Slides
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2025 FOURTH QUARTER CONFERENCE CALL 1.22.2026
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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 FOURTH QUARTER EARNINGS CONFERENCE CALL
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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 FOURTH QUARTER EARNINGS CONFERENCE CALL
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OPENING COMMENTS Steve Angel President and Chief Executive Officer
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OPERATIONS REVIEW Mike Cory Executive Vice President and Chief Operating Officer
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Safety and Operational Highlights 52025 FOURTH QUARTER EARNINGS CONFERENCE CALL FRA Personal Injury Frequency Index FRA Train Accident Rate 0.94 1.23 0.94 2023 2024 2025 3.46 3.56 3.08 2023 2024 2025 Q4 25 2.04 Q4 25 0.66 Velocity (MPH) Dwell (Hours) Cars Online (‘000) Trip Plan Compliance 17.6 17.5 18.9 19.6 Q1 25 Q2 25 Q3 25 Q4 25 132 130 121 118 Q1 25 Q2 25 Q3 25 Q4 25 11.5 10.4 9.5 9.8 Q1 25 Q2 25 Q3 25 Q4 25 77% 80% 87% 87% Q1 25 Q2 25 Q3 25 Q4 25
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FINANCIAL REVIEW Kevin Boone Executive Vice President and Chief Financial Officer
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Fourth Quarter Earnings Highlights 72025 FOURTH QUARTER EARNINGS CONFERENCE CALL 1,575k 1,597k Q4 24 Q4 25 GAAP $1,106M Adjusted $1,214M $1,110M Q4 24 Q4 24 Q4 25 GAAP $0.38 Adjusted $0.42 $0.39 Q4 24 Q4 24 Q4 25 $3,539M $3,508M Q4 24 Q4 25 1% Increase (1%) Decrease Earnings Per Share* Total RevenueTotal Volume Operating Income* (9%) Decrease (7%) Decrease * See Appendix for Non-GAAP reconciliation
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Fourth Quarter & Full Year Earnings Summary 8 $M, except per share amounts Favorable / (Unfavorable) Q4 2025 Q4 2024 Variance FY 2025 FY 2024 Variance Volume (K) 1,597 1,575 1% 6,307 6,277 - % Revenue $3,508 $3,539 (1%) $14,092 $14,540 (3%) Expense 2,398 2,433 1% 9,571 $9,295 (3%) Operating Income 1,110 1,106 - 4,521 5,245 (14%) Operating Margin 31.6% 31.3% 30 bps 32.1% 36.1% (400 bps) Interest Expense & Other Income – Net (190) (170) (12%) (752) (690) (9%) Income Tax Expense (200) (203) 1% (880) (1,085) 19% Net Earnings $720 $733 (2%) $2,889 $3,470 (17%) Earnings Per Share $0.39 $0.38 3% $1.54 $1.79 (14%) Q4 2025 (same as GAAP) Q4 2024 Variance FY 2025 FY 2024 Variance Adj. Expense 2,398 2,325 (3%) 9,407 9,187 (2%) Adj. Operating Income 1,110 1,214 (9%) 4,685 5,353 (12%) Adj. Operating Margin 31.6% 34.3% (270 bps) 33.2% 36.8% (360 bps) Adj. Net Earnings 720 815 (12%) 3,013 3,552 (15%) Adj. Earnings Per Share $0.39 $0.42 (7%) $1.61 $1.83 (12%) 2025 FOURTH QUARTER EARNINGS CONFERENCE CALL GAAP Income StatementAdj. Operating Results (non-GAAP)* * Adjusted figures exclude goodwill impairment charges of $108M from Q4 and full year 2024, and $164M from full year 2025; see appendix for non-GAAP reconciliation.
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SALES & MARKETING REVIEW Maryclare Kenney Senior Vice President and Chief Commercial Officer
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Merchandise Soft Chemicals and Forest Products markets Automotive impacted by part shortages, aluminum supply Minerals and Fertilizers growth Intermodal Domestic volume gains from commercial agreements International supported by new business wins Coal Strong domestic utility demand, export limited by derailment Larger discount for US East Coast met benchmarks Fourth Quarter Volume and Revenue Performance 10 Revenue ($M) Volume (‘000 Units) Revenue Per Unit ($)Q4 2025 vs. Q4 2024 634 (2%) $2,156 (2%) $3,401 +1% 782 +5% 181 +1% $562 +7% $719 +2% $472 (5%) $2,608 (6%) Q4 2025 Volume up 1%, Total Revenue down (1%), RPU down (2%) 2025 FOURTH QUARTER EARNINGS CONFERENCE CALL
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2026 Market Expectations 112025 FOURTH QUARTER EARNINGS CONFERENCE CALL MERCHANDISE Strong southeast infrastructure investments Soft indicators for housing starts, North American auto production Cycling Forest Products and Metals plant closures INTERMODAL Gains from business wins Expanded network reach and faster service product Soft trucking market Risk of import slowdown following 2025 pull forward COAL Reopening of export mines on CSX network Scheduled utility coal plant closures Challenged global steel demand
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CLOSING REMARKS Steve Angel President and Chief Executive Officer
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2026 Full Year Outlook 13 Low single-digit revenue growth, assuming modest economic momentum and stable fuel and global benchmark coal prices Operating Margin expansion of 200-300 basis points from adjusted FY25 performance Total capital expenditures below $2.4 billion Free Cash Flow growth of at least 50% 2025 FOURTH QUARTER EARNINGS CONFERENCE CALL
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Q&A 2025 FOURTH QUARTER EARNINGS CONFERENCE CALL 14 First Train Over Forest Hill Flyover CSX and CREATE celebrated the completion of the Forest Hill Flyover, a transformative project to alleviate rail congestion in Chicago. CSX TDSI Wins Quality Excellence Awards CSX TDSI became the first railroad to earn four top honors in a single year, recognizing excellence in service, reliability, and damage- free vehicle delivery. CSX Recognized for Climate Leadership CSX earned a leadership spot on the CDP A list for climate, recognizing our environmental performance, strategy, and governance.
