Oct 21, 2026 earnings call — Productivity-led revenue and intermodal growth
Earnings of $0.57 per share increased 30% year-over-year, with operating margin improving to 39.1%.
Revenue $4.0B (est $4.0B) · EPS $0.57 (est $0.53)
Key quotes
"The progress we continue to make on productivity has helped drive substantial growth and profitability, earnings, and free cash flow."
"Total intermodal volume was up 7% year-over-year, and reached a new all time record. With revenue up 20% and RPU up 13%."
"Our FRA injury rate decreased by 17%, and our accident rate fell by 4%."
Analyst Q&A 17
2027 productivity plans
Q (Chris Wetherbee · Wells Fargo): He asked how far along the company is planning productivity for 2027 and how much more productivity is possible given growing volume and rehiring.
A: Management said they are still working on the 2027 plan and already have a little over 100 initiatives. They said 2027 likely will not be as big as 2026, but will still be a significant year for productivity.
"I do not think 2027 will be as big, but it will certainly be a significant number next year." — Stephen F. Angel (CEO)
Operating leadership and responsibilities
Q (Brian Ossenbeck · JPMorgan): He asked how the operating department will be structured, whether there will be a dual COO role, who will take responsibilities, and if there will be an external search.
A: Management said Casey and Doug will keep doing their current roles but will report directly to the CEO. The CEO said he will be more involved in operations and will work closely with both of them.
"They are just gonna report directly into me I look forward to that." — Stephen F. Angel (CEO)
Pricing plans for 2027
Q (Stephanie Benjamin Moore · Jefferies): She asked how to think about pricing in 2027, excluding fuel, and how inflation affects pricing plans and renewals.
A: Management said pricing is a key focus and they are taking a surgical approach. They said they cannot touch every contract every year but expect same-store pricing this year to be stronger than last year.
"I would tell you pricing is really a key focus area for the team." — Maryclare Kenney
Sustaining volume growth
Q (Scott Group · Wolfe): He asked whether the current multi-year volume growth is sustainable, and what it means for the network, staffing, locomotives, and productivity.
A: Management said they see positive momentum from growth initiatives and generally assume modest volume growth when planning. They said they feel very confident they can handle the volume and are adding some headcount in transportation to serve the business.
"With respect to our ability to handle the volume, we feel very confident we can handle the volume." — Stephen F. Angel (CEO)
Drivers of domestic intermodal growth
Q (Thomas Wadewitz · UBS): He asked which specific factors are driving domestic intermodal growth and how much more runway exists from boxes, Howard Street, CP interline and other solutions.
A: Management said domestic intermodal drove growth this year while international was flat. They noted initiatives like FMX and Howard Street, recent tunnel clearances, momentum from Howard Street, and truck capacity tightening that is driving truck-to-rail conversions.
"We finished the work around the tunnel in full double stack clearances after we were through the majority of bid season this past year, so we have seen momentum build on Howard Street." — Maryclare Kenney
Q4 margin seasonality
Q (Brandon Oglenski · Barclays): He asked how to think about the greater-than-350 basis-point margin improvement guidance for Q4 and how PS&O and headcount affect sequential margins.
A: Management said normal seasonality causes PS&O and labor to move in winter months and historically shows 200 to 300 basis points of margin degradation from Q3 to Q4. They said they are working to offset as much of that normal seasonality as possible.
"So if you look back out after, the last 3 to 5 years, 200 to 300 basis points of margin degradation from third quarter, fourth quarter." — Kevin S. Boone (CFO)
Resource planning for peak season
Q (Jonathan Chappell · Evercore): He asked if the company is efficiently resourced for peak season and a cyclical recovery, and whether they can add resources without a 1-for-1 impact on service.
A: Management said they keep refining capacity plans and position resources based on expected demand, with better planning between engineering and transportation. They said they are investing in capacity where needed and gave Atlanta as an example of a 50% volume increase where they are increasing switching and processing capacity by 50%.
"And Atlanta is a good example of that where we have seen a 50% increase in volume over the last 3 years." — Stephen F. Angel (CEO)
PS&O cost improvements
Q (Ken Hoexter · BofA): He asked what drove the big PS&O improvement, how structural it is, and whether similar improvements are possible in Q4 year over year.
A: Management said they examined outside costs, procurement, asset utilization, and technology to find savings, and started over 100 initiatives early to build continuous improvement muscle. They said they are already thinking about 2028 as well as 2027.
