# CSX Corporation (CSX) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/CSX/thesis · /stocks/CSX/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: CSX
step: "04"
title: Financial Snapshot — 3-Year P&L Summary
created: 2026-05-29
---

### Step 04 — Financial Snapshot

#### Income Statement Summary (FY2021–FY2023)

| Metric ($M) | FY2021 | FY2022 | FY2023 |
|-------------|--------|--------|--------|
| Total Revenue | $12,522 | $14,853 | $14,657 |
| Revenue Growth YoY | +23.4% | +18.6% | -1.3% |
| **Operating Expenses** | | | |
| Compensation & Benefits | $2,798 | $2,928 | $3,026 |
| Purchased Services | $932 | $1,009 | $1,050 |
| Depreciation & Amortization | $1,402 | $1,457 | $1,530 |
| Fuel | $965 | $1,428 | $1,092 |
| Equipment & Other Rents | $405 | $457 | $447 |
| Materials | $320 | $383 | $365 |
| Other Operating Expenses | $373 | $417 | $420 |
| **Total Operating Expenses** | **$7,195** | **$8,079** | **$7,930** |
| **Operating Income (EBIT)** | **$5,327** | **$6,774** | **$6,727** |
| Operating Margin | 42.5% | 45.6% | 45.9% |
| Operating Ratio (OR%) | 57.5% | 54.4% | 54.1% |
| Interest Expense | ($832) | ($842) | ($863) |
| Other Income/Expense (net) | $120 | $158 | $182 |
| **Pre-Tax Income** | **$4,615** | **$6,090** | **$6,046** |
| Income Tax Expense | ($1,078) | ($1,443) | ($1,433) |
| Effective Tax Rate | 23.4% | 23.7% | 23.7% |
| **Net Income** | **$3,537** | **$4,647** | **$4,613** |
| Net Margin | 28.2% | 31.3% | 31.5% |
| **Diluted EPS** | **$1.57** | **$2.16** | **$2.22** |
| Diluted Shares Outstanding (M) | 2,256 | 2,148 | 2,074 |

#### EBITDA Summary

| Metric ($M) | FY2021 | FY2022 | FY2023 |
|-------------|--------|--------|--------|
| Operating Income (EBIT) | $5,327 | $6,774 | $6,727 |
| D&A | $1,402 | $1,457 | $1,530 |
| **EBITDA** | **$6,729** | **$8,231** | **$8,257** |
| EBITDA Margin | 53.7% | 55.4% | 56.3% |

#### Key Operating Ratios

| Metric | FY2021 | FY2022 | FY2023 |
|--------|--------|--------|--------|
| Operating Ratio (OR%) | 57.5% | 54.4% | 54.1% |
| Operating Margin | 42.5% | 45.6% | 45.9% |
| EBITDA Margin | 53.7% | 55.4% | 56.3% |
| Net Margin | 28.2% | 31.3% | 31.5% |
| Effective Tax Rate | 23.4% | 23.7% | 23.7% |

**Operating Ratio (OR%)**: The railroad industry's primary efficiency metric, defined as operating expenses / revenue. Lower OR = more efficient. CSX's OR% of ~54% is among the best in the industry, reflecting successful PSR implementation. OR% improved from ~70% in FY2016 (pre-PSR) to low-to-mid 50s by FY2023.

#### Year-over-Year Analysis

##### FY2021 → FY2022 (+$2.3B revenue, +$1.3B net income)
- Revenue surged +19% driven by:
  - Coal export boom (European energy crisis post-Russia/Ukraine war)
  - Broad freight pricing strength across all categories
  - Fuel surcharge revenue expansion (diesel spike)
- Operating expenses rose +12% (below revenue growth = positive leverage)
- Fuel costs +48% (partially offset by fuel surcharge)
- OR% improved 310 bps; EBITDA margin expanded 170 bps

##### FY2022 → FY2023 (-$196M revenue, -$34M net income)
- Revenue declined -1.3% driven by:
  - Coal revenue decline -17% (European energy crisis normalization)
  - Intermodal revenue decline -12% (truck market softness, lower spot rates)
  - Merchandise revenue +3% (partially offsetting)
- Operating expenses declined -1.8% (expenses fell faster than revenue)
- Fuel costs -24% (diesel price decline; fuel surcharge also declined)
- OR% improved another 30 bps to 54.1% — efficiency gains continued despite revenue decline
- EPS grew +2.8% despite revenue decline, aided by share repurchases reducing diluted share count

#### Peer Comparison: Operating Ratios (FY2023)

| Railroad | OR% |
|----------|-----|
| CSX | 54.1% |
| Union Pacific | 60.4% |
| Norfolk Southern | 64.7% |
| BNSF (private, est.) | ~60% |
| Canadian National | ~59% |

CSX operates at the efficiency frontier of the industry alongside BNSF, reflecting its successful PSR implementation.

#### Free Cash Flow

| Metric ($M) | FY2021 | FY2022 | FY2023 |
|-------------|--------|--------|--------|
| Operating Cash Flow | $4,931 | $5,988 | $5,876 |
| Capital Expenditures | ($1,749) | ($2,082) | ($2,217) |
| **Free Cash Flow** | **$3,182** | **$3,906** | **$3,659** |
| FCF Margin | 25.4% | 26.3% | 25.0% |
| FCF Conversion (FCF/Net Income) | 90.0% | 84.1% | 79.3% |

FCF is very high-quality — railroad depreciation is a real expense (track/equipment genuinely wears out) but maintenance capex has predictable cycles. CSX spends ~$2B+/year to maintain its network.

#### Revenue per Employee

| Year | Employees | Revenue ($M) | Revenue/Employee |
|------|-----------|-------------|-----------------|
| FY2021 | ~25,600 | $12,522 | ~$489K |
| FY2022 | ~25,900 | $14,853 | ~$573K |
| FY2023 | ~23,500 | $14,657 | ~$624K |

Revenue per employee has increased substantially, reflecting PSR-driven productivity gains and ongoing headcount optimization.

#### Footnotes and Adjustments

- Operating income includes equity method income from CSX's investment in TTX Company (railcar pooling company owned by multiple railroads)
- FY2022 includes charges related to the crew size and scheduling labor disputes
- D&A reflects the long-lived nature of railroad infrastructure (50-100 year lives for track and structures)
- Tax rate is stable; CSX benefits from accelerated depreciation on infrastructure under TCJA

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/CSX/fundamental

## Navigation

- Overview: /stocks/CSX
- Financials (this page): /stocks/CSX/financials
- Thesis: /stocks/CSX/thesis
- Investment Memo: /stocks/CSX/memo
- Coverage universe: /stocks