| Metric | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------|---------|---------|---------|---------|---------|---------|---------|---------|
| Train Velocity | **17.5**  **[0000277948-23-000003_qfr_q42022.htm:8]**  | **18.5**  **[0000277948-23-000026_qfr_q12023.htm:6]**  | **17.7**  **[0000277948-23-000043_csx-20230630.htm:22]**  | **17.6**  **[0000277948-23-000051_qfr_q32023.htm:8]**  | **18.3**  **[0000277948-24-000003_qfr_q42023.htm:7]**  | **18.2**  **[0000277948-24-000030_qfr_q12024.htm:6]**  | **18.2**  **[0000277948-24-000047_csx-20240630.htm:33]**  | **18.6**  **[0000277948-24-000054_csx-20240930.htm:34]**  |
| Dwell | **10.3**  **[0000277948-23-000003_qfr_q42022.htm:8]**  | **9.0**  **[0000277948-23-000026_qfr_q12023.htm:6]**  | **9.3**  **[0000277948-23-000043_csx-20230630.htm:22]**  | **9.6**  **[0000277948-23-000051_qfr_q32023.htm:8]**  | **9.6**  **[0000277948-24-000003_qfr_q42023.htm:7]**  | **9.7**  **[0000277948-24-000030_qfr_q12024.htm:6]**  | **10.2**  **[0000277948-24-000047_csx-20240630.htm:33]**  | **10.3**  **[0000277948-24-000054_csx-20240930.htm:34]**  |
| FRA Personal Injury Frequency Index | **0.97**  **[0000277948-23-000003_qfr_q42022.htm:8]**  | **1.04**  **[0000277948-23-000026_qfr_q12023.htm:6]**  | **0.81**  **[0000277948-23-000043_csx-20230630.htm:22]**  | **0.98**  **[0000277948-23-000053_csx-20230930.htm:23]**  | **0.57**  **[0000277948-24-000003_qfr_q42023.htm:7]**  | **1.27**  **[0000277948-24-000030_qfr_q12024.htm:6]**  | **1.25**  **[0000277948-24-000047_csx-20240630.htm:33]**  | **1.22**  **[0000277948-24-000054_csx-20240930.htm:34]**  |
| FRA Train Accident Rate | **3.27**  **[0000277948-23-000003_qfr_q42022.htm:8]**  | **3.47**  **[0000277948-23-000026_qfr_q12023.htm:6]**  | **3.25**  **[0000277948-23-000043_csx-20230630.htm:22]**  | **3.75**  **[0000277948-23-000053_csx-20230930.htm:23]**  | **2.10**  **[0000277948-24-000003_qfr_q42023.htm:7]**  | **3.81**  **[0000277948-24-000030_qfr_q12024.htm:6]**  | **2.62**  **[0000277948-24-000047_csx-20240630.htm:33]**  | **2.92**  **[0000277948-24-000054_csx-20240930.htm:34]**  |

59cbd624028b072988a621755d4b33c5c80b8e5a6bcbc879902c898ebf80d15c

a2eae49cf65c2d76f4753cd1a2e81da364d022ed637c222a70c46e1817f16e4c

| Segment/Quarter                         | Q4 2022  **[0000277948-23-000003_qfr_q42022.htm:6]**  | Q1 2023  **[0000277948-23-000027_csx-20230331.htm:15]**  | Q2 2023  **[0000277948-23-000043_csx-20230630.htm:19]**  | Q3 2023  **[0000277948-23-000053_csx-20230930.htm:20]**  | Q4 2023  **[0000277948-24-000003_qfr_q42023.htm:5]**  | Q1 2024  **[0000277948-24-000032_csx-20240331.htm:16]**  | Q2 2024  **[0000277948-24-000047_csx-20240630.htm:29]**  | Q3 2024  **[0000277948-24-000054_csx-20240930.htm:30]**  |
|-----------------------------------------|---------------|---------------|---------------|---------------|---------------|---------------|---------------|---------------|
| **Chemicals ($ million)**               | N/A           | **650**       | **642**       | **646**       | N/A           | **693**       | **722**       | **727**       |
| **Agricultural and Food Products ($ million)** | N/A           | **437**       | **415**       | **376**       | N/A           | **407**       | **406**       | **416**       |
| **Automotive ($ million)**              | N/A           | **274**       | **323**       | **308**       | N/A           | **293**       | **336**       | **301**       |
| **Forest Products ($ million)**         | N/A           | **261**       | **257**       | **243**       | N/A           | **262**       | **269**       | **259**       |
| **Metals and Equipment ($ million)**    | N/A           | **239**       | **240**       | **225**       | N/A           | **220**       | **230**       | **208**       |
| **Minerals ($ million)**                | N/A           | **173**       | **191**       | **190**       | N/A           | **174**       | **207**       | **202**       |
| **Fertilizers ($ million)**             | N/A           | **129**       | **128**       | **124**       | N/A           | **136**       | **126**       | **118**       |
| **Total Merchandise ($ million)**       | **2,074**     | **2,163**     | **2,196**     | **2,112**     | **2,182**     | **2,185**     | **2,296**     | **2,231**     |
| **Coal ($ million)**                    | **626**       | **633**       | **637**       | **594**       | **620**       | **632**       | **563**       | **553**       |
| **Intermodal ($ million)**              | **573**       | **499**       | **492**       | **517**       | **552**       | **506**       | **506**       | **509**       |
| **Trucking ($ million)**                | **226**       | **233**       | **227**       | **218**       | **204**       | **215**       | **221**       | **214**       |
| **Other ($ million)**                   | **231**       | **178**       | **147**       | **131**       | **122**       | **143**       | **115**       | **112**       |
| **Total Revenue ($ million)**           | **3,730**     | **3,706**     | **3,700**     | **3,572**     | **3,680**     | **3,681**     | **3,701**     | **3,619**     |

b9c0b5d6930c0f9305bbdfef42d808c53004274675cee3b679afaa69a019a9cf

CSX Corporation is a leading transportation company headquartered in Jacksonville, Florida, specializing in rail-based freight transportation services. The company operates through four main lines of business, offering a range of services that include the transportation of merchandise, intermodal solutions, coal, and trucking services **[0000277948-24-000010_csx-20231231.htm:3]** **[0000277948-24-000010_csx-20231231.htm:57]**. CSX's merchandise business is the largest segment, shipping a variety of products such as chemicals, agricultural and food products, automotive, minerals, forest products, metals and equipment, and fertilizers **[0000277948-24-000010_csx-20231231.htm:3]** **[0000277948-24-000010_csx-20231231.htm:57]**. The company also provides intermodal services that combine rail and truck transportation to serve the manufactured consumer goods markets **[0000277948-24-000010_csx-20231231.htm:3]** **[0000277948-24-000010_csx-20231231.htm:57]**. Additionally, CSX transports coal, coke, and iron ore to various industrial sectors and offers trucking services through Quality Carriers **[0000277948-24-000010_csx-20231231.htm:3]** **[0000277948-24-000010_csx-20231231.htm:57]**.

