CSX Corporation (CSX): Business Model Canvas [Dec-2025 Updated]

You're digging into the core engine of Eastern U.S. logistics, CSX Corporation, and trying to map how they translate owning a 20,000+ route mile network into shareholder value, especially now that the Howard Street Tunnel expansion is set to unlock major intermodal gains. After twenty years in this game, including a decade leading analysis at a major asset manager, I see a model built on disciplined, scheduled railroading designed to squeeze efficiency from high fixed costs. With Trailing Twelve Months Revenue as of September 30, 2025, clocking in at $14.123 billion, the scale is undeniable, but the real insight is understanding the delicate balance between their Merchandise segment strength and the variable pressures from labor and fuel. It's a masterclass in industrial logistics. Dive into the canvas below to see precisely how CSX Corporation manages its key resources and activities to deliver on its value proposition.

CSX Corporation (CSX) - Canvas Business Model: Key Partnerships

You're looking at the essential alliances that make the CSX Corporation network function across the Eastern U.S. and beyond. These aren't just handshake deals; these are critical operational links that define market access and service reliability. Honestly, in this industry, your partners are as important as your own tracks.

The scale of CSX Corporation's reach is directly tied to its extensive web of connections, particularly with other rail carriers. A major development in late 2025 was the August 22, 2025 announcement of a coast-to-coast intermodal services agreement with BNSF Railway. This partnership is designed to connect Western and Eastern U.S. markets, creating faster, more reliable service for shippers. The new domestic routes include direct service between Southern California and Charlotte, North Carolina, and Jacksonville, Florida, plus a Phoenix, Arizona, to Atlanta, Georgia, corridor, supported by infrastructure upgrades like two new 10,000-foot sidings between Phoenix and Flagstaff. Furthermore, this deal established new international intermodal services connecting the Port of New York and New Jersey and Norfolk, Virginia, with Kansas City.

Also in 2025, CSX Corporation strengthened its northern access. Around September 2025, CSX and Canadian National (CN) signed a Memorandum of Understanding for a new intermodal service targeting international containers from Canada's West Coast into Nashville, Tennessee, via Memphis. This replaces a trucking segment with a steel-wheel interchange, building on their existing cooperation that has served East Coast ports like New York, New Jersey, and Philadelphia since 2019.

The backbone of CSX Corporation's local market penetration relies on its integration with smaller operators. The network connects thousands of production and distribution facilities through track connections to more than 240 short line and regional railroads.

Labor stability is a key operational partnership, and 2025 saw significant progress. The Brotherhood of Locomotive Engineers and Trainmen (BLET) ratified a new five-year single-system agreement in June 2025, covering approximately 3,400 locomotive engineers. This deal, which runs through December 31, 2029, provides compounded general wage increases of 18.77%, with the entire package valued at a 21.4% increase in wages and benefits over the term. This agreement mirrors the terms established with 13 other unions, and upon ratification, brought nearly 75% of CSX Corporation's unionized workforce under new agreements within the preceding 10 months.

Here's a quick look at the scale of these critical external relationships:

• CSX Corporation serves more than 70 ocean, river and lake ports.
• The network links to more than 240 short line and regional railroads.
• The BLET agreement covers approximately 3,400 locomotive engineers.
• The BLET contract term extends through December 31, 2029.
• The BLET package represents a 21.4% increase in wages and benefits.
• CSX Corporation has ratified agreements with 13 labor unions as of April 2025.

The sheer volume and diversity of these connections are best summarized here:

These partnerships ensure CSX Corporation's network reaches nearly two-thirds of Americans, linking major population centers to the ports and production sites that feed the economy. Finance: draft 13-week cash view by Friday.

CSX Corporation (CSX) - Canvas Business Model: Key Activities

You're looking at the core engine room of CSX Corporation, the activities that actually move the freight and keep the network running. These aren't just administrative tasks; they are the physical and operational processes that define the company's service delivery and cost structure.

Operating and maintaining a 20,000+ route mile rail network is the foundation. CSX manages a network spanning over a 20,000-route-mile system, with one source indicating more than 21,000 miles of track as of 2025. This network connects the majority of states east of the Mississippi River, plus Ontario and Quebec in Canada. The scale means managing connections to over 70 ocean, river and lake ports and linking up with more than 240 short-line railroads. It's a massive physical asset base to keep moving.

