Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $3.6 billion, down 3% year-over-year, primarily due to lower coal and fuel prices, but up 4% sequentially [12][32] - Earnings per share decreased by 10% year-over-year but increased by 29% quarter-over-quarter [12][32] - Reported operating margin declined by 320 basis points year-over-year but improved by 550 basis points sequentially [12][32] Business Line Data and Key Metrics Changes - Merchandise revenue and volume declined by 2%, while the metals market saw a 3% increase in volume but a 3% decrease in revenue [23] - The Minerals segment experienced a 5% revenue growth due to continued infrastructure demand [24] - Coal revenue declined by 15% despite a 1% increase in volume, with coal RPU down 16% year-over-year [27] - Intermodal revenue decreased by 3% on a 2% volume increase, affected by lower diesel prices [29] Market Data and Key Metrics Changes - The automotive sector saw a 2% decline in volume, with production challenges offsetting gains from new contracts [24] - Chemical volumes decreased due to lower shipments of export plastics and a decline in chlor alkali shipments [25] - Fertilizer shipments declined by 6%, but revenues remained flat due to positive core pricing [25] Company Strategy and Development Direction - The company is focused on improving operational efficiency and customer service, with ongoing projects like the Howard Street Tunnel and Blue Ridge rebuild expected to enhance network capacity [10][21][44] - Management has reorganized resources to improve alignment with business needs and accelerate decision-making [14][73] - The company aims to drive profitable growth through strategic partnerships and industrial development projects [26][44] Management's Comments on Operating Environment and Future Outlook - Management acknowledged mixed market conditions, with some areas showing strength while others are slowing [11][41] - The company is optimistic about future growth opportunities despite economic uncertainties, emphasizing a proactive approach to customer engagement [30][96] - Management expects overall volume growth for the full year, with a focus on efficiency and labor productivity [41][66] Other Important Information - The company is investing in emerging technologies to deliver further savings and support strong incremental margins in the future [39] - Free cash flow is expected to improve in the second half of the year, supported by permanent bonus depreciation [40] Q&A Session Summary Question: Thoughts on potential rail consolidation - Management emphasized the importance of improved customer service and ease of doing business, while remaining open to discussions about potential consolidation opportunities [50][52] Question: Factors driving service improvement - Management highlighted proactive measures taken before weather improvements, including better management of cars online and enhanced communication across teams [55][56] Question: Guidance on volume improvement - Management indicated that improvements in core customer production issues and easier comparisons from the previous year are expected to drive volume growth in the third quarter [62][66] Question: Commentary on coal market - Management noted positive trends in domestic coal utilization and potential extensions of life for coal plants previously targeted for closure [80] Question: Other revenue run rate expectations - Management projected other revenue to trend between $115 million to $120 million per quarter, with potential unique items affecting this [99]

