Shares of CSX (NASDAQ: CSX) rose more than 4% intra-day on Friday after the railroad operator reported fourth-quarter earnings that exceeded expectations, even as revenue declined year over year amid a challenging industrial environment.

CSX reported adjusted earnings per share of $0.42 for the fourth quarter of 2025, topping analyst estimates of $0.41. Revenue totaled $3.51 billion, slightly below the consensus forecast of $3.55 billion and down 1% from the prior-year period. The quarter included approximately $50 million in expenses related to severance programs and technology rationalization efforts.

Operating income for the quarter came in at $1.11 billion, resulting in an operating margin of 31.6%. This compared with adjusted operating income of $1.21 billion and an adjusted operating margin of 34.3% in the same quarter last year.

The company said lower merchandise volumes and reduced export coal revenue weighed on results, but these pressures were partially offset by higher pricing across merchandise and intermodal segments, increased intermodal volumes, and higher fuel surcharge revenue.

For full-year 2025, CSX reported revenue of $14.09 billion and adjusted operating income of $4.69 billion, excluding a $164 million goodwill impairment recorded in the third quarter. The company delivered an adjusted operating margin of 33.2% for the year, with adjusted earnings per share of $1.61.