CSX NASDAQ: CSX used its 2026 annual meeting of shareholders to highlight early-year operating momentum after what executives described as a difficult 2025 marked by weather disruption, major infrastructure work and softer freight conditions.
Chairman John J. Zillmer opened the virtual meeting by thanking CSX railroaders for their work during a year that included severe weather disruptions and the simultaneous execution of two major infrastructure projects that constrained the network. Zillmer said those efforts helped the company recover service performance, improve safety and continue moving essential goods across a network serving major population centers in 26 states east of the Mississippi River, the District of Columbia and parts of Canada.
President and Chief Executive Officer Steve Angel said the company’s performance improved in the first quarter of 2026, with revenue rising 2% on 3% volume growth. Operating expense fell 6%, operating income increased 20% and earnings per share rose 26%, he said. Angel also cited a 13% improvement in the Federal Railroad Administration injury rate, a more than 30% improvement in the train accident rate and record first-quarter fuel efficiency.
“We are still early in the process, and there is a great deal of work ahead of us to make CSX a best-in-class railroad, but I would say this is an encouraging first step,” Angel said.
2025 Results Fell Short of Expectations
Angel said 2025 was challenging for CSX due to severe weather, the simultaneous execution of two large-scale infrastructure projects, a soft freight environment and unplanned customer closures. Revenue declined 3% on flat volume, while operating margin contracted 400 basis points. Adjusted operating margin contracted 360 basis points. Earnings per diluted share and adjusted earnings per diluted share were $1.54 and $1.61, respectively.
“These results fell short of our expectations,” Angel said.
Despite the weaker financial results, Angel said CSX completed several projects that positioned the railroad for improved performance. He pointed to the reopening of Baltimore’s Howard Street Tunnel after 233 consecutive days of around-the-clock work. The more than $450 million expansion of the 130-year-old tunnel clears what Angel called a century-old bottleneck on the I-95 corridor and enables double-stack intermodal service through Baltimore for the first time.
Angel also highlighted the rebuilding of 60 miles of the Blue Ridge Subdivision destroyed by Hurricane Helene’s flooding. He said full service was restored in under a year after 570,000 man-hours of work, 1 billion cubic yards of rock and 35,500 linear feet of new track through the Nolichucky River Gorge.
Combined with completion of the 75th Street CREATE flyover in Chicago, Angel said the projects add capacity and position CSX to benefit as demand strengthens.
CEO Outlines Priorities for 2026
Angel said CSX is focused on productivity, capital discipline, commercial growth and talent development. He said the company is using artificial intelligence and predictive analytics to improve planning, asset utilization, maintenance, network flow and capital spending decisions.
“Every project will stand on its own,” Angel said, while noting that investments in infrastructure to ensure safe and reliable service will remain the top priority in capital spending.
On the commercial side, Angel said CSX added 85 new or expanded rail-served facilities in 2025 and has approximately 600 customer-related development projects in various stages of engagement. He said the company also expanded its competitive reach through new intermodal and interchange agreements with partner railroads.
CSX returned $2.4 billion to shareholders in 2025 through dividends and share repurchases, Angel said. The company also increased its dividend by 8%, which he said reflected confidence in future cash flow generation.
Howard Street Tunnel, AI and Industrial Development Discussed in Q&A
During the question-and-answer session, Angel said the Howard Street Tunnel reopened last fall to single-stack traffic, and the first double-stack train moved through earlier this month. He said filling the added capacity from the project will occur throughout this year and into next year.
Angel said customers are enthusiastic about faster service CSX can provide with BNSF Railway from the West Coast through Atlanta and into the Northeast.
Asked about artificial intelligence, Angel said AI is becoming integrated across the company. In operations, he said AI is being used to analyze large volumes of data to improve planning, asset utilization and network flow. Predictive models are intended to anticipate issues earlier, while machine learning supports predictive condition-based maintenance. On the commercial side, Angel said AI-assisted pricing tools are reducing manual work and speeding up contract negotiations.
Angel also said CSX’s industrial development program is expected to contribute to volume growth. He cited demand for rail-served sites, interest in supply chain resiliency and growth in rail-enabled industries, including automotive, cement, waste and aggregates. Looking to 2027 and 2028, Angel said the initiative is on track to contribute 1% or more to annual volume growth.
CSX Reiterates Opposition to UP-NS Merger
Angel was also asked about CSX’s position on the proposed Union Pacific-Norfolk Southern merger. He said CSX issued a press release and launched a website on May 4 outlining its position and providing resources for shippers and other stakeholders.
Angel said CSX reviewed the refiled application and believes it does not meet the new merger rule standards of being in the public interest and enhancing competition. He said the current U.S. Class I railroad structure, with two eastern, two western and two Canadian railroads running north-south, has supported routing options and competitive choices for shippers.
“The proposed combination would create a single transcontinental carrier versus four regional carriers, and the resulting imbalance, in our view, would reduce viable options for shippers,” Angel said.
Shareholders Approve Board, Auditor and Executive Pay Proposal
Michael Burns, CSX’s senior vice president, chief legal officer and corporate secretary, said preliminary voting results showed that all 12 nominees to the board of directors were elected. Shareholders also ratified Ernst & Young as the company’s independent registered public accounting firm for 2026 and approved the advisory, non-binding resolution on compensation for CSX’s named executive officers.
Final vote totals will be reported in a Form 8-K filing with the Securities and Exchange Commission within four business days following the meeting, Burns said.
About CSX NASDAQ: CSX
CSX Corporation is a leading North American transportation company that provides rail-based freight services and supply-chain solutions. Its operating subsidiary, CSX Transportation, moves a wide range of goods for customers across multiple industries, using a combination of long-haul rail service, intermodal operations and terminal and yard services. The company focuses on delivering efficient, reliable freight transportation between major production centers, consumption markets and port gateways.
CSX's freight portfolio includes intermodal containers and trailers, bulk commodities, industrial products and specialized unit trains.
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