Financial Data and Key Metrics Changes - Total revenue for the quarter was $3.6 billion, down 3% year-over-year, primarily due to lower coal and fuel prices, but improved by 4% sequentially [8][30] - Earnings per share decreased by 10% year-over-year but grew by 29% quarter-over-quarter [8] - Reported operating margin declined by 320 basis points year-over-year but increased by 550 basis points sequentially, supported by solid cost performance [8][30] Business Line Data and Key Metrics Changes - Merchandise revenue and volume declined by 2%, with revenue per unit (RPU) flat due to lower fuel surcharges [20] - Coal revenue declined by 15% despite a 1% increase in volume, with RPU down 16% year-over-year [24] - Intermodal revenue decreased by 3% on a 2% increase in volume, affected by lower diesel prices and unfavorable mix [27] Market Data and Key Metrics Changes - The metals market saw a 3% increase in volume, while revenue was down 3% due to lower equipment and higher scrap volumes [20] - The minerals segment experienced a 5% revenue growth driven by continued infrastructure demand in the Southeast [20] - Automotive volumes were down 2% for the quarter, impacted by lower overall industry demand [21] Company Strategy and Development Direction - The company is focused on improving operational efficiency and customer service, with ongoing projects like the Howard Street Tunnel and Blue Ridge rebuild expected to enhance network capacity [6][42] - Management has reorganized resources to improve alignment with business needs and accelerate decision-making [10][72] - The company aims to drive profitable growth through strategic partnerships and new service offerings, while remaining open to opportunities for consolidation in the industry [41][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged mixed market conditions, with some areas showing strength while others are slowing [9][39] - The company is optimistic about future growth opportunities, particularly in industrial development, with 49 projects initiated in the year [23] - Management emphasized the importance of maintaining momentum and efficiency despite economic uncertainties [9][39] Other Important Information - The company expects to see improved cash flow in the second half of the year, supported by permanent bonus depreciation [38] - Capital spending is projected to remain flat year-over-year, with significant investments in safety and reliability [37] - The company is committed to returning cash to shareholders, having distributed approximately $1.7 billion year-to-date [38] Q&A Session Summary Question: Thoughts on potential rail consolidation - Management emphasized the importance of improved customer service and making it easier for shippers to do business with railroads, while remaining open to discussions about consolidation opportunities [46][49] Question: Factors driving service improvement - Management highlighted proactive steps taken to improve service, including better management of cars online and enhanced communication across teams [52][54] Question: Guidance on volume improvement - Management indicated expectations for volume improvement in the second half of the year, driven by better fundamentals and recovery from previous outages [60][62] Question: Impact of management restructuring - The restructuring aimed to enhance efficiency and prioritize business operations, with a focus on cost discipline [69][72] Question: State of the consumer and intermodal volumes - Management noted mixed signals in consumer markets, particularly in autos and housing, but expressed optimism about proactive efforts to convert business [90][92]

Financial Performance - Total revenue decreased by 3% year-over-year to $3.574 billion[19, 61] - Operating margin decreased by 320 bps year-over-year to 35.9%[17, 61] - Earnings per share decreased by 10% year-over-year to $0.44[21, 61] - Net earnings decreased by 14% year-over-year to $829 million[61] - Total volume was flat year-over-year[15] but increased 4% quarter-over-quarter[15] Operational Highlights - The company is managing through mixed market conditions, supported by operational momentum, service leadership, and new business wins[13] - Howard Street Tunnel and Blue Ridge projects remain on schedule for Q4 completion[13] - A minor reconfiguration at Avon Yard in Indiana will increase throughput capacity by up to 300 cars per day[47] and is projected to eliminate approximately 2 million out-of-route car miles[47] Segment Performance - Intermodal revenue decreased by 3% to $491 million[57] while intermodal volume increased by 2%[57] - Export coal revenue was impacted by weaker global benchmark prices and mine production constraints[54] - Merchandise revenue decreased by 2% year-over-year[50] Cash Flow and Capital Allocation - Free cash flow before dividends was $444 million year-to-date[66, 73] - Property additions totaled $1.172 billion year-to-date[66] - Shareholder distributions, including buybacks and dividends, totaled $1.201 billion year-to-date[66]

