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What changed in CSX Corporation's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of CSX Corporation's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+216 added−649 removedSource: 10-K (2026-02-12) vs 10-K (2025-02-27)

Top changes in CSX Corporation's 2025 10-K

216 paragraphs added · 649 removed · 186 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeCSX prioritizes workplace safety for employees and is committed to continued improvement through enhanced processes, training, technology, communication, and continuous collaboration with customers and peers across the railroad industry. Training programs and processes are focused on injury and accident prevention as well as emergency preparedness. Additionally, the attainment of key safety targets is a component of management's annual incentive program.
Biggest changeTraining programs and processes are focused on injury and accident prevention as well as emergency preparedness. Additionally, the attainment of key safety targets is a component of management's annual incentive program. The FRA Personal Injury Frequency Index, a measure of the number of FRA-reportable injuries per 200,000 man-hours, was 0.94 in 2025 and 1.23 in 2024.
Other revenue accounted for 4% of the Company’s total revenue in 2024. This category includes revenue from regional subsidiary railroads and incidental charges, including intermodal storage and equipment usage, demurrage and switching. Revenue from regional subsidiary railroads includes shipments by railroads that the Company does not directly operate.
Other revenue accounted for 4% of the Company’s total revenue in 2025. This category includes revenue from regional subsidiary railroads and incidental charges, including intermodal storage and equipment usage, demurrage and switching. Revenue from regional subsidiary railroads includes shipments by railroads that the Company does not directly operate.
CSX 2024 Form 10-K p.5 CSX CORPORATION PART I Regulatory Environment The Company's operations are subject to various federal, state, provincial (Canada) and local laws and regulations generally applicable to businesses operating in the United States and Canada.
CSX 2025 Form 10-K p.5 CSX CORPORATION PART I Regulatory Environment The Company's operations are subject to various federal, state, provincial (Canada) and local laws and regulations generally applicable to businesses operating in the United States and Canada.
For additional information concerning business conducted by the Company during 2024, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. CSX 2024 Form 10-K p.6 CSX CORPORATION PART I
For additional information concerning business conducted by the Company during 2025, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. CSX 2025 Form 10-K p.6 CSX CORPORATION PART I
Operating Model The Company is focused on developing and strictly maintaining a scheduled service plan with an emphasis on improving customer service, optimizing assets and increasing employee engagement. When this operating model is executed effectively, the Company competes for an increased share of the U.S. freight market. Further, this model leads to reduced costs and strong free cash flow generation.
Operating Model The Company is focused on developing and strictly maintaining a scheduled service plan with an emphasis on improving customer service, optimizing assets and increasing employee engagement. When this operating model is executed effectively, the Company competes for additional business in the U.S. freight market. Further, this model leads to reduced costs and strong free cash flow generation.
Most of the export coal the Company transports is used for steelmaking, while the majority of domestic coal the Company ships is used for electricity generation. • The trucking business generated $844 million, or 6%, of revenue in 2024. Trucking revenue includes revenue from the operations of Quality Carriers.
Most of the export coal the Company transports is used for steelmaking, while the majority of domestic coal the Company ships is used for electricity generation. • The trucking business generated $816 million, or 6%, of revenue in 2025. Trucking revenue includes revenue from the operations of Quality Carriers.
Other railroads also operate in parts of the Company’s territory. Depending on the specific market, competing railroads and deregulated motor carriers may exert pressure on price and service levels. For further discussion on the risk of competition to the Company, see Item 1A. Risk Factors .
Depending on the specific market, competing railroads and deregulated motor carriers may exert pressure on price and service levels. For further discussion on the risk of competition to the Company, see Item 1A. Risk Factors .
CSX 2024 Form 10-K p.3 CSX CORPORATION PART I Lines of Business During 2024, the Company's services generated $14.5 billion of revenue and served four primary lines of business: merchandise, intermodal, coal and trucking. • The merchandise business shipped 2.6 million carloads (42% of volume) and generated $8.9 billion in revenue (61% of revenue) in 2024.
CSX 2025 Form 10-K p.3 CSX CORPORATION PART I Lines of Business During 2025, the Company's services generated $14.1 billion of revenue and served four primary lines of business: merchandise, intermodal, coal and trucking. • The merchandise business shipped 2.6 million carloads (41% of volume) and generated $8.8 billion in revenue (62% of revenue) in 2025.
Through a network of approximately 30 terminals, the intermodal business serves all major markets east of the Mississippi River and transports mainly manufactured consumer goods in containers, providing customers with truck-like service for longer shipments. • The coal business shipped 736 thousand carloads (12% of volume) and generated $2.2 billion in revenue (15% of revenue) in 2024.
Through a network of approximately 30 terminals, the intermodal business serves all major markets east of the Mississippi River and transports mainly manufactured consumer goods in containers, providing customers with truck-like service for longer shipments. • The coal business shipped 718 thousand carloads (11% of volume) and generated $1.9 billion in revenue (13% of revenue) in 2025.
The Company’s merchandise business is comprised of shipments in the following diverse markets: chemicals, agricultural and food products, automotive, minerals, forest products, metals and equipment, and fertilizers. • The intermodal business shipped 2.9 million units (46% of volume) and generated $2.0 billion in revenue (14% of revenue) in 2024.
The Company’s merchandise business is comprised of shipments in the following diverse markets: chemicals, agricultural and food products, automotive, minerals, forest products, metals and equipment, and fertilizers. • The intermodal business shipped 3.0 million units (48% of volume) and generated $2.1 billion in revenue (15% of revenue) in 2025.
CSX Intermodal Terminals owns and operates a system of intermodal terminals, predominantly in the eastern United States, and also provides drayage services (the pickup and delivery of intermodal shipments) for certain customers. TDSI serves the automotive industry with distribution centers and storage locations.
Quality Carriers is the largest provider of bulk liquid chemicals truck transportation in North America. CSX Intermodal Terminals owns and operates a system of intermodal terminals, predominantly in the eastern United States, and also provides drayage services (the pickup and delivery of intermodal shipments) for certain customers. TDSI serves the automotive industry with distribution centers and storage locations.
Other Entities In addition to CSXT, the Company’s subsidiaries include Quality Carriers, Inc. ("Quality Carriers"), CSX Intermodal Terminals, Inc. (“CSX Intermodal Terminals”), Total Distribution Services, Inc. (“TDSI”), TRANSFLO Terminal Services, Inc. (“TRANSFLO”), CSX Technology, Inc. (“CSX Technology”) and other subsidiaries. Quality Carriers is the largest provider of bulk liquid chemicals truck transportation in North America.
Substantially all of these activities are focused on supporting railroad operations. Other Entities In addition to CSXT, the Company’s subsidiaries include Quality Carriers, Inc. ("Quality Carriers"), CSX Intermodal Terminals, Inc. (“CSX Intermodal Terminals”), Total Distribution Services, Inc. (“TDSI”), TRANSFLO Terminal Services, Inc. (“TRANSFLO”), CSX Technology, Inc. (“CSX Technology”) and other subsidiaries.
CSX's Committed Workforce Most of the Company’s employees provide or support transportation services. The Company had more than 23,500 employees as of December 2024, which includes approximately 17,500 employees that are members of a rail labor union. There are 12 rail unions at CSX that participate in national bargaining.
CSX's Committed Workforce Most of the Company’s employees provide or support transportation services. The Company had approximately 23,000 employees as of December 2025, which includes approximately 16,900 employees that are members of a rail labor union and covered by national agreements with the Class I railroads or CSX-specific agreements.
The Company’s intermodal business links customers to railroads via trucks and terminals. CSXT also serves thousands of production and distribution facilities through track connections with other Class I railroads and more than 240 short-line and regional railroads. On June 1, 2022, CSX completed its acquisition of Pan Am Systems, Inc.
The Company’s intermodal business links customers to railroads via trucks and terminals. CSXT also serves thousands of production and distribution facilities through track connections with other Class I railroads and approximately 250 short-line and regional railroads. CSXT is also responsible for the Company's real estate sales, leasing, acquisition and management and development activities.
Prior to the 2022 agreements becoming amendable, CSX worked with several major rail unions on new five-year labor agreements. As of the date of this filing, new labor agreements have been fully ratified by seven unions representing approximately 40% of the Company's unionized workforce.
As of the date of this filing, new agreements with an effective date of January 1, 2025, have been fully ratified by most unions, representing nearly 75% of the Company's unionized workforce.
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(“Pan Am”), which is the parent company of Pan Am Railways, Inc. This acquisition expanded CSXT’s reach in the Northeastern United States. For further details, refer to Note 17, Business Combinations. CSXT is also responsible for the Company's real estate sales, leasing, acquisition and management and development activities. Substantially all of these activities are focused on supporting railroad operations.
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The remaining unionized employees are covered under previous agreements while negotiations take place since collective agreements under the Railway Labor Act do not expire, but continue until amended or replaced. CSX prioritizes workplace safety for employees and is committed to continued improvement through enhanced processes, training, technology, communication, and continuous collaboration with customers and peers across the railroad industry.
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As of December 2, 2022, all of these rail unions were covered by national agreements with the Class I railroads and CSX-specific agreements that remained in effect through December 31, 2024. Collective agreements under the Railway Labor Act do not expire, but continue until amended.
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CSX 2025 Form 10-K p.4 CSX CORPORATION PART I The Compensation and Talent Management Committee of the Board of Directors is responsible for the oversight of the Company's workforce and human capital management processes. The Company is committed to developing a culture that promotes workforce satisfaction and expects ethical behavior.
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The FRA Personal Injury Frequency Index, a measure of the number of FRA-reportable injuries per 200,000 man-hours, was 1.19 in 2024 and 0.94 in 2023. CSX 2024 Form 10-K p.4 CSX CORPORATION PART I The Compensation and Talent Management Committee of the Board of Directors is charged with oversight of CSX's workforce.
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During 2025, Norfolk Southern Railway entered into an agreement to merge with Union Pacific Railroad to form the nation's only transcontinental rail network, which requires the approval of the Surface Transportation Board. Other railroads also operate in parts of the Company’s territory.
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The Company is committed to developing a culture that promotes workforce diversity and inclusion and encourages ethical behavior. As of December 31, 2024, approximately 22% of CSX's overall workforce and 35% of management was diverse, calculated as the percentage of males of color and all females.
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In 2024, CSX was recognized as a “Best Place to Work for Disability Inclusion” by Disability:IN and the American Association of People with Disabilities for a sixth consecutive year after receiving a top score on their disability equality index.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeUnder federal regulations, CSXT is required to transport certain hazardous materials under the legal duty referred to as the common carrier mandate regardless of risk or potential exposure to loss.
Biggest changeUnder federal regulations, CSXT is required to transport certain hazardous materials under the legal duty referred to as the common carrier mandate regardless of risk or potential exposure to loss. CSX 2025 Form 10-K p.9 CSX CORPORATION PART I An epidemic or pandemic and the initiatives to reduce its transmission could adversely affect the Company's business.
In addition, statutes, regulations, orders or other governmental actions that, among other things, impose price constraints, restrict access to government funding, or affecting rail-to-rail competition could adversely affect the Company's profitability. Government regulation and compliance risks may adversely affect the Company's operations and financial results.
In addition, statutes, regulations, orders or other governmental actions that, among other things, impose price constraints, restrict access to government funding, or affect rail-to-rail competition could adversely affect the Company's profitability. Government regulation and compliance risks may adversely affect the Company's operations and financial results.
CSXT has experienced, and in the future could experience, rail network difficulties related to: (i) locomotive or crew shortages; (ii) labor shortages or other service disruptions in the supply chain affecting trucking, ports, handling facilities, customer facilities or other railroads; (iii) unpredictable increases in demand; (iv) extreme weather conditions; (v) regulatory changes resulting in forced access or impacting where and how fast CSXT can transport freight or maintain routes; (vi) reductions in availability of pooled equipment, including chassis; (vii) impacts from changes in network capacity or structure; or (viii) increased passenger activities, which could impact CSXT's operational fluidity, leading to deterioration of service, asset utilization and overall efficiency.
CSXT has experienced, and in the future could experience, rail network difficulties related to: (i) locomotive or crew shortages; (ii) labor shortages or other service disruptions in the supply chain affecting trucking, ports, handling facilities, customer facilities or other railroads; (iii) unpredictable increases in demand; (iv) extreme weather conditions; (v) regulatory changes resulting in forced access or impacting where and how fast CSXT can transport freight or maintain routes; (vi) reductions in availability of pooled equipment, including chassis; (vii) impacts from changes in network capacity or structure; (viii) increased passenger activities; or (ix) derailments and other accidents, which could impact CSXT's operational fluidity, leading to deterioration of service, asset utilization and overall efficiency.
CSX 2024 Form 10-K p.7 CSX CORPORATION PART I The Company may be subject to various claims and lawsuits that could result in significant expenditures.
CSX 2025 Form 10-K p.7 CSX CORPORATION PART I The Company may be subject to various claims and lawsuits that could result in significant expenditures.
The Company relies on the security, stability and availability of its technology systems to operate its business. The Company relies on information technology in all aspects of its business.
Operational, Safety and Business Disruption The Company relies on the security, stability and availability of its technology systems to operate its business. The Company relies on information technology in all aspects of its business.
Competitive, Economic and Financial The Company faces competition from other transportation providers. The Company experiences competition in pricing, service, reliability and other factors from various transportation providers including railroads and motor carriers that operate similar routes across its service area and, to a less significant extent, barges, ships and pipelines.
CSX 2025 Form 10-K p.10 CSX CORPORATION PART I Competitive, Economic and Financial The Company faces competition from other transportation providers. The Company experiences competition in pricing, service, reliability and other factors from various transportation providers including railroads and motor carriers that operate similar routes across its service area and, to a less significant extent, barges, ships and pipelines.
Climate and emissions-related laws and regulations have been proposed and, in some cases adopted, on the federal, state, provincial and local levels. These final and proposed laws and regulations take the form of restrictions, caps, taxes or other controls on emissions as well as requirements to disclose climate-related information.
CSX 2025 Form 10-K p.12 CSX CORPORATION PART I Climate and emissions-related laws and regulations have been proposed and, in some cases adopted, on the federal, state, provincial and local levels. These final and proposed laws and regulations take the form of restrictions, caps, taxes or other controls on emissions as well as requirements to disclose climate-related information.
Due to applicable laws, rules and regulations or contractual obligations, CSX may be held responsible for data breaches, cyber-attacks or other similar incidents attributed to its third-party vendors as they relate to the information CSX shares with them.
Due to applicable laws, rules and regulations or contractual obligations, CSX may be held responsible for data breaches, cyber-attacks CSX 2025 Form 10-K p.8 CSX CORPORATION PART I or other similar incidents attributed to its third-party vendors as they relate to the information CSX shares with them.
As cybersecurity threats continue to evolve, the Company may be required to expend significant additional resources to continue to modify or enhance its protective measures or to investigate and remediate any information security vulnerabilities, data breaches, cyber-attacks or other similar incidents.
As cybersecurity threats continue to evolve, including the increased maturity of artificial intelligence leveraged by threat actors, the Company may be required to expend significant additional resources to continue to modify or enhance its protective measures or to investigate and remediate any information security vulnerabilities, data breaches, cyber-attacks or other similar incidents.
CSX 2024 Form 10-K p.9 CSX CORPORATION PART I Future acts of terrorism, war or regulatory changes to combat the risk of terrorism may cause significant disruptions in the Company's operations. Terrorist attacks, along with any government response to those attacks, may adversely affect the Company's financial condition, results of operations or liquidity.
Future acts of terrorism, war or regulatory changes to combat the risk of terrorism may cause significant disruptions in the Company's operations. Terrorist attacks, along with any government response to those attacks, may adversely affect the Company's financial condition, results of operations or liquidity.
CSX 2024 Form 10-K p.11 CSX CORPORATION PART I Disruption to a key railroad industry supplier could negatively affect operating efficiency and increase costs. The capital intensive and unique nature of core rail equipment (including rail, ties, freight cars and locomotives) limits the number of railroad equipment suppliers.
Disruption to a key railroad industry supplier could negatively affect operating efficiency and increase costs. The capital intensive and unique nature of core rail equipment (including rail, ties, freight cars and locomotives) limits the number of railroad equipment suppliers.
CSX 2024 Form 10-K p.8 CSX CORPORATION PART I The Company, its third-party vendors and other companies in the rail and transportation industries have been subject to, and are likely to continue to be the target of, data breaches, cyber-attacks and other similar incidents.
The Company, its third-party vendors and other companies in the rail and transportation industries have been subject to, and are likely to continue to be the target of, data breaches, cyber-attacks and other similar incidents.
A significant deterioration of the Company’s financial condition could also reduce credit ratings and could limit or affect its access to external sources of capital and increase the costs of short and long-term debt financing. Availability of Critical Supplies and Labor The unavailability of critical resources could adversely affect the Company’s operational efficiency and ability to meet demand.
A significant deterioration of the Company’s financial condition could also reduce credit ratings and could limit or affect its access to external sources of capital and increase the costs of short and long-term debt financing.
Additionally, any future consolidation in the rail industry could materially affect the regulatory and competitive environment in which the Company operates. CSX 2024 Form 10-K p.10 CSX CORPORATION PART I Global economic conditions could negatively affect demand for commodities and other freight.
Additionally, any currently proposed or other future consolidation in the rail industry could materially affect the regulatory and competitive environment in which the Company operates. Global economic conditions could negatively affect demand for commodities and other freight.
