CSX (CSX) Barclays 43rd Annual Industrial Select Conference summary

Industry trends and macro outlook

• AI, automation, and robotics are seen as major drivers for traditional industrial businesses, with practical applications already benefiting efficiency and customer service.

• Global industrial production growth remains flat, with China no longer a growth engine and Europe historically stagnant; India is growing but not at the scale of China or the US.

• The US is viewed as the most promising region for sustained industrial growth, supported by favorable tax laws and accelerated depreciation, though tariff uncertainties are causing companies to delay investments.

• Long-term prospects for US industrial growth are positive, but significant acceleration is not expected by 2026.

Leadership transition and company culture

• The new CEO brings extensive experience from previous leadership roles in industrial and chemical sectors, with a personal affinity for the railroad industry.

• The company culture is characterized by deep heritage, multi-generational employees, and strong pride in the business.

• Leadership changes were made thoughtfully, focusing on placing strong leaders in critical roles and building a pipeline of talent for sustainable performance.

Operational performance and infrastructure

• Major infrastructure projects, such as the rebuilding of a key rail corridor and completion of the Howard Street Tunnel, have improved network stability and resilience.

• Service consistency remains a key area for improvement, with recent progress in operational metrics but recognition that further gains are needed.

• Severe weather events have tested operations, but the team has demonstrated resilience and adaptability.