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APPENDIX Full Year Comparisons
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Full Year Earnings Highlights 162025 FOURTH QUARTER EARNINGS CONFERENCE CALL 6,277k 6,307k 2024 2025 GAAP $5,245M GAAP $4,521M Adjusted $5,353M Adjusted $4,685M 2024 2025 2024 2025 GAAP $1.79 GAAP $1.54 Adjusted $1.83 Adjusted $1.61 2024 2025 2024 2025 $14,540M $14,092M 2024 2025 Stable (3%) Decrease Earnings Per Share* Total RevenueTotal Volume Operating Income* (12%) Decrease (12%) Decrease * See next section for Non-GAAP reconciliation
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Fourth Quarter Cash Flow and Distributions 2025 FOURTH QUARTER EARNINGS CONFERENCE CALL Property Additions In Millions $2,237 $1,396 $930 $972 2024 2025 Buybacks Dividends Shareholder Distributions In Millions $2,479 $2,432 $50 $470 2024 2025 Core Spend Blue Ridge Rebuild Free Cash Flow Before Dividends* In Millions $2,784 $1,789 2024 2025 17 * See next section for Non-GAAP reconciliation
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APPENDIX Non-GAAP Reconciliations
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Non-GAAP Reconciliation of Adjusted Operating Results 192025 FOURTH QUARTER EARNINGS CONFERENCE CALL Dollars in millions, except per share amounts Expense Operating Income Operating Margin Net Earnings Net Earnings Per Share, Assuming Dilution GAAP Operating Results $ 2,398 $ 1,110 31.6% $ 720 $ 0.39 Goodwill Impairment - - - - - Adjusted Operating Results (non-GAAP) $2,398 $1,110 31.6% $ 720 $ 0.39 Quarter Ended Dec. 31, 2025 Dollars in millions, except per share amounts Expense Operating Income Operating Margin Net Earnings Net Earnings Per Share, Assuming Dilution GAAP Operating Results $ 9,571 $ 4,521 32.1% $ 2,889 $ 1.54 Goodwill Impairment (164) 164 1.1% 124 0.07 Adjusted Operating Results (non-GAAP) $9,407 $4,685 33.2% $ 3,013 $ 1.61 Year Ended Dec. 31, 2025
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Non-GAAP Reconciliation of Adjusted Operating Results 202025 FOURTH QUARTER EARNINGS CONFERENCE CALL Dollars in millions, except per share amounts Expense Operating Income Operating Margin Net Earnings Net Earnings Per Share, Assuming Dilution GAAP Operating Results $ 2,433 $ 1,106 31.3% $ 733 $ 0.38 Goodwill Impairment (108) 108 3.0% 82 0.04 Adjusted Operating Results (non-GAAP) $2,325 $1,214 34.3% $ 815 $ 0.42 Quarter Ended Dec. 31, 2024 Dollars in millions, except per share amounts Expense Operating Income Operating Margin Net Earnings Net Earnings Per Share, Assuming Dilution GAAP Operating Results $ 9,295 $ 5,245 36.1% $ 3,470 $ 1.79 Goodwill Impairment (108) 108 0.7% 82 0.04 Adjusted Operating Results (non-GAAP) $9,187 $5,353 36.8% $ 3,552 $ 1.83 Year Ended Dec. 31, 2024
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Non-GAAP Free Cash Flow Reconciliation Year Ended Dollars in millions Dec. 31, 2025 Dec. 31, 2024 Net Cash Provided by Operating Activities $ 4,613 $ 5,247 Property Additions (2,902) (2,529) Proceeds and Advances from Property Dispositions 78 66 Free Cash Flow Before Dividends (non-GAAP) $ 1,789 $ 2,784 Free Cash Flow 2025 FOURTH QUARTER EARNINGS CONFERENCE CALL 21 Note: 2025 free cash flow includes approximately $900 million of cash outflows for Blue Ridge spending and previously postponed tax payments.