CSX posts record quarter as the railroad left out of the merger finds its footing

While Washington argues over the biggest rail consolidation in a generation, the Class I railroad standing outside it just delivered the best quarter in its history.

CSX reported record revenue of $3.94bn for the second quarter on Wednesday evening, up 10 per cent year on year. Operating income rose 17 per cent to $1.51bn. Diluted earnings came in at 54 cents a share, up 23 per cent, beating a consensus estimate of 52 cents. Operating margin expanded 240 basis points to 38.3 per cent, from 35.9 per cent a year earlier. The stock climbed more than 4 per cent in extended trading.

Volume did the heavy lifting. Total units reached 1.68 million, 6 per cent higher than the same quarter in 2025, with growth spread across merchandise, intermodal and coal. Intermodal alone was up 9 per cent. Revenue benefited from a higher fuel surcharge alongside pricing gains.

"Our railroaders successfully managed substantial volume growth while maintaining a consistent focus on safety and productivity," said Steve Angel, president and chief executive. He promised to strengthen service execution in the second half.

The context matters. Angel took the top job at a railroad that had spent two years fielding questions about service reliability, congestion at Chicago-area terminals and whether it could operate as an independent carrier in a shrinking field. The Jacksonville company has since cut back operations at its main Chicago yard and shifted switching work elsewhere.

Wednesday's numbers are the clearest evidence yet that the restructuring is landing.

The intermodal surge is not unique to CSX. Industry-wide volumes for the week ending 18 July ran 7.2 per cent ahead of last year as shippers moved inland freight off the highway, with truckload spot rates forecast to run well above 2025 levels. Coal, meanwhile, continues its long decline, down nearly 6,000 carloads that week.

For CSX the strategic question remains open. A record quarter is a strong hand. Whether it is strong enough to stay independent is a decision regulators, not railroaders, will make.