CSX Profit Falls in Q4: A Closer Look at the Numbers

CSX Corporation, the Jacksonville-based railroad transportation giant, reported a decline in its fourth-quarter 2024 earnings, with operating income falling to $1.11 billion from $1.32 billion year-over-year. Net income decreased to $733 million ($0.38 per share) from $882 million ($0.45 per share) in Q4 2023. The quarter included a $108 million pre-tax goodwill impairment charge, which contributed to the decline in operating income and net income.



Total volume increased 1% to 1.58 million units in Q4, driven by growth in merchandise and intermodal segments. However, revenue decreased 4% to $3.54 billion, as declines in fuel surcharge and coal revenue offset higher pricing, merchandise volume, and volume growth in intermodal services. The adjusted operating margin remained industry-competitive at 34.3%, down from historical levels.

The goodwill impairment charge signals potential concerns about future growth expectations for certain business segments. Despite revenue headwinds, CSX maintained strong operating margins, demonstrating operational resilience. The company's focus on network investment and efficiency improvements positions it well for potential volume recovery and long-term growth.

CSX's Q4 2024 results reveal a complex operational landscape marked by both resilience and challenges. While volume grew modestly, the 4% revenue decline highlights pricing pressures and shifting business mix dynamics. The adjusted operating margin of 34.3% remains industry-competitive, though down from historical levels.

Looking ahead, CSX's focus on network investment and efficiency improvements positions it well for potential volume recovery. The company's ability to maintain strong operating margins despite revenue headwinds demonstrates operational resilience, though sustained pressure on coal revenues and fuel surcharges may continue to impact top-line performance. The emphasis on customer satisfaction and network capabilities suggests a strategic pivot toward sustainable long-term growth over short-term margin optimization.

CSX executives will conduct a conference call with the investment community on January 23, 2025, at 4:30 p.m. Eastern Time, to discuss the company's fourth-quarter financial results. Investors, media, and the public may listen to the conference call by dialing 1-888-510-2008 (for callers within the U.S.) or 1-646-960-0306 (for callers outside the U.S.). Participants should dial in 10 minutes prior to the call and enter the passcode 3368220.

In conjunction with the call, a live webcast will be accessible, and presentation materials will be posted on the company's website at . Following the earnings call, a webcast replay of the presentation will be archived on the company website. This earnings announcement, as well as additional detailed financial information, is contained in the CSX Quarterly Financial Report available through the company’s website at and on Form 8-K with the Securities and Exchange Commission.