CSX Q4 Revenue Dips 1%: Weak Demand, Restructuring Costs Hit

CSX Q4 2025 revenue dropped 1% to $3.5B, with net earnings down 2% due to weak demand and $50M in restructuring charges, impacting future growth.

CSX Q4 Revenue Dips 1%: Weak Demand, Restructuring Costs Hit
January 23, 2026 10:39 pm
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🛑 Key Takeaways:
  • CSX’s Q4 2025 revenue and net earnings declined 1% and 2% respectively, pressured by lower volumes and one-time restructuring costs.
  • The Class I railroad booked $3.5 billion in revenue and $720 million in net earnings, with results impacted by a $50 million charge for severance and technology write-offs.
  • Weak industrial demand has led CSX to pull its 2027 financial targets, signaling a cautious outlook with forecasts for only low single-digit revenue growth.

JACKSONVILLE, FL – CSX Corp. reported a 1% year-over-year revenue dip to $3.5 billion for the fourth quarter of 2025, as subdued industrial demand and lower export coal shipments undercut gains from higher pricing. Net earnings fell 2% to $720 million, impacted by $50 million in severance costs from recent layoffs and technology rationalization expenses.

CategoryQ4 2025 PerformanceComparison (YoY)
Total Revenue$3.5 billion-1%
Net Earnings$720 million-2% (vs. $733M)
Earnings Per Share (EPS)$0.39+3% (vs. $0.38)
Operating Income$1.11 billionSteady
One-Time Charges$50 million(Severance & Technology)
Adjusted Prior Year Net Earnings$815 million (Q4 2024)N/A

Operational & Technical Details

CSX’s revenue performance reflects a mixed operational environment. The primary headwinds were decreased merchandise volume and reduced export coal revenue. These negative factors were partially mitigated by several tailwinds. The railroad successfully implemented higher pricing in both its merchandise and intermodal segments. It also recorded an increase in intermodal volume and benefited from higher fuel surcharge revenue.

The company’s bottom line was directly affected by restructuring efforts under CEO Steve Angel. The $50 million in pre-tax charges, which reduced EPS by $0.02, stemmed from severance packages and the write-down of specific technology investments. Despite the dip in net earnings, EPS increased by 3% to $0.39, suggesting the impact of share repurchase programs.

📅 Originally Published: December 2025
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Market Impact Analysis

The Q4 results signal persistent weakness in the North American industrial economy. In response to the challenging demand environment, CSX has withdrawn its 2027 financial targets previously set a few years ago. Management now projects a more conservative outlook, forecasting only low single-digit revenue growth for the near term. This adjustment reflects broader uncertainty in shipping demand. However, the railroad’s operational flexibility may improve after completing two major construction projects in the fall of 2025, potentially enhancing network efficiency moving forward.


FAQ: Quick Facts

Why did CSX’s revenue and profit fall in Q4 2025?

Revenue declined due to lower merchandise and export coal volumes. Profit was further impacted by $50 million in one-time costs related to severance and technology investment write-offs.

What was CSX’s earnings per share (EPS) for the quarter?

CSX reported earnings per share of $0.39, a 3% increase compared to $0.38 in the same quarter a year ago.