1. **Merchandise** - Ships a diverse range of products including chemicals, agricultural and food products, automotive, minerals, forest products, metals and equipment, and fertilizers.
2. **Coal** - Transports coal, coke, and iron ore to various industrial sectors.
3. **Intermodal** - Combines rail and truck transportation to serve the manufactured consumer goods markets.
4. **Trucking** - Includes operations from Quality Carriers, providing trucking services.
5. **Other Revenue Sources** - Comprises regional subsidiary railroads and incidental charges.

c2c4d453b585b88ee3f0b8eb7aeb1e71b01eb3eb071386925341132747160880

1. Given the expected **$200 million** year-over-year revenue headwinds from lower fuel surcharge and softer coal markets in Q4, how do you plan to offset these impacts to maintain revenue and margin growth, especially considering additional expenses from hurricane rebuilding efforts?  **[CSX_3402894_7]** 

2. With the upcoming construction on the **Howard Street Tunnel** next year, which will cause network disruptions and reroutes, how will you mitigate the operational challenges to ensure service levels remain high and that margin improvement goals for **2025** are not adversely affected?  **[CSX_3402894_14]** 

3. Can you elaborate on the rationale behind locking in a **5-year** labor agreement with **3.5%** inflation rates now, especially as inflation is coming down, and how this will impact your operating costs and competitiveness over the agreement period?  **[CSX_3402894_13]** 

4. Given that on-time originations and arrivals have eroded into the **low 70s and upper 60s**, how are you addressing these declines in service levels, and what specific measures are being implemented to improve operational performance and meet customer expectations?  **[CSX_3402894_18]** 

5. Considering the stabilization of export coal prices at lower levels and the expected headwinds from lower fuel prices next year, what strategies do you have in place to drive revenue growth in your coal segment, and how sustainable is this demand in the face of global market volatility?  **[CSX_3402894_14]** **[CSX_3402894_18]** 

34c051f128638a69ea8e707736518064a1485d54bcaf4a565b522411bd9d52db

- **Norfolk Southern Railway** - Operates throughout much of CSX's territory and is mentioned as CSX's primary rail competitor  **[0000277948-24-000010_csx-20231231.htm:4]** .
- **Other railroads** - Operate in parts of CSX's territory and exert pressure on price and service levels depending on the specific market  **[0000277948-24-000010_csx-20231231.htm:4]** .
- **Motor carriers** - Compete with CSX by operating similar routes across its service area  **[0000277948-24-000010_csx-20231231.htm:4]** .
- **Barges, ships, and pipelines** - Compete to a less significant extent  **[0000277948-24-000010_csx-20231231.htm:4]** .

a8c7e83312dd5eeb27d40bc8d1bcaae010409d0e0bb6602b9d7a70007ba4adfa

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from Debt [USD, Millions]

Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

07ffe5141edcdda504b3f72dfd6fe911587d6dd5da05af9700f18abeb6b48a36

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD, Units]

Earnings Per Share (EPS) - Diluted [USD, Units]

8edc88dcf402e2b2511233159b4ae895790c599d3ea5255e41df2df0ed7c47b9

- **Completion of the Howard Street Tunnel project in 2025 will enable double-stack intermodal service along the East Coast**, significantly enhancing CSX's capacity and opening new markets. This is expected to fully recover the **approximately $100 million** operating expense within a couple of years and drive substantial growth starting in 2026.  **[CSX_3413155_24]** ,  **[CSX_3413155_14]**
- **Customer satisfaction is at an all-time high**, with Net Promoter Scores reaching consecutive records in the third and fourth quarters, despite recent challenges. This reflects CSX's commitment to customer service and positions the company for long-term **volume growth** as customers invest more in rail solutions.  **[CSX_3413155_20]**
- **Supportive regulatory environment** with advancements at the FRA and STB is expected to facilitate the adoption of new technologies in inspections and operations. CSX anticipates that leveraging these technologies will improve **efficiency and safety**, contributing to future growth opportunities.  **[CSX_3413155_19]**

d99bd8692bc08a8a63a3f5635e3350a24f62b1389440e01ad762d9a054f4ed2e

cecedb15af93d5f58640aaded7f6833d1346ef908fb3381b794adb2a1a83cb92

1. **Operating Income Outlook**  
**Q:** Will operating income grow this year despite headwinds?  
**A:** Management acknowledges that without the **$350 million headwinds**, they would deliver solid growth in operating income this year.  **[CSX_3413155_10]**  With **low to mid-single-digit volume growth** and **50% to 70% incremental margins**, they are set up well.  **[CSX_3413155_10]**  However, due to challenges like utility coal headwinds and mine issues, they expect to be towards the lower end of their **mid- to high single-digit operating income growth** guidance.  **[CSX_3413155_10]** **[CSX_3413155_12]** 

2. **Margin Outlook**  
**Q:** Can margins improve in the second half despite early headwinds?  
**A:** Management states that margin improvement is unlikely in the first half due to concentrated headwinds, especially in Q1.  **[CSX_3413155_9]**  However, in the second half, if the environment remains stable and they achieve **low to mid-single-digit volume growth**, margins could improve.  **[CSX_3413155_9]** 

3. **Coal Outlook Impact**  
**Q:** How will coal prices and outages affect earnings?  
**A:** Current met coal prices have declined, impacting contracts tied to these prices.  **[CSX_3413155_12]** **[CSX_3413155_17]**  The recent mine outage, including a fire at one of their mines, is expected to be mitigated by sourcing from other locations, with the mine coming back online in the second half.  **[CSX_3413155_17]**  They hope met coal prices will rebound above **$200** in the back half of the year.  **[CSX_3413155_17]** 

4. **Howard Street Tunnel Benefits**  
**Q:** What are the long-term benefits of the tunnel project?  
**A:** The Howard Street Tunnel project, accelerated to complete in 2025, will allow CSX to run **double-stack trains** along the East Coast, removing a major bottleneck.  **[CSX_3413155_14]**  This is expected to significantly contribute to growth in 2026 and 2027 through increased capacity, efficiency, and access to new markets.  **[CSX_3413155_14]** 

