CSX
CSX Corp (CSX) Q2 2026 Earnings Call Highlights: Record Revenue and Strong EPS Growth Amid Fuel ...
Article Summary
BUY- CSX Corp. (NASDAQ: CSX) reported record revenue and EPS growth driven by 6% volume growth and 10% revenue growth, with operating margins improving 240 basis points year over year despite higher fuel prices and labor costs rising.
- CSX maintained cost discipline with 2% non-fuel expenses reductions and a 6% reduction in headcount, while operating income increased 17% and EPS grew 23% driven by higher volume and cost efficiencies.
- Free Cash Flow growth is expected to exceed 80% for the full year, and capital spending remains unchanged at less than $2.4 billion.
- Despite improved safety performance, dwell times and crew availability remain elevated due to higher-than-expected volume growth, while labor costs increased by $40 million due to inflation and incentive compensation.
- Fuel costs rose by $177 million, pressuring operating margins by 160 basis points, and the company reported a 19% improvement in FRA injury rate and a 30% decline in train accident rate.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | -0.9% | 25% | 0.0 ptsDeclining (-0.9%) - NOT a growth stock |
| EPS Growth Next 5Y ? | 15.8% | 25% | 50.0 ptsMeets Minimum (15.8%) - Passes screener |
| Target Price Upside ? | 4.2% | 20% | 20.0 ptsMinimal Upside (4.2%) - Target: $52.02 vs Current: $49.93 |
| Gross Margin % ? | 34.6% | 15% | 40.0 ptsModerate (34.6%) - Adequate margins |
| Drawdown from 52-Wk High ? | -2.6% | 15% | 20.0 ptsBarely a Dip (-2.6%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About CSX
- CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services in the United States and Canada.
- It operates through two segments: rail and trucking.
- The company offers rail services; and transportation of intermodal containers and trailers, as well as other transportation services, such as rail-to-truck transfers and bulk commodity operations.
- It also transports chemicals, agricultural and food products, minerals, automotive, forest products, fertilizers, and metals and equipment; and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants, as well as exports coal to deep-water port facilities.
- In addition, the company provides intermodal services through a network of approximately 30 terminals transporting manufactured consumer goods in containers; and drayage services, including the pickup and delivery of intermodal shipments.
- It serves the automotive industry with distribution centers and storage locations, as well as connects non-rail served customers through transferring products, such as plastics and ethanol from rail to trucks.
- The company operates approximately 20,000 route mile rail network, which serves various population centers in 26 states east of the Mississippi River, the District of Columbia, and the Canadian provinces of Ontario and Quebec, as well as owns 3400 locomotives.
- It serves production and distribution facilities through track connections.
- CSX Corporation was incorporated in 1978 and is headquartered in Jacksonville, Florida.