8%, and operating income was $4.33 billion, up 27%. Diluted earnings per share were $1.54, compared with $1.16 a year earlier.

Net cash from operating activities was $4.22 billion, up from $3.23 billion. Free cash flow before dividends, a non-GAAP measure, was $2.65 billion, compared with $1.07 billion. The company calculates it by adjusting operating cash for property additions and proceeds from property dispositions.

In the quarter, the company repurchased 11 million shares for $543 million, at an average $48.75 per share. A year earlier it bought 3 million shares for $112 million.

Dividends paid totaled $779 million in the nine months, up from $730 million. Long-term debt was $17.1 billion on Sept. 30, down from $18.2 billion on Dec. 31, 2025.

Outlook

The release included no numeric financial outlook. Angel said: "The hard work of our railroaders has positioned us well as we enter the fourth quarter, and we look forward to making continued progress toward best-in-class performance in 2027."