CSX Corporation Developments - CSX Corporation has announced new five-year tentative collective bargaining agreements with the Brotherhood of Railroad Signalmen and the International Brotherhood of Boilermakers, which are subject to ratification by union members [2][3][4] - The agreement with the Brotherhood of Railroad Signalmen covers 1,215 signalmen, while the deal with the International Brotherhood of Boilermakers involves 59 members [2][3] - CSX has ratified agreements with 11 labor unions, covering 14 different work groups, which represent 47% of its unionized workforce [5] Employee Relations and Benefits - The new agreements aim to provide improved wages, health care, and paid time off benefits, reflecting CSX's employee-friendly approach [5] - Joe Hinrichs, CEO of CSX, emphasized the importance of safety, respect, and operational excellence in the agreements, aiming for greater efficiency and service for customers [3][4] Industry Context - Other companies in the rail industry, such as Union Pacific Corporation, Canadian Pacific Railway Limited, and Canadian National Railway Company, have also entered into collective bargaining agreements recently [7] - Union Pacific has reached a tentative agreement with the National Conference of Firemen & Oilers, which includes wage increases and additional vacation time [8] - Canadian Pacific has ratified a new four-year collective agreement with Unifor, covering approximately 1,200 mechanical employees, which includes improved wages and benefits [10] - Canadian National's new four-year agreement with the International Brotherhood of Electric Workers includes annual wage increases of 3% [12]

Group 1 - CSX Corporation has secured a new five-year tentative collective bargaining agreement with the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers & Helpers [1] - The agreement emphasizes CSX's commitment to valuing and empowering employees, focusing on safety, respect, and excellence [2] - The tentative agreement is subject to ratification by the union's membership, which consists of 59 members [2] Group 2 - CSX has ratified agreements with 11 labor unions, covering 14 different work groups, which accounts for 47 percent of its unionized workforce [3] - The terms of the agreements provide equivalent packages of improved wages, health care, and paid time off benefits [3] - CSX aims to work with other unions to reach similar agreements and improve the work environment for employees [3] Group 3 - CSX is a premier transportation company based in Jacksonville, Florida, providing rail, intermodal, and rail-to-truck transload services [4] - The company plays a critical role in the economic expansion and industrial development of the nation, connecting major metropolitan areas in the eastern United States [4] - CSX's network links over 240 short-line railroads and more than 70 ocean, river, and lake ports with major population centers and farming towns [4]

Core Points - CSX Corporation has secured a new five-year tentative collective bargaining agreement with the Brotherhood of Railroad Signalmen [1] - The agreement reflects a strong partnership with union leadership and emphasizes safety, respect, and operational excellence [2] - The tentative agreement is subject to ratification by the union's membership, which includes 1,215 signalmen [2] Labor Relations - CSX has ratified agreements with 11 labor unions, covering 14 different work groups, which accounts for 47 percent of its unionized workforce [3] - The terms of the agreements provide improved wages, health care, and paid time off benefits [3] - CSX is committed to working with other unions to reach similar agreements and improve the work environment for employees [3] Company Overview - CSX is a premier transportation company based in Jacksonville, Florida, providing rail, intermodal, and rail-to-truck transload services [4] - The company plays a critical role in the economic expansion and industrial development of the United States, connecting major metropolitan areas and various markets [4]

Company Overview - CSX Corp. is a premier transportation company based in Jacksonville, Florida, 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. and linking over 240 short-line railroads and more than 70 ports [3] Upcoming Financial Results - CSX Corp. will release its first quarter financial and operating results after the market close on April 16, 2025 [1] - A conference call and live webcast will follow at 4:30 p.m. Eastern Time, hosted by the company's management team [1] Participation Details - Interested participants can join the teleconference by dialing 1-888-510-2008 (U.S.) or 1-646-960-0306 (international), with a passcode of 3368220 [2] - Participants are advised to dial in 10 minutes prior to the call, and a replay of the webcast will be available on the company's website after the earnings call [2]

Company Overview - CSX Corporation is currently facing multiple headwinds, making it an unimpressive investment option [1] - The company has experienced a significant decline in share price, losing 18.8% over the past year compared to the transportation-rail industry's decline of 11.9% [2] Earnings Estimates - The Zacks Consensus Estimate for first-quarter 2025 earnings has been revised downward by 17% in the past 90 days [1] - For the current year, the consensus mark for earnings has been revised down by 10.2% in the same timeframe, indicating a lack of confidence from brokers [1] Performance Metrics - CSX currently holds a Zacks Rank of 4 (Sell) and has a Value Score of D, reflecting its unattractiveness [5] - The company has a negative earnings surprise history, lagging the Zacks Consensus Estimate in two of the last four quarters, with an average miss of 0.55% [5] Revenue Challenges - The soft coal market has adversely affected CSX's prospects, with coal revenues falling 10% year over year to $2.24 billion in 2024 [6] - Coal volumes decreased by 3%, and for 2025, CSX expects further declines due to facility shutdowns and mine production issues [6] Operational Issues - Rail network issues, including locomotive and crew shortages, represent significant challenges for CSX, likely impacting service levels and operating efficiency [7] - Elevated capital expenditure is another concern, with management expecting 2025 capex to remain at $2.5 billion, unchanged from 2024 [8] Industry Context - CSX belongs to an industry currently ranked 147 out of 248 groups by Zacks, placing it in the bottom 40% of Zacks industries [9] - The performance of the industry group is crucial, as studies indicate that 50% of a stock's price movement is tied to its industry performance [9]

