CSX CORP

Previous wording

•Operating margin of 38.3% improved 240 basis points versus the prior year.

Current wording

•Operating margin of 39.1% improved 880 basis points versus the prior year.

Previous wording

•Earnings per diluted share of $0.54 increased $0.10, or 23%, year over year.

Current wording

•Earnings per diluted share of $0.57 increased $0.20, or 54%, year over year.

Previous wording

Total revenue increased 10% in second quarter 2026 when compared to second quarter 2025 primarily due to increased fuel surcharge revenue together with higher volume and pricing across merchandise, intermodal and coal.

Current wording

Total revenue increased 12% in third quarter 2026 when compared to third quarter 2025 primarily due to increased fuel surcharge revenue as well as higher volume and pricing across merchandise, intermodal and coal.

Previous wording

Agricultural and Food Products - Increased due to higher shipments of export grains and domestic feed ingredients, partially offset by decreased shipments of domestic feed grain.

Current wording

Agricultural and Food Products - Increased due to higher shipments of domestic and export grains and feed ingredients, partially offset by decreased shipments of ethanol.

Previous wording

Forest Products - Flat as higher lumber shipments, including benefits from a tighter trucking environment, were offset by lower shipments of pulp and paper products, which include the impacts of both customer plant closures and temporary outages.

Current wording

Forest Products - Increased due to higher lumber and building products shipments, including benefits from a tighter trucking environment, which were partially offset by lower shipments of pulp and paper products, which includes the impacts of customer plant closures.

Previous wording

Domestic shipments increased due to wins with key customers, new service offerings and a tightening truck environment. International shipments were relatively flat to prior year levels.

Current wording

Domestic shipments increased due to wins with key customers, new service offerings and a tightening truck environment. International shipments decreased slightly.

Previous wording

Trucking revenue increased $15 million versus the prior year due to higher fuel surcharge.

Current wording

Trucking revenue increased $20 million versus the prior year primarily due to higher fuel surcharge.

Previous wording

Labor and Fringe expense increased $40 million due to the following:

Current wording

Labor and Fringe expense increased $19 million due to the following:

Previous wording

•Incentive compensation increased $56 million driven by higher expected payouts.

Current wording

•Incentive compensation increased $53 million driven by higher expected payouts.

Previous wording

•An increase of $32 million was due to inflation.

Current wording

•An increase of $38 million was due to wage and healthcare cost inflation.

Previous wording

Purchased Services and Other expense decreased $66 million due to the following:

Current wording

Purchased Services and Other expense decreased $73 million due to the following:

Previous wording

•Efficiency savings, net of inflation, of $54 million were driven by cost reductions across operating and support functions.

Current wording

•Efficiency savings, net of inflation, of $42 million were driven by cost reductions across operating and support functions.

Previous wording

•A decrease of $14 million was due to the effects of network disruptions and congestion in the prior year, including rerouting impacts.

Current wording

•All other net costs decreased $27 million, primarily due to the effects of higher costs in the prior year related to network disruptions, including rerouting impacts, and technology contract restructuring costs.

Previous wording

Depreciation and Amortization expense decreased $16 million primarily as a result of an equipment depreciation study.

Current wording

Depreciation and Amortization expense decreased $11 million primarily as a result of an equipment depreciation study, partially offset by increases related to a larger asset base.

Previous wording

Fuel costs increased $177 million primarily due to a 74% increase in locomotive fuel prices as well as higher non-locomotive fuel prices, partially offset by efficiency savings.

Current wording

Fuel costs increased $170 million mostly due to a 67% increase in locomotive fuel prices as well as higher non-locomotive fuel prices, partially offset by efficiency savings.

Previous wording

Equipment and Other Rents expense increased $3 million.

Current wording

Equipment and Other Rents expense increased $6 million due to longer merchandise cycle times and higher volume.

Previous wording

Income tax expense increased $54 million primarily due to higher earnings before income taxes.

Current wording

Income tax expense increased $128 million primarily due to higher earnings before income taxes.

Previous wording

Revenue increased $420 million primarily due to volume and price growth in merchandise, intermodal and coal as well as higher fuel recovery.

Current wording

Revenue increased $850 million primarily due to volume and price growth in merchandise, intermodal and coal together with higher fuel recovery.

Previous wording

Total expense decreased $15 million as efficiency savings, gains on property dispositions and other decreases were largely offset by higher fuel prices, inflation and higher incentive compensation.

Current wording

Total expense decreased $68 million resulting from efficiency savings, the impact of prior year costs related to goodwill impairment and network disruptions, higher gains on property dispositions, and lower depreciation due to the equipment depreciation study. These and other decreases were largely offset by higher fuel prices, inflation, higher incentive compensation, and higher volume-related costs.

Previous wording

Income tax expense increased $98 million primarily due to higher earnings before income taxes.

