CSX reported a 2% decline in fourth-quarter profit on Thursday, citing weak shipping demand and severance costs from layoffs implemented by new CEO Steve Angel last autumn. The Jacksonville, Florida-based railroad earned $720 million, or 39 cents per share, down from $733 million, or 38 cents per share, in the same period a year earlier.
The results were impacted by approximately $50 million in one-time costs, which reduced earnings by 2 cents per share. Excluding these charges, adjusted earnings would have matched analysts' expectations of 41 cents per share, according to FactSet Research. Revenue slipped 1% to $3.51 billion in the quarter.
CEO Steve Angel attributed the performance to “the subdued industrial demand environment and actions taken to adjust our cost structure.” Looking ahead to 2026, CSX aims to improve productivity while limiting costs. However, Angel anticipates only modest economic growth this year amid ongoing uncertainty, forecasting low single-digit revenue growth. The railroad has also withdrawn its previously established targets for 2027.
Last autumn, CSX completed two major construction projects that had disrupted its network: a tunnel renovation in Baltimore and repairs from Hurricane Helene. These improvements boosted average train speed to 19.6 mph in the fourth quarter, with 87% of shipments delivered on time. The tunnel project will enable CSX to begin double-stacked container service this year, though competitor Norfolk Southern announced a similar service in the east earlier this week.
