CSX · CSX Corporation

CSX Corporation delivered strong first quarter 2026 results with operating income increasing 20% to $1.25 billion and net earnings rising 25% to $807 million. Revenue grew 2% year-over-year to $3.48 billion, driven by higher merchandise pricing, intermodal volume growth of 6%, higher domestic coal revenue, and increased fuel surcharge revenue. These gains were partially offset by a decrease in export coal revenue, including the impact of lower benchmark rates. Total volume increased 3% to 1.56 million units, with merchandise volume remaining flat while intermodal showed strength. The company demonstrated significant expense discipline, with total expenses decreasing 6% to $2.23 billion, contributing to an operating margin expansion to 36.0% from 30.4% in the prior year. Key expense drivers included a $158 million reduction in Purchased Services and Other expense, driven by efficiency savings and gains on property dispositions, partially offset by a $27 million increase in fuel costs due to higher locomotive fuel prices. Operating cash flow remained robust at $1.27 billion, supporting continued investment and shareholder returns. Management commentary highlighted reliable service delivery through changing market conditions and progress toward best-in-class performance, with CEO Steve Angel expressing encouragement about the railroad's prospects for the year and long term. The company will host an investor conference call to discuss these results further.