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PresentationWith our next presentation here, we've got CSX. Pleasure to have them join us again at our conference. We've got Mike Cory, EVP of Operations. We've got Kevin Boone, CFO. And -- I think just to get things started, Kevin has some -- a slide or a couple of slides on the trends in the business. So why don't we start with that, and then we'll jump into the fireside chat.Kevin BooneExecutive VP & CFO Yes. So if we could pull up the second slide here or the next one, everybody knows that slide. Tom, y ...

Summary of CSX Conference Call Company Overview - **Company**: CSX Corporation - **Industry**: Transportation and Logistics, specifically rail freight Key Points and Arguments Market Trends - The industrial economy is currently experiencing mixed conditions, with challenges in some markets and opportunities in others [1][2] - Strong performance noted in the metal, minerals, and fertilizers markets, while intermodal markets are showing signs of weakness due to tariffs [2][3] - Weaker markets identified include chemicals and forest products, with housing and automotive sectors also facing persistent weakness [3][4] Financial Impacts - A derailment incident impacted coal operations, resulting in an estimated $30 million EBIT impact for the quarter [4] - The automotive market faced approximately $40 million in headwinds due to an aluminum plant fire and chip shortages affecting customers [5][6] Future Outlook - Anticipation of a rebound in the housing and automotive markets, although not expected in the immediate next year [3][12] - Optimism regarding the box plants as leading indicators of industrial recovery, with expectations for a rebound due to previous plant closures [11][12] - The company is ramping up its industrial development side, expecting more opportunities in 2026 and beyond [12] Intermodal and Network Performance - Intermodal operations are performing well, with capacity to absorb incoming volume without additional assets [21][23] - New partnerships and service expansions in the Southeast and Northeast are expected to convert truck volume to rail [23][24] - The Howard Street Tunnel project is anticipated to enhance network capabilities, with completion expected by the end of Q1 [26][27] Leadership and Productivity - The new CEO is focused on service, productivity, and pricing, aiming to align resources for better efficiency [36][37] - Significant opportunities identified in reducing overtime and improving capital discipline, with a 30% reduction in overtime for road trains noted [45][46] - The leadership team is energized and focused on creating a winning culture within the organization [41][42] Cost and Pricing Strategy - The company is optimistic about improving the price-cost spread in 2026, with expectations for stable rates in the truck market aiding intermodal conversion [50][52] - Emphasis on technology investments to enhance pricing strategies and operational efficiencies [60][61] - The focus is on controlling costs while seeking pricing opportunities, with a commitment to delivering value to customers [51][55] Capital Expenditure and Efficiency - Over $1 billion is allocated for track maintenance, with expectations for improved efficiency in capital spending [70][68] - The leadership is committed to rigorous analysis of capital projects to ensure high returns and effective spending [76][78] Competitive Positioning - CSX aims to maintain a strong competitive position amidst industry changes, focusing on service quality and network reliability [63][65] - The company is prepared to evaluate regulatory filings and ensure that customer options remain available in the future [67] Additional Important Insights - The leadership team emphasizes a culture of accountability and efficiency, with a focus on learning from past projects to improve future performance [76][94] - The new CEO's approach is expected to bring significant changes in pricing strategy and operational focus, aligning with the company's goals for growth and efficiency [61][80]

With a market cap of $65.8 billion, CSX Corporation (CSX) is a leading U.S.-based rail transportation company headquartered in Jacksonville, Florida, operating an extensive network of about 20,000 route miles across 26 states and parts of Canada. The company provides freight and intermodal services, moving commodities such as agricultural products, chemicals, coal, metals, industrial goods, and automobiles, while connecting major ports and inland distribution hubs. Companies valued over $10 billion are ge ...

Core Viewpoint - CSX Corp. will present at the 2025 UBS Global Industrials and Transportation Conference on December 2, 2025, at 8:50 a.m. Eastern Time, highlighting its role in the transportation sector [1]. Company Overview - CSX, headquartered in Jacksonville, Florida, is a leading transportation company providing rail, intermodal, and rail-to-truck transload services across various markets, including energy, industrial, construction, agricultural, and consumer products [3]. - The company has been integral to the economic expansion and industrial development of the United States for nearly 200 years, connecting major metropolitan areas in the eastern U.S. where about two-thirds of the nation's population resides [3]. - CSX's network links over 240 short-line railroads and more than 70 ocean, river, and lake ports with significant population centers and farming towns [3].

