Slide 1: 2024 First Quarter Conference Call
2024 FIRST QUARTER CONFERENCE CALL 4.17.2024
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 Financial and Operational Highlights
First Quarter Financial and Operational Highlights +3% +7% 36.8% +90 bps Total Volume Intermodal Volume Operating Margin Q/Q Op Margin Growth Revenue Operating Income Earnings Per Share $3,706M $3,680M $3,681M $1,464M $0.48 $1,320M $1,354M $0.45 $0.46 Flat Q/Q 3% Q/Q Increase 2% Q/Q Increase 1% Y/Y
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 1.27 Safety remains a core principle at CSX 1.09 1.05 0.91 0.71 Q1 FRA injury and accident rates deteriorated sequentially versus the best quarterly performance of 2023 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 New risk identification and preve
Slide 8: Balancing Network Fluidity, Building Long-Term Reliability
Balancing Network Fluidity, Building Long-Term Reliability MPH Train Velocity 20 Modest decrease in velocity and increase in dwell compared to last year 18 1Q23 1Q24 Avg: 18.5 Avg: 18.2 16 Train tonnage and other key metrics indicate solid fluidity and efficiency enhancements 14 1Q23 2Q23 3Q23 4Q23
Slide 9: Customer Service Performance Remains Strong
Customer Service Performance Remains Strong Intermodal Trip Plan Performance Carload Trip Plan Performance 100% 100% 1Q23 1Q24 95% 90% Avg: 86% Avg: 82% 1Q23 Avg: 96% 1Q24 80% 90% Avg: 94% 70% 85% 60% 80% 50% 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 Customer Switch Data 100% 95% 1Q23 1Q24 A
Slide 10: Sales & Marketing Review
SALES & MARKETING REVIEW Kevin Boone Executive Vice President and Chief Commercial Officer
Slide 11: Merchandise Volume & Revenue Summary
Merchandise Volume & Revenue Summary Q1 Merchandise Revenue 2024 Expectations $2,185M Merchandise volume growth supported by $2,163M service leadership, new business wins, and modal share gains +1% Positive trends continuing in Automotive, Chemicals, Forest Products, and Minerals Q1 23 Q1 24 Ramp-up
Slide 12: Coal Volume & Revenue Summary
Coal Volume & Revenue Summary Q1 Coal Revenue 2024 Expectations $633M $632M Robust export coal demand across both thermal and metallurgical markets Flat Moderation of global benchmark prices to levels still above pre-pandemic averages Net revenue impact from Baltimore port closure Q1 23 Q1 24 estima
Slide 13: Intermodal Volume & Revenue Summary
Intermodal Volume & Revenue Summary Q1 Intermodal Revenue 2024 Expectations $499M $506M Solid international volume growth – Improving import levels, steady consumer demand, expanding inland port activity, +1% new shipper alignments Steady momentum for domestic volume Q1 23 Q1 24 – Supported by direc
Slide 14: Industrial Development Pipeline is Deep and Diversified
Industrial Development Pipeline is Deep and Diversified Online Projects Total Project Pipeline Approximately 100 customer Prior 12 Months projects online over the twelve months ending in March ‘24 ‒ Represents $4.2B in total ~10x Metals & Equipment, partner investment Volume 19% ‒ Approx. 80/20% mix
Slide 15: Financial Review
FINANCIAL REVIEW Sean Pelkey Executive Vice President and Chief Financial Officer
Slide 16: First Quarter Earnings Summary
First Quarter Earnings Summary First Quarter Income Statement Dollars in Millions 2024 2023 Variance Revenue $3,681 $3,706 (1%) Expense 2,327 2,242 (4%) Operating Income 1,354 $1,464 (8%) Interest Expense & Other Income - Net (169) (160) (6%) Income Tax Expense (292) (317) 8% Net Earnings $893 $987
Slide 17: First Quarter Expense Comparisons
First Quarter Expense Comparisons Labor & Fringe Purchased Services & Other Depreciation & Amortization $417M $410M $808M $798M $711M $703M $393M $723M $688M $10M Decrease ($8M) Increase $7M Decrease ($75M) Increase ($23M) Increase ($17M) Increase Q1 23 Q4 23 Q1 24 Q1 23 Q4 23 Q1 24 Q1 23 Q4 23 Q1 2
Slide 18: First Quarter Cash Flow and Distributions
First Quarter Cash Flow and Distributions Free Cash Flow Shareholder Economic Profit Before Dividends* Distributions (CSX Cash Earnings)* In Millions In Millions In Millions Buybacks Dividends $816 $226 $733 $1,067 $609 $560 $235 $247 Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 * See Appendix for Non-GAAP r
Slide 19: Closing Remarks
CLOSING REMARKS Joe Hinrichs President and Chief Executive Officer
Slide 20: Full Year 2024 Guidance is Unchanged
Full Year 2024 Guidance is Unchanged Low to mid-single digit total volume and revenue growth – Solid momentum across Merchandise, Intermodal, and Export Coal Profitability supported by solid pricing, improving efficiency, and lower cost inflation Capex of approximately $2.5 billion – Safety in
Slide 21: Appendix: Non-GAAP Reconciliations
APPENDIX Non-GAAP Reconciliations
Slide 22: Non-GAAP Free Cash Flow Reconciliation
Non-GAAP Free Cash Flow Reconciliation Free Cash Flow Three Months Ended Dollars in millions Mar 31, 2024 Mar 31, 2023 Net Cash Provided by Operating Activities $ 1,084 $ 1,251 Property Additions (524) (443) Proceeds and Advances from Property Dispositions - 8 Free Cash Flow Before Dividends (non-GA
Slide 23: Non-GAAP Economic Profit Reconciliation
Non-GAAP Economic Profit Reconciliation Economic Profit Three Months Ended (a) Unusual items are defined by management as unique events with greater than $100 million full Dollars in millions Mar 31, 2024 Mar 31, 2023 year operating income impact, consistent with the terms of the Company’s long-term
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