Apr. 23 at 1:11 AM
CSX shares rose after hours after the railroad operator raised its full-year sales outlook, citing stronger demand as more businesses shift freight to rail to reduce exposure to rising fuel costs amid geopolitical disruption, including the Iran war.
Management said shipments are benefiting from higher demand in plastics, where U.S. producers are gaining from global supply chain disruptions. The company also highlighted growing freight volumes tied to data center construction, which continues to support industrial shipping demand.
The update comes against a mixed macro backdrop: weaker housing and subdued auto production are still weighing on volumes, but cost pressures—especially fuel—are pushing some customers toward rail as a more efficient logistics option compared to trucking.
The market reacted positively overall, with CSX moving higher after hours despite being slightly down in regular trading.
$CSX