July 23 (Reuters) - CSX (CSX.O) , opens new tab reported second-quarter profit above analysts' estimates on Wednesday, driven by improving intermodal volumes, sending its shares up more than 2% after the bell.

Intermodal shipping, which involves two or more means of transportation for goods and accounted for 14% of its overall revenue in 2024, saw a 2% quarterly rise in volume.

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CSX chief executive Joe Hinrichs said on Wednesday that while uncertainty continues to impact select industrial markets, the company remained focused on completing two major infrastructure projects that will "strengthen our position to execute on many profitable growth opportunities ahead."

"CSX performed better than expected as service improved and extra costs in the network came out much more quickly than anticipated 3 months ago," said Evercore ISI analyst Jonathan Chappell.

"We welcome all opportunities that would allow us to deliver value for our shareholders, drive pro-growth and serve our customers better," Hinrichs said on a post-earnings call.

The railroad operator is reportedly in discussions to appoint financial advisers as it explores strategic options amid growing speculation of a potential merger with its West Coast peer BNSF Railway, owned by Warren Buffett's Berkshire Hathaway (BRKa.N) , opens new tab.

However, any merger would be subject to approval from the Surface Transportation Board, a regulatory body that oversees railroads.

CSX maintains a fleet of more than 3,500 locomotives and about 51,000 freight cars, according to its website.

Separately, CSX said that on July 10 the U.S. SEC had concluded its investigation into an accounting restatement and that it does not intend to recommend enforcement action.

On an adjusted basis, it reported per-share profit of 44 cents, above the analysts' average estimate of 42 cents apiece, according to data compiled by LSEG.

The company reported quarterly revenue of $3.57 billion, missing estimates of $3.58 billion.

CSX's operating margin was 35.9% for the quarter, down by 320 basis points from last year.

https://www.reuters.com/business/railroad-operator-csx-beats-quarterly-profit-estimates-higher-volumes-2025-07-23/