Operational, Safety and Business Disruption An epidemic or pandemic and the initiatives to reduce its transmission could adversely affect the Company's business. The Company has been and could in the future be materially and adversely affected by a public health crisis, including a widespread epidemic or pandemic.
The Company has been and could in the future be materially and adversely affected by a public health crisis, including a widespread epidemic or pandemic.
CSX 2024 Form 10-K p.12 CSX CORPORATION PART I The Company is subject to environmental laws and regulations that may result in significant costs.
The Company is subject to environmental laws and regulations that may result in significant costs.
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CSX 2025 Form 10-K p.11 CSX CORPORATION PART I Availability of Critical Supplies and Labor The unavailability of critical resources could adversely affect the Company’s operational efficiency and ability to meet demand.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe Audit Committee periodically reviews assessments of information security controls and procedures, any incidents that could have a potentially significant impact on the company’s network, as well as potential cybersecurity risk disclosures.
Biggest changeThe Audit Committee periodically reviews assessments of information security controls and procedures, any incidents that could have a potentially significant impact on the company’s network, and potential cybersecurity risk disclosures. The Company's senior leadership team briefs the Audit Committee and Board of Directors at least annually on information technology and cybersecurity matters, with more frequent updates as circumstances warrant.
CSX 2024 Form 10-K p.14 CSX CORPORATION PART I The Company, its third-party vendors and other companies in the rail and transportation industries have been subject to, and are likely to continue to be the target of, data breaches, cyber-attacks and other similar incidents as discussed in more detail in Item 1A. Risk Factors .
CSX 2025 Form 10-K p.14 CSX CORPORATION PART I The Company, its third-party vendors and other companies in the rail and transportation industries have been subject to, and are likely to continue to be the target of, data breaches, cyber-attacks and other similar incidents as discussed in more detail in Item 1A. Risk Factors .
As appropriate, the Company requires certain third-party providers to complete a cybersecurity questionnaire, to provide Service Organization Control assessment results, if such results exist, or to agree to contractual language regarding cybersecurity and incident notification obligations in agreements with the company.
As appropriate, the Company requires certain third-party providers to complete a cybersecurity questionnaire, to provide Service Organization Control assessment results, when such results exist, or to agree to contractual language regarding cybersecurity and incident notification obligations in agreements with the company.
Additionally, a cybersecurity governance briefing takes place quarterly with leaders from the Company's technology, operations, commercial, legal, and accounting departments to discuss cybersecurity risks, threats, and incidents, including updates from the SOC and an assessment of ways to mitigate and remediate any threats or incidents the Company may be facing.
Additionally, a cybersecurity governance briefing takes place at least semiannually with leaders from the Company's technology, operations, commercial, legal, and accounting departments to discuss cybersecurity risks, threats, and incidents, as well as updates from the SOC and an assessment of ways to mitigate and remediate any threats or incidents the Company may be facing.
The CISO is notified of cybersecurity events as needed based on the Company’s processes for addressing cybersecurity incidents and threats. The SOC, with the assistance of outside third-parties as needed, analyzes, evaluates and remediates cybersecurity incidents and provides investigative information to the CISO.
The SOC, with the assistance of outside third-parties as needed, analyzes, evaluates and remediates cybersecurity incidents and provides investigative information to the CISO.
The Audit Committee is apprised annually on emerging risks to the Company, including education on cybersecurity-related matters as needed. CSX has a cybersecurity expert on the Board and its Audit Committee to provide expanded oversight of the Company’s cybersecurity and technology systems. CSX 2024 Form 10-K p.15 CSX CORPORATION PART I
Such annual updates include significant findings or other information from internal or external evaluations. The Audit Committee is apprised annually on emerging risks to the Company, including education on cybersecurity-related matters as needed. CSX has a cybersecurity expert on the Board and its Audit Committee to provide expanded oversight of the Company’s cybersecurity and technology systems.
Cybersecurity Governance The cybersecurity program and related risks at CSX are managed by the VP Technology and CISO. The Company's CISO is a Certified Information Systems Auditor with over 30 years of industry experience including information security leadership positions at multiple publicly-traded companies.
Cybersecurity Governance The cybersecurity program and related risks at CSX are managed by the Assistant Vice President of Cloud Infrastructure Platforms and CISO. The Company's CISO has over 29 years of industry experience including administration of military command and control systems, infrastructure platforms, process governance, and security architecture.
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The CISO is supported by a team that includes the SOC, which consists of the Deputy Chief Information Security Officer ("Deputy CISO") and other cybersecurity professionals as well as a team of third-party contractors. The Deputy CISO has over 20 years of industry experience including federal cyber law enforcement.
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The CISO is supported by a team of dedicated cybersecurity professionals as well as various resources from a Managed Security Service Provider. The CISO is notified of cybersecurity events as needed based on the Company’s processes for addressing cybersecurity incidents and threats.
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The Company's senior leadership team briefs the Audit Committee and Board of Directors at least annually on information technology and cybersecurity matters, including more frequent updates as circumstances warrant. Such annual updates include significant findings or updates by internal or external evaluations.
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CSX 2025 Form 10-K p.15 CSX CORPORATION PART I

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeYards and Terminals Annual Volume Waycross, GA 915,159 Bedford Park Intermodal Terminal (Chicago) 899,537 Nashville, TN 687,659 Selkirk, NY 636,745 Cincinnati, OH 624,644 Avon, IN (Indianapolis) 617,602 Fairburn, GA Intermodal Terminal (Atlanta) 414,598 Walbridge, OH (Toledo) 355,190 Louisville, KY 341,513 Chicago, IL 298,178 CSX 2024 Form 10-K p.16 CSX CORPORATION PART I Network Geography CSXT’s operations are primarily focused on four major transportation networks and corridors that are defined geographically and by commodity flows below.
Biggest changeYards and Terminals Annual Volume Waycross, GA 917,799 Bedford Park Intermodal Terminal (Chicago) 894,084 Nashville, TN 654,619 Avon, IN (Indianapolis) 641,069 Selkirk, NY 636,614 Cincinnati, OH 621,232 Fairburn, GA Intermodal Terminal (Atlanta) 479,207 Walbridge, OH (Toledo) 350,095 Chicago 59th Street Intermodal Terminal 321,303 Cumberland, MD 318,303 CSX 2025 Form 10-K p.16 CSX CORPORATION PART I Network Geography CSXT’s operations are primarily focused on four major transportation networks and corridors that are defined geographically and by commodity flows below.
These engineering attributes permit the corridor to support high-speed service across intermodal, automotive and merchandise commodities. This corridor is a primary route for import traffic coming from the far east through western ports moving eastward across the country, through Chicago and into the population centers in the Northeast.
These engineering attributes permit the corridor to support high-speed service across intermodal, automotive and other merchandise commodities. This corridor is a primary route for import traffic coming from the far east through western ports moving eastward across the country, through Chicago and into the population centers in the Northeast.
CSX 2024 Form 10-K p.19 CSX CORPORATION PART I The Company’s revenue-generating equipment, either owned or long-term leased, primarily consists of freight cars and containers as described below. Gondolas – Support CSXT’s metals markets and provide transport for woodchips and other bulk commodities. Some gondolas are equipped with special hoods for protecting products like coil and sheet steel.
CSX 2025 Form 10-K p.19 CSX CORPORATION PART I The Company’s revenue-generating equipment, either owned or long-term leased, primarily consists of freight cars and containers as described below. Gondolas – Support CSXT’s metals markets and provide transport for woodchips and other bulk commodities. Some gondolas are equipped with special hoods for protecting products like coil and sheet steel.
These serve as points of connectivity between the Company and its local customers and as sorting facilities where railcars and intermodal containers are received, classed for destination and placed onto outbound trains, or arrive and are delivered to the customer. The Company’s largest yards and terminals based on 2024 volume (number of railcars or intermodal containers processed) are listed below.
These serve as points of connectivity between the Company and its local customers and as sorting facilities where railcars and intermodal containers are received, classed for destination and placed onto outbound trains, or arrive and are delivered to the customer. The Company’s largest yards and terminals based on 2025 volume (number of railcars or intermodal containers processed) are listed below.
CSXT’s track structure includes mainline track, connecting terminals and yards, track within terminals and switching yards, sidings used for passing trains, track connecting CSXT's track to customer locations and turnouts that divert trains from one track to another.
CSXT’s track structure includes mainline track, which connects terminals and yards, track within terminals and switching yards, sidings used for passing trains, track connecting CSXT's track to customer locations and turnouts that divert trains from one track to another.
Freight locomotives are used primarily to pull trains while switching locomotives are used in yards. Auxiliary units are typically used to provide extra traction for heavy trains in hilly terrain. Of owned locomotives, approximately 67% were in active service as of December 31, 2024, and the remainder were in storage to be utilized as needed.
Freight locomotives are used primarily to pull trains while switching locomotives are used in yards. Auxiliary units are typically used to provide extra traction for heavy trains in hilly terrain. Of owned locomotives, approximately 70% were in active service as of December 31, 2025, and the remainder were in storage to be utilized as needed.
Of total owned and long-term leased equipment, approximately 90% was in active service as of December 31, 2024, and the remainder were in storage to be utilized as needed.
Of total owned and long-term leased equipment, approximately 86% was in active service as of December 31, 2025, and the remainder were in storage to be utilized as needed.
CSX 2024 Form 10-K p.17 CSX CORPORATION PART I CSX Rail Network CSX 2024 Form 10-K p.18 CSX CORPORATION PART I Locomotives As of December 2024, CSXT owns or long-term leases more than 3,500 locomotives. From time to time, the Company also short-term leases locomotives based on business needs.
CSX 2025 Form 10-K p.17 CSX CORPORATION PART I CSX Rail Network CSX 2025 Form 10-K p.18 CSX CORPORATION PART I Locomotives As of December 2025, CSXT owns more than 3,400 locomotives. From time to time, the Company also short-term leases locomotives based on business needs.
At December 2024, the breakdown of track miles was as follows: Track Miles Single Mainline Track 19,773 Other Mainline Track 5,649 Terminals and Switching Yards 9,227 Passing Sidings and Turnouts 890 Total 35,539 In addition to its physical track structure, the Company operates numerous yards and terminals for rail and intermodal service.
At December 2025, the breakdown of track miles was as follows: Track Miles Single Mainline Track 19,739 Other Mainline Track 5,648 Terminals and Switching Yards 9,243 Passing Sidings and Turnouts 888 Total 35,518 In addition to its physical track structure, the Company operates numerous yards and terminals for rail and intermodal service.
As of December 2024, CSXT’s fleet of owned or long-term leased locomotives consisted of the following types: Locomotives % Average Age (in Years) Freight 3,129 89 % 23 Switching 210 6 % 47 Auxiliary Units 175 5 % 31 Total Locomotives 3,514 100 % 25 Equipment The Company owns or long-term leases rail equipment, including several types of freight cars and intermodal containers.
As of December 2025, CSXT’s fleet of owned locomotives consisted of the following types: Locomotives % Average Age (in Years) Freight 3,167 91 % 23 Switching 191 6 % 48 Auxiliary Units 112 3 % 32 Total Locomotives 3,470 100 % 24 Equipment The Company owns or long-term leases rail equipment, including several types of freight cars and intermodal containers.
As of December 2024, the Company’s owned and long-term leased equipment consisted of the following: Equipment Number of Units % Gondolas 19,077 42 % Multi-level Flat Cars 11,036 24 % Open-top Hoppers 6,109 15 % Covered Hoppers 5,506 12 % Box Cars 2,318 5 % Flat Cars 565 1 % Other Cars 586 1 % Subtotal Freight Cars 45,197 100 % Containers 18,907 Total Equipment 64,104 At any time, approximately two-thirds of the railcars on the CSXT system are not owned or leased by the Company.
As of December 2025, the Company’s owned and long-term leased equipment consisted of the following: Equipment Number of Units % Gondolas 18,920 43 % Multi-level Flat Cars 10,854 25 % Open-top Hoppers 6,108 14 % Covered Hoppers 5,155 12 % Box Cars 1,841 4 % Flat Cars 535 1 % Other Cars 572 1 % Subtotal Freight Cars 43,985 100 % Containers 17,630 Total Equipment 61,615 At any time, approximately two-thirds of the railcars on the CSXT system are not owned or leased by the Company.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeBurns was named as the Senior Vice President, Chief Legal Officer, and Corporate Secretary, effective January 2, 2025. In this role, he is responsible for the Company's legal and regulatory affairs, risk management, public safety, environmental, and internal audit functions. During his 18 years with the Company, Mr.
Biggest changeIn this role, he is responsible for the Company's legal, regulatory, and government affairs, as well as risk management, public safety, environmental, internal audit, and community investments functions. During his 19 years with the Company, Mr. Burns also served as Vice President, General Counsel, and Assistant Corporate Secretary as well as a variety of other legal roles.
Item 4. Mine Safety Disclosure Not Applicable CSX 2024 Form 10-K p.20 CSX CORPORATION PART I Executive Officers of the Registrant Executive officers of the Company are elected by the CSX Board of Directors and generally hold office until the next annual election of officers.
Item 4. Mine Safety Disclosure Not Applicable CSX 2025 Form 10-K p.20 CSX CORPORATION PART I Executive Officers of the Registrant Executive officers of the Company are elected by the CSX Board of Directors and generally hold office until the next annual election of officers.
There are no family relationships or any arrangement or understanding between any officer and any other person pursuant to which such officer was elected. As of the date of this filing, the executive officers’ names, ages and business experience are: Name and Age Business Experience During Past Five Years Joseph R. Hinrichs, 58 President and Chief Executive Officer Mr.
There are no family relationships or any arrangement or understanding between any officer and any other person pursuant to which such officer was elected. As of the date of this filing, the executive officers’ names, ages and business experience are: Name and Age Business Experience During Past Five Years Stephen F. Angel, 70 President and Chief Executive Officer Mr.
Mr. Cory is a seasoned railroad executive with approximately 40 years of operations experience, working at the Canadian National Railway Company ("CN") from 1981 to 2019. He served as Executive Vice President and Chief Operating Officer at CN.
In this role, he is responsible for transportation, network operations including terminals, mechanical, engineering and labor relations. Mr. Cory is a seasoned railroad executive with approximately 40 years of operations experience, working at the Canadian National Railway Company ("CN") from 1981 to 2019. He served as Executive Vice President and Chief Operating Officer at CN.
Boone has more than 20 years of experience in finance, accounting, mergers and acquisitions, and transportation performance analysis. He joined CSX in September 2017 as Vice President of Corporate Affairs and Chief Investor Relations Officer and was later named Vice President, Marketing and Strategy leading research and data analysis to advance growth strategies for CSX.
He joined CSX in September 2017 as Vice President of Corporate Affairs and Chief Investor Relations Officer and was later named Vice President, Marketing and Strategy leading research and data analysis to advance growth strategies for CSX. Mr.
In this role, he is responsible for leading the Company's technology strategy development, supporting business growth through innovative digital solutions and overseeing all aspects of CSX's information technology systems operations, including cybersecurity. Prior to joining CSX with nearly 20 years of information technology experience, Mr.
Fortune was named CSX's Executive Vice President and Chief Digital and Technology Officer in April 2022. In this role, he is responsible for leading the Company's technology strategy development, supporting business growth through innovative digital solutions and overseeing all aspects of CSX's information technology systems operations, including cybersecurity.
Fortune spent 30 years at BP, most recently as Chief Information Officer of the global BP group and with earlier experience as a chemical and process engineer before moving into operations management. Michael S. Burns, 49 Senior Vice President and Chief Legal Officer, Corporate Secretary Mr.
Prior to joining CSX with nearly 20 years of information technology experience, Mr. Fortune spent 30 years at BP, most recently as Chief Information Officer of the global BP group and with earlier experience as a chemical and process engineer before moving into operations management. Diana B. Sorfleet, 61 Executive Vice President and Chief Administrative Officer Ms.
Cory's retirement from CN in 2019, he continued to provide transportation consulting services as well as serving as the President of Pacific National, Australia's largest private railroad, in 2021. Stephen Fortune, 55 Executive Vice President and Chief Digital and Technology Officer Mr. Fortune was named CSX's Executive Vice President and Chief Digital and Technology Officer in April 2022.
Cory's retirement from CN in 2019, he continued to provide transportation consulting services as well as serving as the President of Pacific National, Australia's largest private railroad, in 2021. CSX 2025 Form 10-K p.21 CSX CORPORATION PART I Name and Age Business Experience During Past Five Years Stephen Fortune, 56 Executive Vice President and Chief Digital and Technology Officer Mr.
In May 2019 he was named Chief Financial Officer. Before joining CSX in 2017, Mr. Boone worked as a Senior Equity Research Analyst at Janus Capital. He also served as a Vice President at Morgan Stanley in equity research and an associate at Merrill Lynch in the mergers and acquisitions group.
He also served as a Vice President at Morgan Stanley in equity research and an associate at Merrill Lynch in the mergers and acquisitions group. Michael A. Cory, 63 Executive Vice President and Chief Operating Officer Mr. Cory was named Executive Vice President and Chief Operating Officer in September 2023.
Prior to joining CSX, Ms. Sorfleet was Vice President of Diversity and Development at Exelon with 20 years of human resources experience in various positions involving recruiting, employee relations, strategic planning and leadership development. Angela C. Williams, 50 Vice President and Chief Accounting Officer Ms. Williams has served as Vice President and Chief Accounting Officer of CSX since March 2018.