The Zacks Transportation - Rail industry faces challenges, ranging from tariff-induced economic uncertainties, inflationary pressures and resultant high interest rates to concerns pertaining to supply-chain disruptions.Despite the challenges surrounding the industry, Union Pacific Corporation (UNP) and CSX Corporation (CSX) appear better placed to tide over the challenges. Declining fuel costs represent a tailwind as far as bottom-line growth is concerned.Industry Description The Zacks Transportation - Rail ...

Core Insights - CSX has designated the 365-acre Westgate Super Site in Dothan, Alabama, as a Platinum CSX Select Site, marking a significant milestone for the region and the state [1][3] Group 1: CSX Select Site Program - The Select Site program, introduced in 2012, aims to serve new and existing customers by designating development-ready properties along the CSX network, which reduces construction time for industrial facilities [2][3] - To achieve Platinum status, sites must meet stringent criteria, including infrastructure availability, environmental reviews, zoning, air quality permitting, rail serviceability, and proximity to highways [4][5] Group 2: Economic Impact - The Select Sites program has attracted numerous manufacturers, with projected capital investments reaching $16.2 billion and nearly 13,000 new jobs created since its inception [4] - The Westgate Super Site is the fifth site in Alabama to receive the Platinum designation, contributing to the region's competitiveness as a manufacturing corridor [5] Group 3: Community and Leadership Perspectives - Local leaders, including the Mayor of Dothan and the Chairman of the Houston County Commission, expressed gratitude for the designation, highlighting its potential to create quality jobs and stimulate long-term economic growth in the Wiregrass region [6]

Core Viewpoint - The presentation features Daniel Moore, a senior Transportation analyst at Baird, introducing Kevin Boone from CSX, highlighting the importance of their attendance despite travel difficulties [1] Group 1 - Daniel Moore serves as the senior Transportation analyst at Baird [1] - Kevin Boone represents CSX in the presentation [1] - The presentation acknowledges travel challenges faced by attendees [1]

Summary of CSX Conference Call Company Overview - **Company**: CSX Corporation - **Industry**: U.S. Rail Transportation Key Points Management Changes and Strategic Focus - CSX has undergone significant management changes, with a focus on operational efficiency and profitability under new leadership [1][2][5] - The new CEO, Steve, emphasizes prioritizing key objectives and enhancing shareholder value, regardless of industry changes [3][4][6] Infrastructure Projects - CSX is nearing completion of major infrastructure projects, including the Howard Street Tunnel and Blue Ridge Subdivision, which are expected to enhance operational efficiency and reduce costs [9][10][12] - Anticipated savings of approximately $100 million in costs as projects conclude, with a reduction of $10 million per month in costs previously incurred [10][11] Service Improvements - CSX has achieved significant service improvements, positioning itself for growth as market conditions stabilize [15][18] - The company is prepared to capitalize on cyclical growth in key segments, with confidence in its operational stability and leadership [19][21] Pricing Strategy - CSX aims to maintain pricing discipline, focusing on profitable business rather than merely increasing volume [20][21] - The company is optimistic about converting truck freight to rail, especially as trucking market conditions improve [21][22] Partnerships and Collaborations - CSX is actively pursuing partnerships with other Class I railroads to enhance service offerings and operational efficiency [23][25][26] - Recent collaborations have led to new intermodal opportunities, particularly in the Southeast, and improved connections with other rail networks [26][30] Competitive Environment - Increased competition in the eastern U.S. rail market, particularly in domestic intermodal, is acknowledged, with CSX focusing on maintaining service quality to retain customers [28][29] - The company is prepared to compete effectively against potential mergers in the industry, leveraging its unique service offerings [33][54] Capital Investment and Budgeting - CSX is focusing on capital discipline and efficiency in capital expenditures, particularly in light of recent large projects coming to completion [38][42] - Future investments will be evaluated based on growth opportunities, with no immediate large-scale projects anticipated [43] Technology and Automation - CSX is undergoing a digital transformation to improve data accessibility and operational efficiency, with a focus on automation in various processes [45][46] - The company recognizes the potential for technology to enhance safety and reduce costs, although it is still in the early stages of implementation [47][48] Conclusion - CSX is positioning itself for future growth through strategic management changes, infrastructure investments, service improvements, and enhanced partnerships, while maintaining a focus on operational efficiency and shareholder value [34][35][38]

Group 1 - Equinix, Inc. (EQIX) is a leading colocation provider headquartered in Redwood City, CA [5] - The company has received an MSCI ESG Overall Score of AAA, indicating strong environmental, social, and governance practices [5]