Core Points - CSX Corp. will have its Executive Vice President and Chief Financial Officer, Sean Pelkey, speak at the 2025 JP Morgan Industrials Conference on March 11, 2025, at 7:30 a.m. Eastern time [1] - The address will be available for live streaming and will have a replay option on the company's investor relations website [2] 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. and linking over 240 short-line railroads and more than 70 ports [3]

Core Points - CSX Corporation announced the ratification of a five-year collective bargaining agreement by employees represented by The International Association of Machinists & Aerospace Workers (IAM) [1] - The ratification reflects a strong partnership between CSX and union leadership, emphasizing the company's commitment to a respectful workplace and ongoing improvements in safety, efficiency, and service [2] - To date, CSX has ratified agreements with 11 labor unions, covering 14 work groups, which represent 47% of its unionized workforce, with terms that include improved wages, health care, and paid time off [2] - CSX aims to continue collaborating with other unions to achieve similar agreements and enhance the work environment for employees [3] Company Overview - CSX, based 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 [4] - 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. and linking over 240 short-line railroads and more than 70 ports [4]

Revenue and Business Segments - CSX Corporation generated $14.5 billion in revenue for 2024, with merchandise, intermodal, coal, and trucking as its primary lines of business[19] - The merchandise business accounted for 2.6 million carloads (42% of volume) and generated $8.9 billion in revenue (61% of total revenue) in 2024[22] - The intermodal business shipped 2.9 million units (46% of volume) and generated $2.0 billion in revenue (14% of total revenue) in 2024[22] - The coal business shipped 736 thousand carloads (12% of volume) and generated $2.2 billion in revenue (15% of total revenue) in 2024[22] - The trucking business generated $844 million, or 6% of total revenue, in 2024[22] - Other revenue accounted for 4% of total revenue, including charges for intermodal storage and switching[20] Acquisitions and Workforce - CSX completed the acquisition of Pan Am Systems on June 1, 2022, expanding its reach in the Northeastern United States[15] - The Company had more than 23,500 employees as of December 2024, with approximately 17,500 being union members[21] Safety and Operational Risks - The FRA Personal Injury Frequency Index was 1.19 in 2024, compared to 0.94 in 2023, indicating a focus on workplace safety[22] - Network or supply chain constraints, including labor shortages and extreme weather, could negatively impact service efficiency and shipment volumes[52][64] - The Company relies heavily on the security and stability of its technology systems, with potential cyber-attacks posing significant operational risks[47][49] - A public health crisis could adversely affect the Company's business, leading to reduced demand for transported commodities and potential supply chain disruptions[45][46] Market Conditions and Competition - The Company faces competition from various transportation providers, which could be intensified by improvements in alternative transportation modes[59] - Global economic conditions, including slower growth in Asia and Europe, could negatively affect demand for the Company's transportation services[61] - Changing dynamics in the energy markets, particularly regarding coal, could impact the Company's coal volumes and revenues[62] Environmental and Regulatory Factors - Climate-related regulations and risks could increase operating costs and negatively impact the Company's financial results[69][71] - The Company is subject to environmental laws that may result in significant costs and liabilities if violated[71] Infrastructure and Equipment - CSX operates a rail network exceeding 35,539 track miles, serving 26 states and parts of Canada[88] - As of December 2024, CSX owns or long-term leases over 3,500 locomotives, with approximately 67% in active service[100] - The company has a total of 64,104 pieces of equipment, with about 90% in active service as of December 31, 2024[101] - The largest yard, Waycross, GA, processed 915,159 railcars or intermodal containers in 2024[90] - CSX's I-90 Corridor is a primary route for import traffic, linking Chicago to the Northeast, supporting high-speed service across various commodities[92] - The Southeastern Corridor connects major cities and is positioned to handle projected traffic volumes of intermodal and automotive traffic[94] - CSX's coal network remains well positioned to supply utility markets despite a significant decline in the domestic coal market over the last decade[95] Cybersecurity Measures - The company has implemented a comprehensive cybersecurity framework to manage risks and protect stakeholder data[75] - CSX conducts annual cybersecurity exercises with third-party consultants to enhance its cybersecurity measures[77] - The Audit Committee oversees the company's cybersecurity risk management and technology infrastructure resilience[84] Financial Performance - Revenue for 2024 was $14.54 billion, a decrease of $117 million or 1% compared to 2023[148] - Total expenses increased by $137 million or 1% year-over-year, totaling $9.3 billion[150] - Operating income decreased by $254 million or 5% to $5.24 billion, with an operating margin of 36.1%, down 140 basis points from 37.5%[150] - Net earnings fell by $198 million to $3.47 billion, resulting in earnings per diluted share of $1.79, a decrease of $0.03 or 2%[150] - Intermodal volume increased by 5% to 2.89 million units, while total volume rose by 2% to 6.28 million units[152] - Chemicals revenue increased by 10% to $2.85 billion, driven by higher shipments of plastics and industrial chemicals[152] - Coal revenue decreased by 10% to $2.25 billion, primarily due to lower domestic shipments[152] - Labor and fringe expenses rose by $113 million, attributed to inflation and increased headcount[166] - Fuel expenses decreased by $209 million, reflecting a 13% drop in locomotive fuel prices[168] - Goodwill impairment for Quality Carriers was recorded at $108 million in 2024[170] - Adjusted operating income for the year ended December 31, 2024, was $5,353 million, with an adjusted operating margin of 36.8%[182] - Economic Profit for 2024 was $2,341 million, down from $2,577 million in 2023, indicating a decrease in returns above the cost of capital[190] - Free Cash Flow (FCF) before dividends decreased by $561 million year-over-year to $2,784 million, primarily due to higher property additions and reduced cash from operating activities[194] - Cash from operating activities in 2024 was $5,247 million, compared to $5,514 million in 2023[196] Operational Efficiency - Train velocity improved by 2% to 18.3 miles per hour, while dwell time increased by 10% to 10.3 hours compared to 2023[200] - On-time originations decreased to 73% from 77%, and on-time arrivals fell to 65% from 71% compared to the previous year[200] - Total revenue ton-miles for 2024 were 194.3 billion, a slight increase from 193.7 billion in 2023[200] - The FRA personal injury frequency index increased to 1.19, while the FRA train accident rate decreased to 3.40, reflecting mixed safety performance[200] Goodwill and Shareholder Information - The company reported a goodwill impairment of $108 million, impacting net earnings by $82 million for the year[182] - The capital charge for 2024 was calculated at $3,718 million, based on an 8% required return on gross operating assets[190] - CSX's common stock has 1,900,189,590 shares outstanding as of December 31, 2024, with a total of 5.4 billion shares authorized[115] - The company declared dividends of $0.48 per share for the year 2024, an increase from $0.44 per share in 2023[117] - CSX completed a share repurchase program in Q4 2023 and initiated a new $5 billion share repurchase program in October 2023, with $2.6 billion remaining as of December 31, 2024[122] - In Q4 2024, CSX repurchased 29,534,085 shares at an average price of $33.60 per share[124] - The weighted average of common shares outstanding for diluted earnings per share calculation was 1,943 million as of December 31, 2024[115] Executive Leadership - CSX's Executive Vice President and Chief Operating Officer, Michael A. Cory, was appointed in September 2023, bringing 40 years of operations experience[113] - The company reported a total of 20,567 common stock shareholders of record as of January 31, 2025[115] - CSX's Executive Vice President and Chief Financial Officer, Sean R. Pelkey, has been in this role since January 2022, overseeing all finance activities[111] - CSX's Executive Vice President and Chief Digital and Technology Officer, Stephen Fortune, was appointed in April 2022, focusing on technology strategy and cybersecurity[113] - The company has a total repurchase authority remaining of $2.586 billion as of December 31, 2024[122]

