CSX (CSX) Baird 55th Annual Global Industrial Conference summary

Strategic direction and leadership focus

• New leadership emphasizes operational excellence, efficiency, and profitable growth, with clear financial targets and a focus on shareholder value.

• Leadership is prioritizing understanding cost drivers, pricing dynamics, and talent across the organization.

• Safety remains a top priority, leveraging experience from industries with strong safety cultures.

• The company is preparing for 2026 with ongoing planning and a board review scheduled for December.

• Strategic optionality is maintained, with openness to all value-creating options, including potential industry consolidation.

Infrastructure projects and operational improvements

• Howard Street Tunnel project is nearly complete, enabling double stack service by Q2 next year and unlocking significant cost savings and efficiency.

• Blue Ridge Subdivision rebuild enhances network resiliency and offers new growth opportunities, though smaller than Howard Street.

• Service recovery after weather disruptions has been strong, with leadership stability contributing to improved customer service.

• Improved service levels are expected to support future growth as key segments recover from cyclical lows.

Market environment, pricing, and partnerships

• Focus remains on profitable business, not just market share, with pricing strategies aimed at offsetting inflation.

• Despite a weak trucking market, successful truck-to-rail conversions signal strong service value.

• Recent joint service and partnership announcements reflect increased industry collaboration, especially with Class I peers.

• The Meridian Speedway connection with CPKC and ongoing work with UP and others are expanding network reach and efficiency.

• Enhanced collaboration is enabled by improved industry-wide operational performance.