The third quarter of 2025 brought mixed news for CSX Corporation (NASDAQ: CSX), a prominent player in the railroad sector. The company reported a profit drop of 22%, amounting to $694 million, or $0.37 per share, compared to $894 million, or $0.46 per share, in the same quarter last year. However, adjusted earnings per share reached $0.44, exceeding analysts’ expectations of $0.42.
Despite the profit decline, CSX’s revenue showed a slight year-over-year decrease of 1%, totaling $3.59 billion, which was just above the forecasted $3.58 billion. This decline was primarily driven by weaker coal pricing and a decrease in merchandise volumes, although higher intermodal traffic and improved pricing in certain merchandise categories provided a counterbalance.
Investors are closely watching the newly appointed CEO, Steve Angel, who took the helm in September. Angel’s leadership marks a pivotal moment for CSX, and there is optimism surrounding his potential to steer the company towards a more strategically advantageous position. While he did not propose any immediate mergers, he emphasized the importance of operational excellence and being prepared for strategic opportunities when they arise.
Angel’s background includes leading Praxair through a significant merger with Linde, and with the railroad industry currently buzzing with consolidation talks—especially after Union Pacific’s $85 billion acquisition proposal for Norfolk Southern—CSX is under pressure from investors like Ancora Holdings to enhance its competitive posture.
Operationally, CSX demonstrated resilience during the quarter. The company reported an average train speed of 18.9 mph, its fastest since 2021, with 87% of shipments being delivered on time. Notably, intermodal revenue increased by 4% on the back of a 5% rise in volume, while coal revenue faced an 11% decline due to decreased export demand. However, domestic coal shipments saw an 8% increase, which helped mitigate some losses.
CSX’s operating income stood at $1.1 billion, with a 3% increase in adjusted expenses attributed to severance and network disruption costs. The company has made significant progress on infrastructure projects, including the Howard Street Tunnel and Blue Ridge Subdivision, enhancing capacity and network flexibility.
From a financial perspective, CSX returned over $2 billion to shareholders year-to-date and maintained its capital expenditure forecast of $2.5 billion for fiscal 2025, excluding costs related to hurricane rebuilding. Year-to-date free cash flow reached $1.1 billion. Angel reaffirmed the company’s commitment to efficiency, safety, and expanding service offerings, noting significant safety improvements during the quarter.
As of October 16, 2025, CSX shares have experienced a 12.9% gain year-to-date, slightly outperforming the S&P 500’s 12.71% increase. Over the last three years, the stock has returned 37.59%, reflecting long-term investor confidence in CSX’s operational enhancements and leadership transition.
Looking ahead, CSX’s performance trajectory will largely depend on its ability to maintain margins, enhance service quality, and explore strategic options under Angel’s guidance. Investors remain hopeful that the new leadership will navigate the company through its current challenges towards a more profitable future.
