Core Insights - CSX has signed a $670 million deal with Wabtec Corporation to upgrade its locomotive fleet, which includes 100 new Evolution Series locomotives and 50 modernized locomotives, along with digital solutions and services [1][4] Fleet Modernization - The new Evolution Series locomotives are designed to enhance fuel efficiency, tractive effort, and overall reliability, supporting long-haul and heavy-duty operations [2][4] - CSX will also modernize aging D9 locomotives by converting them from DC to AC traction, which is expected to extend service life and improve fleet standardization [3][4] Operational Efficiency - The partnership with Wabtec emphasizes CSX's commitment to operational efficiency and reliable customer service, integrating new and modernized locomotives with digital solutions to improve fuel performance and operational reliability [4] - The order includes digital capabilities such as Trip Optimizer with Smart Horsepower per Ton, aimed at enhancing fuel efficiency [4] Delivery Timeline - Delivery of the new Evolution Series locomotives is expected to start in 2026, while deliveries of the modernized locomotives will begin in 2027 [5]

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CSX has announced the retirement of Chief Administrative Officer Diana Sorfleet and the appointment of Riz Chand as chief human resources officer. Sorfleet retires after almost 15 years with the company, which credits her with a central role in CSX’s people strategy and strengthening its culture. She helped guide the company through organizational transformations including transitions with four CEOs. Diana Sorfleet (Photo: CSX) “Throughout her tenure, Diana has been a trusted steward of our culture,” CS ...

Core Insights - CSX announced the retirement of Executive Vice President and Chief Administrative Officer Diana Sorfleet after nearly 15 years of service, during which she significantly influenced the company's people strategy and culture [2][3] - Riz Chand has been appointed as the new Chief Human Resources Officer, effective February 23, 2026, bringing extensive experience from AEA Investors and other notable companies [1][4] Leadership Transition - Diana Sorfleet's leadership was pivotal during transitions involving four CEOs and organizational transformations, earning her recognition for her strategic insight and commitment to CSX's long-term objectives [2][3] - Riz Chand's previous roles include Chief Talent Officer at AEA Investors and senior HR positions at BNSF and other firms, indicating a strong background in talent development and organizational performance [3][4] Responsibilities and Background of New HR Leader - In his new role, Riz Chand will oversee Human Resources, Total Rewards, People Systems, and Occupational Health Compliance, based in Jacksonville, FL [5] - Chand holds a B.S. in mechanical engineering and an MBA, along with community leadership roles, showcasing his commitment to both professional and community development [4] Company Overview - CSX is a premier transportation company based in Jacksonville, Florida, providing rail and intermodal services across various markets, contributing significantly to the U.S. economic expansion [6] - The company's extensive network connects major metropolitan areas in the eastern U.S. and links numerous short-line railroads and ports, highlighting its critical role in transportation and logistics [6]

Core Insights - CSX Corporation (NASDAQ:CSX) is one of the largest railroad companies in America, with shares increasing by 13.8% over the past year and 3.5% year-to-date [2] - The company reported $3.50 billion in revenue and $0.39 in profit per share, both of which missed analyst estimates of $3.54 billion and $0.41 respectively [2] - Susquehanna raised CSX's share price target to $39 from $38 while maintaining a Neutral rating, whereas Bernstein lowered its target to $36 from $37 with a Market Perform rating [2] - There is speculation about a potential merger between CSX and Berkshire Hathaway's Burlington Northern, as discussed by Jim Cramer [3] Financial Performance - CSX Corporation reported revenue of $3.50 billion and earnings per share of $0.39, which were below analyst expectations [2] - The earnings miss was noted to be narrower when excluding one-time charges [2] Market Sentiment - Jim Cramer expressed optimism about CSX's leadership under Steve Angel, suggesting that his industrial background could lead to significant developments, including a potential merger with Burlington Northern [3] - Despite the potential of CSX, there is a belief that certain AI stocks may offer better returns with limited downside risk [3]

