06:35 AM EDT, 10/17/2025 (MT Newswires) -- CSX (CSX) shares rose early Friday as the rail-based freight transportation supplier reported better-than-expected third-quarter results, buoyed by a slight increase in volume.

Adjusted earnings, excluding a $164 million non-cash goodwill impairment charge, came in at $0.44 per share for the September quarter, the company said late Thursday, beating the FactSet-polled consensus of $0.42.

Revenue ticked down 1% to $3.59 billion, impacted by lower export coal prices and a decline in merchandise volume, but topped the Street's view for $3.57 billion. Overall volume rose 1% year over year and 2% on a sequential basis. The stock gained 4.2% in the most recent premarket activity.

"Looking across the markets we serve, business conditions are mixed," Chief Commercial Officer Kevin Boone said during an earnings call, according to a FactSet transcript. "Customers face uncertainty and headwinds from shifting trade policies, weak global commodity prices, unsupportive interest rates and a persistently soft trucking market."

Revenue in the intermodal segment increased 4% to $527 million amid volume growth of 5%, "despite a soft trucking market and muted pricing," according to Boone. Merchandise revenue nudged 1% lower to $2.21 billion as "core pricing gains were offset by lower fuel surcharge and unfavorable mix," Boone said on the call. Coal revenue dropped 11% to $490 million, while trucking decreased 3% to $207 million.

For full-year 2025, CSX continues to expect to deliver annual volume growth, given its "solid network momentum, new business wins and expanded service offerings," Chief Financial Officer Sean Pelkey told analysts on the call. The company reiterated its capital expenditure outlook of $2.5 billion, excluding hurricane rebuild spending, according to a presentation.

The company expects year-over-year headwinds to ease into the ongoing three-month period, with "strong operational execution and cost control" likely to provide a "positive setup for improved results," according to Pelkey.

"We expect our fourth quarter results to reflect the strong operating performance and cost efficiencies that we have driven through the year," the CFO added.