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CSX said Thursday its fourth-quarter profit fell 2% as railroads dealt with weak demand and severance pay from new layoffs. CEO Steve Angel Conducted last fall.
this jacksonvilleThe Florida-based railroad said it earned $720 million, or 39 cents a share, in the quarter. That’s down from $733 million, or 38 cents per share.
But results were affected by one-time costs of about $50 million, causing profit to fall 2 cents per share. Without that, the figure would have been in line with the 41 cents per share forecast by analysts polled by FactSet Research.
“Our quarterly results reflect the subdued industrial demand environment and actions taken to adjust our cost structure,” Chief Executive Steve Angel said. CSX said revenue fell 1% to $3.51 billion in the quarter.
Moving into 2026, railroads are focused on improving productivity while limiting costs. But Angell said he expected only modest economic growth this year amid so much uncertainty. He predicted CSX would see only low-single-digit revenue growth and that the railroad scrapped a 2027 target it set a few years ago.
Last fall, CSX ended two major construction projects that disrupted its network and limited the railroad’s flexibility. CSX completed major tunnel improvements in Baltimore as well as Hurricane Helene repairs. This helped increase the average train speed to 19.6 mph in the fourth quarter while delivering 87% of freight on time.
The tunnel project will allow CSX to begin transporting two-story-high metal containers filled with a variety of cargo across its network this year. But rival Norfolk Southern earlier this week announced a similar double-decker service in the east.
CSX is one of the largest railroads in the United States North Americaoperating in the eastern United States.