Revenue Performance - Union Pacific and CSX both experienced annual revenue declines of 1 percent, with Union Pacific reporting $6.1 billion and CSX $3.5 billion in operating revenue, as poor volumes offset pricing gains and higher revenues from fuel surcharges [1] - Revenue carloads at Union Pacific fell 4 percent to 2.1 million, while CSX saw a 1 percent increase in volumes to 1.6 million units [2] Net Income and Profitability - Despite the decline in volume, Union Pacific's net income increased by 5 percent to $1.8 billion, while CSX's net income decreased by 2 percent to $720 million [2] Operational Challenges - Both railroads are recovering from disruptions caused by Winter Storm Fern, with Union Pacific expecting full recovery by Thursday and areas in southern states like Texas, Louisiana, and Arkansas being 70 percent recovered [3] - CSX is actively working to restore operations, with some terminals and corridors operating at reduced capacity due to road conditions and crew availability, although all intermodal terminals have reopened [4] Future Outlook - Looking ahead to 2026, both Union Pacific and CSX anticipate a year focused on execution and cost discipline rather than a significant rebound in freight volumes [5] - Union Pacific is targeting mid-single-digit earnings-per-share (EPS) growth off its 2025 base, with a three-year annual growth target of high-single-digit to low-double-digit EPS growth through 2027, alongside planned capital expenditures of $3.3 billion next year [6] - Margin expansion for Union Pacific may not primarily come from rate increases, as rail inflation is expected to rise by 4 percent in 2026; instead, the focus will be on productivity gains such as improved asset utilization and workforce efficiency [7]

Core Viewpoint - Susquehanna has raised its price target for CSX Corporation to $39, indicating a focus on fundamental improvements under new CEO Steve Angel, which may enhance long-term strategic flexibility [1] Financial Performance - CSX's fourth-quarter results were mixed, with revenue of $3.50 billion falling short of the expected $3.54 billion, and both revenue and profit missing expectations due to weaker industrial demand and lower export coal volumes [2][4] - The operating margin for the quarter was reported at 31.6%, an increase of 30 basis points from the previous year [4] Management Strategy - CEO Steve Angel highlighted the need for productivity, cost control, and capital discipline, with plans to focus on these areas more intensively in 2026 [3] - Management anticipates an operating margin expansion of 200 to 300 basis points in 2026 compared to adjusted 2025 levels, which positively impacted stock performance, lifting it by approximately 3.2% in extended trading [3]

Core Viewpoint - CSX's fourth-quarter earnings exceeded expectations despite a year-over-year revenue decline, leading to a more than 4% increase in share price intra-day [1]. Financial Performance - Adjusted earnings per share for Q4 2025 were reported at $0.42, surpassing analyst estimates of $0.41 [2]. - Revenue for the quarter totaled $3.51 billion, slightly below the consensus forecast of $3.55 billion, marking a 1% decrease from the previous year [2]. - Operating income for the quarter was $1.11 billion, resulting in an operating margin of 31.6%, down from an adjusted operating income of $1.21 billion and an adjusted operating margin of 34.3% in the same quarter last year [3]. Revenue Drivers - The decline in revenue was attributed to lower merchandise volumes and reduced export coal revenue, although these pressures were partially offset by higher pricing in merchandise and intermodal segments, increased intermodal volumes, and higher fuel surcharge revenue [3]. Full-Year Performance - For the full year 2025, CSX reported total revenue of $14.09 billion and adjusted operating income of $4.69 billion, excluding a $164 million goodwill impairment recorded in Q3 [4]. - The company achieved an adjusted operating margin of 33.2% for the year, with adjusted earnings per share of $1.61 [4].

Core Viewpoint - CSX Corporation reported a lackluster end to the year but has a more optimistic outlook for 2026 due to promising cost-cutting initiatives [1] Financial Performance - The company’s recent performance is characterized as underwhelming, indicating potential challenges in meeting investor expectations [1] Future Outlook - There is an optimistic forecast for 2026, driven by anticipated improvements from cost-cutting measures rather than significant revenue growth [1]

Core Viewpoint - CSX Corporation reported a lackluster end to the year but has a more optimistic outlook for 2026 due to promising cost-cutting initiatives [1] Financial Performance - The company’s recent performance is characterized as underwhelming, indicating potential challenges in meeting investor expectations [1] Future Outlook - There is an optimistic forecast for 2026, driven by anticipated improvements from cost-cutting measures rather than significant revenue growth [1]