A huge part of recent activity involved executing major infrastructure projects. The most prominent was the Howard Street Tunnel expansion in Baltimore. CSX made the strategic choice to shut down the 1.7-mile-long tunnel from February through November 2025 to accelerate work. This $450+ million initiative, which involved lowering the track invert, successfully reopened on September 26, 2025, ahead of schedule. The goal is to clear a key I-95 corridor bottleneck, enabling double-stack container trains to move through, with the overall program expected to finish in 2026.

The commitment to running a scheduled railroading model is reflected in the latest operational statistics. This model focuses on predictable train movements to improve asset utilization and service consistency. Here's a snapshot of performance metrics reported for Week 48, ending November 28, 2025, alongside a key service compliance figure from May 2025.

This operational focus is supported by active fleet management. In April 2025, CSX took targeted actions to bolster network performance, which included managing and optimizing a fleet of over 3,500 locomotives. Specifically, the company:

• Reintroduced 45 locomotives from storage.
• Commissioned 20 additional rebuilds.

The company is also actively growing its footprint through industrial development. As stated in the Q1 2025 reporting, CSX had over 600 projects in the pipeline. This activity is crucial for securing future high-margin freight volumes.

To give you a sense of the scale of activity during the first quarter of 2025, despite operational challenges from infrastructure work, the company handled significant volume:

• Total Volume: 1.52 million units.
• Operating Income: $1.04 billion.
• Net Income: $646 million.
• Total Revenue: $3.42 billion.

They are definitely working to keep the wheels turning, even when facing headwinds.

CSX Corporation (CSX) - Canvas Business Model: Key Resources

You're looking at the core assets that power CSX Corporation's operations across the Eastern United States, the stuff that makes the trains run and the freight move. These aren't just line items on a balance sheet; they are the physical and human infrastructure that drives their service delivery.

The physical network is massive, giving CSX a dominant position in the East. This network is the primary reason they can connect so many major population centers and ports. Also, the company is actively investing to maintain and upgrade this critical infrastructure, which is key to long-term efficiency.

Here's a breakdown of the tangible and human capital that forms the backbone of CSX Corporation's operations, using the latest figures available as of late 2025:

• CSX Transportation operates approximately 20,000 route miles of track.
• The network serves the majority of states east of the Mississippi River, plus the District of Columbia.
• The service territory includes the Canadian provinces of Ontario and Quebec.

The rolling stock and terminals are the tools that utilize the network. The fleet size reflects the capacity to handle current and projected volumes, while the terminals are the crucial nodes for intermodal exchange.

When we look at capital allocation, the commitment to the physical plant is clear. While the exact 2025 budget figure you mentioned isn't explicitly confirmed in the latest filings, management has stated that planned capital investments for 2025 are expected to be consistent with 2024 spending levels. This ongoing investment supports the network's reliability.

Specifically, a major part of the current capital focus involves infrastructure resilience. For example, spending related to rebuilding the Blue Ridge subdivision following Hurricane Helene is currently estimated to exceed $400 million in total. This focus on sustaining core infrastructure, alongside investments in locomotives and freight cars, is how CSX Corporation maintains its competitive edge.

The human element is also a significant asset. As of the end of 2024, CSX Corporation employed approximately 23,500 people. This skilled workforce is essential for executing the Precision Scheduled Railroading (PSR) model, which relies on labor productivity gains derived from optimized asset utilization.

Finally, beyond the physical assets, CSX Corporation considers its intellectual property a key resource. This includes confidential and trade secret information like business plans, pricing strategy, contracts, and financial data. It's the intangible knowledge base that supports their strategic moves.

Finance: Review the 2025 capital expenditure forecast against the 2024 actuals by next Tuesday.

CSX Corporation (CSX) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose CSX Corporation over other options, especially trucking. It boils down to hard numbers on efficiency and capacity upgrades that are now coming online.