5. **Pricing Outlook**  
**Q:** What is the pricing outlook compared to last year?  
**A:** Management feels confident about pricing.  **[CSX_3413155_12]**  In merchandise, they continue to leverage their service product.  **[CSX_3413155_12]**  Met coal prices have come down, affecting contracts linked to these prices.  **[CSX_3413155_12]**  In intermodal, there's stabilization with contractual rates starting to move up slightly.  **[CSX_3413155_12]** 

6. **Network Readiness**  
**Q:** Will the tunnel project affect service metrics?  
**A:** CSX has rerouted traffic in preparation for the tunnel work and doesn't expect significant impact on service metrics.  **[CSX_3413155_15]**  Despite challenges like hurricanes, the network is fundamentally on the right track, with stable staffing and productivity improvements ahead.  **[CSX_3413155_15]** 

7. **Volume Outlook and Headwinds**  
**Q:** Are there additional volume pressures due to outages?  
**A:** Q4 volumes were impacted by hurricanes, with a **$50 million** impact, including **$30 million** in revenue.  **[CSX_3413155_18]**  They don't anticipate significant volume disruptions from the Howard Street Tunnel or Blue Ridge outages, as efforts are made to preserve volumes.  **[CSX_3413155_18]** 

8. **Regulatory Opportunities**  
**Q:** Are there regulatory changes that could boost productivity?  
**A:** CSX is optimistic about the regulatory environment under new leadership at the FRA and STB.  **[CSX_3413155_19]**  They see opportunities to implement technology in inspections, enhancing efficiency and safety, which could generate significant productivity gains in 2025 and 2026.  **[CSX_3413155_19]** 

9. **Truck Capacity Impact**  
**Q:** How does tightening truck capacity affect results?  
**A:** Tightening truck capacity impacts intermodal and merchandise segments.  **[CSX_3413155_13]**  In intermodal, pricing lags the market due to contract durations, so significant benefits may start next year, with some possible as they exit this year.  **[CSX_3413155_13]**  In merchandise, customers seeking cost savings may accelerate truck-to-rail conversions.  **[CSX_3413155_13]** 

10. **Customer Response**  
**Q:** How are customers reacting to network investments?  
**A:** Customers are excited about CSX's investments, which will allow them to reach new markets.  **[CSX_3413155_20]**  Despite absorbing additional costs, service levels are maintained.  **[CSX_3413155_20]**  **Net Promoter Scores** have reached consecutive all-time highs, reflecting strong customer confidence.  **[CSX_3413155_20]** 

11. **Employee Cost Modeling**  
**Q:** How should we model employee costs this year?  
**A:** Adjust the Q4 cost per employee by adding back about **$1,500** for incentive compensation adjustments to get a run rate for the first half.  **[CSX_3413155_16]**  Potential savings from reduced overtime and lower health and welfare costs may improve this further.  **[CSX_3413155_16]**  Apply a **4.4%** wage inflation in the second half for full-year modeling.  **[CSX_3413155_16]** 

12. **Industrial Development Pipeline**  
**Q:** Any updates on customer projects and developments?  
**A:** Contrary to expectations of a slowdown, activity in new customer projects remains healthy.  **[CSX_3413155_11]**  CSX is working on a number of new projects, indicating continued strength and potential growth opportunities.  **[CSX_3413155_11]** 

8cc213615a5e30119019c9361170e34f9b72cd6982c2add21be8ee30601c7af5

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024
- **Guidance**:
  1. **Volume Growth**: Modest volume growth expected, supported by favorable markets like chemicals and agriculture, despite softer volumes in metals and automotive  **[CSX_3402894_7]** .
  2. **Revenue**: Anticipates a slight decrease in total revenue due to lower fuel and coal prices, with an estimated **$200 million** revenue effect year-over-year  **[CSX_3402894_7]** .
  3. **Operating Margin**: Additional expenses from rerouting and rebuilding after hurricanes will limit near-term margin gains  **[CSX_3402894_10]** .
  4. **Capital Expenditures (CapEx)**: Aiming for **$2.5 billion** in total CapEx for the year, with additional capital needs for hurricane rebuilding  **[CSX_3402894_7]** .
  5. **Capital Returns**: Commitment to a balanced approach to capital returns via buybacks and a growing dividend  **[CSX_3402894_7]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Total Volume and Revenue Growth**: Expected in the **low to mid-single-digit range** for the second half of 2024  **[CSX_3396444_8]** .
  2. **Operating Margin Expansion**: Anticipated meaningful expansion year-over-year in the second half  **[CSX_3396444_8]** .
  3. **Capital Expenditures (CapEx)**: Forecast remains at approximately **$2.5 billion** for the year  **[CSX_3396444_8]** .
  4. **Economic Profit**: Expected to increase in the second half compared to the prior year  **[CSX_3396444_7]** .
  5. **Coal Revenue Per Unit (RPU)**: Expected to decline **mid- to high single digits** sequentially in the third quarter  **[CSX_3396444_10]** .
  6. **Labor Costs**: Union employees receiving a **4.5% wage increase** effective July 1  **[CSX_3396444_6]** .
  7. **Intermodal and Merchandise Revenue**: Merchandise and intermodal revenue excluding fuel was up **5%**, with expectations for continued growth  **[CSX_3396444_6]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Total Volume and Revenue Growth**: Expected in the **low to mid-single-digit range** for the full year  **[CSX_3379935_7]** .
  2. **Intermodal Growth**: Steady growth expected, supported by stable consumer demand and improved port activity  **[CSX_3379935_7]** .
  3. **Coal Market**: Actions to mitigate export volume limitations due to the Port of Baltimore situation  **[CSX_3379935_7]** .
  4. **Profitability and Operating Margin**: Aims to grow operating margins over time, despite near-term challenges  **[CSX_3379935_7]** .
  5. **Capital Expenditures (CapEx)**: No change, remains at **$2.5 billion** for the year  **[CSX_3379935_7]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Volume and Revenue Growth**: Anticipates growth in the **low to mid-single-digit range**  **[CSX_3370696_8]** **[CSX_3370696_12]** .
  2. **Coal Revenue Per Unit (RPU)**: Optimistic but conservative due to market volatility  **[CSX_3370696_12]** **[CSX_3370696_5]** .
  3. **Intermodal Business**: Growth expected in both domestic and international segments  **[CSX_3370696_8]** **[CSX_3370696_5]** .
  4. **Capital Spending**: Increase to approximately **$2.5 billion** for the year  **[CSX_3370696_8]** .
  5. **Operating Margins**: Focus on margin improvement through profitable volume gains and cost control  **[CSX_3370696_6]** .
  6. **Free Cash Flow**: Impacted by about **$380 million** of federal cash tax payments deferred from 2023  **[CSX_3370696_7]** .
  7. **Headcount and Resources**: Aims to hold headcount flat, focusing on efficiency improvements  **[CSX_3370696_17]** .

