CSX beats Q3 estimates as profit jumps 54% from a year ago

Operating margin expanded to 39.1% in the quarter, the first full period under a restructured operating leadership team

CSX reported third-quarter earnings per share of $0.57, three cents ahead of estimates, on revenue of $4.02 billion, above the $4.00 billion expected. A year earlier the railroad posted $0.37 per share, meaning this quarter's profit rose 54%. Revenue was up 12% over the same period.

Operating income rose 44% to $1.57 billion, and operating margin expanded by 880 basis points to 39.1%. Total volume rose 5%, with intermodal volume up 7%. CSX attributed the revenue gain to higher fuel surcharge revenue along with increased volume and pricing across its merchandise, intermodal and coal businesses.

CEO Steve Angel said disciplined execution let CSX move more freight for more customers while holding safety and service standards, and said the quarter positions the railroad for the fourth quarter and for what he called best-in-class performance in 2027. Executives were due to discuss the results on a call with investors at 4:30pm Eastern.

The quarter is the first full reporting period since CSX restructured its operating leadership. Doug Ryhorchuk and Casey Albright now report directly to Angel, with Ryhorchuk overseeing transportation, engineering and mechanical functions and Albright leading network operations and service design, after chief operating officer Mike Cory's retirement, according to ad-hoc-news.de, citing Simply Wall St. The reshuffle also eliminated more than 100 roles, Yahoo Finance reported. A beat on both revenue and earnings in this window suggests the handoff has not disrupted service metrics so far, which matters given Angel's own framing of the quarter as a step toward the 2027 targets; the coming quarters will show whether the new structure can sustain this pace without Cory's institutional continuity. CSX had beaten Zacks consensus estimates in three of its four prior quarters, including a 54-cent result last quarter against a 50-cent estimate, Zacks data via TradingView showed.