Slides
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2025 JP MORGAN INDUSTRIALS CONFERENCE 3.11.2025 Sean Pelkey Executive Vice President & Chief Financial Officer
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Forward Looking Disclosure This information and other statements by the company may contain forward -looking statements within the meaning of the Private Se curities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, margins, volumes, rates, cost -savings, expenses, taxes, liquidity, capital expenditures, dividends, share repurchases or other financial items, statements of management’s pla ns, strategies and objectives for future operations, and management’s expectations as to future performance and operations and the time by which objectives will be achieved, statements concerning proposed new services, and statements regarding future economic, industry or market condition s or performance. Forward-looking statements are typically identified by words or phrases such as “will,” “should,” “believe,” “expect,” “anticipa te,” “project,” “estimate,” “preliminary” and similar expressions. Forward-looking statements speak only as of the date they are made, and the company under takes no obligation to update or revise any forward-looking statement. If the company updates any forward -looking statement, no inference should be drawn that the company will make additional updates with respect to that statement or any other forward -looking statements. Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ ma terially from that anticipated by any forward-looking statements. Factors that may cause actual results to differ materially from those contemplate d by any forward- looking statements include, among others; (i) the company’s success in implementing its financial and operational initiatives; (ii) changes in domestic or international economic, political or business conditions, including those affecting the transportation industry (such as t he impact of industry competition, conditions, performance and consolidation); (iii) legislative or regulatory changes; (iv) the inherent business risks associated with safety and security; (v) the outcome of claims and litigation involving or affecting the company; (vi) natural events such as severe weather conditions or pandemic health crises; and (vii) the inherent uncertainty associated with projecting economic and business conditions. Other important assumptions and factors that could cause actual results to differ materially from those in the forward -looking statements are specified in the company’s SEC reports, accessible on the SEC’s website at www.sec.gov and the company’s website at www.csx.com. 2025 JP MORGAN INDUSTRIALS CONFERENCE 2
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Volume in-line with historic seasonality, despite weather 70% 75% 80% 85% 90% 95% 100% 105% 110% 115% Merchandise Automotive Coal Intermodal Total Historical Range Average (Mean) 2025 January Average Daily Volume vs. Q4 Daily Average 2016 – 2024 History 70% 75% 80% 85% 90% 95% 100% 105% 110% 115% Merchandise Automotive Coal Intermodal Total Historical Range Average (Mean) 2025 February Average Daily Volume vs. Q4 Daily Average 2016 – 2024 History 2025 JP MORGAN INDUSTRIALS CONFERENCE 3
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2025 JP MORGAN INDUSTRIALS CONFERENCE Tentative Start Positive Opening Ag & Food International Intermodal Chemicals Forest Products Domestic Coal Metals & Equipment Domestic Intermodal MineralsExport Coal Fertilizers Market conditions mixed amidst uncertainty Relatively Flat Automotive 4
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Efficient operations remain a key focus 2025 JP MORGAN INDUSTRIALS CONFERENCE (0%) (3%) (5%) (8%) (10%) CSX UP NS CN CPKC Purchased Services and Other Expense + Rents per GTM % Change 2024 vs 2022 8,000 8,500 9,000 9,500 10,000 10,500 11,000 11,500 12,000 12,500 1 5 9 13 17 21 25 29 33 37 41 45 49 Fiscal Week 2023 2024 2025 CSX Road Crew Starts Class I Peers Figures use non-GAAP filings where applicable, Canadian expenses adjusted to constant FX rates 5
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Howard Street Tunnel will be disruptive in the short term ▪ Large scale, technically complex project – Tunnel is ~8,700 feet in length, more than 100 years old, runs through downtown Baltimore ▪ Tunnel closure requires re-routing of almost 10% of daily line-of-road trains on network – Howard Street and Blue Ridge represent two of CSX’s four primary North/South corridors – Nearly all CSX traffic moving between Georgia/Florida and New England is impacted 2025 JP MORGAN INDUSTRIALS CONFERENCE CSX Partners Total ~$140M1 $360M+ $500M+ 1Exludes $10M/month of incremental expense in 2025 from HST & Blue Ridge Project Costs 6
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CSX will gain long-term efficiency after completion ▪ Ability to double-stack adds Intermodal capacity and reduces operating costs – CSX’s Intermodal network immediately becomes more efficient and competitive vs. truck ▪ Together with Cumberland, benefits also flow into CSX’s Merchandise operations – Added Northeast capacity for additional New England opportunities and industrial development Prior Merchandise Routing Post Merchandise Routing Modal Conversion Opportunities Chicago Buffalo 2025 JP MORGAN INDUSTRIALS CONFERENCE Selkirk NY/NJ Atlanta Jacksonville Savannah Willard Cumberland Baltimore Philadelphia Benefits Double Stacking Train consolidations 75k-125k modal conversion opportunity Cumberland 29mm out-of-route miles reduced Significant car handling reductions 7