PART I This section presents CSX Corporation's unaudited consolidated financial statements, management's discussion, market risk, and internal controls [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents CSX Corporation's unaudited consolidated financial statements, including income statements, comprehensive income statements, balance sheets, cash flow statements, and statements of changes in shareholders' equity, along with detailed notes explaining accounting policies, earnings per share, stock plans, reserves, commitments, debt, revenues, fair value measurements, and segment reporting [Consolidated Income Statements (Unaudited)](index=3&type=section&id=Consolidated%20Income%20Statements%20(Unaudited)) This statement details CSX's revenues, expenses, operating income, and net earnings for the quarter and six months ended June 30, 2025 Consolidated Income Statements (Unaudited) | Metric (Dollars in Millions, Except Per Share) | Q2 2025 | Q2 2024 | Change (YoY) | 6 Months 2025 | 6 Months 2024 | Change (YoY) | | :--------------------------------------------- | :------ | :------ | :----------- | :-------------- | :-------------- | :----------- | | Revenue | $3,574 | $3,701 | (3.43%) | $6,997 | $7,382 | (5.21%) | | Total Expense | $2,291 | $2,253 | 1.69% | $4,673 | $4,597 | 1.65% | | Operating Income | $1,283 | $1,448 | (11.40%) | $2,324 | $2,785 | (16.55%) | | Net Earnings | $829 | $963 | (13.81%) | $1,475 | $1,843 | (19.97%) | | Net Earnings Per Share, Basic | $0.44 | $0.50 | (12.00%) | $0.79 | $0.94 | (15.96%) | | Net Earnings Per Share, Assuming Dilution | $0.44 | $0.49 | (10.20%) | $0.78 | $0.94 | (17.02%) | [Condensed Consolidated Comprehensive Income Statements (Unaudited)](index=3&type=section&id=Condensed%20Consolidated%20Comprehensive%20Income%20Statements%20(Unaudited)) This statement presents CSX's total comprehensive earnings, reflecting net earnings and other comprehensive income or loss components Condensed Consolidated Comprehensive Income Statements (Unaudited) | Metric (Dollars in Millions) | Q2 2025 | Q2 2024 | Change (YoY) | 6 Months 2025 | 6 Months 2024 | Change (YoY) | | :--------------------------- | :------ | :------ | :----------- | :-------------- | :-------------- | :----------- | | Total Comprehensive Earnings | $832 | $966 | (13.87%) | $1,483 | $1,852 | (19.92%) | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This statement provides a snapshot of CSX's assets, liabilities, and shareholders' equity as of June 30, 2025, and December 31, 2024 Consolidated Balance Sheets | Metric (Dollars in Millions) | June 30, 2025 | December 31, 2024 | Change | | :--------------------------- | :------------ | :---------------- | :----- | | **ASSETS** | | | | | Cash and Cash Equivalents | $387 | $933 | ($546) | | Total Current Assets | $2,305 | $2,820 | ($515) | | Properties - Net | $36,248 | $35,658 | $590 | | Total Assets | $42,929 | $42,764 | $165 | | **LIABILITIES** | | | | | Total Current Liabilities | $2,983 | $3,276 | ($293) | | Long-term Debt | $18,550 | $17,897 | $653 | | Total Liabilities | $30,552 | $30,257 | $295 | | **SHAREHOLDERS' EQUITY** | | | |\ | Total Shareholders' Equity | $12,377 | $12,507 | ($130) | [Consolidated Cash Flow Statements (Unaudited)](index=5&type=section&id=Consolidated%20Cash%20Flow%20Statements%20(Unaudited)) This statement outlines CSX's cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 Consolidated Cash Flow Statements (Unaudited) | Metric (Dollars in Millions) | 6 Months 2025 | 6 Months 2024 | Change (YoY) | | :--------------------------- | :-------------- | :-------------- | :----------- | | Net Cash Provided by Operating Activities | $1,890 | $2,173 | ($283) | | Net Cash Used In Investing Activities | ($1,454) | ($1,048) | ($406) | | Net Cash Used in Financing Activities | ($982) | ($1,240) | $258 | | Net Decrease in Cash and Cash Equivalents | ($546) | ($115) | ($431) | | Cash and Cash Equivalents at End of Period | $387 | $1,238 | ($851) | [Consolidated Statements of Changes in Shareholders' Equity (Unaudited)](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity%20(Unaudited)) This statement details changes in CSX's shareholders' equity, including net earnings, dividends, and share repurchases Consolidated Statements of Changes in Shareholders' Equity (Unaudited) | Metric (Dollars in Millions) | 6 Months 2025 (Change) | 6 Months 2024 (Change) | | :--------------------------- | :--------------------- | :--------------------- | | Net Earnings | $1,475 | $1,843 | | Common Stock Dividends | ($488) | ($468) |\ | Share Repurchases | ($1,152) | ($810) | | Total Shareholders' Equity (End of Period) | $12,377 | $12,620 | [Notes to Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) These notes provide detailed explanations of CSX's accounting policies, financial statement line items, and other relevant disclosures [Note 1. Nature of Operations and Significant Accounting Policies](index=8&type=section&id=NOTE%201.%20Nature%20of%20Operations%20and%20Significant%20Accounting%20Policies) CSX Corporation is a leading rail-based transportation company operating across 26 states and Canada, with financial statements prepared under GAAP and ongoing evaluation of new accounting pronouncements - CSX Corporation is a leading transportation company, primarily providing rail-based transportation services through its approximately **20,000 route-mile rail network** in 26 states and parts of Canada[30](index=30&type=chunk)[31](index=31&type=chunk) - Key subsidiaries include Quality Carriers (bulk liquid chemicals truck transportation), CSX Intermodal Terminals, Total Distribution Services, Inc. (automotive industry), and Transflo Terminal Services, Inc. (rail-to-truck transfers)[32](index=32&type=chunk) - The Company will adopt ASU 2023-09 (Improvements to Income Tax Disclosures) for its 2025 annual report and ASU 2024-03 (Disaggregation of Income Statement Expenses) for its 2027 annual report, neither of which will impact results of operations or financial position[37](index=37&type=chunk)[38](index=38&type=chunk) [Note 2. Earnings Per Share](index=10&type=section&id=NOTE%202.%20Earnings%20Per%20Share) This note details the computation of basic and diluted earnings per share, highlighting a decrease in EPS, ongoing share repurchase activities, and an 8% increase in the quarterly cash dividend Earnings Per Share Calculation (Unaudited) | Metric (Dollars in Millions, Except Per Share) | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--------------------------------------------- | :------ | :------ | :-------------- | :-------------- | | Net Earnings | $829 | $963 | $1,475 | $1,843 | | Average Common Shares Outstanding (Millions) | 1,867 | 1,944 | 1,878 | 1,951 | | Net Earnings Per Share, Basic | $0.44 | $0.50 | $0.79 | $0.94 | | Net Earnings Per Share, Assuming Dilution | $0.44 | $0.49 | $0.78 | $0.94 | Share Repurchase Activity (Dollars in Millions) | Share Repurchase Activity (Dollars in Millions) | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :---------------------------------------------- | :------ | :------ | :-------------- | :-------------- | | Shares Repurchased (Millions) | 14 | 16 | 38 | 23 | | Cost