Sorfleet was Vice President of Diversity and Development at Exelon with 20 years of human resources experience in various positions involving recruiting, employee relations, strategic planning and leadership development. Michael S. Burns, 50 Senior Vice President and Chief Legal Officer, Corporate Secretary Mr. Burns was named as the Senior Vice President, Chief Legal Officer, and Corporate Secretary, effective January 2025.
Sorfleet was named Executive Vice President and Chief Administrative Officer in July 2018. In this role, she is responsible for human resources, people systems and analytics, total rewards, facilities and aviation. During her 13 years with the Company, Ms. Sorfleet also had responsibility for technology and labor relations and, prior to her current role, served as Chief Human Resources Officer.
During her 14 years with the Company, Ms. Sorfleet also had responsibility for technology and labor relations and, prior to her current role, served as Chief Human Resources Officer. Prior to joining CSX, Ms.
Williams held various accounting and auditing positions at KPMG LLP and Winn-Dixie Stores, Inc. prior to joining CSX. Ms. Williams is a Certified Public Accountant in the state of Florida. CSX 2024 Form 10-K p.22 CSX CORPORATION PART II
Williams is a Certified Public Accountant in the state of Florida. CSX 2025 Form 10-K p.22 CSX CORPORATION PART II
She is responsible for financial and regulatory reporting, freight billing and collections, payroll, accounts payable and various other accounting processes. During her 21 years with the Company, she also served as Assistant Vice President - Assistant Controller and in other various accounting roles. With more than 25 years of experience, Ms.
During her 22 years with the Company, she also served as Assistant Vice President - Assistant Controller and in other various accounting roles. With more than 25 years of experience, Ms. Williams held various accounting and auditing positions at KPMG LLP and Winn-Dixie Stores, Inc. prior to joining CSX. Ms.
Pelkey, 45 Executive Vice President and Chief Financial Officer Mr. Pelkey was named Executive Vice President and Chief Financial Officer in January 2022. In this role, he is responsible for all of the finance activities for the Company including accounting, financial planning, investor relations, procurement, tax and treasury. Prior to this role, Mr.
In his current role, he oversees all of the finance activities for the Company including accounting, financial planning, investor relations, procurement, tax and treasury. Mr. Boone has more than 20 years of experience in finance, accounting, mergers and acquisitions, and transportation performance analysis.
Boone, 47 Executive Vice President and Chief Commercial Officer Mr. Boone has served as Executive Vice President and Chief Commercial Officer since June 2021. In his current role, he is responsible for developing and implementing the Company's commercial strategy and oversees functions including sales, marketing, customer solutions, real estate and industrial development. Mr.
Boone served as Chief Financial Officer for two years beginning in May 2019 and was appointed Executive Vice President and Chief Sales and Marketing Officer in June 2021, where he was responsible for developing and implementing the Company's commercial strategy. Before joining CSX in 2017, Mr. Boone worked as a Senior Equity Research Analyst at Janus Capital.
Hinrichs, a leader with more than 30 years of experience in the global automotive, manufacturing, and energy sectors, was named President and Chief Executive Officer in September 2022. Mr. Hinrichs previously worked at Ford Motor Company from 2000 to 2020, most recently serving as President of Ford's global automotive business.
Angel, a leader with more than 45 years of experience in the industrials sector, was appointed President and Chief Executive Officer and a member of the Board of Directors of CSX in September 2025. Mr. Angel previously served as Chief Executive Officer of Linde from 2018 to 2022, and Chairman from 2022 to January 31, 2026.
Burns also served as Vice President, General Counsel, and Assistant Corporate Secretary as well as a variety of other legal roles. Prior to joining CSX, Mr. Burns worked in private practice with a focus on labor and employment law. Diana B. Sorfleet, 60 Executive Vice President and Chief Administrative Officer Ms.
Prior to joining CSX, Mr. Burns worked in private practice with a focus on labor and employment law. Maryclare Kenney, 48 Senior Vice President and Chief Commercial Officer Ms. Kenney was named Senior Vice President and Chief Commercial Officer in October 2025 and is responsible for overseeing the company’s profitable growth strategies. Ms.
Removed
In that role, he led the company’s automotive operations, overseeing Ford’s global business units and the Ford and Lincoln brands. Mr. Hinrichs also led Ford’s automotive skill teams, overseeing product development, purchasing, manufacturing, labor affairs, marketing and sales, government affairs, information technology, sustainability, safety and environmental engineering.
Added
During his tenure, he oversaw the successful integration of Linde AG and Praxair, Inc., which created the world’s largest industrial gases and engineering company. Mr. Angel worked at Praxair from 2001 to 2018, serving as Chairman and CEO from 2007 to 2018. Mr.
Removed
Other positions he held at Ford include President of Global Operations, President of the Americas, President of Asia Pacific and Africa, Chairman and CEO of Ford China, and Chairman & CEO of Ford Canada. Over the four years prior to joining CSX, Mr. Hinrichs also served in multiple advisory and board roles of various companies. Sean R.
Added
Angel began his career at General Electric, where he spent 22 years in a variety of management positions, including working directly with locomotive and rail operations. Kevin S. Boone, 48 Executive Vice President and Chief Financial Officer Mr. Boone has served as Executive Vice President and Chief Financial Officer since October 2025.
Removed
Pelkey held the role of Vice President Finance & Treasury since 2017. Prior to 2017, he has held the positions of Assistant Vice President of Capital Markets and Director Performance Analysis. During his 19 years with CSX, Mr. Pelkey has held a variety of other roles, including managerial roles in investor relations, financial planning and technology finance. Kevin S.
Added
Sorfleet was named Executive Vice President and Chief Administrative Officer in July 2018. In this role, she is responsible for human resources and total rewards. On February 3, 2026, CSX announced that Ms. Sorfleet will retire from the Company. Ms. Sorfleet remains the Executive Vice President and Chief Administrative Officer as of the date of this filing.
Removed
CSX 2024 Form 10-K p.21 CSX CORPORATION PART I Name and Age Business Experience During Past Five Years Michael A. Cory, 62 Executive Vice President and Chief Operating Officer Mr. Cory was named Executive Vice President and Chief Operating Officer in September 2023. In this role, he is responsible for transportation, network operations including terminals, mechanical, engineering and labor relations.
Added
Kenney leads the CSX commercial organization and oversees functions including sales, marketing, customer engagement, real estate, and business development activities. Ms. Kenney joined CSX in 2011 as Director of Domestic Sales and has since held roles of increasing responsibility, including leadership roles in intermodal, automotive, TRANSFLO, TDSI, and merchandise sales and marketing. Before joining CSX, Ms.
Added
Kenney held sales leadership roles at PepsiCo and served as a U.S. Army captain. Angela C. Williams, 51 Vice President and Chief Accounting Officer Ms. Williams has served as Vice President and Chief Accounting Officer of CSX since March 2018. She is responsible for financial and regulatory reporting, freight billing and collections, payroll, accounts payable and various other accounting processes.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

7 edited+0 added−0 removed4 unchanged
Biggest changeCSX 2024 Form 10-K p.24 CSX CORPORATION PART II CSX Purchases of Equity Securities During fourth quarter 2023, the share repurchase program announced in July 2022 was completed and the Company began repurchasing shares under the $5 billion share repurchase program approved in October 2023. Total repurchase authority remaining as of December 31, 2024 was $2.6 billion.
Biggest changeCSX 2025 Form 10-K p.24 CSX CORPORATION PART II CSX Purchases of Equity Securities The Company continues to repurchase shares under the $5 billion share repurchase program approved in October 2023. Total repurchase authority remaining as of December 31, 2025 was $1.2 billion. For more information about share repurchases, see Note 2, Earnings Per Share .
The weighted average of common shares outstanding, which was used in the calculation of diluted earnings per share, was 1,943 million as of December 31, 2024 (see Note 2, Earnings Per Share ). A total of 25 million shares of preferred stock is authorized, none of which is currently outstanding.
The weighted average of common shares outstanding, which was used in the calculation of diluted earnings per share, was 1,873 million as of December 31, 2025 (see Note 2, Earnings Per Share ). A total of 25 million shares of preferred stock is authorized, none of which is currently outstanding.
There are no preemptive rights, which are privileges extended to select shareholders that would allow them to purchase additional shares before other members of the general public in the event of an offering. At January 31, 2025, the latest practicable date that is closest to the filing date, there were 20,567 common stock shareholders of record.
There are no preemptive rights, which are privileges extended to select shareholders that would allow them to purchase additional shares before other members of the general public in the event of an offering. At January 31, 2026, the latest practicable date that is closest to the filing date, there were 19,430 common stock shareholders of record.
The official trading symbol is “CSX.” Description of Common and Preferred Stock A total of 5.4 billion shares of common stock are authorized, of which 1,900,189,590 shares were outstanding as of December 31, 2024. Each share is entitled to one vote in all matters requiring a vote of shareholders.
The official trading symbol is “CSX.” Description of Common and Preferred Stock A total of 5.4 billion shares of common stock are authorized, of which 1,859,740,714 shares were outstanding as of December 31, 2025. Each share is entitled to one vote in all matters requiring a vote of shareholders.
Quarter 1st 2nd 3rd 4th Year 2024 $ 0.12 $ 0.12 $ 0.12 $ 0.12 $ 0.48 2023 $ 0.11 $ 0.11 $ 0.11 $ 0.11 $ 0.44 CSX 2024 Form 10-K p.23 CSX CORPORATION PART II Stock Performance Graph The cumulative shareholder returns, assuming reinvestment of dividends, on $100 invested at December 31, 2019 are illustrated on the graph below.
Quarter 1st 2nd 3rd 4th Year 2025 $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.52 2024 $ 0.12 $ 0.12 $ 0.12 $ 0.12 $ 0.48 CSX 2025 Form 10-K p.23 CSX CORPORATION PART II Stock Performance Graph The cumulative shareholder returns, assuming reinvestment of dividends, on $100 invested at December 31, 2020 are illustrated on the graph below.
For more information about share repurchases, see Note 2, Earnings Per Share . Share repurchase activity of $992 million for the fourth quarter 2024 is shown in the table below. Amounts exclude the impact of excise tax on net share repurchases imposed as part of the Inflation Reduction Act of 2022.
Share repurchase activity of $112 million for the fourth quarter 2025 is shown in the table below. Amounts exclude the impact of excise tax on net share repurchases imposed as part of the Inflation Reduction Act of 2022.
CSX Purchases of Equity Securities for the Quarter Fourth Quarter Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs Beginning Balance $ 3,578,784,545 October 1 - October 31, 2024 8,928,889 $ 33.77 8,928,889 3,277,276,394 November 1 - November 30, 2024 4,196,033 34.85 4,196,033 3,131,027,408 December 1 - December 31, 2024 16,409,163 33.19 16,409,163 2,586,389,217 Ending Balance 29,534,085 $ 33.60 29,534,085 $ 2,586,389,217
CSX Purchases of Equity Securities for the Quarter Fourth Quarter Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs Beginning Balance $ 1,322,060,537 October 1 - October 31, 2025 1,073,390 $ 35.70 1,073,390 1,283,744,205 November 1 - November 30, 2025 1,425,916 34.77 1,425,916 1,234,163,451 December 1 - December 31, 2025 655,957 36.12 655,957 1,210,467,983 Ending Balance 3,155,263 $ 35.37 3,155,263 $ 1,210,467,983

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

84 edited+19 added−21 removed70 unchanged
Biggest changeNM - "Not Meaningful" CSX 2024 Form 10-K p.28 CSX CORPORATION PART II Volume and Revenue (Unaudited) Volume (Thousands of Units); Revenue (Dollars in Millions); Revenue Per Unit (Dollars) Volume Revenue Revenue Per Unit 2024 2023 % Change 2024 2023 % Change 2024 2023 % Change Chemicals 688 642 7 % $ 2,850 $ 2,599 10 % $ 4,142 $ 4,048 2 % Agricultural and Food Products 463 468 (1) % 1,644 1,657 (1) % 3,551 3,541 — % Automotive 393 388 1 % 1,226 1,219 1 % 3,120 3,142 (1) % Minerals 361 358 1 % 772 733 5 % 2,139 2,047 4 % Forest Products 292 282 4 % 1,047 1,012 3 % 3,586 3,589 — % Metals and Equipment 265 284 (7) % 859 917 (6) % 3,242 3,229 — % Fertilizers 186 199 (7) % 505 516 (2) % 2,715 2,593 5 % Total Merchandise 2,648 2,621 1 % 8,903 8,653 3 % 3,362 3,301 2 % Intermodal 2,893 2,766 5 % 2,047 2,060 (1) % 708 745 (5) % Coal 736 755 (3) % 2,247 2,484 (10) % 3,053 3,290 (7) % Trucking — — — % 844 882 (4) % — — — % Other — — — % 499 578 (14) % — — — % Total 6,277 6,142 2 % $ 14,540 $ 14,657 (1) % $ 2,316 $ 2,386 (3) % CSX 2024 Form 10-K p.29 CSX CORPORATION PART II Revenue Total revenue decreased by $117 million in 2024, or 1%, when compared to the previous year primarily due to lower fuel recovery and lower coal revenue, which includes the impact of lower global benchmark rates.
Biggest changeThis discussion should be read in conjunction with the Consolidated Financial Statements and the related notes that appear elsewhere in this Form 10-K. 2025 vs. 2024 Results of Operations Years Ended 2025 2024 $ Change % Change (Dollars in Millions) Revenue $ 14,092 $ 14,540 $ (448) (3) % Expense Labor and Fringe 3,262 3,165 (97) (3) Purchased Services and Other 3,013 2,841 (172) (6) Depreciation and Amortization 1,680 1,658 (22) (1) Fuel 1,095 1,168 73 6 Equipment and Other Rents 357 355 (2) (1) Goodwill Impairment 164 108 (56) (52) Total Expense 9,571 9,295 (276) (3) Operating Income 4,521 5,245 (724) (14) Interest Expense (844) (832) (12) (1) Other Income - Net 92 142 (50) (35) Income Tax Expense (880) (1,085) 205 19 Net Earnings $ 2,889 $ 3,470 $ (581) (17) % Earnings Per Diluted Share $ 1.54 $ 1.79 $ (0.25) (14) % Operating Margin 32.1 % 36.1 % (400) bps CSX 2025 Form 10-K p.28 CSX CORPORATION PART II Volume and Revenue (Unaudited) Volume (Thousands of Units); Revenue (Dollars in Millions); Revenue Per Unit (Dollars) Volume Revenue Revenue Per Unit 2025 2024 % Change 2025 2024 % Change 2025 2024 % Change Chemicals 655 688 (5) % $ 2,776 $ 2,850 (3) % $ 4,238 $ 4,142 2 % Agricultural and Food Products 457 463 (1) % 1,618 1,644 (2) % 3,540 3,551 — % Automotive 380 393 (3) % 1,182 1,226 (4) % 3,111 3,120 — % Minerals 375 361 4 % 832 772 8 % 2,219 2,139 4 % Forest Products 272 292 (7) % 975 1,047 (7) % 3,585 3,586 — % Metals and Equipment 265 265 — % 869 859 1 % 3,279 3,242 1 % Fertilizers 190 186 2 % 521 505 3 % 2,742 2,715 1 % Total Merchandise 2,594 2,648 (2) % 8,773 8,903 (1) % 3,382 3,362 1 % Intermodal 2,995 2,893 4 % 2,073 2,047 1 % 692 708 (2) % Coal 718 736 (2) % 1,900 2,247 (15) % 2,646 3,053 (13) % Trucking — — — % 816 844 (3) % — — — % Other — — — % 530 499 6 % — — — % Total 6,307 6,277 — % $ 14,092 $ 14,540 (3) % $ 2,234 $ 2,316 (4) % CSX 2025 Form 10-K p.29 CSX CORPORATION PART II Revenue Total revenue decreased by $448 million in 2025, or 3%, when compared to the previous year primarily due to declines in export coal revenue, which includes the impact of lower global benchmark rates, lower merchandise volume, and lower fuel recovery.
Risk Factors and elsewhere in this report, may cause actual results to differ materially from those contemplated by any forward-looking statements: • legislative, regulatory or legal developments involving transportation, including rail or intermodal transportation, the environment, hazardous materials, taxation, international trade and initiatives to further regulate the rail industry; • the outcome of litigation, claims and other contingent liabilities, including, but not limited to, those related to fuel surcharge, environmental matters, taxes, shipper and rate claims subject to adjudication, personal injuries and occupational illnesses; • changes in domestic or international economic, political or business conditions, including those affecting the transportation industry (such as the impact of industry competition, conditions, performance and consolidation, as well as the impact of international trade agreements and tariffs) and the level of demand for products carried by CSXT; CSX 2024 Form 10-K p.48 CSX CORPORATION PART II • natural events such as severe weather conditions, including floods, fire, hurricanes and earthquakes, a pandemic crisis affecting the health of the Company's employees, its shippers or the consumers of goods, or other unforeseen disruptions of the Company's operations, systems, property, equipment or supply chain; • competition from other modes of freight transportation, such as trucking, and competition and consolidation or financial distress within the transportation industry generally; • the cost of compliance with laws and regulations that differ from expectations as well as costs, penalties and operational and liquidity impacts associated with noncompliance with applicable laws or regulations; • the impact of increased passenger activities in capacity-constrained areas, including potential effects of high speed rail initiatives, or regulatory changes affecting when CSXT can transport freight or service routes; • unanticipated conditions in the financial markets that may affect timely access to capital markets and the cost of capital, as well as management's decisions regarding share repurchases; • changes in fuel prices, surcharges for fuel and the availability of fuel; • the impact of natural gas prices on coal-fired electricity generation; • the impact of global supply and price of seaborne coal on CSX's export coal market; • availability of insurance coverage at commercially reasonable rates or insufficient insurance coverage to cover claims or damages; • the inherent business risks associated with safety and security, including the transportation of hazardous materials or a cybersecurity attack which would threaten the availability and reliability of information technology; • adverse economic or operational effects from actual or threatened war or terrorist activities and any governmental response; • loss of key personnel or the inability to hire and retain qualified employees; • labor and benefit costs and labor difficulties, including stoppages affecting either the Company's operations or customers' ability to deliver goods to the Company for shipment; • the Company's success in implementing its strategic, financial and operational initiatives, including acquisitions; • the impact of conditions in the real estate market on the Company's ability to sell assets; • changes in operating conditions and costs, including the impacts of inflation, or commodity concentrations; • the impacts of a public health crisis and any policies or initiatives instituted in response; and • the inherent uncertainty associated with projecting economic and business conditions.
