CSX Corp. (CSX) posted record quarterly revenue of $4.02 billion in the third quarter of 2026, up 12% from a year earlier, as fuel surcharge income doubled and volumes and prices rose across merchandise, intermodal and coal.

The Jacksonville, Florida-based railroad said operating income was $1.57 billion, up 44% from $1.09 billion in the third quarter of 2025. Operating margin expanded 880 basis points to 39.1% from 30.3%. Net earnings were $1.05 billion, or $0.57 a share, compared with $694 million, or $0.37 a share, a year earlier.

A year earlier the company recorded a $164 million non-cash goodwill impairment related to Quality Carrier. Excluding that charge, third-quarter 2025 operating income, net earnings and EPS were $1.25 billion, $818 million and $0.44 a share. Against those adjusted figures, operating income rose 25%, net earnings 29% and EPS 30%.

Total volume was 1.69 million units, 5% higher than in the third quarter of 2025. Intermodal volume increased 7% to 820 thousand units. Merchandise volume rose 3% to 679 thousand units, and coal volume rose 2% to 188 thousand units.

Revenue per unit rose 7% to $2,381. Merchandise revenue per unit increased 8% to $3,613, intermodal 13% to $773 and coal 7% to $2,856.

Fuel surcharge revenue was $466 million, compared with $234 million a year earlier. Fuel lag was an unfavorable $36 million versus $11 million. Trucking revenue increased $20 million, primarily from higher fuel surcharge.

Chemicals volume rose 7% on higher shipments of petcoke, waste, plastics and crude oil. Agricultural and food products volume increased 4% on higher domestic and export grains and feed ingredients, partly offset by lower ethanol. Metals and equipment volume rose 12% on higher steel, equipment and aluminum shipments. Forest products volume increased 6% on higher lumber and building products, including benefits from a tighter trucking environment, partly offset by lower pulp and paper. Fertilizers volume fell 13% as higher input costs reduced demand. Automotive volume decreased 2% after a temporary outage at a customer location tied to re-tooling. Minerals volume declined 1% on lower limestone, partly offset by higher construction-related materials.

Domestic intermodal shipments increased on wins with key customers, new service offerings and a tightening truck environment. International shipments decreased slightly. Export coal tonnage rose 7% to 10.6 million tons on higher metallurgical and thermal coal, including increased production from re-opened mines. Domestic coal tonnage fell 3% to 10.7 million tons on lower shipments to utility plants, partly offset by higher shipments to steel manufacturing locations and lake terminals.

Fuel expense rose $170 million to $451 million, mostly from a 67% increase in locomotive fuel prices to $4.24 a gallon from $2.54, partially offset by efficiency savings. Purchased services and other expense fell $73 million to $657 million, including $42 million of efficiency savings net of inflation. Labor and fringe expense increased $19 million to $834 million, with incentive compensation up $53 million and wage and healthcare inflation up $38 million, partly offset by a $22 million decrease from prior-year severance and a $50 million net decrease mostly from lower headcount. Average employee count fell to 21,955 from 23,275.

Velocity decreased 2% and dwell increased 12% versus the prior year. Carload trip-plan performance decreased 12% and intermodal trip-plan performance decreased 11%. The Federal Railroad Administration personal injury frequency index improved 17% to 0.97 and the train accident rate improved 5% to 2.77.

The company repurchased 11 million shares for $543 million in the quarter at an average $48.75 a share. President and chief executive officer Steve Angel said disciplined execution helped CSX move more freight for more customers while maintaining safety and service standards, and that the railroad is positioned to continue progress toward best-in-class performance in 2027.