CSX Corp.

Strong Q3 results + operating leverage (good): CSX reported EPS of $0.57, up 30% YoY (after adjusting for a prior-year $164m goodwill impairment). Revenue rose 12% (driven by ~5% volume growth, fuel surcharge, and pricing), operating margin improved to 39.1% (+420 bps YoY adjusted), and operating income rose 25% YoY (adjusted)—showing strong cost control alongside demand.

Safety + service improvement trend, but not “done” (good with caveat): Safety improved again: FRA injury rate down 17% YoY and accident rate down 4% YoY. Operational/service metrics showed sequential improvement (velocity dwell, customer switch data), plus better trip plan compliance for carload—but intermodal trip plan compliance declined and management emphasized their network “can perform better,” including hurricane and other disruptions being navigated successfully (e.g., Hurricane Isaias with minimal impact).

Productivity/efficiency momentum powering margin, with continued initiatives (opportunity): Management highlighted record fuel efficiency (best ever reported among US railroads) and improved workforce efficiency (gross ton-miles per employee). Looking forward, Steve Angel said CSX is working on a “little over 100 initiatives” for 2027 productivity targets—implying meaningful but likely less “step-change” than 2026 since this year was described as the big productivity year.