Cost-Effective Transport: Rail is 3-4x more fuel efficient than trucking

The fundamental value here is the inherent fuel advantage of rail. According to the Association of American Railroads (AAR), moving freight by rail is 3 - 4 times more fuel efficient than moving freight on the highway. CSX Corporation has backed this up with capital, investing more than $2.8 billion over the last decade to improve its locomotive fuel efficiency. For fiscal year 2024, CSX's system-wide train efficiency metric reached approximately 528 ton-miles per gallon (RTM/gal). To put that in perspective, a comparable heavy-duty diesel truck hauling freight was estimated to achieve only about 134 ton-miles per gallon in a similar calculation. This efficiency directly translates to lower operating costs passed on to shippers.

Network Capacity: Double-stack intermodal clearance on the I-95 corridor (post-Howard Street Tunnel)

The completion of the Howard Street Tunnel expansion is a massive capacity unlock for the East Coast. This historic infrastructure project, valued at over $450 million, reopened on September 26, 2025. Once final bridge clearance projects wrap up in early 2026, this will clear a key I-95 corridor bottleneck, allowing double-stacked intermodal trains to move through Baltimore. CSX Corporation projects this will generate up to 125,000 new intermodal loads annually. Furthermore, the Port of Baltimore anticipates this will lead to 160,000 containers annually moving through the port. This establishes what CSX claims will be the fastest and most efficient intermodal route on the I-95 corridor connecting Florida with the Northeast.

Environmental Efficiency: Up to 75% fewer GHG emissions than trucks

The environmental benefit is a key selling point, especially as customers focus on their own Scope 3 emissions. Data from the U.S. Environmental Protection Agency suggests that freight by rail instead of truck would lower greenhouse gas (GHG) emissions by up to 75% on average. CSX Corporation's 2024 ESG report showed that their customers collectively reduced CO2 emissions by over 10 million tons by choosing rail. More recently, in 2025, three recognized customers-Diageo, Geocycle LLC, and Chemours-eliminated over 38,000 metric tons of CO2 emissions through their rail shipments with CSX.

Integrated Logistics: Seamless rail, intermodal, and rail-to-truck transload solutions

CSX Corporation provides a full suite of services, not just line-haul rail. The company offers rail, intermodal, and rail-to-truck transload services and solutions across its network, which connects every major metropolitan area in the eastern United States. This network also links more than 240 short-line railroads and over 70 ocean, river, and lake ports. The network's operational health is tracked closely by key metrics. For week 48 of 2025 (November 22 - 28, 2025), the system average train velocity was 20.1 mph, and the system-wide aggregated terminal dwell average was 9.7 hours.

You can see the focus on operational improvement reflected in service scores:

• Trip plan compliance reached 82.5% in May 2025.
• This May 2025 performance was the highest since December 2024\'s level of 82.7%.

Customer-Centric Service: Improved network fluidity and cost efficiency via the ONE CSX culture

The commitment to service improvement is tied to the internal 'ONE CSX' culture. Management pointed to this dedication as the enabler for sequential improvements in network fluidity and cost efficiency seen in the second quarter of 2025. For Q2 2025, CSX posted an operating margin of 35.9%. This followed a Q1 2025 where total volume was 1% lower year-over-year at 1.52 million units, but intermodal volume showed growth. The company reported Q2 2025 total volume was flat compared to Q2 2024 at 1.58 million units, which was up 4% sequentially. The Q2 2025 operating income was $1.28 billion, compared to $1.45 billion in Q2 2024.

Finance: draft 13-week cash view by Friday.

CSX Corporation (CSX) - Canvas Business Model: Customer Relationships

You're looking at how CSX Corporation manages its relationships across its diverse customer base as of late 2025. This isn't just about taking orders; it's about deep partnership for some and efficient, standardized service for others.

Dedicated sales and marketing teams for large, strategic accounts are key for securing high-value, complex business. The company's strategy involves these teams working closely with industrial development efforts. As of the March 2025 Proxy Statement, CSX Corporation reported having over 550 projects in its industrial development pipeline, which directly translates to future large account engagement and tailored service solutions.

Direct communication and collaboration are formalized through the ONE CSX model. This framework is designed to ensure that Operations and Sales and Marketing teams work together to create tailored solutions, reinforcing the role as a trusted partner. This internal alignment supports the relationship management across the entire organization, which is built on a foundation of approximately 23,500 employees as of 2025.

