From Yahoo Finance.: 2025-05-13 20:29:00

CSX lost a million dollars a day in revenue due to hurricane damage and tunnel construction in the first quarter. Reconstruction is expected to last through the year. Despite challenges, CSX saw a reset in April with increased volumes in various commodities. The company expects growth for all of 2025.

CSX faced severe weather after a difficult winter, impacting operations. The pause in tariffs between China and the U.S. is not expected to heavily impact East Coast-based CSX. The company recently completed a new contract with the Brotherhood of Locomotive Engineers and Trainmen.

Despite wage inflation and health care costs, CSX is offsetting with pricing gains. Freight volume growth was off in the first quarter but is up in the second quarter. The railroad is encouraged by demand, particularly in aggregates, grain, and intermodal shipments.

CSX saw growth in coal shipments and export coal, with projections for 2025 to be better by 10%. Fertilizer shipments are up, metals business is at 90% order fill, and automotive volume is up. International intermodal is driving gains, with domestic intermodal flat to slightly up.

Intermodal service reliability in the first quarter led to volume growth. CSX expects sequential growth in the second quarter and remains confident in its Investors Day guidance from November. Numerous industrial projects are slated to begin on the CSX network this year, with many already online or in the pipeline. CSX CEO Pelkey anticipates 1-2% volume growth, supported by 600 projects underway. Freight cars on network spiked to 140,000 in Q1, prompting CSX to add locomotives and emphasize AI and analytics for operational improvements. CSX aims to grow mid-single digits, investing in infrastructure and employee efficiency while considering stock buybacks at opportune prices. Pelkey plans to maintain 23,000 employees and focus on leveraging technology for future decision-making.

Read more: CSX lost out on $1 million a day in Q1 revenue amid hurricane, tunnel work