Core Insights - CSX Corporation participated in the Barclays 42nd Annual Industrial Select Conference, highlighting its position in the rail industry and engaging with analysts and investors [1][3]. Company Overview - Joseph Hinrichs serves as the President and CEO of CSX, while Sean Pelkey is the Executive Vice President and CFO, indicating a strong leadership presence at the conference [1][2]. Audience Engagement - The conference included interactive audience participation, with questions regarding ownership and general bias towards CSX, reflecting investor sentiment and engagement [3][7]. Financial Performance Discussion - The discussion included a focus on CSX's rail operating ratio, which is a critical metric for assessing operational efficiency in the rail industry, although specific figures were not disclosed in the provided text [8].

Group 1: Dividend Increase Announcement - CSX Corporation has announced a 9.1% increase in its quarterly cash dividend, raising it from 12 cents to 13 cents per share, effective March 14, 2025 [1] - This decision reflects CSX's strategy to utilize free cash to enhance shareholder returns [1] Group 2: Shareholder Rewards - In 2024, CSX rewarded shareholders with cash dividends totaling $930 million and share repurchases amounting to $2.24 billion [2] - In 2023, the company paid $882 million in dividends and repurchased shares worth $3.48 billion [2] - In 2022, CSX's shareholder rewards included $852 million in dividends and $4.73 billion in share repurchases [2] Group 3: Market Position and Confidence - The increase in the quarterly dividend payout indicates CSX's commitment to boosting shareholder value and reflects confidence in its business operations [4] - Such shareholder-friendly initiatives are believed to enhance investor confidence in the company [4] Group 4: Industry Context - CSX is not alone in the transportation sector, as other companies like Wabtec Corporation and United Parcel Service have also announced dividend hikes recently [4][5][6]