CSX: 3 Key Takeaways for Long-Term Investors

CSX reported a 30% increase in earnings per share for its third quarter of 2026, compared to the adjusted result from the previous year. The company's operational efficiency and steady volume growth are contributing to expanding profit margins for long-term shareholders.

Three key takeaways from the company's earnings call include:

1. CSX has reduced nonfuel operating expenses while handling more freight, resulting in a profit margin expansion of over four percentage points.

2. Improved asset utilization, including locomotives, and lower reliance on external contractors have helped offset the impact of inflation.

3. Intermodal shipments, which involve freight moved in standardized containers using multiple transport modes, reached an all-time peak with a 7% year-over-year increase. Total intermodal volume surpassed a new all-time record.

The company's senior vice president and chief commercial officer, Maryclare Kenney, highlighted that disciplined contract renewals help protect operating margins against persistent cost increases. She also noted that the company expects stronger same store sales pricing this year compared to last year, as discretionary pricing on merchandise shipments accelerates due to improved service consistency across the network.

CSX is investing in expanding track infrastructure to accommodate increasing volume, with full double-stack clearances and direct connections to new industrial facilities providing structural advantages over trucking. The company's president and chief executive officer, Stephen F. Angel, expressed confidence in achieving a year-over-year operating margin expansion of more than 350 basis points.

Angel emphasized that systemwide efficiency gains position the railroad to compound long-term shareholder value, as CSX continues to build a high-performance culture focused on continuous improvement.