Exhibit 99.2 CSX Corp. Announces Second Quarter 2025 Results JACKSONVILLE, Fla. – July 23, 2025 – CSX Corp. (NASDAQ: CSX) today announced second quarter 2025 operating income of $1.28 billion compared to $1.45 billion in the prior year period. Net income was $829 million, or $0.44 per diluted share, compared to $963 million, or $0.49 per diluted share, in the same period last year. Total volume of 1.58 million units for the quarter was flat compared to second quarter 2024 and up 4% sequentially. "The skill ...

Core Viewpoint - CSX Corp. reported a decline in operating income and net income for the second quarter of 2025, while achieving sequential improvements in network fluidity and cost efficiency [1][2]. Financial Performance - Operating income for Q2 2025 was $1.28 billion, down 11% from $1.45 billion in Q2 2024 [1][9]. - Net income was $829 million, or $0.44 per diluted share, compared to $963 million, or $0.49 per diluted share in the same period last year, reflecting a 10% decrease [1][9]. - Total revenue for the quarter was $3.57 billion, a decrease of 3% year-over-year, attributed to lower export coal prices and reduced fuel surcharges [9]. - The total volume of units transported was 1.58 million, flat compared to Q2 2024 but up 4% sequentially [1]. Operational Insights - The company emphasized the skill and commitment of its workforce in achieving significant improvements in operational efficiency [2]. - CSX is focused on completing two major infrastructure projects to enhance its competitive position and capitalize on growth opportunities [2]. Market Context - The company acknowledged ongoing uncertainty affecting certain industrial markets but remains optimistic about future growth prospects [2].

Group 1 - CSX is scheduled to release its earnings on July 23, 2025, with historical data indicating a positive one-day return in 65% of cases following earnings announcements over the past five years, and a median positive return of 2.6% [2][7] - The current consensus forecasts for CSX's upcoming earnings report are $0.41 per share on revenue of $3.57 billion, compared to earnings of $0.49 per share on revenue of $3.7 billion in the same quarter last year [3] - CSX has a current market capitalization of $65 billion, with reported revenues of $14 billion, operating income of $5.1 billion, and a net profit of $3.2 billion over the last twelve months [4] Group 2 - Historical data shows that there have been 20 earnings data points recorded over the last five years, with 13 positive and 7 negative one-day returns, resulting in a 65% rate of positive returns [7] - The median of the 13 positive returns is 2.6%, while the median of the 7 negative returns is -3.2% [7] - A strategy based on historical probabilities suggests establishing a position ahead of the earnings announcement or evaluating the relationship between immediate and medium-term returns post-earnings [6]