Risk Factors and elsewhere in this report, may cause actual results to differ materially from those contemplated by any forward-looking statements: • legislative, regulatory or legal developments involving transportation, including rail or intermodal transportation, the environment, hazardous materials, taxation, international trade and initiatives to further regulate the rail industry; • the outcome of litigation, claims and other contingent liabilities, including, but not limited to, those related to fuel surcharge, environmental matters, taxes, shipper and rate claims subject to adjudication, personal injuries and occupational illnesses; CSX 2025 Form 10-K p.47 CSX CORPORATION PART II • changes in domestic or international economic, political or business conditions, including those directly affecting the transportation industry (such as the impact of industry competition, conditions, performance and consolidation, as well as the impact of international trade agreements and tariffs) and those affecting the level of demand for products carried by CSXT or by truck, which could impact the performance and value of the Company's rail and trucking-related investments; • natural events such as severe weather conditions, including floods, fire, hurricanes and earthquakes, a pandemic crisis affecting the health of the Company's employees, its shippers or the consumers of goods, or other unforeseen disruptions of the Company's operations, systems, property, equipment or supply chain; • competition from other modes of freight transportation, such as trucking, and competition and consolidation or financial distress within the transportation industry generally; • the cost of compliance with laws and regulations that differ from expectations as well as costs, penalties and operational and liquidity impacts associated with noncompliance with applicable laws or regulations; • the impact of increased passenger activities in capacity-constrained areas, including potential effects of high speed rail initiatives, or regulatory changes affecting when CSXT can transport freight or service routes; • unanticipated conditions in the financial markets that may affect timely access to capital markets and the cost of capital, as well as management's decisions regarding share repurchases; • changes in fuel prices, surcharges for fuel and the availability of fuel; • the impact of natural gas prices on coal-fired electricity generation; • the impact of global supply and price of seaborne coal on CSX's export coal market; • availability of insurance coverage at commercially reasonable rates or insufficient insurance coverage to cover claims or damages; • the inherent business risks associated with safety and security, including the transportation of hazardous materials or a cybersecurity attack which would threaten the availability and reliability of information technology; • adverse economic or operational effects from actual or threatened war or terrorist activities and any governmental response; • loss of key personnel or the inability to hire and retain qualified employees; • labor and benefit costs and labor difficulties, including stoppages affecting either the Company's operations or customers' ability to deliver goods to the Company for shipment; • the Company's success in implementing its strategic, financial and operational initiatives, including acquisitions; • the impact of conditions in the real estate market on the Company's ability to sell assets; • changes in operating conditions and costs, including the impacts of inflation, or commodity concentrations; • the impacts of a public health crisis and any policies or initiatives instituted in response; and • the inherent uncertainty associated with projecting economic and business conditions.
Average shares outstanding was lower as a result of share repurchase activity during the year and had a favorable impact on earnings per diluted share. CSX 2024 Form 10-K p.32 CSX CORPORATION PART II NON-GAAP MEASURES (Unaudited) CSX reports its financial results in accordance with United States generally accepted accounting principles ("GAAP").
Average shares outstanding was lower as a result of share repurchase activity during the year and had a favorable impact on earnings per diluted share. CSX 2025 Form 10-K p.32 CSX CORPORATION PART II NON-GAAP MEASURES (Unaudited) CSX reports its financial results in accordance with United States generally accepted accounting principles ("GAAP").
For employees hired between 2003 and 2019, benefits are determined based on a cash balance formula, which provides benefits by utilizing interest and pay credits based upon age, service and compensation. Beginning in 2020, the CSX Pension Plan was closed to new participants. As of December 2024, the projected benefit obligation for the Company’s pension plans was $2.2 billion .
For employees hired between 2003 and 2019, benefits are determined based on a cash balance formula, which provides benefits by utilizing interest and pay credits based upon age, service and compensation. Beginning in 2020, the CSX Pension Plan was closed to new participants. As of December 2025, the projected benefit obligation for the Company’s pension plans was $2.2 billion .
This focuses the Economic Profit measure on value generated by management instead of external factors, such as legislative tax policy or interest rate volatility. CSX 2024 Form 10-K p.34 CSX CORPORATION PART II The following table reconciles operating income (the most directly comparable GAAP measure) to Economic Profit (non-GAAP measure).
This focuses the Economic Profit measure on value generated by management instead of external factors, such as legislative tax policy or interest rate volatility. CSX 2025 Form 10-K p.34 CSX CORPORATION PART II The following table reconciles operating income (the most directly comparable GAAP measure) to Economic Profit (non-GAAP measure).
The Company’s contractual obligations primarily consist of long-term debt and related interest payments, purchase commitments, leases, other-post employment benefits and agreements with Conrail. • As of December 31, 2024, the Company had outstanding fixed-rate notes with varying maturities. See Note 10, Debt and Credit Agreements , for additional information related to future debt payments.
The Company’s contractual obligations primarily consist of long-term debt and related interest payments, purchase commitments, leases, other-post employment benefits and agreements with Conrail. • As of December 31, 2025, the Company had outstanding fixed-rate notes with varying maturities. See Note 10, Debt and Credit Agreements , for additional information related to future debt payments.
Intermodal - A flexible way of transporting freight over highway, rail and water without being removed from the original transportation equipment, namely a container or trailer. CSX 2024 Form 10-K p.26 CSX CORPORATION PART II Mainline - The main track thoroughfare, exclusive of terminals, yards, sidings and turnouts.
Intermodal - A flexible way of transporting freight over highway, rail and water without being removed from the original transportation equipment, namely a container or trailer. CSX 2025 Form 10-K p.26 CSX CORPORATION PART II Mainline - The main track thoroughfare, exclusive of terminals, yards, sidings and turnouts.
The Company also has a commercial paper program, backed by the revolving credit facility, under which the Company may issue unsecured commercial paper notes up to a maximum aggregate principal amount of $1.0 billion outstanding at any one time. As of December 31, 2024, the Company had no outstanding debt under the commercial paper program.
The Company also has a commercial paper program, backed by the revolving credit facility, under which the Company may issue unsecured commercial paper notes up to a maximum aggregate principal amount of $1.0 billion outstanding at any one time. As of December 31, 2025, the Company had no outstanding debt under the commercial paper program.
Other Commitments and Off-Balance Sheet Arrangements Other commitments total $208 million and primarily consist of surety bonds, guarantees, and letters of credit, none of which are individually significant. These off-balance sheet arrangements are not reasonably likely to have a material effect on the Company's financial condition, results of operations or liquidity.
Other Commitments and Off-Balance Sheet Arrangements Other commitments total $211 million and primarily consist of surety bonds, guarantees, and letters of credit, none of which are individually significant. These off-balance sheet arrangements are not reasonably likely to have a material effect on the Company's financial condition, results of operations or liquidity.
In 2024, CSX continued to invest in its business to create long-term value for shareholders. The Company is committed to maintaining and improving its existing infrastructure and to positioning itself for long-term, profitable growth through optimizing network and terminal capacity. Funds used for property additions are further described below.
In 2025, CSX continued to invest in its business to create long-term value for shareholders. The Company is committed to maintaining and improving its existing infrastructure and to positioning itself for long-term, profitable growth through optimizing network and terminal capacity. Funds used for property additions are further described below.
To have a complete picture of a company’s liquidity, its sources and uses of cash, balance sheet and external factors should be reviewed. Significant Cash Flows The following charts highlight the operating, investing and financing components of the change in cash and cash equivalents for operating, investing and financing activities for full years 2024 and 2023.
To have a complete picture of a company’s liquidity, its sources and uses of cash, balance sheet and external factors should be reviewed. Significant Cash Flows The following charts highlight the operating, investing and financing components of the change in cash and cash equivalents for operating, investing and financing activities for full years 2025 and 2024.
The 2025 dividend increase is the 21 st consecutive increase in CSX's annual dividend. Management's assessment of market conditions and other factors guides the timing and volume of repurchases. Future share repurchases are expected to be funded by cash on hand, cash generated from operations and debt issuances.
The 2025 dividend increase was the 21 st consecutive increase in CSX's annual dividend. Management's assessment of market conditions and other factors guides the timing and volume of repurchases. Future share repurchases are expected to be funded by cash on hand, cash generated from operations and debt issuances.
CSX 2024 Form 10-K p.37 CSX CORPORATION PART II The Company is committed to continuous improvement in safety and service performance through training, innovation and investment. Training and safety programs are designed to prevent incidents that can adversely impact employees, customers and communities.
CSX 2025 Form 10-K p.37 CSX CORPORATION PART II The Company is committed to continuous improvement in safety and service performance through training, innovation and investment. Training and safety programs are designed to prevent incidents that can adversely impact employees, customers and communities.
CSX has access to a $1.2 billion five-year unsecured revolving credit facility backed by a diverse syndicate of banks that expires in February 2028. As of December 31, 2024, the Company had no outstanding balances under this facility.
CSX has access to a $1.2 billion five-year unsecured revolving credit facility backed by a diverse syndicate of banks that expires in February 2028. As of December 31, 2025, the Company had no outstanding balances under this facility.
A credit rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency. CSX's credit ratings remained stable during 2024 with no changes in the Company's S&P or Moody's ratings from prior year.
A credit rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency. CSX's credit ratings remained stable during 2025 with no changes in the Company's S&P, Moody's, or Fitch ratings from prior year.
New Accounting Pronouncements and Changes in Accounting Policy See Note 1, Nature of Operations and Significant Accounting Policies, under the caption “New Accounting Pronouncements.” CSX 2024 Form 10-K p.47 CSX CORPORATION PART II FORWARD-LOOKING STATEMENTS Certain statements in this report and in other materials filed with the Securities and Exchange Commission, as well as information included in oral statements or other written statements made by the Company, are forward-looking statements.
New Accounting Pronouncements and Changes in Accounting Policy See Note 1, Nature of Operations and Significant Accounting Policies, under the caption “New Accounting Pronouncements.” CSX 2025 Form 10-K p.46 CSX CORPORATION PART II FORWARD-LOOKING STATEMENTS Certain statements in this report and in other materials filed with the Securities and Exchange Commission, as well as information included in oral statements or other written statements made by the Company, are forward-looking statements.
While CSX seeks to give itself flexibility with respect to cash requirements, there can be no assurance that market conditions would permit CSX to sell such securities on acceptable terms at any given time, or at all. In 2024, CSX issued $550 million of long-term debt. See Note 10, Debt and Credit Agreements for more information.
While CSX seeks to give itself flexibility with respect to cash requirements, there can be no assurance that market conditions would permit CSX to sell such securities on acceptable terms at any given time, or at all. In 2025, CSX issued $900 million of long-term debt. See Note 10, Debt and Credit Agreements for more information.
Other Assumptions The calculations made by the actuaries also include assumptions relating to mortality rates, turnover, retirement age and salary inflation rates. These assumptions are based upon historical data, recent plan experience and industry trends and are determined by management. 2025 Estimated Pension Expense Net periodic pension benefit expense for 2025 is expected to be a credit of $7 million.
Other Assumptions The calculations made by the actuaries also include assumptions relating to mortality rates, turnover, retirement age and salary inflation rates. These assumptions are based upon historical data, recent plan experience and industry trends and are determined by management. 2026 Estimated Pension Expense Net periodic pension benefit expense for 2026 is expected to be a credit of $5 million.
CSX 2024 Form 10-K p.44 CSX CORPORATION PART II Critical Accounting Estimates, continued Pension Plan Accounting The Company sponsors defined benefit pension plans principally for salaried, management personnel. For employees hired prior to 2003, the plans provide eligible employees with retirement benefits based predominantly on years of service and compensation rates near retirement.
CSX 2025 Form 10-K p.43 CSX CORPORATION PART II Critical Accounting Estimates, continued Pension Plan Accounting The Company sponsors defined benefit pension plans principally for salaried, management personnel. For employees hired prior to 2003, the plans provide eligible employees with retirement benefits based predominantly on years of service and compensation rates near retirement.
CSX 2024 Form 10-K p.43 CSX CORPORATION PART II CRITICAL ACCOUNTING ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires that management make estimates in reporting the amounts of certain assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and certain revenues and expenses during the reporting period.
CSX 2025 Form 10-K p.42 CSX CORPORATION PART II CRITICAL ACCOUNTING ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires that management make estimates in reporting the amounts of certain assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and certain revenues and expenses during the reporting period.
The following sensitivity analysis illustrates the effects of a 1% change in certain assumptions on the 2025 estimated pension expense: (Dollars in Millions) Pension Expense Discount Rate $ 14 Long-term Rate of Return $ 24 CSX 2024 Form 10-K p.46 CSX CORPORATION PART II Critical Accounting Estimates, continued Depreciation Policies for Assets Utilizing the Group-Life Method The depreciable assets of the Company are depreciated using either the group-life or straight-line method of accounting, which are both acceptable depreciation methods in accordance with GAAP.
The following sensitivity analysis illustrates the effects of a 1% change in certain assumptions on the 2026 estimated pension expense: (Dollars in Millions) Pension Expense Discount Rate $ 11 Long-term Rate of Return $ 24 CSX 2025 Form 10-K p.45 CSX CORPORATION PART II Critical Accounting Estimates, continued Depreciation Policies for Assets Utilizing the Group-Life Method The depreciable assets of the Company are depreciated using either the group-life or straight-line method of accounting, which are both acceptable depreciation methods in accordance with GAAP.
RESULTS OF OPERATIONS The following section generally discusses the Company's results of operations and financial condition for the year ended December 31, 2024, compared to the year ended December 31, 2023.
RESULTS OF OPERATIONS The following section generally discusses the Company's results of operations and financial condition for the year ended December 31, 2025, compared to the year ended December 31, 2024.
A discussion regarding results of operations and financial condition for the year ended December 31, 2023, compared to the year ended December 31, 2022, can be found in Part II, Item 7 of CSX's Annual Report on Form 10-K for the year ended 2023, filed with the Securities and Exchange Commission on February 14, 2024.
A discussion regarding results of operations and financial condition for the year ended December 31, 2024, compared to the year ended December 31, 2023, can be found in Part II, Item 7 of CSX's Annual Report on Form 10-K for the year ended 2024, filed with the Securities and Exchange Commission on February 27, 2025.
Significant estimates using management judgment are made for the following areas: • personal injury and environmental reserves; • pension plan accounting; and • depreciation policies for assets under the group-life method Personal Injury and Environmental Reserves Personal Injury Personal Injury reserves of $142 million and $128 million for 2024 and 2023, respectively, represent liabilities for employee work-related and third-party injuries.
Significant estimates using management judgment are made for the following areas: • personal injury and environmental reserves; • pension plan accounting; and • depreciation policies for assets under the group-life method Personal Injury and Environmental Reserves Personal Injury Personal Injury reserves of $154 million and $142 million for 2025 and 2024, respectively, represent liabilities for employee work-related and third-party injuries.
CSX 2024 Form 10-K p.45 CSX CORPORATION PART II Critical Accounting Estimates, continued Long-term Rate of Return on Plan Assets The expected long-term average rate of return on plan assets reflects the average rate of earnings expected on the funds invested, or to be invested, to provide for benefits included in the projected benefit obligation.
CSX 2025 Form 10-K p.44 CSX CORPORATION PART II Critical Accounting Estimates, continued Long-term Rate of Return on Plan Assets The expected long-term average rate of return on plan assets reflects the average rate of earnings expected on the funds invested, or to be invested, to provide for benefits included in the projected benefit obligation.
Purchased Services and Other expenses consist primarily of contracted services to maintain infrastructure and equipment, terminal and pier services, purchased trucking and other transportation, and professional services. This category also includes costs related to materials, travel, casualty claims, environmental remediation, train accidents, property and sales tax, utilities and other items.
Purchased Services and Other expenses consist primarily of contracted services to maintain infrastructure and equipment, terminal and pier services, purchased trucking and other transportation, and professional services. This category also includes costs related to materials, travel, casualty claims, environmental remediation, train accidents, property and sales tax, utilities and other items including gains on property dispositions.
CSX 2024 Form 10-K p.42 CSX CORPORATION PART II CONTRACTUAL OBLIGATIONS, OTHER COMMITMENTS AND OFF-BALANCE SHEET ARRANGEMENTS Contractual Obligations CSX is party to contractual arrangements that obligate the Company to make future cash payments. These obligations impact the Company’s liquidity and capital resource needs.
