Morgan Stanley's 13th Annual Laguna Conference Joe Hinrichs President & Chief Executive Officer 9.11.2025 Forward Looking Disclosure This information and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, margins, volumes, rates, cost-savings, expenses, taxes, liquidity, capital expenditures, dividends, share repurchases or other financia ...

Group 1 - CSX Corporation's shares have recently declined by 9.7% following the announcement of an expanded partnership with BNSF, disappointing investors who had hoped for a merger similar to Union Pacific and Norfolk Southern [1] - Jim Cramer highlighted the valuation of CSX Corporation, noting it is more richly valued than JPMorgan, indicating a potential overvaluation concern [2] - The railroad industry is experiencing a shift towards collaboration rather than mergers, as stated by CSX's CEO Joseph Hinrichs, which could impact future growth strategies [2] Group 2 - There is a belief that while CSX has investment potential, certain AI stocks may offer higher returns with limited downside risk, suggesting a competitive investment landscape [3]

Group 1 - CSX Corp. will be represented by President and CEO Joe Hinrichs and CFO Sean Pelkey at J.P. Morgan's U.S. All Stars Conference in London on September 17, 2025 [1] - The address will be available for live streaming via webcast, with a replay accessible after the event [2] - CSX 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] Group 2 - CSX has been integral to the economic expansion and industrial development of the United States for nearly 200 years [3] - The company's network connects major metropolitan areas in the eastern U.S., where approximately two-thirds of the nation's population resides, and links over 240 short-line railroads and more than 70 ports [3]

Group 1 - CSX Corporation is recognized for its strength under the leadership of Joe Hinrichs, with potential benefits from a merger-friendly environment due to the current administration [1] - The company is involved in rail-based freight and intermodal transportation, handling a variety of goods including chemicals, agricultural products, coal, and manufactured items [2] - There is a suggestion that while CSX has investment potential, certain AI stocks may offer greater upside and less downside risk, indicating a competitive investment landscape [3]

CSX (NASDAQ:CSX) and Canadian National Railway (NYSE:CNI) are partnering on a new intermodal service that will provide all-rail transport from Canada’s West Coast directly to Nashville, Tennessee. By replacing the current trucking leg of the trip with a steel-wheel interchange, Canadian ...

Core Viewpoint - CN and CSX have signed a Memorandum of Understanding (MOU) to develop a new intermodal service into Nashville, Tennessee, enhancing supply chain solutions for customers [1][2]. Group 1: Service Details - The new service will provide an all-rail alternative for international containers moving from Canada's West Coast through Memphis to Nashville, replacing the current trucking leg with a steel-wheel interchange [2]. - This collaboration aims to deliver faster, more reliable, and sustainable supply chain solutions, benefiting railroads, customers, and communities [3]. Group 2: Company Statements - Janet Drysdale, Interim Chief Commercial Officer of CN, emphasized that the agreement expands market access for customers and drives growth, reliability, and sustainability [3]. - Kevin Boone, Executive Vice President and Chief Commercial Officer of CSX, highlighted the commitment to creating solutions that deliver mutual value and reduce truck traffic on highways [3]. Group 3: Historical Context - The collaboration builds on the successful interline agreements between CN and CSX, including their long-standing partnership on the East Coast, which began in 2019 [3]. Group 4: Company Background - CN operates a nearly 20,000-mile rail network, transporting over 300 million tons of goods annually, contributing to sustainable trade and community prosperity since 1919 [9]. - CSX, based in Jacksonville, Florida, provides rail and intermodal services across various markets, playing a critical role in the economic expansion of the eastern United States for nearly 200 years [10].

I confirm my buy recommendation for CSX Corporation (NASDAQ: CSX ) shares, despite the moderate results for the second quarter of 2025. The short-term performance was slightly disappointing, but the key fundamental factors – the transformation ofHi there! I’m Narek, and I’ve been in the investment world for over six years. I started out as an equity analyst at European banks, digging into reports and learning how to spot value in the markets. I’ve worked across sectors — from telecom to industry — and found ...

