Slide 1: 2025 First Quarter Conference Call
2025 FIRST QUARTER CONFERENCE CALL 4.16.2025
Slide 2: Forward Looking Disclosure
Forward Looking Disclosure This information and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, margins, volumes, rates, cost
Slide 3: Non-GAAP Measures Disclosure
Non-GAAP Measures Disclosure CSX reports its financial results in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). CSX also uses certain non-GAAP measures that fall within the meaning of Securities and Exchange Commission Regulation G and Regulati
Slide 4: Executive Summary
EXECUTIVE SUMMARY Joe Hinrichs President and Chief Executive Officer
Slide 5: First Quarter Operational and Financial Results
First Quarter Operational and Financial Results Total Volume Total Revenue 1,534k $3,681M 1,518k $3,423M (1%) Decrease (7%) Decrease Q1 24 Q1 25 Q1 24 Q1 25 Intermodal Volume Earnings Per Share $0.45 716k 701k $0.34 +2% Increase (24%) Decrease Q1 24 Q1 25 Q1 24 Q1 25 Note: Immaterial revisions have
Slide 6: Operations Review
OPERATIONS REVIEW Mike Cory Executive Vice President and Chief Operating Officer
Slide 7: First Quarter Safety Highlights
First Quarter Safety Highlights FRA Personal Injury Frequency Index 1.33 Safety is a core principle at CSX 1.22 1.19 1.09 0.95 The personal injury rate declined both sequentially and year-over-year as our SAFE CSX initiatives show positive results Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 The train accident rat
Slide 8: Service and fluidity measures reflect operational challenges
Service and fluidity measures reflect operational challenges Velocity (MPH) Dwell (Hours) Cars Online (000s) 131.6 132.2 18.6 11.5 18.2 18.2 18.3 11.2 126.2 126.6 124.7 17.6 10.2 10.3 9.7 (3%) Decrease 19% Increase 6% Increase Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 24 Q2 24 Q
Slide 9: Sales & Marketing Review
SALES & MARKETING REVIEW Kevin Boone Executive Vice President and Chief Commercial Officer
Slide 10: Merchandise Volume & Revenue Summary
Merchandise Volume & Revenue Summary Q1 Merchandise Revenue 2025 Expectations $2,185M Merchandise volume supported by improving $2,152M network fluidity, business wins, and ramp-up of new customer facilities (2%) Encouraging trends in Minerals with strength in infrastructure and construction project
Slide 11: Coal Volume & Revenue Summary
Coal Volume & Revenue Summary Q1 Coal Revenue 2025 Expectations $632M Export volume to stabilize as network performance gains traction, with 2Q comparing $461M against 2024 Key Bridge impacts (27%) ‒ Lower global met benchmarks weighing on year/year RPU comparisons Q1 24 Q1 25 ‒ Potential market vol
Slide 12: Intermodal Volume & Revenue Summary
Intermodal Volume & Revenue Summary Q1 Intermodal Revenue 2025 Expectations $506M Solid momentum in International activity as $493M CSX continues to benefit from favorable partner alignments (3%) Domestic volumes building after slower seasonal start Q1 24 Q1 25 Moderate trucking market improvement w
Slide 13: Industrial Development Initiatives Remain On Track
Industrial Development Initiatives Remain On Track Projects Placed In Service Inbound inquiries regarding new sites or expansions Q1 2025 remain at historically high levels ‒ Current pipeline nearing ~600 projects, 25% of which are under contract or nearing site selection YTD progress in-line with e
Slide 14: Financial Review
FINANCIAL REVIEW Sean Pelkey Executive Vice President and Chief Financial Officer
Slide 15: First Quarter Earnings Summary
First Quarter Earnings Summary First Quarter Income Statement Dollars in Millions 2025 2024 Variance Revenue $3,423 $3,681 (7%) Expense 2,382 2,344 (2%) Operating Income $1,041 $1,337 (22%) Interest Expense & Other Income - Net (183) (169) (8%) Income Tax Expense (212) (288) 26% Net Earnings $646 $8
Slide 16: First Quarter Expense Comparisons
First Quarter Expense Comparisons Q1 25 Around $45M of higher total costs attributed Quarterly Expense Comparison Q1 24 to network disruptions, congestion, and severe winter weather $821 Labor & Fringe $805 Labor increase driven by inflation, with headcount stable Purchased $774 Services & Other $72
Slide 17: First Quarter Cash Flow and Distributions
First Quarter Cash Flow and Distributions Property Free Cash Flow Shareholder Additions Before Dividends* Distributions In Millions In Millions In Millions Non-Blue Ridge Spend Blue Ridge Rebuild Buybacks Dividends $560 $559 $133 $245 $586 $517 $751 $235 $247 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 * Se
Slide 18: Closing Remarks
CLOSING REMARKS Joe Hinrichs President and Chief Executive Officer
Slide 19: 2025 Guidance
2025 Guidance ▪ Still expect FY25 volume growth, though market uncertainty and trade policy changes increase range of possible outcomes ▪ FY revenue impacted by lower coal benchmarks, diesel prices, volume mix, particularly in 1H ▪ Fluidity gains, efficiency initiatives, labor productivity to suppor
Slide 20: Appendix: Non-GAAP Reconciliations
APPENDIX Non-GAAP Reconciliations
Slide 21: Non-GAAP Free Cash Flow Reconciliation
Non-GAAP Free Cash Flow Reconciliation Free Cash Flow Three Months Ended Dollars in millions Mar 31, 2025 Mar 31, 2024(a) Net Cash Provided by Operating Activities $ 1,255 $ 1,066 Property Additions (719) (517) Proceeds and Advances from Property Dispositions 23 11 Free Cash Flow Before Dividends (n
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