For standard freight movements, the relationship leans more toward the transactional side, where efficiency and reliability are the primary value drivers. You see this reflected in the operational performance metrics that impact day-to-day service. For week 48, ending November 28, 2025, the system average train velocity was reported at 20.1 mph, and the system-wide dwell average was 9.7 hrs. These metrics are the tangible results of the service provided to these transactional customers.

The backbone of many long-term relationships involves long-term contracts for bulk commodities like coal and chemicals. These relationships are characterized by committed volumes over extended periods, providing revenue stability. The importance of these segments is clear from the 2024 revenue breakdown:

The coal segment, a major component of these contract-based relationships, faced headwinds, with fourth quarter 2024 coal revenue falling 20% to $499 million. For the full year 2024, CSX Corporation hauled 82.7 million short tons (st) of coal. Domestic coal shipments specifically dropped 14% to 38.9 million st in 2024, though export shipments to terminals saw a 9% increase.

The company's approach to customer relationships can be summarized by the different levels of engagement required:

• Dedicated account management for strategic partners.
• Supply chain analysis offered by Regional Sales Managers.
• Focus on operational metrics for transactional shippers.
• Commitment to long-term volume stability from bulk commodity contracts.

Finance: draft 13-week cash view by Friday.

CSX Corporation (CSX) - Canvas Business Model: Channels

You're looking at how CSX Corporation actually gets its product-freight movement-to the customer, which is all about the physical network they use. This is the backbone of their operation, the tangible assets that connect supply and demand across the Eastern U.S. and beyond.

Direct rail lines connecting major metropolitan areas and production facilities

CSX Corporation's primary channel is its extensive rail network. This network is positioned to reach nearly two-thirds of Americans, who drive the majority of the nation's consumption of goods. The core infrastructure is its approximately 20,000 route-mile rail network. This physical track structure includes mainline track connecting terminals and yards, as well as track connecting the mainline to customer locations.

The network serves key population centers across the eastern United States. For instance, in the first quarter of 2025, CSX Corporation reported total volume of 1.52 million units. By the second quarter of 2025, that volume was 1.58 million units. To move this freight, CSX Transportation operates an average of 1,848 trains per day. The company maintains a fleet of approximately 51,000 freight cars and more than 3,500 locomotives to support these movements.

Network of intermodal terminals for container and trailer transfer

The intermodal segment is a crucial channel, linking customers to railroads via trucks and terminals for container and trailer transfer. CSX Corporation operates a system of intermodal terminals, predominantly in the eastern United States. These terminals act as sorting facilities where railcars are re-sorted onto new outbound trains, serving as hubs between CSX and local customers. While the exact number of terminals isn't explicitly stated for late 2025, the company's intermodal business showed growth, with intermodal volume contributing to offsetting revenue declines in Q1 2025. The company's ten largest yards and terminals based on annual volume include Waycross, Georgia, and the Bedford Park Intermodal Terminal in Chicago, Illinois.

Short-line railroad connections for last-mile and regional access

To ensure regional access and last-mile connectivity, CSX Corporation uses track connections to a vast network of smaller carriers. This is how they reach thousands of production and distribution facilities that aren't directly on their main lines. As of early 2025 announcements, CSX links with more than 240 short-line and regional railroads. This connectivity is vital for moving bulk and industrial merchandise, like the 17% of consolidated revenue derived from chemicals or the 7% from automotive cargo in 2024.

Port connections to facilitate international trade via 70+ ports

For international trade channels, CSX Corporation connects its network to maritime shipping lanes. The network reaches more than 70 ocean, river, and lake ports along the Atlantic and Gulf coasts, the Mississippi River, the Great Lakes, and the St. Lawrence Seaway. This facilitates the movement of goods for import and export. For example, in Q2 2025, lower export coal prices impacted revenue, showing the direct link between port activity and financial results. The company's subsidiaries, like Quality Carriers, also support the movement of bulk liquid chemicals, which often involves port logistics.

