SEC subpoenas CSX for misstatements in financial reports

This story originally appeared on Trains.com.

JACKSONVILLE, Fla. – The Securities and Exchange Commission has named CSX Corp. cited for making false statements in previous financial reports, CSX said in its latest quarterly filing with the government agency.
CSX delayed its second-quarter financial reports by about two weeks as it reviewed accounting for the capitalization of engineering materials and labor costs, a move the company announced in July. CSX’s second-quarter report to the SEC, filed after the results were announced on August 5, said the company had identified misstatements, but that the impact was “immaterial to the financial statements of all prior periods.”
However, the company’s third-quarter Form 10-Q financial report filed today (Oct. 17) said the company received a subpoena earlier this month “requiring information relating to, among other things, the information contained in the company’s March 5 report.” The accounting adjustment disclosed in August 2025 was requested. Form 10-Q. The Company has also responded to SEC requests for information relating to certain of the Company’s non-financial performance measures. The Company is cooperating with the SEC and providing information in response to these requests. Although the Company believes its reporting complied in all material respects with applicable requirements, the Company cannot predict the timing, scope, outcome or possible financial or other impact of the investigation.”
CSX reported flat second-quarter sales and a 1% decline in operating income. On Wednesday, the railroad said it had a 1% increase in revenue and a 7% increase in operating income and reported the first financial impacts of Hurricane Helene and Hurricane Milton.
The Wall Street Journal first reported the SEC’s subpoena.

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