How Does CSX Company Work?

CSX offers comprehensive freight transportation through its extensive rail network. Its services are segmented into merchandise, intermodal, coal, and trucking operations, catering to diverse customer needs across various sectors.

Leveraging a 20,000 route-mile rail network and a fleet of approximately 3,500 locomotives, CSX facilitates efficient freight movement. This infrastructure connects major ports and economic centers, forming the backbone of its logistics operations.

CSX adheres to Precision Scheduled Railroading (PSR) principles to optimize operations. This involves running longer trains and improving network fluidity, which drives labor productivity and enhances service reliability for customers.

In 2024, CSX was recognized as the most fuel-efficient U.S.-based Class I railroad, improving its fuel efficiency by 4%. This commitment helps customers avoid over 10 million tons of CO₂ emissions annually.

The acquisition of the Meridian & Bigbee Railroad in October 2024 significantly bolstered CSX's East-West and Mexico traffic routes. This move, the first new interchange in decades, aims to streamline cross-border and regional freight movements, enhancing the overall CSX rail network.

CSX's 'Select Site' program expanded in 2024 to include 39 rail-served properties across eight states. This initiative connects businesses with prime locations, accelerating investment and supporting industrial growth, a key aspect of the Revenue Streams & Business Model of CSX.

In 2024, CSX invested $2.5 billion in infrastructure and introduced its first hydrogen-powered locomotive, underscoring its dedication to environmental stewardship. These efforts have positioned CSX as the most fuel-efficient U.S.-based Class I railroad.

Despite facing disruptions in 2024 and early 2025 from events like the Francis Scott Key Bridge collapse and severe weather, CSX has prioritized stabilizing operations. Management's focus on efficiency and coordination within the 'ONE CSX' team aims to mitigate network disruptions and improve service reliability.

CSX operates a vast rail network, serving as a critical component of the U.S. economy. Its extensive infrastructure and focus on customer relationships, evidenced by strong NPS scores, solidify its market leadership. The company's strategic focus on intermodal growth and conversions from truck to rail highlights its commitment to expanding its reach and efficiency in freight shipping CSX.

The company faces potential challenges from a fluctuating macroeconomic climate, which could reduce freight volumes. Inflationary pressures may also increase operational expenses, impacting profitability. Furthermore, regulatory shifts, particularly concerning pricing from the U.S. Surface Transportation Board, represent a notable risk. Network service disruptions, such as those experienced in Q1 2025 due to infrastructure projects, have already incurred significant costs, totaling $45 million.

CSX is investing in network enhancements and service improvements, with the Howard Street Tunnel completion by late 2025 poised to significantly boost double-stack intermodal capacity. The company is also driving industrial development, anticipating over 550 projects to generate new business. This forward-looking approach aligns with its sustainability goals, including a 2034 target to reduce absolute Scope 1, 2, and 3 emissions by 42%.

Analysts project earnings growth of 5.8% and revenue growth of 3.4% annually for CSX. Management anticipates low-to-mid-single-digit carload growth for FY25, underscoring a positive outlook. The company's strategy emphasizes leveraging its East Coast port advantage and enhancing operational efficiency to achieve profitable growth, as detailed in its Marketing Strategy of CSX.