CSX 2025 Form 10-K p.41 CSX CORPORATION PART II CONTRACTUAL OBLIGATIONS, OTHER COMMITMENTS AND OFF-BALANCE SHEET ARRANGEMENTS Contractual Obligations CSX is party to contractual arrangements that obligate the Company to make future cash payments. These obligations impact the Company’s liquidity and capital resource needs.
As this assumption is long term, the annual review may result in less frequent adjustment than other assumptions used in pension accounting. The long-term rate of return on plan assets used by the Company to value its benefit cost for the subsequent plan year was 6.75% in both 2024 and 2023.
As this assumption is long term, the annual review may result in less frequent adjustment than other assumptions used in pension accounting. The long-term rate of return on plan assets used by the Company to value its benefit cost for the subsequent plan year was 6.25% and 6.75% in 2025 and 2024, respectively.
Net periodic pension benefit expense for 2025 is expected to include service cost expense of $21 million. Service cost expense is included in labor and fringe on the consolidated income statement and all other components of net pension expense are included in other income - net. Net periodic pension expense in 2024 was a credit of $20 million.
Net periodic pension benefit expense for 2026 is expected to include service cost expense of $21 million. Service cost expense is included in labor and fringe on the consolidated income statement and all other components of net pension expense are included in other income - net. Net periodic pension expense in 2025 was a credit of $8 million.
The remaining depreciable assets of the Company, including non-railroad assets and assets under finance leases, are depreciated using the straight-line method on a per asset basis . Land is not depreciated. Management performs a review of depreciation expense and useful lives on a regular basis.
The remaining depreciable assets of the Company, including non-railroad assets and assets under finance leases, are depreciated using the straight-line method on a per asset basis . Land is not depreciated. Management performs a review of depreciation expense, including the impacts of service lives and salvage values, on a regular basis.
Year Ended Dec. 31, 2024 (Dollars in millions, except per share amounts) Operating Income Operating Margin Net Earnings Net Earnings Per Share, Assuming Dilution GAAP Operating Results $ 5,245 36.1 % $ 3,470 $ 1.79 Goodwill Impairment 108 0.7 82 0.04 Adjusted Operating Results (non-GAAP) $ 5,353 36.8 % $ 3,552 $ 1.83 CSX 2024 Form 10-K p.33 CSX CORPORATION PART II Economic Profit Management believes Economic Profit (also referred to as CSX Cash Earnings or CCE) provides an additional perspective to investors about financial returns generated by the business by representing a measure showing profit generated over and above the cost of capital used by the business to generate that profit.
Year Ended Dec. 31, 2025 (Dollars in millions, except per share amounts) Operating Income Operating Margin Net Earnings Net Earnings Per Share, Assuming Dilution GAAP Operating Results $ 4,521 32.1 % $ 2,889 $ 1.54 Goodwill Impairment 164 1.1 124 0.07 Adjusted Operating Results (non-GAAP) $ 4,685 33.2 % $ 3,013 $ 1.61 Year Ended Dec. 31, 2024 (Dollars in millions, except per share amounts) Operating Income Operating Margin Net Earnings Net Earnings Per Share, Assuming Dilution GAAP Operating Results $ 5,245 36.1 % $ 3,470 $ 1.79 Goodwill Impairment 108 0.7 82 0.04 Adjusted Operating Results (non-GAAP) $ 5,353 36.8 % $ 3,552 $ 1.83 CSX 2025 Form 10-K p.33 CSX CORPORATION PART II Economic Profit Management believes Economic Profit (also referred to as CSX Cash Earnings or CCE) provides an additional perspective to investors about financial returns generated by the business by representing a measure showing profit generated over and above the cost of capital used by the business to generate that profit.
Environmental Environmental reserves were $151 million and $154 million for 2024 and 2023, respectively. The Company is a party to various proceedings related to environmental issues, including administrative and judicial proceedings involving private parties and regulatory agencies. The Company has been identified as a potentially responsible party at approximately 230 environmentally impaired sites.
Environmental Environmental reserves were $156 million and $151 million for 2025 and 2024, respectively. The Company is a party to various proceedings related to environmental issues, including administrative and judicial proceedings involving private parties and regulatory agencies. The Company has been identified as a potentially responsible party at approximately 220 environmentally impaired sites.
The weighted average discount rate used by the Company to value its pension obligations was 5.50% and 4.82% as of December 2024, and December 2023, respectively. As of December 2024, the estimated duration of pension benefits is approximately 9 years.
The weighted average discount rate used by the Company to value its pension obligations was 5.25% and 5.50% as of December 2025, and December 2024, respectively. As of December 2025, the estimated duration of pension benefits is approximately 9 years.
The Company depreciates its railroad assets, including main-line track, locomotives and freight cars, using the group-life method of accounting. Assets depreciated under the group-life method comprise 86% of total fixed assets of $52.2 billion on a gross basis at December 31, 2024.
The Company depreciates its railroad assets, including main-line track, locomotives and freight cars, using the group-life method of accounting. Assets depreciated under the group-life method comprise 86% of total fixed assets of $53.8 billion on a gross basis at December 31, 2025.
Project contribution commitments that are not reimbursable total $26 million as of December 31, 2024. • The Company’s leases include property, equipment, and line leases.
Project contribution commitments that are not reimbursable total $18 million as of December 31, 2025. • The Company’s leases include property, equipment, and line leases.
This measure represents cash available for both equity and bond investors to be used for dividends, share repurchases or principal reduction on outstanding debt. FCF is calculated by using net cash from operations and adjusting for property additions and proceeds and advances from property dispositions.
More specifically, FCF measures cash generated by the business after reinvestment. This measure represents cash available for both equity and bond investors to be used for dividends, share repurchases or principal reduction on outstanding debt. FCF is calculated by using net cash from operations and adjusting for property additions and proceeds and advances from property dispositions.
The information on the CSX website is not part of this annual report on Form 10-K. CSX 2024 Form 10-K p.49 CSX CORPORATION PART II
The information on the CSX website is not part of this annual report on Form 10-K. CSX 2025 Form 10-K p.48 CSX CORPORATION PART II
Depreciation expense primarily relates to recognizing the costs of capital assets, such as locomotives, railcars and track structure, over their respective useful lives, which are reviewed periodically as part of depreciation studies. This expense is impacted primarily by the capital expenditures made each year. Depreciation expense increased $51 million primarily due to a larger net asset base.
Depreciation expense primarily relates to recognizing the costs of capital assets, such as track structure, locomotives and railcars, over their respective useful lives, which are reviewed periodically as part of depreciation studies. This expense is impacted primarily by the capital expenditures made each year.
The Company intends to file a shelf registration statement with the SEC, which may be used to issue debt or equity securities at CSX’s discretion, subject to market conditions and CSX Board authorization.
The Company filed a shelf registration statement with the SEC on February 27, 2025, which may be used to issue debt or equity securities at CSX’s discretion, subject to market conditions and CSX Board authorization.
The Company ended the year with $1.0 billion of cash, cash equivalents and short-term investments. Total assets as well as total liabilities and shareholders' equity increased $552 million from prior year end.
The Company ended the year with $675 million of cash, cash equivalents and short-term investments. Total assets as well as total liabilities and shareholders' equity increased $918 million from prior year end.
Future interest payments associated with outstanding debt total $14.3 billion, with $806 million payable in 2025. • Purchase commitments consist o f CSX’s long-term locomotive maintenance and rebuild program and other commitments to purchase technology, communications, railcar maintenance and other services.
Future interest payments associated with outstanding debt total $13.9 billion, with $831 million payable in 2026. • Purchase commitments consist o f CSX’s long-term locomotive maintenance, rebuild and purchase program and other commitments to purchase technology, communications, railcar maintenance and other services.
Additionally, Fitch published a new first time rating of A- in April 2024. The Company's credit ratings as of December 31, 2024 are summarized below: Rating Agency Long-Term Ratings Outlook Fitch A- Stable Moody's A3 Stable S&P BBB+ Stable The cost and availability of unsecured financing are materially affected by CSX's long-term credit ratings.
The Company's credit ratings as of December 31, 2025 are summarized below: Rating Agency Long-Term Ratings Outlook Fitch A- Stable Moody's A3 Stable S&P BBB+ Stable The cost and availability of unsecured financing are materially affected by CSX's long-term credit ratings.
CSX 2024 Form 10-K p.31 CSX CORPORATION PART II Interest Expense Interest Expense includes interest on long-term debt and related fair value hedges, equipment obligations and finance leases. Interest expense increased $23 million primarily as a result of higher average debt balances.
CSX 2025 Form 10-K p.31 CSX CORPORATION PART II Interest Expense Interest Expense includes interest on long-term debt and related fair value hedges, equipment obligations and finance leases. Interest expense increased $12 million primarily due to higher average debt balances.
While the personal injury frequency increased in 2024 compared to the prior year, the FRA train accident rate decreased. Safety is a top priority at CSX, and the Company is committed to reducing risk and enhancing the overall safety of its employees, customers, and communities in which the Company operates.
The personal injury frequency index of 0.94 in 2025 improved 24% compared to prior year and the FRA train accident rate of 3.08 improved 13%. Safety is a top priority at CSX, and the Company is committed to reducing risk and enhancing the overall safety of its employees, customers, and communities in which it operates.
CSX used $378 million more cash for investing activities in 2024 compared to 2023, primarily as a result of higher property additions consistent with planned capital expenditures as well as the beginning of the Blue Ridge subdivision rebuild resulting from impacts of Hurricane Helene.
CSX used $246 million more cash for investing activities in 2025 compared to 2024, primarily due to higher property additions consistent with planned capital expenditures, including approximately $470 million related to rebuilding the Blue Ridge subdivision as a result of impacts from Hurricane Helene.
CSX 2024 Form 10-K p.27 CSX CORPORATION PART II 2024 HIGHLIGHTS • Revenue of $14.5 billion decreased $117 million or 1% versus the prior year. • Expenses of $9.3 billion increased $137 million or 1% year over year. • Operating income of $5.2 billion decreased $254 million or 5% year over year. • Operating margin of 36.1% decreased 140 basis points from 37.5%. • Earnings per diluted share of $1.79 decreased $0.03 or 2% year over year.
CSX 2025 Form 10-K p.27 CSX CORPORATION PART II 2025 HIGHLIGHTS • Revenue of $14.1 billion decreased $448 million or 3% versus the prior year. • Expenses of $9.6 billion increased $276 million or 3% year over year. • Operating income of $4.5 billion decreased $724 million or 14% year over year. • Operating margin of 32.1% decreased 400 basis points from 36.1%. • Earnings per diluted share of $1.54 decreased $0.25 or 14% year over year.
Velocity improved by 2% while dwell increased by 10%, respectively, relative to 2023. Carload trip plan performance decreased to 79% compared to 84%, while intermodal trip plan performance decreased to 91% compared to 95%, relative to 2023. The Company continues to focus on operational improvements and executing the operating plan to deliver safe, reliable and efficient service to customers.
Compared to 2024, velocity improved by 1% and dwell was flat. Carload trip plan performance decreased 1% and intermodal trip plan performance was flat relative to 2024. The Company continues to focus on operational improvements and executing the operating plan to deliver safe, reliable and efficient service to customers.
These decreases were partially offset by pricing gains in merchandise as well as higher merchandise and intermodal volumes. Merchandise Volume Chemicals - Increased due to higher shipments of plastics, crude oil, natural gas liquids, and other industrial chemicals.
These decreases were partially offset by pricing gains in merchandise and higher intermodal volume. Merchandise Volume Chemicals - Decreased primarily due to lower shipments of crude oil, plastics, petroleum products, and other industrial chemicals.
Income Tax Expense Income Tax Expense decreased $76 million primarily due to lower earnings before income taxes. Net Earnings and Earnings per Diluted Share Net Earnings decreased $198 million to $3.5 billion, and earnings per diluted share decreased $0.03 to $1.79, due to the factors mentioned above.
Income Tax Expense Income Tax Expense decreased $205 million primarily due to lower earnings before income taxes. Net Earnings and Earnings per Diluted Share Net Earnings decreased $581 million to $2.9 billion, and earnings per diluted share decreased $0.25 to $1.54, due to the factors mentioned above.
Total shareholders' equity increased $522 million from prior year end primarily driven by net earnings of $3.5 billion, partially offset by share repurchases of $2.2 billion and dividends paid of $930 million. Working capital is considered a measure of a company’s ability to meet its short-term needs.
Total shareholders' equity increased $653 million from prior year end primarily driven by net earnings of $2.9 billion, partially offset by share repurchases of $1.4 billion and dividends paid of $972 million. CSX 2025 Form 10-K p.40 CSX CORPORATION PART II Working capital is considered a measure of a company’s ability to meet its short-term needs.
CSX 2024 Form 10-K p.41 CSX CORPORATION PART II Credit Ratings Credit ratings reflect an independent agency’s judgment on the likelihood that a borrower will repay a debt obligation at maturity.
Credit Ratings Credit ratings reflect an independent agency’s judgment on the likelihood that a borrower will repay a debt obligation at maturity.
Agricultural and Food Products – Decreased due to lower shipments of food and consumer products, as well as wheat and export grains, partially offset by higher shipments of domestic feed grain and its ingredients, and ethanol. Automotive - Increased due to new business wins, which were partially offset by lower North American vehicle production.
Agricultural and Food Products – Decreased due to lower shipments of food and consumer products, as well as soybeans, partially offset by higher shipments of domestic feed grain and ingredients. Automotive - Decreased due to lower North American vehicle production. Minerals - Increased primarily due to higher shipments of aggregates and cement.
Other Income - Net Other Income - Net includes investment gains, losses, interest income, components of net periodic pension and post-retirement benefit cost and other non-operating activities. Other income increased $3 million primarily due to increases in net pension benefit credits partially offset by lower income related to customer finance charges and a decrease in investment gains.
Other Income - Net Other Income - Net includes investment gains, losses, interest income, components of net periodic pension and post-retirement benefit cost and other non-operating activities. Other income decreased $50 million primarily due to lower interest income and lower net pension benefit credits.
In addition, management is committed to investments that promote profitable growth, including projects supporting service enhancements and productivity initiatives, including investments in locomotives and freight cars. CSX intends to fund capital investments primarily through cash generated from operations. CSX is continually evaluating market and regulatory conditions that could affect the Company’s ability to generate sufficient returns on capital investments.
CSX intends to fund capital investments primarily through cash generated from operations. CSX is continually evaluating market and regulatory conditions that could affect the Company’s ability to generate sufficient returns on capital investments.
The Company continues to maintain adequate current assets to satisfy current liabilities and maturing obligations when they come due. Furthermore, CSX has sufficient financial capacity, including its revolving credit facility, commercial paper program and its ability to file and use shelf registration statements to manage its day-to-day cash requirements and any anticipated obligations.
Furthermore, CSX has sufficient financial capacity, including its revolving credit facility, commercial paper program and its ability to file and use shelf registration statements to manage its day-to-day cash requirements and any anticipated obligations. The Company accesses the credit markets from time to time for additional liquidity.
These non-GAAP measures provide meaningful supplemental information regarding operating results because they exclude the fourth quarter 2024 non-cash impairment of Quality Carriers' goodwill, which is a significant item that is not considered indicative of future financial trends. The goodwill impairment was tax effected using rates reflective of the applicable tax amounts related to the impairment charge.
These non-GAAP measures provide meaningful supplemental information regarding operating results because they exclude non-cash impairment of Quality Carriers' goodwill, which was fully impaired as of September 30, 2025. This is a significant item that is not considered indicative of future financial trends.
A 1% change in the average estimated useful life of all group-life assets would result in an approximate $14 million change to the Company’s annual depreciation expense. There were no significant changes to the Company's asset lives as a result of the 2022 and 2020 studies.
Changes in the estimated service lives of assets and their related depreciation rates are implemented prospectively. A 1% change in the average estimated useful life of all group-life assets would result in an approximate $15 million change to the Company’s annual depreciation expense.
This measure should be considered in addition to, rather than a substitute for, cash provided by operating activities. FCF before dividends decreased $561 million year-over-year to $2.8 billion primarily due to higher property additions and less cash from operating activities.
This measure should be considered in addition to, rather than a substitute for, cash provided by operating activities. FCF before dividends decreased $995 million year-over-year to $1.8 billion primarily due to lower net earnings and the payment of $429 million of previously-postponed federal and state taxes related to the 2024 tax year.
Fuel expense includes locomotive diesel fuel as well as non-locomotive fuel. This expense is largely driven by the market price and locomotive consumption of diesel fuel. Fuel expense decreased $209 million primarily due to a 13% decrease in locomotive fuel prices and improved efficiency.
Depreciation expense increased $22 million primarily due to increases to the asset base, partially offset by asset retirements and impairments. Fuel expense includes locomotive diesel fuel as well as non-locomotive fuel. This expense is largely driven by the market price and locomotive consumption of diesel fuel.
In estimating that rate, the Company gives appropriate consideration to the returns being earned by the plan assets in the funds and the rates of return expected to be available for reinvestment as well as the current and projected asset mix of the funds.
In estimating that rate, the Company gives appropriate consideration to the historical returns earned by the plan assets in the funds, forward-looking economic assumptions, fees and other costs to be paid out of plan assets, and the current and projected asset mix of the funds.