Here's a quick look at the scale of the network channels as of the latest reporting periods:

The reach of these channels is broad, covering key metropolitan areas like New York, Philadelphia, Boston, Atlanta, Miami, and New Orleans. Also, CSX Transportation, Inc. is responsible for real estate sales and management, substantially all of which is focused on supporting railroad operations, which is an indirect channel supporting the physical network.

You should check the next 10-K filing to see if the route mileage has changed due to any infrastructure projects mentioned by CEO Joe Hinrichs. Finance: draft 13-week cash view by Friday.

CSX Corporation (CSX) - Canvas Business Model: Customer Segments

You're looking at the core of how CSX Corporation makes its money, which is all about who pays them to move their goods across the Eastern, Southeastern, and Midwestern United States. Honestly, the customer base is a direct reflection of the industrial and consumer economy they serve.

For the projected fiscal year 2025, CSX Corporation expects its Merchandise Freight segment to be the single-biggest revenue driver, making up 64% of total projected revenues, estimated at $9.1 Billion. This segment is where the bulk of the industrial and consumer product customers sit.

Merchandise: Industrial, construction, agricultural, and consumer products

The Merchandise segment is quite diverse, encompassing a wide range of bulk and finished goods. In 2024, this segment shipped 2.6 million carloads, generating $8.9 billion in revenue. This business line is where you find the manufacturers of plastics, metals, minerals, and forest products, alongside agricultural shippers.

Here's a look at the components that make up this broad customer base, based on 2024 revenue distribution across the detailed Merchandise sub-categories mentioned in their reports:

To be fair, the exact 2024 breakdown for these sub-segments isn't fully available, but the overall Merchandise segment accounted for about 61% of the total 2024 revenue of $14,540 million.

Intermodal: Shipping lines and logistics companies moving manufactured consumer goods

The Intermodal segment handles the movement of containers that switch between rail, truck, and sometimes ship or barge. This is the direct link for many logistics providers and shipping lines moving manufactured consumer goods across the network. In 2024, this segment shipped 2.9 million units, a 5% increase in volume year-over-year.

For projected 2025, Intermodal Freight is expected to generate $2.0 Billion, representing 14% of total projected revenue. This segment's customers are primarily those needing port access or efficient long-haul container movement.

Coal: Electric utilities, steel manufacturers, and export markets

CSX Corporation moves both thermal coal for electric utilities and metallurgical coal for steel production, plus exports. This segment saw its revenue decline in 2024 due to lower global benchmark rates.

In 2024, Coal Services generated $2.20 Billion in revenue, which was about 15.78% of the total revenue. For projected 2025, Coal Freight is expected to generate $1.9 Billion, or 13% of total revenue.

The key customer types here are:

• Electric utilities for power generation.
• Steel manufacturers using metallurgical coal.
• Export markets, with deliveries to ports like Baltimore and Norfolk.

Chemicals: Manufacturers of plastics, fertilizers, and other industrial chemicals

While the specific Chemicals segment revenue is often bundled into Merchandise, the types of customers are clear. The Merchandise segment includes chemicals & petroleum products, and fertilizers are explicitly listed as a component. The Trucking segment, operated through Quality Carriers, also focuses on bulk liquid chemicals transportation.

In 2024, the revenue from the broader Merchandise segment, which houses these chemical shippers, was $8.9 billion. You're looking at major industrial producers who rely on CSX Corporation for feedstock and product distribution.

Automotive: Vehicle manufacturers and parts suppliers

Automotive is another key component within the larger Merchandise Freight category. In 2024, the Merchandise segment, which includes Automotive, accounted for 61% of the total revenue of $14,540 million.

The Automotive customer base includes both vehicle manufacturers and suppliers of parts, relying on the network to move components to assembly plants and finished vehicles to distribution points.

Finance: draft a sensitivity analysis on Merchandise revenue assuming a 5% volume shift from Intermodal to Merchandise for 2026 by Friday.

CSX Corporation (CSX) - Canvas Business Model: Cost Structure

You're looking at the heavy, non-negotiable costs that keep the CSX Corporation network running. For a Class I railroad, the cost structure is dominated by assets that require constant, massive upkeep. It's a capital-intensive game, plain and simple.