Group 1 - CSX Corp. President and CEO Joe Hinrichs will speak at Morgan Stanley's 13th Annual Laguna Conference on September 11, 2025, at 8:30 a.m. Pacific time [1] - The address will be available for live streaming via webcast, with a replay accessible after the event [2] - CSX is a leading transportation company based in Jacksonville, Florida, providing rail, intermodal, and rail-to-truck transload services across various markets [3] Group 2 - CSX has been integral to the economic expansion and industrial development of the United States for nearly 200 years [3] - The company's network connects major metropolitan areas in the eastern U.S., where approximately two-thirds of the nation's population resides, as well as over 240 short-line railroads and more than 70 ports [3]

Core Viewpoint - CSX faces significant challenges following Warren Buffett's dismissal of acquisition interest, leading to a stock decline of 6.5% to $33, reflecting investor disappointment in consolidation prospects within the railroad sector [2][3]. Strategic Isolation Risk - CSX is at risk of being sidelined in a consolidating industry, especially with Union Pacific and Norfolk Southern merging to create a coast-to-coast railroad, while BNSF is under Berkshire Hathaway's control [5]. - The lack of a clear strategy for CSX to compete with larger players raises concerns about its future in the industry [5]. Fundamental Performance Analysis - CSX has shown troubling revenue trends, with a three-year average revenue growth of only 0.6%, compared to 5.3% for the S&P 500, and a revenue decline of 3.3% in the last year to $14 billion [6]. - The most recent quarterly revenue dropped 3.4% year-over-year to $3.6 billion, indicating operational weaknesses despite maintaining strong profitability margins [6]. Balance Sheet Concerns - CSX's financial health presents mixed signals, with a debt-to-equity ratio of 32.0%, higher than the S&P 500's 20.4%, indicating increased leverage [10]. - The cash-to-assets ratio stands at 0.9%, significantly lower than the S&P 500's 7.0%, highlighting liquidity issues [10]. - CSX trades at a premium with a price-to-sales ratio of 4.3x and a price-to-free cash flow ratio of 30.6x, suggesting that investors have not fully accounted for its strategic isolation and revenue decline [7][10]. Risk Assessment - Historical downturns indicate heightened volatility for CSX, with significant declines during past crises, such as a 69.7% drop in the 2008 financial crisis compared to 56.8% for the S&P 500 [10]. - The stock's recent 5% selloff following Buffett's comments reflects justified concerns regarding CSX's uncertain trajectory and weak fundamentals in growth and stability [8].

Market Dynamics & Potential Deals - CSX shares experienced a 5% decrease following reports that Berkshire Hathaway is not currently interested in acquiring a railroad [2] - Prior to this, CSX shares had already fallen by over 3% due to the announcement of a partnership between BNSF and CSX, aiming to offer transcontinental rail line benefits through cooperation [2] - An activist investor, Kora, is pressuring CSX to engage in discussions with BNSF and Canadian Pacific regarding potential deals [4] - Union Pacific (UNP) did not approach CSX until after securing an exclusive agreement with Norfolk Southern [5] - Berkshire Hathaway clarified it is not currently in the market to buy a railroad [3] Regulatory & Industry Landscape - The Trump administration, through the National Surface Transportation Board, may influence potential railroad mergers [9] - The Commerce Secretary previously stated he would stay out of decisions regarding transcontinental railroad mergers, emphasizing the potential benefits of easier rail freight transport across the country [9][10] - A major joint railroad purchase hasn't occurred since 1999, highlighting concerns about the consolidation of railroads in the US [7][8] Berkshire Hathaway's Position - Berkshire Hathaway, through BNSF, possesses substantial resources to facilitate transcontinental railroad operations through cooperation rather than outright acquisitions [11] - Warren Buffett indicated a willingness to commit capital to railroad deals that are deemed sensible [13] - A significantly lower stock price for CSX could potentially alter Berkshire Hathaway's interest in a deal [16] CSX Stock Performance - CSX shares had increased by over 8% since July, driven by speculation that UNP was seeking a merger partner [14] - The stock's rise was based on anticipation of a potential offer, but potential partners are currently expressing disinterest [15]