CSX Corporation delivered record third-quarter revenue of $4.02 billion and an EPS beat, driven by 5% total volume growth and strong pricing power. While operating margins expanded significantly to 39.1%, the company faced some operational headwinds as terminal dwell time increased and velocity slowed compared to the prior year.
Key Highlights
- Operating margin expanded 880 basis points to 39.1%, or 420 basis points on an adjusted basis excluding prior-year impairments.
- Intermodal revenue surged 20% to $634 million, supported by a 7% increase in volume from successful customer wins and a tightening truck market.
- Total fuel surcharge revenue reached $466 million, more than doubling year-over-year, though locomotive fuel prices increased 67%.
- Efficiency metrics showed deterioration with terminal dwell rising 12% to 10.6 hours and carload trip plan performance falling to 73%.