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CSX Profit Dips Amid Layoffs and Slow Demand
23 Jan
Summary
- CSX profit fell 2% in Q4 due to weak demand and severance costs.
- Revenue declined 1% to $3.51 billion, with profit at $720 million.
- CSX anticipates modest economic growth and low single-digit revenue increases.
CSX announced its fourth-quarter profit declined by 2%, totaling $720 million, or 39 cents per share. This decrease was primarily attributed to weak industrial demand and severance costs associated with workforce reductions carried out last fall. Revenue experienced a 1% dip, reaching $3.51 billion.
Despite these challenges, CSX has completed major infrastructure projects, including a tunnel renovation in Baltimore and hurricane repairs. These efforts have improved train speeds and on-time delivery rates. The company is now positioned to introduce double-stacked container transport across its network, though a competitor has announced similar plans.
For 2026, CSX anticipates modest economic growth and projects low single-digit revenue increases. The railroad is prioritizing productivity improvements while diligently managing costs. Consequently, CSX has withdrawn its previously established 2027 financial targets.
