CSX reports higher revenue, earnings in Q3

CSX Corp. yesterday announced third-quarter 2024 revenue of $3.6 billion, a 1% increase, and net earnings of $894 million, an 8% increase, compared with Q3 results in 2023. Per diluted earnings per share, CSX posted 46 cents in the quarter compared to 41 cents a year ago.

The Class I's total volume of 1.59 million units for the quarter was 3% higher compared to Q3 2023, CSX officials said in a press release. Growth in merchandise and intermodal volume, as well as merchandise pricing gains, were partially offset by a decline in coal revenue (including the effects of lower global benchmark prices), lower fuel surcharge and a reduction in other revenue.

Q3 operating income rose 7% to $1.35 billion from $1.3 billion a year ago. CSX’s operating margin was 37.4% for the quarter, increasing 180 basis points year over year.

“CSX's commitment to excellent service allowed us to deliver meaningful growth in volume, operating income and operating margin in the third quarter,” said Joe Hinrichs, president and CEO.

Hinrichs thanked CSX employees for their work to recover from Hurricane Helene and Hurricane Milton, two hurricanes that impacted the railroad's network in recent weeks.

“Over the last several weeks CSX, along with many of the communities in which we operate, was presented with significant challenges brought about by the recent hurricanes," Hinrichs said. "Thanks to the dedication of our employees, our network has remained flexible and resilient, and we remain ready to meet our customers’ needs as they increasingly favor the efficiency and reliability being delivered by the ONE CSX team.”

In a call yesterday with analysts, CSX Executive Vice President and Chief Financial Officer Sean Pelkey said Helene impacted revenue by $10 million to $15 million at the end of Q3, and drove a "small amount" of incremental expense. The storm-related impacts will be larger in Q4 than in Q3, with a current estimate of $50 million, he said.

A "significant" rebuilding process has begun for miles of track and multiple bridges on the CSX Blue Ridge Subdivision. Although the scale and timing of those capital costs are still being evaluated, the early estimate is that rebuilding costs will total around $200 million, and construction will continue into 2025, Pelkey said.