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Train Velocity

Dwell

FRA Personal Injury Frequency Index

FRA Train Accident Rate

3fbff1cbe8ad7835699db4d83148f2a8b864eb290041616659a9b8181165850f

| Name                | Position                                             | Start Date          | Short Bio                                                                                                                                                                                                 |
|---------------------|------------------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Joseph R. Hinrichs  | President and Chief Executive Officer                | September 2022      | Joseph R. Hinrichs has over 30 years of experience in the global automotive, manufacturing, and energy sectors. Before joining CSX, he worked at Ford Motor Company from 2000 to 2020  **[0000277948-24-000010_csx-20231231.htm:24]** **[0000277948-24-000016_csx-20240325.htm:34]** **[0000277948-24-000016_csx-20240325.htm:86]** .          |
| Sean R. Pelkey      | Executive Vice President and Chief Financial Officer | January 2022        | Sean R. Pelkey has been with CSX for over 18 years, having joined the company in 2005. He has held various finance management roles, including Vice President of Finance & Treasury  **[0000277948-24-000010_csx-20231231.htm:24]** **[0000277948-24-000016_csx-20240325.htm:86]** .               |
| Kevin S. Boone      | Executive Vice President and Chief Commercial Officer| June 2021           | Kevin S. Boone joined CSX in September 2017 and has more than 20 years of experience in finance, accounting, mergers and acquisitions, and transportation performance analysis  **[0000277948-24-000010_csx-20231231.htm:24]** **[0000277948-24-000016_csx-20240325.htm:89]** **[0000277948-23-000015_csx-20230324.htm:76]** .                 |
| Michael A. Cory     | Executive Vice President and Chief Operating Officer | September 2023      | Michael A. Cory is a seasoned railroad executive with approximately 40 years of operations experience, having worked at the Canadian National Railway Company from 1981 to 2019  **[0000277948-24-000010_csx-20231231.htm:25]** .                      |
| Stephen Fortune     | Executive Vice President and Chief Digital and Technology Officer | April 2022 | Stephen Fortune is responsible for leading CSX's technology strategy and IT systems operations. He spent 30 years at BP, most recently as Chief Information Officer of the global BP group  **[0000277948-24-000010_csx-20231231.htm:25]** **[0000277948-23-000006_csx-20221231.htm:23]** **[0000277948-23-000015_csx-20230324.htm:78]** .     |
| Nathan D. Goldman   | Executive Vice President and Chief Legal Officer     | November 2017       | Nathan D. Goldman directs CSX's legal affairs, government relations, risk management, public safety, environmental, and audit functions. He will retire effective January 1, 2025  **[0000277948-24-000010_csx-20231231.htm:25]** **[0000277948-24-000016_csx-20240325.htm:91]** **[0000950103-24-016169_dp220600_8k.htm:1]** **[0000950103-24-016169_dp220600_ex9901.htm:0]** .          |
| Diana B. Sorfleet   | Executive Vice President and Chief Administrative Officer | July 2018       | Diana B. Sorfleet is responsible for human resources, people systems and analytics, total rewards, facilities, and aviation. She has been with CSX for over 12 years  **[0000277948-24-000010_csx-20231231.htm:25]** **[0000277948-23-000006_csx-20221231.htm:23]** .                             |
| Angela C. Williams  | Vice President and Chief Accounting Officer          | March 2018          | Angela C. Williams is responsible for financial and regulatory reporting, freight billing and collections, payroll, accounts payable, and various other accounting processes  **[0000277948-24-000010_csx-20231231.htm:25]** **[0000277948-23-000006_csx-20221231.htm:23]** .                     |
| Michael S. Burns    | Senior Vice President, Chief Legal Officer           | January 2, 2025     | Michael S. Burns has been with CSX since 2006, advancing through roles of increasing responsibility. He will assume his new role effective January 2, 2025  **[0000950103-24-016169_dp220600_8k.htm:3]** **[0000950103-24-016169_dp220600_ex9901.htm:0]** .                                      |

0a2dac58ea3e9e765c47c7b1c2dd8b95898afec22eb5bf3466d2dd3f49bd9ea5

| Program Details          | Program 1               | Program 2               |
|--------------------------|-------------------------|-------------------------|
| Approval Date            | July 2022  **[0000277948-24-000054_csx-20240930.htm:9]** **[0000277948-24-000054_csx-20240930.htm:45]**         | October 2023  **[0000277948-24-000054_csx-20240930.htm:9]** **[0000277948-24-000054_csx-20240930.htm:45]**      |
| End Date/Duration        | November 2023  **[0000277948-24-000054_csx-20240930.htm:9]** **[0000277948-24-000054_csx-20240930.htm:45]**     | N/A                     |
| Total Additional Amount  | N/A                     | **$5 billion**  **[0000277948-24-000054_csx-20240930.htm:9]** **[0000277948-24-000054_csx-20240930.htm:45]**    |
| Remaining Authorization  | **$0**  **[0000277948-24-000054_csx-20240930.htm:9]** **[0000277948-24-000054_csx-20240930.htm:45]**            | **$3.6 billion**  **[0000277948-24-000054_csx-20240930.htm:9]** **[0000277948-24-000054_csx-20240930.htm:45]**  |
| Details                  | Completed  **[0000277948-24-000054_csx-20240930.htm:9]** **[0000277948-24-000054_csx-20240930.htm:45]**         | Active, funded by cash on hand, operations, and debt issuances  **[0000277948-24-000010_csx-20231231.htm:60]** **[0000277948-24-000054_csx-20240930.htm:9]** **[0000277948-24-000047_csx-20240630.htm:8]** **[0000277948-24-000032_csx-20240331.htm:7]**  |

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aa12f23b5ab9759c49c455cc28a218e2bd840ad67d58aa6574afcae2a77f2470

**Quarterly guidance for Q1 2025:**
- **Coal Revenue Per Unit (RPU)**: All-in coal RPU expected to be down roughly 3% sequentially (no prior guidance)  **[CSX_3413155_5]**   
- **Operating Income**: Expected to be the lowest of the year, well below the prior year, with improvement in the second half (no prior guidance)  **[CSX_3413155_7]** 

**Annual guidance for FY 2025:**
- **Volume Growth**: Low to mid-single-digit volume growth (no prior guidance)  **[CSX_3413155_6]**   
- **Operating Income Growth**: Mid- to high single-digit operating income growth, adjusted for discrete headwinds (no prior guidance)  **[CSX_3413155_10]**   
- **EPS Growth**: High single-digit to low double-digit EPS growth over a three-year period (no prior guidance)  **[CSX_3413155_22]**   
- **Headwinds & Discrete Items**: $300 million impact from lower export coal benchmarks and fuel prices, about half in Q1 2025 (no prior guidance)  **[CSX_3413155_7]**   
- **Construction Projects Impact**: Incremental $10 million per month net impact into Q4 2025 (no prior guidance)  **[CSX_3413155_7]**   

0cc5d90ae339bb04826b91cb227c70b8ee15aa0176e596f4dbc2b1488be6bbd9

CSX expects mid- to high single-digit OI growth in ’24 despite $350M headwinds. The Howard Street Tunnel’s 2025 completion will enable double-stack service, unlocking new markets and recovering ~$100M in costs within two years—positioning CSX for strong growth in 2026.

