CSX CORP Q3 FY2024 earnings call

• Thanked the ONE CSX team for helping employees and communities recover from hurricanes. • Achieved growth in volume, revenue, and operating margin as aimed. • Operational efficiency and cost controls remained solid. • Faced challenges from weather, equipment issues, and market conditions. • Merchandise franchise continued to grow with new business wins, truck conversions, etc. • Safety improvements seen in FRA train accidents and human factor incidents. • Network resilience and service restoration efforts highlighted.

Merchandise business: Volume grew by 3%, revenue gained 6% compared to last year, driven by a 3% gain in volume and solid pricing. Coal business: Total coal revenue declined 7%, a 2% decline in volume, with export and domestic shipments moving in opposite directions. Intermodal: Total revenue declined 2% year-over-year, while volume increased 3%, with international shipments growing at a mid-single-digit rate and domestic shipments effectively flat for the quarter.

• Anticipates slight decrease in total revenue for the fourth quarter due to lower fuel and coal prices and hurricane impacts. • Still aiming for $2.5 billion in total CapEx this year, with hurricane rebuilding costs likely exceeding $200 million. • Committed to a balanced and opportunistic approach to capital returns via buybacks and a growing dividend.

• Weather events impacting network and operations. • Mixed market conditions with soft truck market and moderating coal prices. • Potential disruptions from labor negotiations and other industry dynamics.

Q: Question on intermodal yields and port strike impact.

A: Kevin spoke about intermodal yield trends and port strike impact recovery.

Q: Question on competitive marketplace and business opportunities.

A: Kevin discussed competition, service improvement, and growing the market.

Q: Question on culture impact on churn and Net Promoter Scores.

A: Joe talked about culture impact on employee engagement, retention, and business outcomes.