CSX Corp.

Strong Q2 performance (volume, revenue, margins, EPS) - Volume +6% YoY with revenue +10% YoY, reaching a new quarterly record. - Operating income +17% and operating margins +240 bps, despite ~160 bps of fuel headwinds. - EPS +23% YoY. - Total expenses +6% YoY, driven by fuel and labor, but non-fuel expenses down 2% YoY; also noted lower terminal/intermodal cost per lift (-12% Intermodal).

Updated 2026 guidance raised; cash flow and margin outlook improving - CSX raised full-year outlook: revenue growth now mid- to high-single digits. - Operating margin expansion >350 bps (improved profitability target). - Free cash flow growth >80%. - Capex unchanged: < $2.4B for 2026. - Management attribution: strong volume + productivity/cost discipline; service improvements are a stated focus but not yet “best-in-class.”

Safety and productivity momentum is solid, even with tighter service conditions - Safety improved: FRA Injury Rate -19% YoY (even though total people hours -7%); Trade & Accident Rate -30%. - Productivity gains highlighted: fuel efficiency improved for the 4th straight quarter, GTMs per unit of horsepower up for the 6th straight quarter, and employees moved more tonnage per train. - Key operational tension: velocity +3% YoY but dwell increased; availability constraints due to seasonal crew tightness and demand coming in stronger than expected.