1abe9780454895214049c5bc27a20ebd5b5bbb8bc81b9b3c85a3ac1962a695e6

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1981  **[0000277948-24-000010_csx-20231231.htm:50]**    | Present  | Current auditor   |

ecb871291f6106a172ae288d306a8b9a9914673e4812b8a221faf66a1493466f

bb954fa4c7493e538b4c620b1a275cfcfc985077311cf844d4811b5496d1b91d

- Total Revenue: $3.539 billion (-4% YoY)  **[0000277948-25-000004_qfr_q42024.htm:7]** **[0000277948-24-000010_csx-20231231.htm:30]** **[0000277948-24-000010_csx-20231231.htm:57]**   
- Operating Income (EBIT): $1.106 billion (-16% YoY)  **[0000277948-25-000004_qfr_q42024.htm:3]** **[0000277948-24-000010_csx-20231231.htm:51]**   
- Net Income: **$733 million (-17% YoY)**  **[0000277948-25-000004_qfr_q42024.htm:3]** **[0000277948-24-000010_csx-20231231.htm:51]**   
- Diluted EPS: $0.38 (-16% YoY)  **[0000277948-25-000004_qfr_q42024.htm:3]** **[0000277948-24-000010_csx-20231231.htm:51]**   
- Coal Segment: **$499 million (+705% YoY)**  **[0000277948-25-000004_qfr_q42024.htm:7]** **[0000277948-24-000010_csx-20231231.htm:30]** **[0000277948-24-000010_csx-20231231.htm:57]**   
- Other Segment: $129 million (+6% YoY)  **[0000277948-25-000004_qfr_q42024.htm:7]** **[0000277948-24-000010_csx-20231231.htm:30]** **[0000277948-24-000010_csx-20231231.htm:57]**   

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dd3ac825a451d4f48dc08c504d5d7dd79df2c77e27a475dc430aca912307f4ef

- **CSX has successfully negotiated early labor agreements, improving employee relations and potentially enhancing efficiency and service quality.**  **[CSX_3402894_13]**
- **The company's focus on culture and employee engagement has led to significant improvements in employee Net Promoter Scores, operational efficiency, and customer satisfaction, positioning CSX for sustainable growth.**  **[CSX_3402894_22]**
- **CSX is well-positioned for strong incremental margins and operating income growth due to its capacity to grow, improved service product, ability to price at or above inflation, and expected tailwinds from the trucking market.**  **[CSX_3402894_14]** **[CSX_3402894_8]**

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b25f6f9d36a33b20a1c44939a8a07ebfd47476ede4f71c72d1f88307b6dd89e1

1. **Margin Outlook**  
   **Q:** Will margins improve meaningfully in the second half?  
   **A:** Management expects **meaningful margin improvement** in the second half, driven by cost control and attractive incremental margins from growth.  **[CSX_3396444_10]**  They acknowledge headwinds like coal RPU declining mid- to high-single digits and a **$20 million** wage increase but feel confident about holding expenses steady.  **[CSX_3396444_10]** 

2. **Operating Leverage**  
   **Q:** What's missing in operating leverage, and what's changing in H2?  
   **A:** Despite volumes up **2%**, operating profit was down **4%** in the first half due to **$300 million** in unique challenges like the Baltimore bridge collapse and lower export coal pricing.  **[CSX_3396444_21]**  In H2, fewer challenges are expected, with labor productivity turning positive and volume growth anticipated.  **[CSX_3396444_21]** 

3. **Economic Uncertainty**  
   **Q:** Is there increased uncertainty in the economy or customer outlook?  
   **A:** Management notes the economy seems **more fragile** now compared to two months ago.  **[CSX_3396444_18]**  They're observing softness in automotive shipments and are watching interest rate-sensitive markets like housing and autos carefully.  **[CSX_3396444_18]** 

4. **Labor Costs and Efficiencies**  
   **Q:** Are there opportunities to cut labor costs further?  
   **A:** There are continued opportunities to drive efficiencies in labor.  **[CSX_3396444_16]**  Management is focused on reducing overtime and increasing retention to improve costs and efficiency.  **[CSX_3396444_16]** 

5. **Network Operations and Service Metrics**  
   **Q:** Why have service metrics deteriorated, and will they improve?  
   **A:** Recent changes focused on safety and service have caused some metrics to drop.  **[CSX_3396444_13]**  Management expects metrics to improve and is prioritizing cost, service, and safety over short-term metrics.  **[CSX_3396444_13]** 

6. **Industrial Development Opportunities**  
   **Q:** What's the update on industrial development projects?  
   **A:** There's an acceleration in industrial development, contributing to volume growth within the previously mentioned range.  **[CSX_3396444_15]**  Momentum continues with several years of growth expected as projects reach full production.  **[CSX_3396444_15]** 

7. **Potential Port Disruptions**  
   **Q:** How would East Coast port disruptions impact CSX?  
   **A:** CSX is well-positioned to adjust, with opportunities for longer-haul business if disruptions occur.  **[CSX_3396444_11]**  The network has **lots of capacity** to handle additional volumes.  **[CSX_3396444_11]** 

8. **Chemicals Business Growth**  
   **Q:** What's driving growth in the chemicals segment?  
   **A:** Growth is due to wins in industrial development, share gains, and alignment with Quality Carriers.  **[CSX_3396444_14]**  Strong service is enabling different conversations with customers, leading to increased business.  **[CSX_3396444_14]** 

9. **Truck Market Dynamics**  
   **Q:** Are truck-to-rail conversions picking up?  
   **A:** While the truck market remains challenging, CSX is hopeful conditions will improve and is positioning for recovery when the market turns.  **[CSX_3396444_17]** 

