Slide 1: 2024 Fourth Quarter Conference Call
2024 FOURTH QUARTER CONFERENCE CALL 1.23.2025
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: Remaining focused on long-term, profitable growth: Key 2024 Achievements
Remaining focused on long-term, profitable growth Key 2024 Achievements Total volume growth of 2%, ahead of Industrial Production Merchandise revenue up 3%, driven by positive volumes and favorable pricing Customer recognition for consistent service, leading to business gains and broadening opportun
Slide 6: Fourth Quarter Operational and Financial Highlights
Fourth Quarter Operational and Financial Highlights Total Volume Total Revenue 1,560k 1,575k $3,680M $3,539M +1% Increase (4%) Decrease Q4 23 Q4 24 Q4 23 Q4 24 Intermodal Volume Earnings Per Share* $0.45 Adjusted 746k GAAP $0.42 720k $0.38 +4% Increase (7%) Decrease Q4 23 Q4 24 Q4 23 Q4 24 Q4 24 * S
Slide 7: Operations Review
OPERATIONS REVIEW Mike Cory Executive Vice President and Chief Operating Officer
Slide 8: Fourth Quarter and Full Year Safety Results
Fourth Quarter and Full Year Safety Results FRA Personal Injury Frequency Index Safety remains a core principle at CSX Quarterly Annual Personal injury rates continued to 1.22 1.33 1.19 1.19 improve sequentially in Q4 but remained 1.01 0.94 0.71 higher than the previous year Data show most injuries
Slide 9: Q4 Service Metrics affected by hurricane recovery
Q4 Service Metrics affected by hurricane recovery Intermodal Trip Plan Performance Carload Trip Plan Performance 100% 100% 95% 90% 4Q24 4Q23 Avg: 75.5% Avg: 94.7% 4Q24 80% 4Q23 90% Avg: 84.9% Avg: 84.7% 70% 85% 60% 80% 50% 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 Customer Switch Data 100% 9
Slide 10: Operations continues to balance fluidity, cost, and efficiency goals
Operations continues to balance fluidity, cost, and efficiency goals MPH Train Velocity Fuel Efficiency (Gal/kGTM) 1.10 20 1.05 Better 18 4Q23 4Q24 1.00 Avg: 18.3 Avg: 18.3 16 0.95 14 0.90 4Q23 1Q24 2Q24 3Q24 4Q24 4Q 22 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 Hours Dwell 1.25 HP per Trailing
Slide 11: Sales & Marketing Review
SALES & MARKETING REVIEW Kevin Boone Executive Vice President and Chief Commercial Officer
Slide 12: Merchandise Volume & Revenue Summary
Merchandise Volume & Revenue Summary Q4 Merchandise Revenue FY Merchandise Revenue 2025 Expectations Growth momentum continuing $2,182M $2,191M $8,653M $8,903M to develop across emerging customer partnerships, modal Flat +3% conversions, and industrial development project ramp-ups Constructive marke
Slide 13: Coal Volume & Revenue Summary
Coal Volume & Revenue Summary Q4 Coal Revenue FY Coal Revenue 2025 Expectations $620M Export volumes affected by coal $2,484M producer issues in the near-term $499M $2,247M – Strong CSX operational flexibility limited by mine outages over 1Q (20%) (10%) – FY shipments and pricing determined by direc
Slide 14: Intermodal Volume & Revenue Summary
Intermodal Volume & Revenue Summary Q4 Intermodal Revenue FY Intermodal Revenue 2025 Expectations Encouraging trends supportive $552M $526M for domestic growth $2,060M $2,047M – CSX driving volumes through (1%) consistent service, new (5%) customer alignments, modal conversions Q4 23 Q4 24 FY 23 FY
Slide 15: Financial Review
FINANCIAL REVIEW Sean Pelkey Executive Vice President and Chief Financial Officer
Slide 16: Fourth Quarter Earnings Summary
Fourth Quarter Earnings Summary Fourth Quarter Income Statement* Q4 2024 Goodwill Q4 2024 GAAP Adjusted Dollars in Millions Q4 2023 GAAP Impairment Adjusted Variance Variance Revenue $3,539 - $3,539 $3,680 (4%) (4%) Expense 2,433 (108) 2,325 2,365 (3%) 2% Operating Income $1,106 108 $1,214 $1,315 (1
Slide 17: Fourth Quarter Expense
Fourth Quarter Expense Q4 24 Costs from labor inflation were more than Change in Expense Q4 23 offset by lower incentive compensation and Labor & $788 other items Labor & Fringe Fringe $814 PS&O increase driven by inflation, Purchased Purchased $757 locomotive modernizations, and storm Services & Ot
Slide 18: Full Year Results
Full Year Results Volume (K) Revenue ($M) Growing Volume Ahead of the Industrial Economy 6,142 6,277 $14,657 $14,540 – Consistent service enabled y/y volume growth across all four quarters, with continued Merchandise/Intermodal pricing above inflation +2% Increase (1%) Decrease Absorbed Substantial
Slide 19: Anticipating ~$350M Net Impact from Discrete Items in 2025
Anticipating ~$350M Net Impact from Discrete Items in 2025 Commodity Prices + Cycling 2024 Items + Network Disruption ($300M) Unfavorable vs. 2024 Net ~$50M Favorable vs. 2024 ~($10M) Unfavorable Per Month ▪ Impact of lower export coal ▪ Cycling of lost business ▪ Estimated operating benchmarks, fue
Slide 20: Full Year Cash Flow and Distributions
Full Year Cash Flow and Distributions Property Shareholder Economic Profit* Additions Distributions In Millions In Billions In Millions Infrastructure Strategic & Rolling Stock Buybacks Dividends $882 $2,577 $0.7 $2,341 $0.6 $3,482 $1.8 $930 $1.7 $2,237 FY 23 FY 24** FY 23 FY 24 FY 23 FY 24 * See Ap
Slide 21: Closing Remarks
CLOSING REMARKS Joe Hinrichs President and Chief Executive Officer
Slide 22: 2025 Guidance
2025 Guidance ▪ Low to mid single-digit total volume growth for FY2025 – Intermodal, Merchandise momentum supported by conversions, industrial development – Coal volume lower on facility shutdowns and mine production issues ▪ FY revenue impacted by lower coal benchmarks, diesel prices, volume mix, p
Slide 23: Appendix: Non-GAAP Reconciliations
APPENDIX Non-GAAP Reconciliations
Slide 24: Non-GAAP Reconciliation of Adjusted Operating Results
Non-GAAP Reconciliation of Adjusted Operating Results Quarter Ended Dec. 31, 2024 Net Earnings Per Dollars in millions, Operating Operating Net Share, Assuming except per share amounts Income Margin Earnings Dilution GAAP Operating Results $ 1,106 31.3% $ 733 $ 0.38 Goodwill Impairment 108 3.0% 82 0
Slide 25: Non-GAAP Economic Profit Reconciliation
Non-GAAP Economic Profit Reconciliation Economic Profit Year Ended (a) Reflects adjustment of prior period financial statements; see Q2 2024 form 10-Q for details. Dollars in millions Dec 31, 2024(a) Dec 31, 2023(a) (b) Unusual items are defined by management as Operating Income $ 5,245 $ 5,499 uniq
Slide 26: Slide 26