Surface Transportation Board Finds Two Class I Railroads Met Financial Benchmarks in 2024

The Surface Transportation Board released a finding on the 2024 financial standing of two major freight carriers, CSX Transportation Inc. and Union Pacific Railroad Co. The Board determined that these companies met their annual financial benchmarks, which include generating profits sufficient to cover operational costs and provide a fair return to investors. This finding highlights the strong performance of CSX Transportation and Union Pacific, with both companies achieving a rate of return on investment that met or exceeded the industry's cost of capital of 10.68% for the 2024 year.

Key Takeaways:

• The Surface Transportation Board annually assesses the financial health of the nation's railway system, with a focus on whether railroads meet their financial benchmarks, which include a rate of return on investment.
• The Board's 2024 finding indicated that CSX Transportation Inc. and Union Pacific Railroad Co. met their financial benchmarks, with both companies generating profits sufficient to cover operational costs and provide a fair return to investors.
• The financial benchmarks are based on an industry cost of capital of 10.68% for the 2024 year, indicating that both companies achieved a strong rate of return on investment.
• The finding was made in a thorough and ongoing process to monitor the financial health of the nation's railway system, with a focus on the profitability and stability of major transportation entities.
• Board Members Fuchs, Hedlund, Primus, and Schultz were involved in the decision, which was rendered on August 20, 2025.
• The full details of the finding are accessible on the Board's website, providing key insight into the economic performance of these vital arteries of commerce.

Statistics:

• The industry cost of capital for the 2024 year was set at 10.68%, which indicates the rate of return on investment that railroads must achieve to meet their financial benchmarks.
• CSX Transportation Inc. and Union Pacific Railroad Co. both met their financial benchmarks, with both companies generating profits sufficient to cover operational costs and provide a fair return to investors.
• The finding is part of an ongoing process to monitor the financial health of the nation's railway system, with a focus on the profitability and stability of major transportation entities.

Sources:

• Targeted News Service - "Surface Transportation Board Finds Two Class I Railroads Met Financial Benchmarks in 2024"
• U.S. Federal Register - "Railroad Revenue Adequacy 2024 Determination" (August 22, 2025)
• Surface Transportation Board - Board Members and Decisions