10. **Asset Utilization**  
    **Q:** Are there opportunities to improve asset utilization?  
    **A:** Yes, management sees opportunities to run with fewer locomotives and reduce out-of-route miles.  **[CSX_3396444_23]**  They're focusing on optimizing the network to eliminate extra handling and improve efficiency.  **[CSX_3396444_23]** 

aabe2b033ffa134c002f6e15714b49260e451f9582ab381cbe32aa13cd022f29

1. **Margin Outlook and Headwinds**  
   **Q:** How will headwinds affect margins in Q4?  
   **A:** Significant headwinds from fuel and coal, about **$100 million** in operating income, plus **$50 million** impact from the hurricane, will make it challenging to grow operating income and margins in Q4. Margins will be worse than normal seasonality due to these factors and softer auto and metals demand.  **[CSX_3402894_10]** 

2. **Impact of Labor Agreements on Costs**  
   **Q:** Why did you agree to a 5-year labor deal early?  
   **A:** Early agreement avoids past issues of delayed negotiations and builds better labor relations. The deal includes **4%** wage increase next year, decreasing to **3%** in the fifth year, and allows focus on efficiency, safety, and addressing employee needs beyond wages and benefits.  **[CSX_3402894_13]** 

3. **Pricing Power and Customers**  
   **Q:** Can you maintain a positive price-cost spread next year?  
   **A:** The price-cost spread has been positive all year, as strong as in the last decade. Wage inflation is expected to be less than **4%**, with overall inflation around **2–3%**. Positive customer discussions focus on delivering improved service to support pricing.  **[CSX_3402894_8]** 

4. **Volume Growth Opportunities**  
   **Q:** What are your plans for volume growth and truck conversions?  
   **A:** Successfully converting truck volumes in the merchandise franchise despite a down trucking market. Opportunities are emerging across all areas, and improved service and efficiency are attracting new business by providing value beyond price.  **[CSX_3402894_15]** 

5. **Export Coal Demand Stability**  
   **Q:** How stable is export coal demand going forward?  
   **A:** Expecting more price stability due to a lack of new supply entering the market. Optimistic about the metallurgical coal business as supply constraints create a healthier environment, with recent China stimulus contributing to demand.  **[CSX_3402894_18]** 

6. **Intermodal Business and Trucking Market**  
   **Q:** What's the outlook for domestic intermodal amid trucking shifts?  
   **A:** Seeing signs of bottoming in domestic intermodal, giving hope we've reached the low point. Anticipating a more normalized peak season, and a tighter trucking market could offer opportunities to convert more volume at better rates.  **[CSX_3402894_16]** ,  **[CSX_3402894_9]** 

7. **Industrial Project Sensitivity**  
   **Q:** Are industrial projects sensitive to economic cycles?  
   **A:** Economic cycles can impact timing, but many projects have significant capital already invested and are proceeding. Some may slip by **3–6 months**, but confidence is high given the substantial investments in larger projects underway.  **[CSX_3402894_12]** 

8. **Competitor Dynamics and Market Share**  
   **Q:** Is competitor service improvement affecting your business?  
   **A:** Competing effectively due to stable leadership and enhanced service. Focused on retaining business and expanding the market, confident in ability to win competitively, and aiming to grow alongside customers.  **[CSX_3402894_21]** 

9. **Employee Retention and Culture Impact**  
   **Q:** How are culture investments affecting employee retention?  
   **A:** Employee Net Promoter Scores have improved significantly over the past two years, though there's more to do. Cultural efforts are leading to better retention, reduced attrition, and improved customer service, reflected in our best customer Net Promoter scores ever.  **[CSX_3402894_22]** 

10. **Impact of Diverted Volumes Due to Labor Talks**  
    **Q:** How did port labor issues affect your volumes?  
    **A:** Experienced modest impact from shipments shifting to the West Coast amid East Coast labor uncertainties. Some lost days from port shutdowns, but minimal disruption overall, and we expect to recover volumes through the rest of the quarter.  **[CSX_3402894_17]** ,  **[CSX_3402894_20]** 

2a109b8b5a9fca247da345fe2bf9111e1143a53e005b8c0961beaad1987f63cb

- CSX faces significant headwinds from the **Baltimore port closure**, which is negatively impacting export coal volumes, with an estimated revenue impact of **$25 million to $30 million per month**, expected to continue at least through May. ( **[CSX_3379935_20]** ,  **[CSX_3379935_8]** ,  **[CSX_3379935_14]** )
- The company anticipates a **mid- to high single-digit decline** in coal revenue per unit from Q1 to Q2 due to lower coal pricing, worsening the coal market outlook. ( **[CSX_3379935_8]** )
- The **domestic intermodal business** is challenged by a **weak truck market**, which is limiting growth in that segment despite strong service performance. ( **[CSX_3379935_15]** )

b443eee27e0528fd29fe192eeb9f052b047c44b1b3800166f77b73734227268d

- **CSX's operational metrics, such as on-time arrivals and carload compliance, have deteriorated due to operational changes**, indicating potential service issues.  **[CSX_3396444_13]**
- **Economic uncertainties and a more fragile economy may hinder CSX's volume growth and operating leverage**, making it difficult to achieve expected margins in the second half of the year.  **[CSX_3396444_21]** **[CSX_3396444_12]**
- **Cost inflation and new work rules may impede CSX's ability to achieve historically low operating ratios**, potentially limiting future margin improvements.  **[CSX_3396444_20]**

54432bae36b0d52f27d5592a7fe072488c0548cce69cffca3ad8a1ae5e23dd8a

1. **Margin and Earnings Outlook**  
   **Q:** Can earnings and margins improve in Q2 despite Baltimore port closure?  
   **A:** Management believes they should be able to **grow earnings sequentially from Q1 to Q2**, even with the impact from the Baltimore port closure. They expect both top-line growth and **strong incremental margins**, while containing costs. However, export coal remains a headwind, with coal revenue per unit projected to decline by **mid- to high single digits** from Q1 to Q2 due to pricing pressures.  **[CSX_3379935_8]** 

2. **Operating Metrics Deterioration**  
   **Q:** Why have velocity and dwell metrics worsened, and when will they improve?  
   **A:** The company acknowledges that current operating metrics are **below expectations** due to strict maintenance curfews and engineering programs that temporarily impacted train speed and dwell times. They are making adjustments, including refining work programs and splitting up tasks, and expect **improvements over time**. Despite metrics, **customer service remains strong**.  **[CSX_3379935_9]** 

3. **Coal Revenue Pressure**  
   **Q:** What is the outlook for coal revenue per unit in Q2?  
   **A:** Coal pricing has declined, and management expects a **mid- to high single-digit** drop in coal revenue per unit from Q1 to Q2. This is due to both the **Baltimore port impact** and overall market pricing pressures in export coal.  **[CSX_3379935_8]** 