Core Viewpoint - CSX Corporation is experiencing a significant shift, indicated by bullish market activity, positive analyst revisions, and strategic internal improvements, making it an attractive investment opportunity [1][5][17] Market Signals - Recent options market activity shows a dramatic spike, with over 24,000 call options purchased on July 11th, representing a 165% increase from the typical daily volume of around 9,200 contracts [2][3] - A low put-to-call ratio indicates a strong preference for bullish bets over bearish ones, reinforcing the positive sentiment [4] Analyst Outlook - Several influential firms have upgraded their outlook on CSX stock leading up to the second-quarter earnings report, creating a powerful leading indicator of confidence in CSX's future [4][5] - The 12-month stock price forecast for CSX is $35.14, with a moderate buy rating based on 22 analyst ratings [6] Operational Improvements - CSX has secured long-term labor stability with nearly 75% of its unionized workforce through a new five-year collective bargaining agreement, providing a competitive advantage in an industry prone to labor disputes [7][8] - The company is focused on reducing management layers to create a leaner organization, improving its ability to convert revenue into profit [9][10] Financial Context - The first-quarter financial results showed revenue and profit falling short of estimates due to temporary operational disruptions, not core business flaws [11][12] - Major infrastructure projects and severe weather contributed to these short-term inefficiencies, creating a potential valuation gap for investors [13] Future Prospects - With major projects largely complete, CSX is positioned for a strong sequential improvement, and the upcoming second-quarter earnings report is expected to provide confirmation of this turnaround [14][15] - CSX's performance is closely linked to the industrial sector, and with internal challenges addressed, the company is poised to leverage economic stabilization for significant earnings growth [16]

Core Insights - CSX is expected to report quarterly earnings of $0.42 per share, reflecting a decline of 14.3% year over year, with revenues projected at $3.58 billion, down 3.2% from the previous year [1] - Analysts have adjusted the consensus EPS estimate downward by 1.4% over the past 30 days, indicating a reassessment of projections [1][2] Revenue Estimates - Revenue from Coal is forecasted to be $473.84 million, representing a decline of 15.8% from the year-ago quarter [3] - Revenue from Intermodal is estimated at $504.37 million, showing a slight decrease of 0.3% year over year [4] - Revenue from Merchandise-Fertilizers is projected to reach $131.83 million, indicating an increase of 4.6% compared to the prior year [4] - Revenue from Merchandise-Chemicals is expected to be $720.80 million, reflecting a decrease of 0.2% from the previous year [4] Operating Metrics - The consensus estimate for Operating Margin is 65.8%, a significant increase from 39.1% in the previous year [5] - Revenue per unit for Intermodal is expected to be $684.74, down from $707.00 in the same quarter last year [5] - Volume for Merchandise-Automotive is projected at 100.54 thousand, compared to 105.00 thousand in the prior year [5] Volume Estimates - Volume for Merchandise-Minerals is estimated at 95.83 thousand, down from 97.00 thousand year over year [6] - Volume for Coal is expected to be 177.10 thousand, slightly lower than the year-ago figure of 179.00 thousand [6] - Volume for Merchandise-Fertilizers is projected at 50.56 thousand, up from 50.00 thousand in the same quarter last year [7] - Volume for Merchandise-Metals and Equipment is expected to be 67.83 thousand, compared to 68.00 thousand in the previous year [7] - Volume for Merchandise-Agricultural and Food Products is estimated at 117.85 thousand, an increase from 115.00 thousand year over year [8] Stock Performance - CSX shares have increased by 7% over the past month, outperforming the Zacks S&P 500 composite, which rose by 5.4% [8] - CSX holds a Zacks Rank of 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [8]

Industry Outlook - The rail industry is performing well, with CSX having a strong quarter [1] - The capital equipment sector is expected to experience a boom due to legislation [3] - The transport sector is viewed positively [5] Company Performance - CSX's prospects are favorable, regardless of potential bids, due to improved conditions [2] - Norfolk Southern is favored due to a bullish outlook on industry and industrials [1] Investment Strategy - Recommends against selling rail or capital equipment companies [3] - The thesis of shorting transports based on limited cross-border trade is flawed due to underestimation of internal growth [4]