Freight rail transportation services provider Kansas City Southern (KSU) reported Tuesday an increase in second-quarter profit, reflecting revenue and volume growth across all business segments, despite hefty debt retirement costs. On a per share basis, adjusted earnings came in above market expectations
For the second quarter, net income available to common shareholders shot up to $34.6 million or $0.34 per share from $6.5 million or $0.07 per share in the previous year. The results of the latest quarter included debt retirement costs or $0.21 per share. Excluding the one time costs earnings per share was $0.55.
On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $0.46 per share in the second quarter. Analysts' estimate typically excludes special items.
The results of 2010 second-quarter were hit by debt retirement costs of $32.5 million. Foreign exchange loss was $1.4 million, compared to gain of $6.0 million last year.
Revenues for the quarter increased 35% to $461.6 million from $341.3 million. Ten analysts were expecting revenue of $454.41 million in the second quarter.
The company noted that automotive revenues spiraled up 292% to $24.3 million, due to increase in auto production in Mexico. Intermodal revenues rose 54% year-over-year to $49.6 million, as new business lanes and organic volume growth continued to improve.
Revenue from Agriculture & Minerals rose 42% to $115.9 million, while Industrial & Consumer Products sales climbed 31% to $109.2 million from the prior year. Coal segmental revenues grew 25% to $53.3 million and Chemical & Petroleum revenues increased 18% to $93.4 million, compared to the same period last year.
Kansas City Southern also indicated that total volume for the quarter was up 24% to 468.4 thousand units.
Operating income for the second quarter advanced 195% to $127.2 million from a year ago. Operating expenses for the period increased 12% to $334.4 million.
In the immediately preceding quarter, Kansas City Southern reported first-quarter profit of $32.6 million or $0.34 per share, helped by a 26% revenue growth year-over-year.
Among competitors, Railroad operator CSX Corp. (CSX) said earlier this month that its second-quarter profit climbed by 36% over last year, driven by strong volume and revenue growth combined with lower operating expenses.
KSU is currently trading at $37.74, down $1.71 or 4.28%, on a volume of 974K shares on the NYSE.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.