CSX railroad's profit slipped 14% in the second quarter even though the volume of shipments it delivered remained flat as it continued working on two major construction projects on its network.
The Jacksonville, Florida-based railroad said Wednesday it earned $829 million, or $0.44 per share. That's down from $963 million, or $0.49 per share, a year ago.
That's in line with what the analysts surveyed by FactSet Research predicted.
CSX’s latest earnings report comes as rumors swirl in the industry about t he possibility that a merger between two of the country's largest freight railroads might be proposed. The Associated Press reported last week that Union Pacific was in merger talks with Norfolk Southern.
CEO Joe Hinrichs said he doesn’t want to comment on the rumors and that CSX is focused on improving its operations, but he said his railroad would remain open to any possibilities that would help boost shareholder value.
“While we are confident in CSX’s path forward, we welcome all opportunities that will allow us to deliver value for our shareholders, drive thoughtful growth, and serve our customers better,” Hinrichs said.
If merger actions heat up in the industry, CSX could be a target for one of the western railroads trying to build a transcontinental network. But the prospects for any deals among the major freight railroads remain uncertain because regulators might be reluctant to approve them.
Hinrichs emphasized that he thinks there are opportunities to attract new business and prosper by working together with other railroads today. One example is the new service that CSX and CPKC railroads recently announced to deliver shipments that CPKC picks up in Mexico and have CSX deliver them in the southeast United States.
CSX is in the middle of expanding a key tunnel in Baltimore, so it will be able to carry double-stacked shipping containers, and the railroad is completing repairs related to Hurricanes Helene and Milton.
But Hinrichs said the railroad is operating much more fluidly than it was in the first quarter of this year when the results disappointed. The railroad is also restructuring its management jobs.
CSX executives said it remains hard to predict consumer sentiment that drives so much of the economy right now, but if Donald Trump's tariff policy becomes more certain in the second half of the year that should help consumers and businesses feel more comfortable spending and expanding their operations.
CSX is one of the major freight railroads that serves the eastern United States and competes with Norfolk Southern.
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