"In fact, we are already thinking about 2028 as well as we think about 2027." — Kevin S. Boone (CFO)
Pricing in domestic intermodal
Q (Dan Moore · Baird): He asked how the company approaches the domestic intermodal market now when truck-to-rail spreads are very wide, and how that could affect yield.
A: Management said intermodal is split between domestic and international, with international often on multiyear deals and less tied to trucking. For domestic, they said bid season is starting, they will price to the market on annual contracts, and will consider capacity and service value on renewals.
"On the domestic business, know, it is a mixture of how our contracts are structured." — Maryclare Kenney
Rail partnerships and interlines
Q (Ariel Rosa · Citi): He asked about progress and volumes with interline partners (BN, CN, CP) and how those partnerships relate to opposition to the UPS proposal.
A: Management said working closely with interline partners to find new or better solutions is common practice and not new for CSX. They said they have been happy with results from partnerships formed over the last several years and will continue to work on them.
"We have been happy with the results we have seen with the partnerships we formed over the last several years." — Maryclare Kenney
Cost pressures and hiring
Q (Spracklin · RBC): He asked whether any cost pressures beyond fuel worry management for 2027 and whether they see hiring or labor shortages on their side.
A: Management said driver shortages exist across the market and quality has opportunity on costs and pricing. They said driver recruitment will be a big focus and they expect some improvement next year while also driving cost out of the business.
"Driver recruitment is going to be a big, big focus of that team, but also driving cost out of the business." — Kevin S. Boone (CFO)
Zero-to-zero fuel tech tests
Q (Bascome Majors · Stephen): He asked about tests of zero-to-zero (start-to-stop) fuel savings technology, field results, FRA approval path, and whether those savings are in 2027 plans.
A: Management said they have used trip optimizer and seen fuel benefits, and that zero-to-zero is partially implemented and in test with the FRA. They said they expect eventual approval and to take the capability across the entire fleet.
"We continue to work through the test process with the FRA, and I would expect eventually that will be approved, and we will be able to take that capability across the entire fleet." — Kevin S. Boone (CFO)
Carload opportunities vs truck
Q (Jason Seidl · TD Cowen): He asked whether tighter truck markets and lower eastern fuel provide opportunities for carload business, and what the team is doing to win that freight.
A: Management said they are working across markets and have seen opportunities as truck capacity tightened, and gave forest products as an example where they identified solutions to increase rail capacity for customers. They said they are optimistic about opportunities going into next year.
"I think a great example in the impact in terms of business trends is in our forest products segment." — Maryclare Kenney
Other revenue drivers
Q (Jordan Stanley): He asked whether the strong other revenue line had unusual items and what the run rate might be going forward.
A: Management said the third-quarter upside came mainly from an in-transit reserve and higher intermodal storage costs as that market tightened. They said the year-to-date average has been in that mid-$130s per quarter and they will probably do a little better than that in Q4.
"As you look at the fourth quarter, when you look at the average for the year, we have been averaging in that mid-$130s." — Kevin S. Boone (CFO)
Fuel surcharges impact
Q (David Vernon · Bernstein): He asked how much incremental fuel revenue the carload fuel surcharges generated in Q3 after they were turned on.
A: Management said they would not give a precise number. They said they are making sure fuel cost increases are handled thoughtfully and customers understand similar impacts exist on the trucking side.
"I do not think we are not going to put a precise number out there." — Maryclare Kenney
Barriers to intermodal conversion
Q (Richa Harnain · Deutsche Bank): She asked what the biggest bottlenecks are to converting truck customers to intermodal, what customers want, and how to keep growth sticky if truck rates fall.
A: Management said customers value consistent, reliable service above all and the company focuses on delivering that to make conversions long term. They said they use national accounts to analyze truckload files, show lanes for conversion, and are most focused on drayage driver capacity as a key bottleneck to solve.
"I think what is important and what I have seen since, the 15 years that I have been here is the most important thing to customers is consistent and reliable service." — Maryclare Kenney
Targets for safety and productivity
Q (Jeff Kaufman · Citizens Bank): He asked where management would like safety and productivity metrics to be in 12 to 24 months and what that could mean for operating improvement.
A: Management said they are focused on continuous improvement across safety, service, and financial metrics and are working many initiatives to drive productivity. They said the company aims for best-in-class performance for employees, customers, and shareholders.
"it is all about improving our safety metrics, our service metrics, our financial metrics so that we can deliver best in class performance." — Stephen F. Angel (CEO)