The foundation of CSX Corporation's cost base is the high fixed costs associated with owning and maintaining the extensive rail infrastructure-the tracks, bridges, signals, and yards. While we don't have the exact fixed operating expense for late 2025, we know the commitment to this asset base is ongoing. For context on the asset scale, as of June 30, 2025, the rail segment's reportable assets stood at $42.7 billion.

The variable costs, however, are what you watch closely quarter-to-quarter to gauge operational efficiency. These are the costs that move with volume and market conditions. Here's a breakdown of the key expense categories for the first six months of 2025 (H1 2025) compared to the same period in 2024, showing where the money is actually going:

Labor and Fringe is a significant chunk of the operating costs. For the first half of 2025, this category hit $1.612 billion. That's a definite increase from the $1.571 billion seen in H1 2024, likely reflecting wage pressures and inflation impacting the workforce you depend on.

Fuel expenses are the classic variable cost that swings with commodity prices. In H1 2025, CSX Corporation spent $544 million on fuel. That's a notable drop from the $626 million spent in the first half of 2024, suggesting either lower commodity prices or better fuel efficiency-or both-helped the bottom line, even if only slightly.

You also have to account for the money going into keeping the network modern and expanding its reach. Capital expenditures (CapEx) are critical here. Management reaffirmed its plan to spend approximately $2.5 billion on CapEx for the full year 2025. Looking at the actual spend through the first half of the year, the rail segment alone invested $1,457 million ($1.457 billion) in property additions, showing they are defintely pushing hard on network improvements.

Here are the key components driving the non-labor, non-fuel operating costs:

• Purchased Services and Other: This category was $1.484 billion for H1 2025, up from $1.411 billion the prior year.
• Capital Expenditures (Rail Segment YTD): $1,457 million spent through June 30, 2025.
• Planned Full-Year CapEx: Approximately $2.5 billion budgeted for 2025.
• Depreciation and Amortization (H1 2025): This non-cash charge was $852 million.

Finance: draft 13-week cash view by Friday.

CSX Corporation (CSX) - Canvas Business Model: Revenue Streams

CSX Corporation generates its freight revenue primarily from the transportation of merchandise, intermodal containers, and coal across its network in the Eastern United States. The total revenue for the Trailing Twelve Months (TTM) ending September 30, 2025, was reported at $14.123 billion.

The business model relies on distinct freight segments, with the Merchandise segment historically being the largest contributor to the top line. For the projected Fiscal Year 2025, Merchandise Freight is expected to account for 64% of total revenues, translating to an estimated $9.1 billion. This segment includes the transportation of chemicals & petroleum products, metals & equipment, minerals, fertilizers, forest products, agricultural & food products, and automotive cargo.

The revenue streams show varied performance across segments as of the third quarter of 2025. For instance, in Q3 2025, the Merchandise segment saw a -1% revenue decline on a -1% volume decrease, with pricing offsetting fuel/mix effects. Conversely, Intermodal revenue increased by +4% on a +5% volume increase in the same quarter, driven by international growth.

Coal revenue faced headwinds, with Q3 2025 revenue declining by -11% on a -3% volume decrease, as weakness in the export coal market persisted, though utility coal remained strong. Overall total quarterly revenue for Q3 2025 was $3.59 billion, a 1% decrease year-over-year, as lower export coal prices and merchandise volume declines partially offset gains elsewhere.

Fuel surcharge revenue is a variable component of the total, adjusting based on diesel prices. The impact of lower fuel surcharges was noted as a factor contributing to a 4% decrease in total CSX revenue for one reported quarter. This highlights how external energy costs directly influence a portion of the reported revenue figures.

Here is a look at the projected breakdown of CSX Corporation's revenue streams for the full Fiscal Year 2025, based on current estimates:

The revenue composition for the third quarter of 2025 showed specific commodity performance within the freight categories:

• Intermodal revenue was up +4% on a +5% volume increase.
• Within Merchandise, Minerals revenue grew +12% on +8% volume growth.
• Fertilizer volume saw a rebound with 7% growth.
• Forest Products and Chemical markets volumes were both down -7%.
• Export coal revenue declined -11% year-over-year.

The company's Q3 2025 revenue was $3.59 billion, with adjusted earnings per share of $0.44. The TTM revenue of $14.123B represented a 3.8% decline year-over-year.