4. **Headcount and Labor Costs**  
   **Q:** How will headcount and compensation per employee trend going forward?  
   **A:** Headcount is anticipated to remain **relatively flat** into Q2, with potential slight reductions in the second half through attrition. Compensation per employee is expected to **decrease sequentially** in Q2 due to lower winter-related costs and increased capital program activities. However, a **4.5% union wage increase** will affect costs in the second half of the year.  **[CSX_3379935_11]** 

5. **Pricing Environment**  
   **Q:** Is weak demand causing pressure on pricing and revenue per car?  
   **A:** Despite a challenging market and weak demand, management indicates that **pricing remains stable**. They continue to capture **inflation** and are focused on balancing price with volume growth. The first quarter results were **satisfactory**, and they remain **on track** with their pricing strategy.  **[CSX_3379935_10]** 

6. **Industrial Development Growth**  
   **Q:** How is the industrial development pipeline contributing to growth?  
   **A:** The company is in the early stages of growth from over **100 new facilities** that have opened. These projects, particularly in the **aggregates and metals** sectors, typically ramp up over **12 to 24 months** and are expected to contribute to growth through **2024 and beyond**.  **[CSX_3379935_12]** 

7. **Intermodal Volume Trends**  
   **Q:** Why is international intermodal growth outpacing domestic, and what can improve domestic growth?  
   **A:** **International intermodal** saw **double-digit growth** due to easy comparisons from last year and the addition of **new services and partnerships**. The domestic market is more competitive with trucking, but the company performed well despite these challenges. An improvement in the trucking market could enhance domestic intermodal growth.  **[CSX_3379935_13]** 

8. **Baltimore Port Impact**  
   **Q:** How is the Baltimore port closure affecting coal volumes and operations?  
   **A:** The Baltimore incident is expected to have a **$25 million to $30 million** net impact in the second quarter, primarily affecting coal shipments. The company is working to offset about **one-third** of this business by redirecting volumes to other terminals, such as Newport News, with **minimal additional costs** incurred.  **[CSX_3379935_14]** 

9. **Customer Relationships and Market Position**  
   **Q:** Has uncertainty at competitors helped CSX gain volumes or strengthen customer relationships?  
   **A:** While not directly addressing competitor issues, management notes **increased customer engagement and trust**. Customers are opening up their supply chains and expressing appreciation for CSX's **consistency, reliability, and improved service**, which is leading to collaborative growth opportunities.  **[CSX_3379935_15]** 

10. **Intermodal Competitiveness**  
    **Q:** What is needed to regain intermodal volume lost to trucking?  
    **A:** The **value proposition for intermodal remains strong**, though tighter due to competitive truck pricing. As the trucking market recovers, the company expects **customer discussions to accelerate**. CSX is confident that its **compelling service offerings** will lead to growth when the market improves.  **[CSX_3379935_16]** 

11. **Capital Allocation and Share Repurchases**  
    **Q:** What is the company's approach to share repurchases moving forward?  
    **A:** The company remains **committed to share repurchases**, though buybacks were reduced in the first quarter due to a rapid increase in the stock price. They plan to be **opportunistic**, increasing buybacks when the stock price is favorable, and are committed to **significant repurchases** throughout the year.  **[CSX_3379935_20]** 

12. **Supply Chain Shifts and Industrial Opportunities**  
    **Q:** What is driving the tenfold increase in industrial development opportunities?  
    **A:** Companies are **reevaluating their supply chains** post-pandemic, focusing on **bringing production closer** to end consumers. This shift is leading to **significant investments** in CSX's network, particularly benefiting from the **valuable consumer markets** they serve.  **[CSX_3379935_21]** 

13. **Port Dynamics and Trade Shifts**  
    **Q:** Are there expectations for trade shifts between East and West Coast ports, and potential impacts?  
    **A:** Management does not anticipate significant trade moving from East to West Coast ports. There are **substantial investments** in East Coast ports, indicating strong demand. If shifts occur, CSX could see **incremental opportunities**, especially if freight moves over their railroad instead of by truck.  **[CSX_3379935_19]** 

14. **Customer Concerns Amid Competitor Uncertainty**  
    **Q:** Are customers expressing concerns due to issues at other railroads?  
    **A:** Customers are seeking **certainty and visibility** in their supply chains. CSX is seeing **increased willingness** from customers to collaborate and share information, highlighting trust in CSX's **service levels**. The company remains focused on **reliability and consistency** to meet customer needs.  **[CSX_3379935_22]** 

15. **Employee Response to Operational Challenges**  
    **Q:** How have employees contributed during operational disruptions like the Baltimore closure?  
    **A:** The company highlights strong employee engagement, with **numerous staff volunteering** to relocate temporarily to assist with operational adjustments following the Baltimore incident. This responsiveness reflects positively on the company's **culture and commitment to customer service**.  **[CSX_3379935_17]** 

bc6e28f8ec9542d11151e4f72ded5341e7835f7118e62bce88db7c5983040f19

- **CSX expects a significant $600 million headwind to cash flow in 2024 due to $380 million in deferred tax payments and an increase of approximately $200 million in capital expenditures, potentially impacting financial flexibility.**  **[CSX_3370696_20]**
- **The company anticipates continued cost pressures, including higher labor expenses and challenges in reducing overall costs, which may weigh on profitability in the near term.**  **[CSX_3370696_13]**
- **CSX faces potential volume weakness in key markets such as chemicals and forest products, and if market softness persists with competitive truck rates, the expected volume growth may not be sufficient to improve operating leverage without additional pricing support.**  **[CSX_3370696_21]**

9ef4f16355994fb9cab0ae2e2acac38a260314258f01ab9c1b064b0c320abb26

- **CSX expects growth in key markets** such as agriculture and food, minerals, and chemicals in the second half of the year, which should drive volume increases. Additionally, the company is seeing success in converting truck traffic to rail, expected to build momentum as the market recovers.  **[CSX_3396444_22]** **[CSX_3396444_12]**
- **Improved operating leverage and margins anticipated** in the second half due to fewer unique challenges like the Baltimore bridge collapse and improved labor productivity, positioning the company for strong earnings growth. Management is optimistic about the margin potential and future profitability.  **[CSX_3396444_22]** **[CSX_3396444_21]** **[CSX_3396444_20]**
- **Operational efficiencies being implemented** including optimizing the network, increasing asset utilization, and reducing handling are expected to reduce costs and enhance profitability over time. The company is well-positioned to adjust to market changes and capitalize on opportunities with its available capacity.  **[CSX_3396444_20]** **[CSX_3396444_11]** **[CSX_3396444_23]** **[CSX_3396444_13]**

