CSX Corporation (CSX) Business Profile

What it does

CSX is a freight transportation company founded in 1980 and headquartered at the CSX Transportation Building in Jacksonville, Florida. Stephen F. Angel is President and Chief Executive Officer. Its main railroad, CSX Transportation (CSXT), moves goods in railcars, containers and trailers. It also provides rail-to-truck transfers and bulk-commodity operations.

CSXT operates an approximately 20,000 route-mile railroad serving 26 states east of the Mississippi River, the District of Columbia, and Ontario and Quebec. In practical terms, customers use the railroad to move large quantities of goods between production sites, distribution centers, ports and end markets. The network reaches manufacturers, industrial producers, automotive companies, construction companies, farmers, feed mills, wholesalers, retailers and energy producers.

Intermodal is CSX’s container-and-trailer service: freight remains in its container or trailer while rail handles the long-distance portion and trucks connect terminals with customers. The company also owns businesses that support the rail network. Quality Carriers transports bulk liquid chemicals by truck; CSX Intermodal Terminals operates terminals and provides drayage, or local pickup and delivery; TDSI supports automotive distribution and storage; and TRANSFLO transfers products between railcars and trucks for customers without direct rail service.

CSX had 23,000 employees as of December 2025. Its operating model centers on running a scheduled service plan, using railroad assets and employees to provide service while managing costs.

How it makes money

CSX earns revenue by transporting freight and related services. Pricing depends on the combination of service and price that a shipper accepts, and the company applies fuel surcharges to help reflect fuel-price movements. It also earns recurring ancillary charges when customers use containers or terminal space beyond specified periods, hold freight cars beyond free time, or require switching. These are called intermodal storage, demurrage and switching charges.

Revenue: $14.1 billion in 2025; $4.0 billion in Q3 FY2026.

Merchandise is the largest business. It carries chemicals, agricultural and food products, automotive goods, minerals, forest products, metals and equipment, and fertilizers. This business shipped 2.6 million carloads and generated $8.8 billion in 2025. Intermodal combines rail’s long-haul movement with truck connections; it shipped 3.0 million units and generated $2.1 billion in 2025. Coal revenue comes from moving domestic coal, coke and iron ore to utilities, steelmakers and industrial plants, and export coal to deep-water ports. Trucking revenue comes primarily from Quality Carriers’ bulk-liquid-chemical trucking operations.

Other revenue includes regional subsidiary railroads and incidental charges. Regional subsidiary railroads handle shipments on railroads CSX does not directly operate. Car-hire income and expense also arise when railroads or private owners use one another’s freight cars.

In the third quarter of 2026, CSX reported revenue growth driven by higher fuel surcharge, 5% volume growth and pricing gains across merchandise, intermodal and coal. Management expects same-store sales pricing for 2026 to be stronger than in the prior year, while noting that not every customer contract comes up for renewal each year.

Customers and how it sells

CSX serves freight shippers rather than a single consumer market. Its customer base includes manufacturers, industrial producers, automotive companies, construction companies, farmers and feed mills, wholesalers, retailers and energy producers. Merchandise customers span chemicals, food and agriculture, automotive, minerals, forest products, metals, equipment and fertilizer markets. Coal customers include electricity-generating power plants, steel manufacturers, industrial plants and export customers using deep-water ports.

The core railroad serves major markets east of the Mississippi River in 26 states, the District of Columbia, Ontario and Quebec. It has access to more than 70 ocean, river and lake port terminals on the Atlantic and Gulf Coasts, the Mississippi River, Great Lakes and St. Lawrence Seaway. CSX connects with other Class I railroads and approximately 250 short-line and regional railroads, extending access to thousands of production and distribution facilities.

Intermodal customers use a network of approximately 30 terminals across major eastern markets. CSX Intermodal Terminals provides drayage for certain customers, linking rail terminals with local origins and destinations. Quality Carriers serves the North American bulk-liquid-chemical trucking market, while TRANSFLO’s largest markets are chemicals and agriculture, including plastics and ethanol.

Domestic intermodal drove CSX’s growth during 2026, while international intermodal was relatively flat in the recent quarter. The company is working with channel partners and directly with shippers through its national accounts program to identify freight that can move from truck to rail.

Suppliers and costs

CSX’s cost base includes labor and benefits, purchased services, infrastructure and equipment maintenance, fuel, depreciation, equipment rents and casualty costs. Purchased services include contracted infrastructure and equipment maintenance, terminal and pier services, purchased trucking, professional services, materials, utilities, property and sales taxes, and environmental remediation. Fuel expense is driven largely by diesel prices and locomotive consumption.

