Norfolk Southern (NYSE:NSC) 2026 Conference March 17, 2026 01:00 PM ET Company ParticipantsJason Zampi - EVP and CFOMark George - President and CEOConference Call ParticipantsBrian Ossenbeck - AnalystBrian OssenbeckOkay, we're gonna get started here in the afternoon track here for transports. Again, Brian Ossenbeck, covering the space for J.P. Morgan. Really excited to have Norfolk Southern here. Mark R. George, President and CEO, Jason Zappi, CFO, Luke Nichols in the audience. You know, clearly there's a l ...

Summary of CSX Conference Call Company Overview - **Company**: CSX Corporation - **Industry**: Rail Transportation Key Points and Arguments Network Performance and Weather Impact - The network is performing well despite weather disruptions earlier in the year, particularly from storms in January and February [4][5] - Specific sectors like aggregates and waste have faced challenges due to weather conditions, impacting loading and typical volumes [5] - Coal demand has been affected by higher natural gas prices and cold weather, leading to frozen coal issues [6][8] Energy Prices and Market Segments - Higher energy prices are expected to impact sectors with high energy demand, particularly chemicals and intermodal services [12] - The domestic coal market is anticipated to remain strong, with utilities potentially delaying retirements, which could bolster demand [15][17] - Current fuel prices are creating a $20 million-$30 million headwind for the current quarter due to the fuel surcharge program [23] Industrial Production and Market Outlook - Industrial production is expected to remain flat, with automotive production forecasted to decline by 1.5% and sales by 2% [29] - The housing market is also facing challenges, particularly in the forest products sector, with limited optimism for 2026 [31] - Infrastructure investment in the U.S. is expected to remain strong, particularly in aggregates and cement, despite a slower start due to winter weather [33] Supply Chain and Automotive Sector - The automotive sector is experiencing headwinds, particularly due to aluminum shortages rather than semiconductor issues [34][35] - CSX is focused on improving service reliability to convert more truck traffic to rail, emphasizing the importance of consistent service [60][62] Pricing Strategy and Market Dynamics - CSX expects stronger pricing on a same-store sales basis compared to 2025, with a focus on maintaining pricing above inflation [37] - The company is observing a positive trend in bid season, with more opportunities for intermodal services [43] Infrastructure Projects and New Services - The Howard Street Tunnel expansion is expected to enhance efficiency and capacity, allowing for double-stack operations [48][49] - The Southeast Mexico Express service is ramping up, providing efficient connections between major markets [52][54] Market Share and Competitive Landscape - CSX is focused on delivering superior service and innovative solutions to maintain and grow market share amid industry changes [70][71] - The company is collaborating with other railroads to enhance service offerings and improve reliability [73][76] Industrial Development Pipeline - CSX maintains a robust pipeline of approximately 600 projects, with ongoing collaboration with economic developers to expedite project implementation [86][88] Additional Important Insights - The company is actively working on converting truck traffic to rail by understanding customer needs and improving service reliability [60][62] - The focus on consistent service delivery is seen as critical for capturing more market share from trucking [75][76] - CSX is exploring inland port solutions to enhance intermodal service offerings and convert shorter haul opportunities from truck to rail [82][83]