4ccfee850bd6e8e69cfe3ad35bf70e0e5ce3dc57fbcdaf5026864322e8672648

- **CSX expects a slight decrease in total revenue for the fourth quarter due to softer coal markets and lower fuel surcharges, estimating a $200 million impact year-over-year.**  **[CSX_3402894_7]**
- **Additional expenses from rerouting and rebuilding after two major hurricanes will limit near-term margin gains.**  **[CSX_3402894_7]**
- **Volumes have softened in key customer segments like metals and automotive more than expected, leading to only modest volume growth in the fourth quarter.**  **[CSX_3402894_7]**

abda10bb26c01c47e160af42acbcbcb7b3d0b4b32768d756a1c25c3bd68ed4a6

- **CSX expects to grow earnings and margins sequentially from Q1 to Q2** despite headwinds like the Baltimore port closure, showing confidence in continuing momentum and delivering strong incremental margins.  **[CSX_3379935_8]** **[CSX_3379935_19]**
- **Strong double-digit growth in international intermodal** due to new services, profitable growth opportunities, good contract relationships, and alignment with the right partners, outperforming a struggling trucking industry.  **[CSX_3379935_15]**
- **Management remains confident about the second half**, focusing on cost control and finding small wins across the business to deliver financial performance, supporting the momentum of ONE CSX and backed by customer satisfaction with CSX's service.  **[CSX_3379935_20]** **[CSX_3379935_16]**

8a77f6e143f5c1884c585aa49830b3d247ba3329c62e14b6f59fa33dd92e8aca

1. **Margin Expansion Outlook**  
   **Q:** How will margins expand in 2024 with volume growth?  
   **A:** Management aims to expand margins by growing profitably, operating safely, and running an efficient railroad. They expect headwinds in the first quarter to ease in the second, leading to strong incremental margins in the second half of 2024.  **[CSX_3370696_9]** 

2. **Coal Revenue and Volume Outlook**  
   **Q:** What's the outlook for coal RPU and volumes in 2024?  
   **A:** The coal market is healthy but volatile; management has a conservative outlook for coal revenue per unit (RPU) but hopes for upside. Export markets may offset domestic weakness, and they remain optimistic about coal volumes despite potential industry declines.  **[CSX_3370696_12]** **[CSX_3370696_22]** 

3. **Cost Outlook and Unusual Q4 Items**  
   **Q:** Will costs stabilize or decrease going forward?  
   **A:** Unusual items totaling **$30–35 million** in Q4, including a **$15 million** vacation and sick leave true-up, a **$10 million** depreciation true-up, and **$10 million** derailment costs, will roll off in Q1. Management expects to build momentum in cost efficiencies throughout 2024.  **[CSX_3370696_13]** 

4. **Operating Leverage and Efficiency**  
   **Q:** When will operating leverage improvements show up?  
   **A:** Operating leverage is underlying the business but was impacted by first-half headwinds like fuel lag and revenue declines. Management expects operating leverage to show more clearly in the second half of 2024, even in a flat macro environment, supported by business wins and resource optimization.  **[CSX_3370696_21]** 

5. **Pricing Outlook**  
   **Q:** What is the pricing assumption for 2024 contracts?  
   **A:** Management expects cost inflation to be lower in 2024. Pricing is anticipated to come down compared to 2023 but remain healthy relative to historical rates, supporting revenue growth through a balanced approach between volume and price.  **[CSX_3370696_14]** 

6. **Revenue Headwinds from Storage and Fuel Surcharge**  
   **Q:** How will storage revenue and fuel surcharges impact 2024?  
   **A:** Other revenue is modeled at **$130 million per quarter**, presenting a **$50 million+** headwind in Q1. Fuel prices have decreased; a favorable lag is expected in Q1, but it will be a year-over-year headwind. These factors contribute to tougher comps in the first half of 2024.  **[CSX_3370696_14]** 

7. **Resource Management for Volume Growth**  
   **Q:** Can you handle volume growth without increasing resources?  
   **A:** With headcount added in 2023, management plans to hold headcount flat and absorb new growth, achieving labor productivity improvements in the second half of 2024. Existing locomotives will be used more efficiently to support growth.  **[CSX_3370696_17]** 

8. **Labor Efficiency and Headcount Planning**  
   **Q:** What are the opportunities for labor efficiency with new volumes?  
   **A:** While incremental volume may require additional headcount depending on specifics, increasing train size and reducing car touches offer opportunities for efficiency. Management believes they can handle incremental volume with current resources in many cases.  **[CSX_3370696_15]** 

9. **Operational Efficiency and On-time Performance**  
   **Q:** How will you improve on-time performance and efficiency?  
   **A:** Focus is on yards and terminal performance, connecting cars, and increasing train size. Growth initiatives may temporarily affect on-time metrics, but management is not concerned, emphasizing customer delivery and efficiency through a condensed network.  **[CSX_3370696_16]** 

10. **Cash Flow Headwinds and Volume Growth Cadence**  
    **Q:** How will deferred taxes and CapEx affect cash flow?  
    **A:** A **$380 million** deferred tax payment in the first half of 2024 and a **$200 million** increase in CapEx (from **$2.3 billion** to **$2.5 billion**) present headwinds. Volume and revenue growth are expected to have an even cadence throughout the year, with growth achievable across all quarters.  **[CSX_3370696_20]** 

11. **Accelerating Truck to Intermodal Conversion**  
    **Q:** What will drive acceleration in truck-to-intermodal conversion?  
    **A:** Improved service levels and terminal fluidity are expected to drive market share gains as the company measures customer experience more effectively. The hope is that the trucking market has bottomed, positioning intermodal for growth.  **[CSX_3370696_19]** 

12. **Comp Per Employee and Efficiency Initiatives**  
    **Q:** Will comp per employee decrease in Q1 after Q4 increases?  
    **A:** True-ups in vacation and sick leave added **$15 million** in Q4 costs, creating a tailwind for Q1. A **couple of percentage points** improvement in comp per employee is expected versus Q4, steady in the first half, with a **4%** wage increase scheduled in July.  **[CSX_3370696_11]** 

13. **Operating Ratio Expectations and PS&O Costs**  
    **Q:** How are PS&O costs being managed for margin growth?  
    **A:** PS&O costs include expenses from Quality Carriers and PanAm acquisitions, which are volume-variable. While an increase is expected from Q4 to Q1, management is focused on PS&O as an area for cost savings to drive margin improvement.  **[CSX_3370696_18]** 

14. **Company Focus and Priorities**  
    **Q:** What are the focus areas for the next 12–18 months?  
    **A:** With business stabilized and manpower at target levels, the focus is on leveraging operational strength to become more efficient, improve safety, and grow with customers. The network and team are in good shape to build on momentum from the past year.  **[CSX_3370696_10]** 

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CSX Corp (CSX)

Financials