CSX 2024 Form 10-K p.35 CSX CORPORATION PART II Free Cash Flow Management believes free cash flow ("FCF") is useful to investors as it is important in evaluating the Company’s financial performance. More specifically, FCF measures cash generated by the business after reinvestment.
(e) The capital charge of 8% for both years is calculated as the minimum return multiplied by gross operating assets. CSX 2025 Form 10-K p.35 CSX CORPORATION PART II Free Cash Flow Management believes free cash flow ("FCF") is useful to investors as it is important in evaluating the Company’s financial performance.
Years Ended (Dollars in Millions) 2024 (a) 2023 (a) Operating Income $ 5,245 $ 5,499 Add: Depreciation, Amortization, and Operating Lease Expense 1,775 1,716 Remove: Unusual Items (b) 108 — Taxes (c) (1,069) (1,082) Gross Cash Earnings or "GCE" 6,059 6,133 Operating Assets Current Assets (Less Cash and Short-term Investments) (1,909) (1,889) Gross Properties (51,344) (49,498) Other Assets (4,263) (3,894) Operating Liabilities Non-Interest Bearing Liabilities 11,035 10,825 Gross Operating Assets or "GOA" (d) (46,481) (44,456) Capital Charge (e) (3,718) (3,556) Economic Profit (Non-GAAP) calculated as GCE less Capital Charge $ 2,341 $ 2,577 (a) See Note 20, Revision of Prior Period Financial Statements.
Years Ended (Dollars in Millions) 2025 2024 Operating Income $ 4,521 $ 5,245 Add: Depreciation, Amortization, and Operating Lease Expense 1,792 1,775 Remove: Unusual Items (a) 164 108 Taxes (b) (972) (1,069) Gross Cash Earnings or "GCE" 5,505 6,059 Operating Assets Current Assets (Less Cash and Short-term Investments) 1,888 1,909 Gross Properties 53,421 51,344 Other Assets 4,313 4,263 Operating Liabilities Non-Interest Bearing Liabilities (c) (11,071) (11,035) Gross Operating Assets or "GOA" (d) 48,551 46,481 Capital Charge (e) (3,884) (3,718) Economic Profit (Non-GAAP) calculated as GCE less Capital Charge $ 1,621 $ 2,341 (a) Unusual items are defined by management as unique events with greater than $100 million full year operating income impact, consistent with the terms of the Company's long-term incentive plan agreements.
These adjusted results should be considered in addition to, rather than as a substitute for, the Company's GAAP operating results. The following tables reconcile the Company's GAAP operating results for the year ended December 31, 2024 to adjusted operating results (non-GAAP measures).
The following tables reconcile the Company's GAAP operating results for the years ended December 31, 2025, and December 31, 2024, to adjusted operating results (non-GAAP measures).
Fiscal Years 2024 2023 Improvement/ (Deterioration) Operations Performance (a) Train Velocity (Miles per hour) 18.3 18.0 2 % Dwell (Hours) 10.3 9.4 (10) % Cars Online 127,291 125,580 (1) % On-Time Originations 73 % 77 % (5) % On-Time Arrivals 65 % 71 % (8) % Carload Trip Plan Performance 79 % 84 % (6) % Intermodal Trip Plan Performance 91 % 95 % (4) % Fuel Efficiency 0.98 1.02 4 % Revenue Ton-Miles (Billions) Merchandise 129.8 128.0 1 % Coal 35.7 37.4 (5) % Intermodal 28.8 28.3 2 % Total Revenue Ton-Miles 194.3 193.7 — % Total Gross Ton-Miles (Billions) 384.4 381.3 1 % Safety (b) FRA Personal Injury Frequency Index 1.19 0.94 (27) % FRA Train Accident Rate 3.40 3.44 1 % (a) Beginning second quarter 2023, all operations performance metrics include results from the network acquired from Pan Am.
Fiscal Years 2025 2024 Improvement/ (Deterioration) Operations Performance Train Velocity (Miles per hour) 18.4 18.3 1 % Dwell (Hours) 10.3 10.3 — % Cars Online 125,379 127,291 2 % On-Time Originations 72 % 73 % (1) % On-Time Arrivals 61 % 65 % (6) % Carload Trip Plan Performance 78 % 79 % (1) % Intermodal Trip Plan Performance 91 % 91 % — % Fuel Efficiency 0.97 0.98 1 % Revenue Ton-Miles (Billions) Merchandise 130.1 129.8 — % Coal 36.6 35.7 3 % Intermodal 29.8 28.8 3 % Total Revenue Ton-Miles 196.5 194.3 1 % Total Gross Ton-Miles (Billions) 386.9 384.4 1 % Safety (a) FRA Personal Injury Frequency Index 0.94 1.23 24 % FRA Train Accident Rate 3.08 3.56 13 % Key Performance Measures Definitions: Train Velocity - Average train speed between origin and destination in miles per hour (does not include locals, yard jobs, work trains or passenger trains).
CSX 2024 Form 10-K p.30 CSX CORPORATION PART II Expense In 2024, total expenses increased $137 million, or 1%, compared to prior year. Descriptions of each expense category as well as significant year-over-year changes are described below. Labor and Fringe expenses include employee wages and related payroll taxes, health and welfare costs, pension, other post-retirement benefits and incentive compensation.
Other Revenue Other revenue was $31 million higher primarily due to increased carload demurrage. CSX 2025 Form 10-K p.30 CSX CORPORATION PART II Expense In 2025, total expenses increased $276 million, or 3%, compared to prior year. Descriptions of each expense category as well as significant year-over-year changes are described below.
The Company used $805 million less cash for financing activities compared to the prior year primarily due to lower share repurchases, partially offset by higher net debt repayments. Sources of Cash and Liquidity The Company has multiple sources of liquidity, including cash generated from operations and financing sources.
The $1.0 billion decrease in net spending on financing activities compared to the prior year was driven by fewer share repurchases and higher proceeds from the issuance of long-term debt. Sources of Cash and Liquidity The Company has multiple sources of liquidity, including cash generated from operations and financing sources.
The net decrease in the expected credit is primarily due to recent less favorable plan asset experience.
The decrease in the expected credit is primarily due to a decrease in the expected return on plan assets.
Domestic coal decreased primarily due to lower shipments of coal to utility plants, as well as lower shipments to river and lake terminals. Trucking Revenue Trucking revenue decreased $38 million versus the prior year due to lower fuel and capacity surcharges. Other Revenue Other revenue was $79 million lower, primarily resulting from lower carload demurrage and other items.
Domestic coal increased due to higher shipments to utility plants, partially offset by lower shipments to steel manufacturing locations, as well as lower shipments to river and lake terminals. Trucking Revenue Trucking revenue decreased $28 million versus the prior year due to lower rates and fuel surcharge.
LABOR AGREEMENTS Approximately 17,500 of the Company's approximately 23,500 employees are members of a rail labor union. There are 12 rail unions at CSX that participate in national bargaining. As of December 2, 2022, all of these rail unions were covered by national agreements with the Class I railroads and CSX-specific agreements that remained in effect through December 31, 2024.
LABOR AGREEMENTS Approximately 16,900 of the Company's approximately 23,000 employees are members of a rail labor union and covered by national agreements with the Class I railroads or CSX-specific agreements.
The Company will continue to report these metrics to the Surface Transportation Board using the prescribed methodology.
The methodology for calculating train velocity, dwell, cars online and trip plan performance differs from that used by the Surface Transportation Board. The Company will continue to report these metrics to the Surface Transportation Board using the prescribed methodology.
The increase in total assets was primarily due to a $937 million increase in net properties consistent with planned capital expenditures and a $123 million increase in investments in affiliates and other companies. These increases were partially offset by a $420 million decrease in cash and cash equivalents as noted above and a $108 million impairment of Quality Carriers' goodwill.
These increases were partially offset by a $263 million decrease in cash and cash equivalents as noted above and a $164 million impairment of Quality Carriers' goodwill.
Equipment and Other Rents expense includes rent paid for freight cars owned by other railroads or private companies, net of rents received by CSXT for use of its equipment. This category of expenses also includes expenses for short-term and long-term leases of locomotives, railcars, containers, tractors and trailers, offices and other rentals.
Fuel expense decreased $73 million primarily due to a 7% decrease in locomotive fuel prices. Equipment and Other Rents expense includes rent paid for freight cars owned by other railroads or private companies, net of rents received by CSXT for use of its equipment.
Years Ended 2024 (a) 2023 (a) (Dollars in Millions) Net Cash Provided by Operating Activities $ 5,247 $ 5,514 Property Additions (2,529) (2,257) Proceeds and Advances from Property Dispositions 66 88 Free Cash Flow or "FCF", before payment of dividends (Non-GAAP) $ 2,784 $ 3,345 (a) See Note 20, Revision of Prior Period Financial Statements.
Years Ended 2025 2024 (Dollars in Millions) Net Cash Provided by Operating Activities $ 4,613 $ 5,247 Property Additions (2,902) (2,529) Proceeds and Advances from Property Dispositions 78 66 Free Cash Flow or "FCF", before payment of dividends (Non-GAAP) $ 1,789 $ 2,784 CSX 2025 Form 10-K p.36 CSX CORPORATION PART II OPERATING STATISTICS (Estimated) Certain operating statistics are estimated and can continue to be updated as actuals settle.
(a) See Note 20, Revision of Prior Period Financial Statements. CSX 2024 Form 10-K p.38 CSX CORPORATION PART II In 2024, the Company generated $267 million less cash from operating activities compared to prior year, primarily driven by the previously-discussed $387 million of federal and state tax payments related to the 2023 tax year.
CSX 2025 Form 10-K p.38 CSX CORPORATION PART II In 2025, the Company generated $634 million less cash from operating activities compared to prior year, primarily driven by lower cash-generating net earnings, the payment of $429 million of previously postponed taxes with no postponements available in 2025, and a $96 million prepayment for locomotive maintenance services.
To conform with current year presentation, 2023 amounts have also been updated to reflect PTC expenditures in the "Bridges, Signals, PTC and Other" line item. CSX 2024 Form 10-K p.39 CSX CORPORATION PART II Capital expenditures above include approximately $50 million in 2024 related to rebuilding the Blue Ridge subdivision as a result of impacts from Hurricane Helene.
Years Ended Capital Expenditures (Dollars in Millions) 2025 2024 Track $ 987 $ 1,039 Bridges, Signals, PTC and Other 1,252 802 Total Infrastructure 2,239 1,841 Strategic Projects and Commercial Facilities 332 364 Locomotives 208 250 Freight Cars 123 74 Cash Invested for Capital Expenditures $ 2,902 $ 2,529 CSX 2025 Form 10-K p.39 CSX CORPORATION PART II Capital expenditures above include approximately $470 million and $50 million in 2025 and 2024, respectively, related to rebuilding the Blue Ridge subdivision as a result of impacts from Hurricane Helene.
These expenses increased $113 million due to the following items: • An increase of $96 million was driven by inflation. • An increase of $62 million was due to the impacts of higher headcount and union employee vacation and sick benefits. • Incentive compensation costs decreased $46 million primarily due to lower expected payouts. • Net other costs increased by $1 million due to non-significant items.
These expenses increased $97 million due to the following items: • An increase of $67 million was driven by inflation. • Employee separation costs increased $51 million. • An increase of $14 million was due to higher incentive compensation costs, driven mostly by downward accrual adjustments in the prior year. • A decrease of $47 million was due to the impacts of lower rail headcount and overtime. • Net other costs increased $12 million primarily due to higher trucking headcount, including the impacts from acquiring previously independent affiliates, partially offset by other non-significant net decreases.
Cash from operating activities in the prior year period includes the payment of $238 million for retroactive wages and bonuses, and associated taxes, related to finalized labor agreements. The following table reconciles cash provided by operating activities (GAAP measure) to FCF before dividends (non-GAAP measure).
Related to tax payments, no 2025 taxes were postponed, but 2024 results included the payment of $387 million of previously-postponed taxes related to the 2023 tax year, offset by postponement of $429 million of taxes related to the 2024 tax year. The following table reconciles cash provided by operating activities (GAAP measure) to FCF before dividends (non-GAAP measure).
Intermodal Volume Intermodal volume increased primarily due to international shipments driven by higher imports through east coast ports and inventory replenishments. Domestic shipments also increased due to growth with key customers despite a soft trucking environment. Coal Volume Export coal increased due to higher shipments of metallurgical and thermal coal.
Domestic shipments also increased, despite the impacts of a continued soft trucking environment, due to wins with key customers and new service offerings. Coal Volume Export coal decreased due to lower shipments of metallurgical and thermal coal, which includes the impacts from outages at customer facilities.
CSX 2024 Form 10-K p.40 CSX CORPORATION PART II The Company’s working capital balance varies due to factors such as the timing of scheduled debt payments and changes in cash and cash equivalent balances. A working capital deficit is not unusual for CSX or other companies in the industry and does not indicate a lack of liquidity.
A working capital deficit is not unusual for CSX or other companies in the industry and does not indicate a lack of liquidity. The Company continues to maintain adequate current assets to satisfy current liabilities and maturing obligations when they come due.
These increases were partially offset by debt repayments of $558 million and $387 million of federal and state tax payments related to the 2023 tax year that were previously postponed under tax relief announcements for those impacted by Hurricane Idalia.
These increases were partially offset by debt repayments of $613 million and a decrease in income and other taxes payable primarily resulting from payments of $429 million for previously postponed federal and state income taxes.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeFinancial Statements and Supplementary Data CONSOLIDATED CASH FLOW STATEMENTS (Dollars in Millions) Years Ended 2024 (a) 2023 (a) 2022 (a) OPERATING ACTIVITIES Net Earnings $ 3,470 $ 3,668 $ 4,114 Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: Depreciation and Amortization 1,658 1,607 1,502 Goodwill Impairment (Note 19) 108 — — Deferred Income Taxes 12 126 100 Gains on Property Dispositions (11) (34) (238) Other Operating Activities (64) (7) (16) Changes in Operating Assets and Liabilities: Accounts Receivable 82 (51) (101) Other Current Assets 45 (112) (24) Accounts Payable (5) 83 140 Income and Other Taxes Payable (19) 430 (39) Other Current Liabilities (29) (196) 88 Net Cash Provided by Operating Activities 5,247 5,514 5,526 INVESTING ACTIVITIES Property Additions (2,529) (2,257) (2,113) Purchases of Short-term Investments (66) (104) (59) Proceeds from Sales of Short-term Investments 91 153 9 Proceeds and Advances from Property Dispositions 66 88 294 Business Acquisition, Net of Cash Acquired (Note 17) (70) (31) (227) Other Investing Activities (97) (76) 33 Net Cash Used in Investing Activities (2,605) (2,227) (2,063) FINANCING ACTIVITIES Shares Repurchased (2,237) (3,482) (4,731) Dividends Paid (930) (882) (852) Long-term Debt Repaid (558) (153) (186) Long-term Debt Issued (Note 10) 550 600 2,000 Other Financing Activities 113 50 — Net Cash Used in Financing Activities (3,062) (3,867) (3,769) Net Decrease in Cash and Cash Equivalents (420) (580) (306) CASH AND CASH EQUIVALENTS Cash and Cash Equivalents at Beginning of Period 1,353 1,933 2,239 Cash and Cash Equivalents at End of Period $ 933 $ 1,353 $ 1,933 SUPPLEMENTAL CASH FLOW INFORMATION Issuance of Common Stock as Consideration for Acquisition $ — $ — $ 422 Interest Paid - Net of Amounts Capitalized $ 850 $ 806 $ 729 Income Taxes Paid $ 1,076 $ 630 $ 1,167 Capital Expenditures Accrued but Not Yet Paid $ 247 $ 186 $ 163 (a) See Note 20, Revision of Prior Period Financial Statements.
Biggest changeFinancial Statements and Supplementary Data CONSOLIDATED CASH FLOW STATEMENTS (Dollars in Millions) Years Ended 2025 2024 2023 OPERATING ACTIVITIES Net Earnings $ 2,889 $ 3,470 $ 3,668 Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: Depreciation and Amortization 1,680 1,658 1,607 Goodwill Impairment (Note 18) 164 108 — Deferred Income Taxes 194 12 126 Other Operating Activities (70) (75) (41) Changes in Operating Assets and Liabilities: Accounts Receivable 88 82 (51) Other Current Assets (87) 45 (112) Accounts Payable 40 3 74 Income and Other Taxes Payable (399) (19) 430 Other Current Liabilities 114 (37) (187) Net Cash Provided by Operating Activities 4,613 5,247 5,514 INVESTING ACTIVITIES Property Additions (2,902) (2,529) (2,257) Purchases of Short-term Investments — (66) (104) Proceeds from Sales of Short-term Investments 80 91 153 Proceeds and Advances from Property Dispositions 78 66 88 Business Acquisition, Net of Cash Acquired (16) (70) (31) Other Investing Activities (91) (97) (76) Net Cash Used in Investing Activities (2,851) (2,605) (2,227) FINANCING ACTIVITIES Shares Repurchased (1,396) (2,237) (3,482) Dividends Paid (972) (930) (882) Long-term Debt Repaid (613) (558) (153) Long-term Debt Issued (Note 10) 900 550 600 Other Financing Activities 56 113 50 Net Cash Used in Financing Activities (2,025) (3,062) (3,867) Net Decrease in Cash and Cash Equivalents (263) (420) (580) CASH AND CASH EQUIVALENTS Cash and Cash Equivalents at Beginning of Period 933 1,353 1,933 Cash and Cash Equivalents at End of Period $ 670 $ 933 $ 1,353 SUPPLEMENTAL CASH FLOW INFORMATION Interest Paid - Net of Amounts Capitalized $ 870 $ 850 $ 806 Income Taxes Paid (Note 12) $ 1,102 $ 1,076 $ 630 Capital Expenditures Accrued but Not Yet Paid $ 231 $ 247 $ 186 Certain prior year data has been reclassified to conform to the current presentation.
