By Katherine Hamilton

CSX is wary about any possible merger following the $71.5 billion deal that two of its rivals agreed to this summer.

The railroad operator fielded a string of questions during Thursday's third-quarter earnings call about whether CSX would consider a merger in the footsteps of the deal between Union Pacific and Norfolk Southern. Executives responded by emphasizing CSX's strategy as a standalone company and noting the regulatory hurdles its competitors still have to clear.

"You've got to wait for when the conditions are right," Chief Executive Steve Angel said.

Angel, who joined CSX last month, did say he is keeping his eyes open for strategic opportunities and rethinking some elements of the railroad operator's business, particularly when it comes to collaborating with other companies. There are opportunities to work with other railroads to reduce friction, he said.

"I think it's a fair question why it didn't happen in the past," he said.

Angel is cautious about moving quickly on a deal that would create a bigger company. He discussed Union Pacific's merger with Southern Pacific in 1996, and said it "did not go swimmingly" as the railroads struggled to integrate their operations following the deal. Angel sees plenty of challenges for mergers, as the Surface Transportation Board updated its rules in June. The regulatory body is now more focused on competitiveness and the public good, Angel said.

"When I read the language of the evaluation criteria from the STB, it's pretty onerous," he said.

The merger talk Thursday stole the show from third-quarter financials, which came in ahead of Wall Street expectations. Revenue fell about 1% to $3.59 billion. Analysts surveyed by FactSet forecast revenue of $3.57 billion.

Shares advanced 2% to $36.85 in after-hours trading.

Lower export coal prices and a decline in merchandise volume partially offset increases in other revenue, higher merchandise pricing and intermodal volume growth. Volume increased 1% to 1.61 million units.

Profit was $694 million, or 37 cents a share, in the quarter ended Sept. 30, compared with $894 million, or 46 cents a share, a year earlier. Analysts expected 43 cents a share, according to FactSet.

"The whole focus is really performing well as a standalone company," Angel said.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

October 16, 2025 18:32 ET (22:32 GMT)

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