CSX Q3 EPS $0.57, Up 54%; Operating Margin Jumps 880 bps to 39.1%

summarizeSummary

CSX posted record Q3 revenue of $4.02 billion and $0.57 diluted EPS, with operating margin expanding 880 bps to 39.1%. Against adjusted prior-year results, operating income grew 25% and EPS 30%, though network velocity and dwell metrics worsened.

check_boxKey Events · Earnings and Guidance · CSX

• Record Q3 Revenue, EPS Up 54%

  Revenue of $4.02 billion rose 12% year-over-year, and net earnings of $1.05 billion produced $0.57 diluted EPS versus $0.37 a year ago.

• Margin Expands 880 bps to 39.1%

  Operating income of $1.57 billion was up 44% GAAP; excluding last year's $164 million goodwill impairment, operating income still grew 25% and EPS 30%.

• Volume Up 5%, Intermodal Up 7%

  Total volume reached 1.69 million units, with intermodal up 7% on customer wins and a tighter truck market, and coal up 2% on export strength.

• Fuel Cost Headwind of $170 Million

  Locomotive fuel price averaged $4.24 per gallon versus $2.54 a year ago, a 67% increase that drove total fuel expense to $451 million.

auto_awesomeAnalysis · CSX · Energy & Transportation

This was a genuine step-change in profitability, not just volume growth. Revenue rose 12% to a record $4.02 billion and operating income climbed 44% to $1.57 billion, lifting the operating margin to 39.1% from 30.3%. Roughly $164 million of that GAAP jump reflects the absence of last year's Quality Carriers goodwill impairment, so the cleaner comparison is the 25% operating income and 30% EPS growth against adjusted prior-year results — still a strong quarter. Operations were the one soft spot: train velocity fell 2%, dwell rose 12% and carload trip plan performance dropped 12%, meaning the cost and service gains came alongside deteriorating network fluidity. Fuel expense rose $170 million on a 67% higher locomotive fuel price, a headwind that will persist if diesel stays elevated.