Labor costs include wages, payroll taxes, health and welfare costs, incentive compensation and other benefits. Most employees support transportation services, and approximately 16,900 employees were union members as of December 2025. New agreements effective January 1, 2025 had been ratified by most unions representing nearly 75% of the unionized workforce; the remaining employees continued under prior agreements during negotiations.

In 2025, expenses were $9.6 billion, including higher costs from inflation, employee separations, network disruptions, congestion, casualty costs, technology items and trucking operations. Fuel expense declined that year as locomotive fuel prices declined. In Q3 2026, management reported that nonfuel costs fell 3% while volume rose 5%, but fuel costs increased with diesel prices. The company also uses third parties for services and is seeking rates and accountability from external suppliers.

Competitive position

CSX competes for freight with other railroads, motor carriers operating similar routes, and, to a lesser extent, barges, ships and pipelines. The relevant competitor changes by commodity, location, transit-time needs and service reliability. Shippers select transportation providers based on service and price.

Norfolk Southern Railway is CSXT’s primary rail competitor across much of its territory. Norfolk Southern Railway agreed during 2025 to merge with Union Pacific Railroad to form a transcontinental rail network, subject to Surface Transportation Board approval. Motor carriers are important alternatives for intermodal and other freight that can move by road. CSX also works with rail partners, including CPKC and BNSF, on interline offerings that combine networks for customer routes.

Our reading: CSX’s eastern network is a meaningful geographic moat because it directly reaches major eastern markets, connects with ports and interchanges with other railroads and short lines; duplicating that network would require extensive infrastructure and connections. Its strength is supported by its approximately 20,000 route miles, port access and rail connections.

Our reading: Intermodal terminals, drayage services and rail-to-truck transfer capabilities extend the network’s usefulness for freight that requires both rail and truck legs, but trucking remains a direct competitive alternative on many lanes.

Our reading: The proposed Norfolk Southern–Union Pacific combination could alter rail competition if approved, while price and service competition remains present across CSX’s markets.

Growth opportunities

CSX’s growth initiatives focus on winning freight from trucks, expanding intermodal capacity, improving service and pursuing pricing gains. Management said domestic intermodal drove growth in 2026, aided by work related to the Howard Street Tunnel, the SMX service and tighter truck capacity. The company works with channel partners and shippers to assess truckload lanes that may convert to intermodal rail service.

CSX is investing where volumes require more capacity. In Atlanta, where it said volume had risen 50% over three years, it is investing in track infrastructure to increase switching and processing capacity by 50%. The company also expects capacity expansions in chemicals and minerals to ramp toward year-end. It intends to add to its train-and-engine employee pipeline to support a growing business while maintaining a workforce sized for safe, reliable and efficient operations.

Management expects 2026 revenue growth in the high single digits, raised from its prior mid- to high-single-digit range. It expects full-year operating-margin expansion of more than 350 basis points, capital expenditures below $2.4 billion and free-cash-flow growth of more than 80%.

Productivity initiatives are another stated growth lever. Management said it had more than 100 initiatives for 2027 productivity and had begun planning for 2028. Fuel-efficiency work includes reduced engine idling, fuel-saving technology and partially implemented start-to-stop capability; wider deployment remains subject to completing the Federal Railroad Administration test process and approval.

Structural risks

• Regulation and pricing: New legislation, regulatory changes or other government actions could affect earnings or restrict CSX’s ability to negotiate prices independently. The Surface Transportation Board regulates routes, fuel surcharges, service conditions, certain rates, rail-control acquisitions and line changes.

• Competition and service: CSX faces competition from railroads, motor carriers and other transport modes. Shippers can put pressure on prices and service levels, while service requirements differ by commodity and customer.

• Technology and disruption: The railroad relies on the security, stability and availability of technology systems. Network disruptions, congestion, severe weather and capital-project work can raise rerouting and other operating costs.

• Labor and resources: The availability of critical supplies and labor can affect operating efficiency and the ability to meet demand. CSX operates with a large unionized workforce and is adding to its train-and-engine employee pipeline as volumes grow.

• Fuel, climate and weather: Diesel prices affect fuel expense and can create near-term margin volatility. Climate- and weather-related risks, together with related regulatory and legislative responses, could negatively affect operations and financial results.

• Freight-market exposure: Revenue depends on freight demand in markets including export coal, automotive, agriculture, chemicals, construction and consumer goods. In 2025, lower export-coal revenue, lower merchandise volume and lower fuel recovery contributed to lower revenue.

Bottom line

Our reading

Our reading: CSX is a network transportation business built around an eastern U.S. railroad, with rail freight complemented by intermodal terminals, truck connections and bulk-liquid trucking. Its revenue is diversified across merchandise, intermodal, coal and trucking, while its operations remain exposed to freight cycles, diesel costs, labor, service execution and regulation. The network’s reach, ports and interchanges support its position, but Norfolk Southern and road transport remain material competitive forces.