We compared the assumptions used by management to those used throughout the industry and within other depreciation studies. We assessed the historical accuracy of management’s estimates via retrospective review and independently recalculated the current year depreciation rates. /s/ Ernst & Young LLP We have served as the Company’s auditor since 1981.
Additionally, we compared the assumptions used by management to those used throughout the industry and within other depreciation studies. We assessed the historical accuracy of management’s estimates via retrospective review and independently recalculated the current year depreciation rates. /s/ Ernst & Young LLP We have served as the Company’s auditor since 1981.
Financial Statements and Supplementary Data REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and the Board of Directors of CSX Corporation Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of CSX Corporation (the Company) as of December 31, 2024 and 2023, the related consolidated income statements, comprehensive income statements, statements of changes in shareholders’ equity and cash flow statements for each of the three years in the period ended December 31, 2024 and the related notes (collectively referred to as the “consolidated financial statements”).
Financial Statements and Supplementary Data REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and the Board of Directors of CSX Corporation Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of CSX Corporation (the Company) as of December 31, 2025 and 2024, the related consolidated income statements, comprehensive income statements, statements of changes in shareholders’ equity and cash flow statements for each of the three years in the period ended December 31, 2025 and the related notes (collectively referred to as the “consolidated financial statements”).
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles.
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 27, 2025 expressed an unqualified opinion thereon.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 12, 2026 expressed an unqualified opinion thereon.
The Company utilizes different depreciable asset categories to account for depreciation expense for the railroad assets that are depreciated under the group-life method. Under the group-life method, depreciation studies are conducted by a third-party specialist and analyzed by the Company’s management to review asset service lives, salvage values, accumulated depreciation and other factors related to group assets.
The Company utilizes different depreciable asset categories to account for depreciation expense for the railroad assets that are depreciated under the group-life method. Under the group-life method, depreciation studies are conducted by a third-party specialist and analyzed by the Company’s management to review asset service lives and salvage values related to group-life assets.
Financial Statements and Supplementary Data INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Report of Independent Registered Public Accounting Firm (PCAOB ID: 42) 52 CSX Corporation Consolidated Financial Statements and Notes to Consolidated Financial Statements Herewith: Consolidated Income Statements for the Years Ended: 54 December 31, 2024 December 31, 2023 December 31, 2022 Consolidated Comprehensive Income Statements for the Years Ended: 55 December 31, 2024 December 31, 2023 December 31, 2022 Consolidated Balance Sheets as of: 56 December 31, 2024 December 31, 2023 Consolidated Cash Flow Statements for Years Ended: 57 December 31, 2024 December 31, 2023 December 31, 2022 Consolidated Statements of Changes in Shareholders' Equity: 58 December 31, 2024 December 31, 2023 December 31, 2022 Notes to Consolidated Financial Statements 59 CSX 2024 Form 10-K p.51 CSX CORPORATION PART II Item 8.
Financial Statements and Supplementary Data INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Report of Independent Registered Public Accounting Firm (PCAOB ID: 42) 51 CSX Corporation Consolidated Financial Statements and Notes to Consolidated Financial Statements Herewith: Consolidated Income Statements for the Years Ended: 53 December 31, 2025 December 31, 2024 December 31, 2023 Consolidated Comprehensive Income Statements for the Years Ended: 54 December 31, 2025 December 31, 2024 December 31, 2023 Consolidated Balance Sheets as of: 55 December 31, 2025 December 31, 2024 Consolidated Cash Flow Statements for Years Ended: 56 December 31, 2025 December 31, 2024 December 31, 2023 Consolidated Statements of Changes in Shareholders' Equity: 57 December 31, 2025 December 31, 2024 December 31, 2023 Notes to Consolidated Financial Statements 58 CSX 2025 Form 10-K p.50 CSX CORPORATION PART II Item 8.
The underlying fair values of the Company's long-term debt were estimated based on quoted market prices or on the current rates offered for debt with similar terms and maturities. CSX 2024 Form 10-K p.50 CSX CORPORATION PART II Item 8.
The underlying fair values of the Company's long-term debt were estimated based on quoted market prices or on the current rates offered for debt with similar terms and maturities. CSX 2025 Form 10-K p.49 CSX CORPORATION PART II Item 8.
See accompanying Notes to Consolidated Financial Statements. CSX 2024 Form 10-K p.55 CSX CORPORATION PART II Item 8.
See accompanying Notes to Consolidated Financial Statements. CSX 2025 Form 10-K p.55 CSX CORPORATION PART II Item 8.
As of December 31, 2024, the cumulative fair value of these swaps was a $123 million liability. As of December 31, 2024, the potential change in fair value of fixed-to-floating interest rate swaps resulting from a hypothetical 10% change in interest rates would not be material.
As of December 31, 2025, the cumulative fair value of these swaps was a $87 million liability. As of December 31, 2025, the potential change in fair value of fixed-to-floating interest rate swaps resulting from a hypothetical 10% change in interest rates would not be material.
CSX 2024 Form 10-K p.52 CSX CORPORATION PART II Item 8. Financial Statements and Supplementary Data REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Depreciation Policies for Assets Utilizing the Group-Life Method Description of the Matter As of December 31, 2024, assets depreciated under the group-life method comprised 86% of total gross fixed assets of $52.2 billion.
CSX 2025 Form 10-K p.51 CSX CORPORATION PART II Item 8. Financial Statements and Supplementary Data REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Depreciation Policies for Assets Utilizing the Group-Life Method Description of the Matter As of December 31, 2025, assets depreciated under the group-life method comprised 86% of total gross fixed assets of $53.8 billion.
The potential decrease in fair value of the Company's fixed rate long-term debt resulting from a hypothetical 10% increase in U.S. Treasury rates, or approximately 46 basis points, is estimated to be $756 million as of December 31, 2024, and $730 million as of December 31, 2023.
The potential decrease in fair value of the Company's fixed rate long-term debt resulting from a hypothetical 10% increase in U.S. Treasury rates, or approximately 43 basis points, is estimated to be $757 million as of December 31, 2025, and $756 million as of December 31, 2024.
The swaps are designed to hedge 10 years of interest rate risk associated with market fluctuations attributable to the Secured Overnight Financing Rate ("SOFR") on a cumulative $250 million of fixed rate outstanding notes which are due in 2033. As of December 31, 2024, the cumulative fair value of these swaps was a $7 million asset.
The swaps are designed to hedge 10 years of interest rate risk associated with market fluctuations attributable to the SOFR on a cumulative $250 million of fixed rate outstanding notes which are due in 2033. As of December 31, 2025, the cumulative fair value of these swaps was a $14 million asset.
Subsequent to 2024, the Company entered into two fixed-to-floating interest rate swaps classified as fair value hedges in January 2025. The swaps are designed to hedge 10 years of interest rate risk associated with market fluctuations attributable to SOFR on a cumulative $250 million of fixed rate outstanding notes which are due in 2055.
In 2025, CSX entered into two fixed-to-floating interest rate swaps classified as fair value hedges. The swaps are designed to hedge 10 years of interest rate risk associated with market fluctuations attributable to Secured Overnight Financing Rate ("SOFR") on a cumulative $250 million of fixed rate outstanding notes which are due in 2055.
See accompanying Notes to Consolidated Financial Statements. CSX 2024 Form 10-K p.54 CSX CORPORATION PART II Item 8.
See accompanying Notes to Consolidated Financial Statements. CSX 2025 Form 10-K p.53 CSX CORPORATION PART II Item 8.
See accompanying Notes to Consolidated Financial Statements. CSX 2024 Form 10-K p.56 CSX CORPORATION PART II Item 8.
See accompanying Notes to Consolidated Financial Statements. CSX 2025 Form 10-K p.56 CSX CORPORATION PART II
The following information, together with information included in Note 10, Debt and Credit Agreements , and Note 13, Fair Value Measurements , describes the key aspects of such contracts and the related market risk to CSX.
The following information, together with information included in Note 10, Debt and Credit Agreements , and Note 13, Fair Value Measurements , describes the key aspects of such contracts and the related market risk to CSX. Changes in interest rates could impact the fair value of the Company's fixed-to-floating interest rate swaps.
Jacksonville, Florida February 27, 2025 CSX 2024 Form 10-K p.53 CSX CORPORATION PART II Item 8.
Jacksonville, Florida February 12, 2026 CSX 2025 Form 10-K p.52 CSX CORPORATION PART II Item 8.
The fair value of these swaps at inception is $0. As of December 31, 2024, CSX had no floating rate notes outstanding. However, changes in interest rates could impact the fair value (but not the carrying value) of the Company's fixed rate long-term debt.
Changes in interest rates no longer impact the fair value of the Company's forward starting interest rate swaps because they were fully settled in 2024. As of December 31, 2025, CSX had no floating rate notes outstanding. However, changes in interest rates could impact the fair value (but not the carrying value) of the Company's fixed rate long-term debt.
Financial Statements and Supplementary Data CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS (Dollars in Millions) Years Ended 2024 (a) 2023 (a) 2022 (a) Net Earnings $ 3,470 $ 3,668 $ 4,114 Other Comprehensive Income (Loss) - Net of Tax: Pension and Other Post-Employment Benefits 41 129 (120) Interest Rate Derivatives 3 — 80 Other 3 2 6 Total Other Comprehensive Income (Loss) (Note 16) 47 131 (34) Comprehensive Earnings $ 3,517 $ 3,799 $ 4,080 (a) See Note 20, Revision of Prior Period Financial Statements.
Financial Statements and Supplementary Data CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS (Dollars in Millions) Years Ended 2025 2024 2023 Net Earnings $ 2,889 $ 3,470 $ 3,668 Other Comprehensive Income (Loss) - Net of Tax: Pension and Other Post-Employment Benefits 12 41 129 Interest Rate Derivatives (1) 3 — Other 8 3 2 Total Other Comprehensive Income (Note 16) 19 47 131 Comprehensive Earnings $ 2,908 $ 3,517 $ 3,799 See accompanying Notes to Consolidated Financial Statements.
For example, we tested controls over management’s review of asset activity that could impact the estimated useful lives determined in the most recent depreciation studies of equipment and road and track assets.
For example, we tested controls over management’s review of asset activity that could impact the estimated useful lives.
How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s process related to the assessment of periodic depreciation studies and annual data reviews of its group-life assets.
These methods have an impact on depreciation expense. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s process to review asset service lives and salvage values related to group-life assets.
Financial Statements and Supplementary Data CONSOLIDATED INCOME STATEMENTS (Dollars in Millions, Except Per Share Amounts) Years Ended 2024 (a) 2023 (a) 2022 (a) Revenue $ 14,540 $ 14,657 $ 14,853 Expense Labor and Fringe 3,165 3,052 2,885 Purchased Services and Other 2,852 2,802 2,728 Depreciation and Amortization 1,658 1,607 1,502 Fuel 1,168 1,377 1,626 Equipment and Other Rents 355 354 396 Goodwill Impairment (Note 19) 108 — — Gains on Property Dispositions (11) (34) (238) Total Expense 9,295 9,158 8,899 Operating Income 5,245 5,499 5,954 Interest Expense (832) (809) (742) Other Income - Net (Note 14) 142 139 133 Earnings Before Income Taxes 4,555 4,829 5,345 Income Tax Expense (Note 12) (1,085) (1,161) (1,231) Net Earnings $ 3,470 $ 3,668 $ 4,114 Per Common Share (Note 2) Net Earnings Per Share Basic $ 1.79 $ 1.83 $ 1.93 Assuming Dilution $ 1.79 $ 1.82 $ 1.92 Average Common Shares Outstanding (Millions) Basic 1,939 2,008 2,136 Assuming Dilution 1,943 2,013 2,141 (a) See Note 20, Revision of Prior Period Financial Statements.
Financial Statements and Supplementary Data CONSOLIDATED INCOME STATEMENTS (Dollars in Millions, Except Per Share Amounts) Years Ended 2025 2024 2023 Revenue $ 14,092 $ 14,540 $ 14,657 Expense Labor and Fringe 3,262 3,165 3,052 Purchased Services and Other 3,013 2,841 2,768 Depreciation and Amortization 1,680 1,658 1,607 Fuel 1,095 1,168 1,377 Equipment and Other Rents 357 355 354 Goodwill Impairment (Note 18) 164 108 — Total Expense 9,571 9,295 9,158 Operating Income 4,521 5,245 5,499 Interest Expense (844) (832) (809) Other Income - Net (Note 14) 92 142 139 Earnings Before Income Taxes 3,769 4,555 4,829 Income Tax Expense (Note 12) (880) (1,085) (1,161) Net Earnings $ 2,889 $ 3,470 $ 3,668 Per Common Share (Note 2) Net Earnings Per Share Basic $ 1.54 $ 1.79 $ 1.83 Assuming Dilution $ 1.54 $ 1.79 $ 1.82 Average Common Shares Outstanding (Millions) Basic 1,870 1,939 2,008 Assuming Dilution 1,873 1,943 2,013 Certain prior year data has been reclassified to conform to the current presentation.
Financial Statements and Supplementary Data CONSOLIDATED BALANCE SHEETS (Dollars in Millions) December December 2024 2023 (a) ASSETS Current Assets: Cash and Cash Equivalents $ 933 $ 1,353 Short-term Investments 72 83 Accounts Receivable - Net (Note 11) 1,326 1,393 Materials and Supplies 414 440 Other Current Assets 75 90 Total Current Assets 2,820 3,359 Properties 52,191 50,281 Accumulated Depreciation (16,533) (15,560) Properties - Net (Note 6) 35,658 34,721 Investment in Affiliates and Other Companies (Note 15) 2,520 2,397 Right of Use Lease Asset (Note 7) 487 498 Goodwill and Other Intangible Assets - Net (Note 19) 433 506 Other Long-term Assets 846 731 Total Assets $ 42,764 $ 42,212 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts Payable $ 1,290 $ 1,237 Labor and Fringe Benefits Payable 480 517 Casualty, Environmental and Other Reserves (Note 5) 149 144 Current Maturities of Long-term Debt (Note 10) 606 558 Income and Other Taxes Payable 508 524 Other Current Liabilities 243 243 Total Current Liabilities 3,276 3,223 Casualty, Environmental and Other Reserves (Note 5) 313 296 Long-term Debt (Note 10) 17,897 17,975 Deferred Income Taxes - Net (Note 12) 7,725 7,699 Long-term Lease Liability (Note 7) 486 491 Other Long-term Liabilities 560 543 Total Liabilities 30,257 30,227 Shareholders' Equity: Common Stock, $1 Par Value (Note 3) 1,900 1,959 Other Capital 846 691 Retained Earnings 9,988 9,609 Accumulated Other Comprehensive Loss (Note 16) (232) (279) Non-controlling Minority Interest 5 5 Total Shareholders' Equity 12,507 11,985 Total Liabilities and Shareholders' Equity $ 42,764 $ 42,212 (a) See Note 20, Revision of Prior Period Financial Statements.
Financial Statements and Supplementary Data CONSOLIDATED BALANCE SHEETS (Dollars in Millions) December December 2025 2024 ASSETS Current Assets: Cash and Cash Equivalents $ 670 $ 933 Short-term Investments 5 72 Accounts Receivable - Net (Note 11) 1,298 1,326 Materials and Supplies 390 414 Other Current Assets 187 75 Total Current Assets 2,550 2,820 Properties 53,816 52,191 Accumulated Depreciation (17,005) (16,533) Properties - Net (Note 6) 36,811 35,658 Investment in Affiliates and Other Companies (Note 15) 2,634 2,520 Right of Use Lease Asset (Note 7) 464 487 Goodwill and Other Intangible Assets - Net (Note 18) 267 433 Other Long-term Assets 956 846 Total Assets $ 43,682 $ 42,764 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts Payable $ 1,149 $ 1,118 Labor and Fringe Benefits Payable 532 480 Casualty, Environmental and Other Reserves (Note 5) 184 149 Current Maturities of Long-term Debt (Note 10) 708 606 Income and Other Taxes Payable 118 508 Interest Payable 170 172 Other Current Liabilities 272 243 Total Current Liabilities 3,133 3,276 Casualty, Environmental and Other Reserves (Note 5) 295 313 Long-term Debt (Note 10) 18,165 17,897 Deferred Income Taxes - Net (Note 12) 7,914 7,725 Long-term Lease Liability (Note 7) 479 486 Other Long-term Liabilities 536 560 Total Liabilities 30,522 30,257 Shareholders' Equity: Common Stock, $1 Par Value (Note 3) 1,860 1,900 Other Capital 948 846 Retained Earnings 10,560 9,988 Accumulated Other Comprehensive Loss (Note 16) (213) (232) Non-controlling Minority Interest 5 5 Total Shareholders' Equity 13,160 12,507 Total Liabilities and Shareholders' Equity $ 43,682 $ 42,764 Certain prior year data has been reclassified to conform to the current presentation.
