Once doubted, now driven: Amtrak's bipartisan comeback continues

[Amtrak Passenger Wagon]
FinkAvenue/iStock Editorial via Getty Images

Amtrak is making a comeback that has attracted praise from politicians and passengers. While the U.S. rail network is still disproportionately focused on freight in comparison to Europe and Asia, there has been growing optimism that Amtrak could expand passenger service due to improvements in speed, coverage, technology, and efficiency that have been seen over the last five years.

Looking back, Amtrak was founded in 1971 to sustain intercity passenger train service in the United States after private railroads sought to discontinue their operations due to unprofitability. Over the years, Amtrak has relied heavily on federal subsidies while advancing national passenger rail, especially through its popular Northeast Corridor routes and the introduction of high-speed Acela service. Both parties have supported funding Amtrak, but at different levels.

Over the last few years, Amtrak has undergone a remarkable transformation amid support from both Democrats and Republicans, reaching records for both ridership and revenue. The company closed FY25 with 34.5 million customer trips and $2.7 billion in adjusted ticket revenue, representing a 5% and 10.4% improvement, respectively, over the prior year. Operating revenue surpassed $3.9 billion, and Amtrak increased network capacity by over 4%, even while managing an aging fleet.

Over the 12-month period that ended on September 30, Amtrak carried 34.5 million customer trips, which was up 5.1% from the prior year. Operating revenue increased 9.1% to a record $3.9 billion even though the railroad was running with slightly less capacity, a sign that demand is rebounding as Amtrak steadily narrows its deficit. "Amtrak's growth is a preview of what’s possible when everyone is working together to help get the American people where they need to go," stated U.S. Transportation Secretary Sean Duffy. "Faster trains, more affordable service, and extended routes are opening up a new era of American rail," he added.

At the same time, the company is deep into a long-running effort to rehabilitate aging infrastructure along the busy Northeast Corridor between Boston and Washington. Alongside these Northeast Corridor infrastructure upgrades, Amtrak is expanding service across the United States, buying a new generation of higher-speed Acela train cars, and preparing to begin replacing its regional trains starting next year.

Amtrak's ongoing investments include capital expenditures for infrastructure upgrades and new rolling stock like the NextGen Acela and Siemens Airo trains. The organization’s focus on operational reliability and customer experience has led to stronger passenger satisfaction ratings in the areas of on-time performance, enhanced food and beverage service, and expanded connectivity. Expanded regional services such as the Borealis and the Downeaster have also contributed to significant ridership growth.

Amtrak's strategic plans for the future include charting a course for operational profitability by fiscal year 2028. Supporters of privatizing Amtrak include Tesla (TSLA [https://seekingalpha.com/symbol/TSLA]) and SpaceX (SPACE [https://seekingalpha.com/symbol/SPACE]) CEO Elon Musk, but that idea has not gained traction in Washington, D.C.

Although Amtrak itself is not publicly traded, many related public companies operate in the same ecosystem. Freight railroads such as Canadian Pacific Kansas City (CP [https://seekingalpha.com/symbol/CP]), Union Pacific (UNP [https://seekingalpha.com/symbol/UNP]), Norfolk Southern (NSC [https://seekingalpha.com/symbol/NSC]), and CSX (CSX [https://seekingalpha.com/symbol/CSX]) share infrastructure with Amtrak and maintain mutually beneficial agreements. Rail equipment manufacturers, including Alstom (OTCPK:ALSMY [https://seekingalpha.com/symbol/ALSMY]), Siemens (OTCPK:SIEGY [https://seekingalpha.com/symbol/SIEGY]), and Wabtec (WAB [https://seekingalpha.com/symbol/WAB]) also provide essential technology and services for Amtrak’s modernization push.

ETFs loosely related to Amtrak include iShares U.S. Transportation ETF (IYT [https://seekingalpha.com/symbol/IYT]), SPDR S&P Transportation ETF (XTN [https://seekingalpha.com/symbol/XTN]), First Trust Nasdaq Transportation ETF (FTXR [https://seekingalpha.com/symbol/FTXR]), Direxion Daily Transportation Bull 3X Shares (TPOR [https://seekingalpha.com/symbol/TPOR]), Pacer Industrials and Logistics ETF (SHPP [https://seekingalpha.com/symbol/SHPP]), and Themes US Infrastructure ETF (HWAY [https://seekingalpha.com/symbol/HWAY]).

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