CSX (CSX) investor relations material

Executive summary

• Achieved record quarterly revenue of $3.94 billion, up 10% year-over-year, with diluted EPS rising 23% to $0.54 and operating income up 17% to $1.51 billion, reflecting strong demand, operational execution, and cost discipline.

• Net earnings rose 21% to $1.00 billion, and volume grew 6% to 1.68 million units, led by 9% intermodal growth and broad-based market expansion.

• Safety performance improved significantly, with a 19% reduction in FRA injury rate and a 30% improvement in train accident rate year-over-year.

• Focus remains on profitable growth, operational efficiency, and long-term value creation rather than market share.

Financial highlights

• Revenue increased 10% year-over-year to $3.94 billion in Q2 2026, driven by higher fuel surcharge, volume growth, and improved pricing across all segments.

• Operating income rose 17% to $1.51 billion, with operating margin expanding by 240 basis points to 38.3%.

• Earnings per share grew 23% to $0.54 in the quarter.

• Net earnings for Q2 2026 were $1.0 billion, up from $829 million in Q2 2025.

• Free cash flow before dividends reached $1.62 billion for the first half, up from $444 million in the prior year.

Outlook and guidance

• Full-year 2026 revenue growth expected in the mid to high single digits, with operating margin expansion forecasted at greater than 350 basis points and free cash flow growth above 80%.

• Capital spending guidance unchanged at less than $2.4 billion.

• Management remains committed to returning cash to shareholders and maintaining an investment-grade credit profile.

• Encouraging trends for the second half, with focus on converting opportunities into long-term growth.