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CSX Inks $670M Deal With Wabtec to Expand Fleet Modernization
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Key Takeaways
CSX signed a $670M deal with Wabtec to acquire 100 locomotives and modernize 50 units.
New Evolution Series engines aim to improve fuel efficiency and heavy-haul reliability.
CSX shares have climbed 24.3% in a year, outperforming the rail industry's 8.4% gain.
CSX Corporation (CSX - Free Report) has inked a $670-million deal with Westinghouse Air Brake Technologies (WAB - Free Report) , operating as Wabtec, marking a decisive step toward fleet modernization and stronger network performance. Per the deal, CSX will acquire 100 new Evolution Series locomotives, modernize 50 existing units and integrate advanced digital solutions to enhance operational efficiency and reliability.
CSX will use the new Evolution Series locomotives to improve fuel efficiency, tractive effort and overall reliability, particularly in long-haul and heavy-haul operations. By reducing fuel consumption while maintaining performance, the company aims to control operating costs and improve service consistency across its network.
The company will also convert aging D9 locomotives from DC to AC traction, extending their service life and improving fleet standardization. These upgrades will enable CSX to deploy advanced control and diagnostic technologies that support stronger fuel performance and operational productivity.
In addition, CSX will equip both new and modernized locomotives with Trip Optimizer and Smart Horsepower per Ton, an EPA-certified system designed to optimize fuel usage. With deliveries beginning this year and modernization rolling out in 2027, CSX is actively strengthening its fleet strategy to support long-term growth and efficiency gains.
Share Price Performance of CSX
CSX’s shares have gained 24.3% over the past year compared with the Transportation - Rail industry’s 8.4% rise.
LTM has an expected earnings growth rate of 22.42% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters, and met the mark once, delivering an average beat of 36.13%.
Southwest Airlines currently carries a Zacks Rank #2 (Buy).
LUV has an expected earnings growth rate of 344.1% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in three of the trailing four quarters, and missed the mark once, delivering an average beat of 253.9%.
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CSX Inks $670M Deal With Wabtec to Expand Fleet Modernization
Key Takeaways
CSX Corporation (CSX - Free Report) has inked a $670-million deal with Westinghouse Air Brake Technologies (WAB - Free Report) , operating as Wabtec, marking a decisive step toward fleet modernization and stronger network performance. Per the deal, CSX will acquire 100 new Evolution Series locomotives, modernize 50 existing units and integrate advanced digital solutions to enhance operational efficiency and reliability.
CSX will use the new Evolution Series locomotives to improve fuel efficiency, tractive effort and overall reliability, particularly in long-haul and heavy-haul operations. By reducing fuel consumption while maintaining performance, the company aims to control operating costs and improve service consistency across its network.
The company will also convert aging D9 locomotives from DC to AC traction, extending their service life and improving fleet standardization. These upgrades will enable CSX to deploy advanced control and diagnostic technologies that support stronger fuel performance and operational productivity.
In addition, CSX will equip both new and modernized locomotives with Trip Optimizer and Smart Horsepower per Ton, an EPA-certified system designed to optimize fuel usage. With deliveries beginning this year and modernization rolling out in 2027, CSX is actively strengthening its fleet strategy to support long-term growth and efficiency gains.
Share Price Performance of CSX
CSX’s shares have gained 24.3% over the past year compared with the Transportation - Rail industry’s 8.4% rise.
Image Source: Zacks Investment Research
CSX’s Zacks Rank
CSX currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Investors interested in the Zacks Transportation sector may consider LATAM Airlines Group (LTM - Free Report) and Southwest Airlines (LUV - Free Report) .
LTM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
LTM has an expected earnings growth rate of 22.42% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters, and met the mark once, delivering an average beat of 36.13%.
Southwest Airlines currently carries a Zacks Rank #2 (Buy).
LUV has an expected earnings growth rate of 344.1% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in three of the trailing four quarters, and missed the mark once, delivering an average beat of 253.9%.