Auditing depreciation expense for assets subject to the group-life method was complex and required the involvement of specialists due to the nature of the methods used in the depreciation studies to determine the useful service lives and salvage values of the Company’s assets. These methods have a significant effect on depreciation expense.
For road and track assets and equipment assets, the most recent depreciation studies were performed in 2020 and 2025, respectively. Auditing depreciation expense for assets subject to the group-life method was complex due to the nature of the methods used to determine the asset service lives and salvage values of the Company’s assets.
Depreciation studies are performed every three years for equipment assets and every six years for road and track assets. In years when depreciation studies are not performed, annual data reviews are conducted by a third-party specialist and analyzed by the Company’s management to review the asset service lives.
Depreciation studies are performed every three years for equipment assets and every six years for road and track assets. At least annually, management reviews and evaluates asset service lives and salvage values for appropriateness, which includes consideration of the most recent depreciation studies or data reviews conducted by a third-party specialist.
The cumulative fair value of these swaps, which is included in other long-term assets on the consolidated balance sheet, was an asset of $7 million and $19 million as of December 31, 2024 and December 31, 2023, respectively. In first quarter 2022, CSX entered into five separate fixed-to-floating interest rate swaps classified as fair value hedges.
As of December 31, 2025, the fair value of these swaps was a $9 million asset. In 2023, CSX entered into two separate fixed-to-floating interest rate swaps classified as fair value hedges.
See accompanying Notes to Consolidated Financial Statements. CSX 2024 Form 10-K p.57 CSX CORPORATION PART II Item 8.
CSX 2025 Form 10-K p.54 CSX CORPORATION PART II Item 8.
To test the estimated useful lives and salvage values of the Company’s group-life assets, we performed audit procedures that included, among others: obtaining the periodic depreciation studies and annual data reviews performed by the Company’s third-party specialist and reviewed by management; assessing the completeness and accuracy of the data provided by management to the third-party specialist; and including a specialist on our team to evaluate the methods used by the third-party specialist and reviewed by management in determining if any changes were necessary to the estimated useful lives and salvage values resulting from the annual data reviews.
To test the asset service lives and salvage values of the Company’s group-life assets, we performed audit procedures that included, among others: evaluating management’s documentation to support its evaluation of asset service lives and salvage values to assess if there have been any indicators there has been a material change; evaluating the information provided by the Company’s third-party specialist and reviewed by management; and assessing the completeness and accuracy of the data provided by management to the third-party specialist.
Removed
Changes in interest rates no longer impact the fair value of the Company's forward starting interest rate swaps because they are fully settled as of 12/31/2024. Changes in interest rates could impact the fair value of the Company's fixed-to-floating interest rate swaps. In 2023, CSX entered into two separate fixed-to-floating interest rate swaps classified as fair value hedges.
Removed
For road and track assets and equipment assets, the most recent depreciation studies were performed in 2020 and 2022, respectively. These studies were evaluated by the Company’s management in the current year through an annual data review.
Removed
Financial Statements and Supplementary Data CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Dollars in Millions) Common Shares Outstanding (Thousands) Common Stock and Other Capital Retained Earnings (a) Accumulated Other Comprehensive (Loss) Income (a,b) Non- controlling Minority Interest Total Shareholders' Equity (a) December 31, 2021 2,201,787 $ 2,268 $ 11,549 $ (376) $ 10 $ 13,451 Comprehensive Earnings: Net Earnings — — 4,114 — — 4,114 Other Comprehensive Income (Note 16) — — — (34) — (34) Total Comprehensive Earnings 4,080 Common Stock Dividends,$0.40 per share — (852) (852) Share Repurchases (151,419) (151) (4,580) — — (4,731) Issuance of Common Stock for Acquisition of Pan Am Systems, Inc. 13,173 422 — — — 422 Other 2,826 101 (2) — — 99 December 31, 2022 2,066,367 2,640 10,229 (410) 10 12,469 Comprehensive Earnings: Net Earnings — — 3,668 — — 3,668 Other Comprehensive Income (Note 16) — — — 131 — 131 Total Comprehensive Earnings 3,799 Common Stock Dividends, $0.44 per share — — (882) — — (882) Share Repurchases (112,484) (112) (3,370) — — (3,482) Excise Tax on Net Share Repurchases — — (33) — — (33) Other 4,874 122 (3) — (5) 114 December 31, 2023 1,958,757 2,650 9,609 (279) 5 11,985 Comprehensive Earnings: Net Earnings — — 3,470 — — 3,470 Other Comprehensive Income (Note 16) — — — 47 — 47 Total Comprehensive Earnings 3,517 Common Stock Dividends, $0.48 per share — — (930) — — (930) Share Repurchases (64,556) (65) (2,139) — — (2,204) Excise Tax on Net Share Repurchases — — (20) — — (20) Other 5,989 161 (2) — — 159 December 31, 2024 1,900,190 $ 2,746 $ 9,988 $ (232) $ 5 $ 12,507 (a) See Note 20, Revision of Prior Period Financial Statements.
Removed
(b) Accumulated Other Comprehensive Loss year-end balances shown above are net of tax. The associated taxes were $61 million, $74 million, and $129 million for 2024, 2023 and 2022, respectively. For additional information see Note 16, Other Comprehensive Income (Loss). See accompanying Notes to Consolidated Financial Statements. CSX 2024 Form 10-K p.58 CSX CORPORATION PART II Item 8.
Removed
Financial Statements and Supplementary Data NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1. Nature of Operations and Significant Accounting Policies Business CSX Corporation together with its subsidiaries ("CSX" or the “Company”), based in Jacksonville, Florida, is one of the nation's leading transportation companies.
Removed
The Company provides rail-based transportation services including traditional rail service, the transport of intermodal containers and trailers, as well as other transportation services such as rail-to-truck transfers and bulk commodity operations. CSX Transportation, Inc. CSX’s principal operating subsidiary, CSX Transportation, Inc.
Removed
(“CSXT”), provides an important link to the transportation supply chain through its approximately 20,000 route mile rail network and serves major population centers in 26 states east of the Mississippi River, the District of Columbia and the Canadian provinces of Ontario and Quebec.
Removed
It has access to over 70 ocean, river and lake port terminals along the Atlantic and Gulf Coasts, the Mississippi River, the Great Lakes and the St. Lawrence Seaway. The Company’s intermodal business links customers to railroads via trucks and terminals.
Removed
CSXT also serves thousands of production and distribution facilities through track connections to more than 240 short-line and regional railroads. On June 1, 2022, CSX completed its acquisition of Pan Am Systems, Inc. (“Pan Am”), which is the parent company of Pan Am Railways, Inc. This acquisition expands CSXT’s reach in the Northeastern United States.
Removed
For further details, refer to Note 17, Business Combinations. CSXT is also responsible for the Company's real estate sales, leasing, acquisition and management and development activities. Substantially all of these activities are focused on supporting railroad operations. Other Entities In addition to CSXT, the Company’s subsidiaries include Quality Carriers, Inc. ("Quality Carriers"), CSX Intermodal Terminals, Inc.
Removed
(“CSX Intermodal Terminals”), Total Distribution Services, Inc. (“TDSI”), TRANSFLO Terminal Services, Inc. (“TRANSFLO”), CSX Technology, Inc. (“CSX Technology”) and other subsidiaries. Quality Carriers is the largest provider of bulk liquid chemicals truck transportation in North America.
Removed
CSX Intermodal Terminals owns and operates a system of intermodal terminals, predominantly in the eastern United States, and also provides drayage services (the pickup and delivery of intermodal shipments) for certain customers. TDSI serves the automotive industry with distribution centers and storage locations.
Removed
TRANSFLO connects non-rail served customers to the many benefits of rail by transferring products from rail to trucks. The biggest TRANSFLO markets are chemicals and agriculture, which include shipments of plastics and ethanol. CSX Technology and other subsidiaries provide support services for the Company. CSX 2024 Form 10-K p.59 CSX CORPORATION PART II Item 8.
Removed
Nature of Operations and Significant Accounting Policies, continued Lines of Business During 2024, the Company's services generated $14.5 billion of revenue and served four primary lines of business: merchandise, intermodal, coal and trucking. • The merchandise business shipped 2.6 million carloads (42% of volume) and generated $8.9 billion in revenue (61% of revenue) in 2024.
Removed
The Company’s merchandise business is comprised of shipments in the following diverse markets: chemicals, agricultural and food products, minerals, automotive, forest products, metals and equipment, and fertilizers. • The intermodal business shipped 2.9 million units (46% of volume) and generated $2.0 billion in revenue (14% of revenue) in 2024.
Removed
The intermodal business combines the superior economics of rail transportation with the flexibility of trucks and offers a cost and environmental advantage over long-haul trucking.
Removed
Through a network of approximately 30 terminals, the intermodal business serves all major markets east of the Mississippi River and transports mainly manufactured consumer goods in containers, providing customers with truck-like service for longer shipments. • The coal business shipped 736 thousand carloads (12% of volume) and generated $2.2 billion in revenue (15% of revenue) in 2024.
Removed
The Company transports domestic coal, coke and iron ore to electricity-generating power plants, steel manufacturers and industrial plants as well as export coal to deep-water port facilities.
Removed
Most of the export coal the Company transports is used for steelmaking, while the majority of domestic coal the Company ships is used for electricity generation. • The trucking business generated $844 million, or 6%, of revenue in 2024. Trucking revenue includes revenue from the operations of Quality Carriers.
Removed
Other revenue accounted for 4% of the Company’s total revenue in 2024. This category includes revenue from regional subsidiary railroads and incidental charges, including intermodal storage and equipment usage, demurrage and switching. Revenue from regional subsidiary railroads includes shipments by railroads that the Company does not directly operate.
Removed
Intermodal storage represents charges for customer storage of containers at an intermodal terminal, ramp facility or offsite location beyond a specified period of time. Demurrage represents charges assessed when freight cars are held by a customer beyond a specified period of time. Switching represents charges assessed when a railroad switches cars for a customer or another railroad.
Removed
Segments The Company has two operating segments: rail and trucking. Although the Company provides a breakdown of revenue by line of business, the overall financial and operational performance of the railroad is analyzed as one operating segment due to the integrated nature of the rail network. The trucking segment is not material for separate disclosure.
Removed
See Note 18, Segment Reporting and Significant Expenses, for additional information on the Company's segments. Employees The Company's number of employees was more than 23,500 as of December 2024, which includes approximately 17,500 union employees. Most of the Company’s employees provide or support transportation services. CSX 2024 Form 10-K p.60 CSX CORPORATION PART II Item 8.
Removed
Nature of Operations and Significant Accounting Policies, continued Basis of Presentation In the opinion of management, the accompanying consolidated financial statements contain all normal, recurring adjustments necessary to fairly present the financial position of CSX and its subsidiaries at December 31, 2024 and December 31, 2023, and the consolidated statements of income, comprehensive income, cash flows and changes in shareholders’ equity for the years ended 2024, 2023 and 2022.
Removed
In addition, management has evaluated and disclosed all material events occurring subsequent to the date of the financial statements up to the date this annual report is filed on Form 10-K.
Removed
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires that management make estimates in reporting the amounts of certain assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of certain revenues and expenses during the reporting period.
Removed
Critical accounting estimates using management judgment are made for the following areas: • personal injury and environmental reserves (see Note 5, Casualty, Environmental and Other Reserves ); • pension plan accounting (see Note 9, Employee Benefit Plans ); and • depreciation policies for assets under the group-life method (see Note 6, Properties ) Fiscal Year The Company's fiscal periods are based upon the calendar year.
Removed
Except as otherwise specified, references to full years indicate CSX’s fiscal years ended on December 31, 2024, December 31, 2023, and December 31, 2022. Principles of Consolidation The consolidated financial statements include results of operations of CSX and subsidiaries over which CSX has majority ownership or financial control. All significant intercompany accounts and transactions have been eliminated.
Removed
Most investments in companies that were not majority-owned were carried at cost (if less than 20% owned and the Company has no significant influence) or were accounted for under the equity method (if the Company has significant influence but does not have control). These investments are reported within Investment in Affiliates and Other Companies on the consolidated balance sheets.
Removed
CSX 2024 Form 10-K p.61 CSX CORPORATION PART II Item 8. Financial Statements and Supplementary Data NOTE 1.
Removed
Nature of Operations and Significant Accounting Policies, continued Cash and Cash Equivalents On a daily basis, cash in excess of current operating requirements is invested in various highly liquid investments having a typical maturity date of three months or less at the date of acquisition.
Removed
These investments are carried at cost, which approximates market value, and are classified as cash equivalents. Investments Investments in instruments with original maturities greater than three months that will mature in less than one year are classified as short-term investments.
Removed
Investments with original maturities of one year or greater are initially classified within other long-term assets, and the classification is re-evaluated at each balance sheet date.
Removed
Materials and Supplies Materials and supplies in the consolidated balance sheets are carried at average cost and consist primarily of parts used in the repair and maintenance of track structure, equipment, and CSXT’s freight car and locomotive fleets, as well as fuel.
Removed
New Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Improvements to Reportable Segment Disclosures . This standard update requires additional interim and annual disclosures about a reportable segment’s expenses, even for companies with only one reportable segment.
Removed
The Company adopted this guidance for this 2024 annual report filed on Form 10-K and the standard update did not impact the Company's results of operations or financial position as the update only impacts disclosures. See Note 18, Segment Reporting and Significant Expenses. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures .
Removed
This standard update requires additional interim and annual disclosures about a company’s income taxes, including more detailed information around the annual rate reconciliation and income taxes paid. The Company is required to adopt the guidance for its 2025 annual report filed on Form 10-K, though early adoption is permitted.
Removed
The Company is currently evaluating the impact of these amendments on its disclosures, but this standard update will not impact the Company's results of operations or financial position. In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. This standard update requires additional disclosures about certain expenses in commonly presented expense captions.
Removed
The Company is required to adopt the guidance for its 2027 annual report filed on Form 10-K, though early adoption is permitted. The Company is currently evaluating the impact of these amendments on its disclosures, but this standard update will not impact the Company's results of operations or financial position.
Removed
Revision of Prior Period Financial Statements During second quarter 2024, CSX completed a review of the accounting treatment for engineering scrap and certain engineering support labor and identified misstatements between the balance sheet and operating expense in previously issued financial statements. The Company determined the impacts of these misstatement were immaterial to the financial statements for all prior periods identified.
Removed
For comparative purposes, the Company has made corrections to the consolidated financial statements and applicable notes for the prior periods presented in this Form 10-K. See Note 20, Revision of Prior Period Financial Statements, for additional information and quantification of prior period restatement impacts. CSX 2024 Form 10-K p.62 CSX CORPORATION PART II Item 8.
Removed
Earnings Per Share The following table sets forth the computation of basic earnings per share and earnings per share, assuming dilution: Years Ended 2024 (a) 2023 (a) 2022 (a) Numerator (Dollars in Millions) : Net Earnings $ 3,470 $ 3,668 $ 4,114 Denominator (Units in Millions) : Average Common Shares Outstanding 1,939 2,008 2,136 Other Potentially Dilutive Common Shares 4 5 5 Average Common Shares Outstanding, Assuming Dilution 1,943 2,013 2,141 Net Earnings Per Share, Basic $ 1.79 $ 1.83 $ 1.93 Net Earnings Per Share, Assuming Dilution $ 1.79 $ 1.82 $ 1.92 (a) See Note 20, Revision of Prior Period Financial Statements.
Removed
Basic earnings per share is based on the weighted-average number of shares of common stock outstanding. Earnings per share, assuming dilution, is based on the weighted-average number of shares of common stock outstanding and common stock equivalents adjusted for the effects of common stock that may be issued as a result of potentially dilutive instruments.
Removed
CSX's potentially dilutive instruments are made up of equity awards including employee stock options, performance and restricted stock units. When calculating diluted earnings per share, the potential shares that would be outstanding if all outstanding stock options were exercised are included.
Removed
This number is different from outstanding stock options, which is included in Note 4, Stock Plans and Share-Based Compensation , because it is offset by shares CSX could repurchase using the proceeds from these hypothetical exercises to obtain the common stock equivalent.
Removed
The total average outstanding equity awards that were excluded from the diluted earnings per share calculation because their effect was antidilutive is in the table below.
Removed
Years Ended 2024 2023 2022 Antidilutive Stock Options Excluded from Diluted EPS (Units in Millions) 3 3 3 Share Repurchase Programs During fourth quarter 2023, the share repurchase program announced in July 2022 was completed and the Company began repurchasing shares under the $5 billion share repurchase program approved in October 2023.
Removed
Total repurchase authority remaining was $2.6 billion as of December 31, 2024. The previous share repurchase program was announced in October 2020 and completed in July 2022. CSX 2024 Form 10-K p.63 CSX CORPORATION PART II Item 8. Financial Statements and Supplementary Data NOTE 2.
Removed
Earnings Per Share, continued Share repurchases may be made through a variety of methods including, but not limited to, open market purchases, purchases pursuant to Rule 10b5-1 plans, accelerated share repurchases and negotiated block purchases.
Removed
The timing of share repurchases depends upon management's assessment of marketplace conditions and other factors, and the program remains subject to the discretion of the Board of Directors. Future share repurchases are expected to be funded by cash on hand, cash generated from operations and debt issuances. Shares are retired immediately upon repurchase.
Removed
In accordance with the Equity Topic in the Accounting Standards Codification ("ASC"), the excess of repurchase price over par value is recorded in retained earnings.

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