Current wording

Income tax expense increased $226 million primarily due to higher earnings before income taxes.

Previous wording

The increase in FCF before dividends of $1.2 billion from the prior year is primarily due to prior year payments of previously postponed taxes, decreased property additions driven by completion of the Blue Ridge subdivision rebuild, and higher cash-generating net earnings. Prior year property additions include approximately $295 million related to rebuilding the Blue Ridge subdivision, which was reopened in September 2025.

Current wording

The increase in FCF before dividends of $1.6 billion from the prior year is primarily due to decreased property additions driven by completion of the Blue Ridge subdivision rebuild, prior year payments of previously postponed taxes, and higher cash-generating net earnings. Prior year property additions included $440 million related to rebuilding the Blue Ridge subdivision, which was reopened in September 2025.

Previous wording

In the second quarter of 2026, velocity improved by 3% while dwell increased by 6% versus prior year. Carload trip plan performance decreased by 5% and intermodal trip plan performance decreased by 2%. The Company continues to focus on operational improvements and executing the operating plan to deliver safe, reliable, and efficient service to customers.

Current wording

In the third quarter of 2026, velocity decreased by 2% and dwell increased by 12% versus prior year. Carload trip plan performance decreased by 12% and intermodal trip plan performance decreased by 11%. The Company continues to focus on operational improvements and executing the operating plan to deliver safe, reliable, and efficient service to customers.

Previous wording

The Federal Railroad Administration (“FRA”) personal injury frequency index of 0.83 in second quarter 2026 improved 19% compared to prior year and the FRA train accident rate of 2.72 improved 30%. Safety is a top priority at CSX, and the Company is committed to reducing risk and enhancing the overall safety of its employees, customers, and communities in which it operates.

Current wording

The Federal Railroad Administration (“FRA”) personal injury frequency index of 0.97 in third quarter 2026 improved 17% compared to prior year and the FRA train accident rate of 2.77 improved 5%. Safety is a top priority at CSX, and the Company is committed to reducing risk and enhancing the overall safety of its employees, customers, and communities in which it operates.

Previous wording

The following chart highlights the operating, investing and financing components of the net increase of $337 million and decrease of $546 million in cash and cash equivalents for the six months ended June 30, 2026, and June 30, 2025, respectively.

Current wording

The following chart highlights the operating, investing and financing components of the net increase of $553 million and decrease of $321 million in cash and cash equivalents for the nine months ended September 30, 2026, and September 30, 2025, respectively.

Previous wording

•The Company generated $709 million more cash from operating activities primarily driven by higher cash-generating net earnings and favorable working capital activities, which included the impact of the prior year payment of $429 million in previously postponed taxes that was partially offset by higher accounts receivable commensurate with higher revenues.

Current wording

•The Company generated $989 million more cash from operating activities primarily driven by higher cash-generating net earnings and net favorable working capital activities. Working capital changes included the impact of the prior year payment of postponed taxes, partially offset by the impact of higher accounts receivable commensurate with higher revenues.

Previous wording

•CSX used $133 million less cash for investing activities primarily due to lower property additions following the completion of the rebuilding of the Blue Ridge subdivision in prior year and increased proceeds from property dispositions in the current year. The decrease was partially offset by net purchases of short-term investments in 2026.

Current wording

•CSX used $238 million less cash for investing activities primarily due to lower property additions following the completion of the rebuilding of the Blue Ridge subdivision in prior year as well as increased proceeds from property dispositions in the current year. These decreases were partially offset by net purchases of short-term investments in 2026.

Previous wording

As of the end of second quarter 2026, CSX had $1.4 billion of cash, cash equivalents and short-term investments. CSX uses current cash balances for general corporate purposes, which may include capital expenditures, working capital requirements, reduction or refinancing of outstanding indebtedness, redemptions and repurchases of CSX common stock, dividends to shareholders, acquisitions and other business opportunities, and contributions to the Company's qualified pension plan. See Note 7, Debt and Credit Agreements.

Current wording

As of the end of third quarter 2026, CSX had $1.6 billion of cash, cash equivalents and short-term investments. CSX uses current cash balances for general corporate purposes, which may include capital expenditures, working capital requirements, reduction or refinancing of outstanding indebtedness, redemptions and repurchases of CSX common stock, dividends to shareholders, acquisitions and other business opportunities, and contributions to the Company's qualified pension plan. See Note 7, Debt and Credit Agreements.

Previous wording

The Company has multiple sources of liquidity, including cash generated from operations and financing sources. The Company filed a shelf registration statement with the SEC on February 27, 2025, which may be used to issue debt or equity securities at CSX’s discretion, subject to market conditions and CSX Board authorization. While CSX seeks to give itself flexibility with respect to cash requirements, there can be no assurance that market conditions would permit CSX to sell such securities on acceptable terms at any given time, or at all. During the six months ended June 30, 2026, CSX did not issue any long-term debt.

