Slides
Page 1
Morgan Stanley’s 13th Annual Laguna Conference 9.11.2025 Joe Hinrichs President & Chief Executive Officer
Page 2
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 MORGAN STANLEY LAGUNA CONFERENCE 2
Page 3
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 Regulation S -K Item 10(e), which may provide users of the financial information with additional meaningful comparison to prior reported results. Non-GAAP measures do not have standardized definitions and are not defined by U.S. GAAP . Therefore, CSX’s non-GAAP measures are unlikely to be comparable to similar measures presented by other companies. The presentation of these non-GAAP measures should not be considered in isolation from, as a substitute for, or as superior to the financial information presented in accordance with GAAP. Reconciliations of non-GAAP measures to corresponding GAAP measures are attached hereto in the Appendix of this presentation. 2025 MORGAN STANLEY LAGUNA CONFERENCE 3
Page 4
Operational metrics reflect strong, fluid network performance 4Note: 3Q25 values represent QTD through 9/8/2025. Trip Plan Compliance (combined) reflects both carload and intermodal business. 13 15 17 19 21 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 2024 2025 MPH Velocity 8 9 10 11 12 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 2024 2025 Hours Dwell 60% 70% 80% 90% 100% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 2024 2025 Trip Plan Compliance (combined) 115 125 135 145 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 2024 2025 Thousands Cars Online 2021 – 1H25 Avg. 2021 – 1H25 Avg. 2021 – 1H25 Avg. 2021 – 1H25 Avg.
Page 5
Earnings have absorbed over $1B in non-controllable impacts 5 1 See Appendix for Non-GAAP reconciliation 2 Reflects higher operating income benefits in 2022 vs LTM associated with higher commodity pricing, elevated other revenues, and increased real estate gains Coal / Diesel Prices2 Other Revenue2 Real Estate Gains2 2022 Last 12 Months ended 6/30/25 ▪ In 2022, CSX operating income benefited from ongoing highs in export coal and diesel pricing, intermodal storage revenue, and real estate gains ▪ Reversion of these factors has reduced operating income $1.2B for the last twelve months vs. 2022 ▪ Recent financial performance reflects slow start to 2025 with excess operational disruption, re-routing costs, and customer facility challenges ~$5.95B Adj. ~$4.90B1 Operating Income1
Page 6
Several discrete benefits anticipated for 2026 6 Eliminating Rerouting Costs - Completion of Howard Street Tunnel, Blue Ridge saving ~$10M/month in OpEx Double-stacked I-95 Corridor - New intermodal capacity, conversion opportunities, and productivity gains New Intermodal Services - Added volume from new, efficient lanes and expanding strategic relationships Restarting/Reopening Customer Facilities - Anticipated reopening of coal mines, other production sites Industrial Development - Accumulating volume, revenue growth from ramp-up of new and recent project sites Consistent Operational Performance - Lapping added cost, lost revenue from early 2025 service challenges
Page 7
APPENDIX Non-GAAP Reconciliations
Page 8
Non-GAAP Reconciliation of Adjusted Operating Results 2025 MORGAN STANLEY LAGUNA CONFERENCE Dollars in millions GAAP Operating Income $ 4,784 Goodwill Impairment 108 Adjusted Operating Income (non-GAAP) $4,892 Last Twelve Months Ended June 30, 2025 8