Slide 1: 2025 Second Quarter Conference Call
2025 SECOND QUARTER CONFERENCE CALL 7.23.2025
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: Second Quarter Key Takeaways
Second Quarter Key Takeaways Strong sequential improvement in network performance Financial results reflect ongoing focus on efficiency and cost control Howard Street Tunnel and Blue Ridge remain on schedule for Q4 completion Managing through mixed market conditions, supported by operational momentu
Slide 6: Second Quarter Operational and Financial Results
Second Quarter Operational and Financial Results Total Volume Total Revenue 1,578k 1,580k $3,701M $3,574M 1,518k $3,423M 4% QoQ Increase 4% QoQ Increase Flat (3%) YoY Decrease Q2 24 Q1 25 Q2 25 Q2 24 Q1 25 Q2 25 Operating Margin1 Earnings Per Share 39.1% $0.49 35.9% $0.44 30.4% $0.34 550 bps QoQ Inc
Slide 7: Operations Review
OPERATIONS REVIEW Mike Cory Executive Vice President and Chief Operating Officer
Slide 8: Second Quarter Safety Highlights
Second Quarter Safety Highlights FRA Personal Injury Frequency Index Personal injury frequency rate continues 1.33 1.25 to trend lower YoY 1.09 0.93 0.99 ‒ Reduced injury severity rates reflect commitment to SAFE CSX culture Yards and terminals in focus for accident Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 imp
Slide 9: Network Fluidity and Average Carloads
Network Fluidity and Average Carloads Velocity (MPH) Cars Online (000s) 138 136 18.7 18.3 18.2 18.0 132 17.6 17.7 129 16.8 127 128 16.7 126 124 2023 2024 Jan 25 Feb 25 Mar 25 Apr 25 May 25 Jun 25 2023 2024 Jan 25 Feb 25 Mar 25 Apr 25 May 25 Jun 25 Dwell (Hours) Average Weekly Carloads (000s) 12.0 11
Slide 10: Second Quarter Service Metrics
Second Quarter Service Metrics Carload TPC Intermodal TPC Customer Switch Data 94% 94% 94% 94% 92% 93% 93% 90% 80% 80% 90% 76% 75% 85% 69% Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 2025 SECOND QUARTER EARNINGS CONFERENCE CALL 6
Slide 11: Network Improvement Projects
Network Improvement Projects Howard St Tunnel Avon Yard Howard Street Tunnel project progressing toward completion in early Q4 2025 ‒ Installation of precast concrete inverted segments is on-schedule ‒ Bridge clearance initiatives underway and on track to finish by early 2026 Minor reconfiguration a
Slide 12: Sales & Marketing Review
SALES & MARKETING REVIEW Kevin Boone Executive Vice President and Chief Commercial Officer
Slide 13: Merchandise Summary
Merchandise Summary 2Q25 Volume YoY 2Q25 Revenue YoY Metals & Equipment 3% (3%) Higher steel production Minerals 2% 5% Continued infrastructure activity strength Agriculture & Food 2% 3% Positive feed grain demand Automotive (2%) (5%) Quality holds, reduced industry production Temporary outages and
Slide 14: Coal Summary
Coal Summary YoY change in Coal Revenue ($M) Export coal revenue impacted by weaker global benchmark prices and mine production constraints, affecting both volume and RPU $563 Utility coal benefitted from stable natural gas prices, strong utility demand, and improved network fluidity $477 Steel & In
Slide 15: Intermodal Summary
Intermodal Summary Q2 Intermodal Revenue Momentum in International activity continued over Q2 as CSX continues to benefit from favorable $506M $491M partner alignments Domestic volumes largely stable, supported by (3%) consistent service, incremental business wins ‒ Interchange volumes affected by t
Slide 16: Financial Review
FINANCIAL REVIEW Sean Pelkey Executive Vice President and Chief Financial Officer
Slide 17: Second Quarter Earnings Summary
Second Quarter Earnings Summary Second Quarter Income Statement Dollars in Millions 2025 2024 Variance Revenue $3,574 $3,701 (3%) Expense 2,291 2,253 (2%) Operating Income $1,283 $1,448 (11%) Interest Expense & Other Income - Net (190) (181) (5%) Income Tax Expense (264) (304) 13% Net Earnings $829
Slide 18: Second Quarter Expense
Second Quarter Expense Labor & Fringe Purchased Services & Other Depreciation & Amortization $774M $425M $427M $821M $410M $766M $791M $691M $710M $30M Decrease $64M Decrease ($2M) Increase ($25M) Increase ($19M) Increase ($17M) Increase Q2 24 Q1 25 Q2 25 Q2 24 Q1 25 Q2 25 Q2 24 Q1 25 Q2 25 Fuel Equ
Slide 19: Second Quarter Cash Flow and Distributions
Second 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 $1,150 $294 $488 $1,201 $1,066 $468 $1,172 $444 $810 Q2 24 YTD Q2 25 YTD Q2 24 YTD Q
Slide 20: Closing Remarks
CLOSING REMARKS Joe Hinrichs President and Chief Executive Officer
Slide 21: 2025 Guidance Review
2025 Guidance Review Continue to expect overall FY25 volume growth Smaller 2H year-over-year revenue headwinds from lower export coal benchmarks and diesel prices Persistent focus on operational excellence, labor productivity, and efficiency initiatives Capex roughly flat year/year excluding hurrica
Slide 22: Appendix: Non-GAAP Reconciliations
APPENDIX Non-GAAP Reconciliations
Slide 23: Non-GAAP Free Cash Flow Reconciliation
Non-GAAP Free Cash Flow Reconciliation Free Cash Flow Six Months Ended Dollars in millions Jun 30, 2025 Jun 30, 2024 Net Cash Provided by Operating Activities $ 1,890 $ 2,173 Property Additions (1,495) (1,066) Proceeds and Advances from Property Dispositions 49 43 Free Cash Flow Before Dividends (no
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