Current wording

The Company has multiple sources of liquidity, including cash generated from operations and financing sources. The Company filed a shelf registration statement with the SEC on February 27, 2025, which may be used to issue debt or equity securities at CSX’s discretion, subject to market conditions and CSX Board authorization. While CSX seeks to give itself flexibility with respect to cash requirements, there can be no assurance that market conditions would permit CSX to sell such securities on acceptable terms at any given time, or at all. During the nine months ended September 30, 2026, CSX did not issue any long-term debt. As of September 30, 2026, approximately $1.7 billion of debt is classified as current. As described above, the Company has multiple sources of liquidity available to sufficiently address these obligations, including cash on hand, cash generated from operations, and access to financing sources.

Previous wording

Total assets increased $1.0 billion from year end primarily due to $715 million increase in cash and short-term investments, a $158 million increase in accounts receivable commensurate with increased revenue, and a $135 million increase in net property consistent with planned capital expenditures.

Current wording

Total assets increased $1.5 billion from year end primarily due to a $930 million increase in cash and short-term investments, a $331 million increase in net property consistent with planned capital expenditures, and a $187 million increase in accounts receivable commensurate with increased revenue.

Previous wording

Total liabilities increased $116 million from year end primarily due to an $86 million increase in deferred income taxes primarily driven by bonus tax depreciation and a $70 million increase in income and other taxes payable due to increased earnings and the timing of tax payments. Total shareholders' equity increased $928 million from year end primarily driven by net earnings of $1.8 billion, partially offset by dividends paid of $520 million and share repurchases of $506 million.

Current wording

Total liabilities increased $250 million from year end primarily due to a $116 million increase in deferred income taxes primarily driven by bonus tax depreciation. Increases in income and other taxes payable and interest payable were driven by the timing of payments. Total shareholders' equity increased $1.2 billion from year end primarily driven by net earnings of $2.9 billion, partially offset by share repurchases of $1.0 billion and dividends paid of $779 million.

Previous wording

Working capital is considered a measure of a company's ability to meet its short-term needs. CSX had a working capital deficit of $746 million as of June 30, 2026, and $583 million as of December 31, 2025. This deficit increase of $163 million since year end was primarily driven by a $1.0 billion reclass of long-term debt to current and a $70 million increase in income and other taxes payable. These increases were partially offset by a $715 million increase in cash and short-term investments as noted above and a $158 million increase in accounts receivable. The Company's working capital balance varies due to factors such as the timing of scheduled debt payments and changes in cash and cash equivalent balances as discussed above. The Company continues to maintain adequate liquidity to satisfy current liabilities and maturing obligations when they come due. CSX has sufficient financial capacity, including its revolving credit facility, commercial paper program and shelf registration statement to manage its day-to-day cash requirements and any anticipated obligations. The Company from time to time accesses the credit markets for additional liquidity.

Current wording

Working capital is considered a measure of a company's ability to meet its short-term needs. CSX had a working capital deficit of $676 million as of September 30, 2026, and $583 million as of December 31, 2025. This deficit increase of $93 million since year end was primarily driven by a $1.0 billion reclass of long-term debt to current, partially offset by a $930 million increase in cash and short-term investments as noted above. The Company's working capital balance varies due to factors such as the timing of scheduled debt payments and changes in cash and cash equivalent balances as discussed above. The Company continues to maintain adequate liquidity to satisfy current liabilities and maturing obligations when they come due. CSX has sufficient financial capacity, including its revolving credit facility, commercial paper program and shelf registration statement to manage its day-to-day cash requirements and any anticipated obligations. The Company from time to time accesses the credit markets for additional liquidity.

Previous wording

Approximately 16,600 of the Company's approximately 22,200 employees are members of a rail labor union and covered by national agreements with the Class I railroads or CSX-specific agreements. Agreements with an effective date of January 1, 2025, have been fully ratified by most unions, representing nearly 75% of the Company's unionized workforce. The remaining unionized employees are covered under previous agreements while negotiations take place since collective agreements under the Railway Labor Act do not expire, but continue until amended or replaced.

Current wording

Approximately 16,400 of the Company's approximately 21,900 employees are members of a rail labor union and covered by national agreements with the Class I railroads or CSX-specific agreements. Agreements with an effective date of January 1, 2025, have been fully ratified by most unions, representing nearly 75% of the Company's unionized workforce. The remaining unionized employees are covered under previous agreements while negotiations take place since collective agreements under the Railway Labor Act do not expire, but continue until amended or replaced.

Previous wording

•the Company's success in implementing its strategic, financial and operational initiatives, including acquisitions;

Current wording

•the Company's success in implementing its strategic, financial and operational initiatives, including, but not limited to, acquisitions;