Chris Wetherbee

Spencer addressed peak planning; Darren addressed pricing, noting the widened highway-to-intermodal gap that should close as new business is priced.

Spencer said consumer remains resilient with customers confident in demand outlook. Darren clarified Q1 Eastern growth was not fuel-driven since fuel spikes came late in quarter; operational excellence drove the majority. Shelley noted weather and fuel disruptions made customers more interested in intermodal conversion and Dedicated fleet solutions.

Brad Delco said they are executing above stated targets with productivity gains eating into inflationary pressure. Not ready to give a new number yet but has confidence from Q4 non-repeating costs and momentum. Will update at appropriate time.

Brad Delco said progress spans efficiency/productivity, asset utilization, and back-office allocation. Declined to attribute savings to one segment. Darren clarified container count decline was end-of-life retirements and a few units repurposed for Dedicated, not a strategy shift.

John Kulow explained the $100M continues prior work on excess equipment costs. Savings will be proportionate to spend levels within segments; Dedicated is closest to margin target but has large spend share.

Darren Field confirmed Eastern network growth (shorter haul, lower revenue per load) will influence reported yields but noted margin profile on those loads is not worse.

Darren Field confirmed some pricing wins but also losses from disciplined pricing. Described bid season results as 'mildly pleased' across three prongs: filling empty lanes, rate repair, and growth.

Brad Delco clarified the 20-25% sequential OI decline is consolidated, adjusted for impairment, and in-line with 10-year normal seasonality. Pushed back on pull-forward concerns.

Kevin pushed back that efficiencies are never low-hanging, described in-sourcing of contractor work using CSX employees, and said the 2027 efficiency plan is already well underway.

Kevin detailed 100+ cost initiatives across PS&O, vehicles, energy, and utilities, noting team delivered faster than expected.

Steve said nothing insurmountable prevents best-in-class margins. Not relying on coal recovery or economic help, focused on growth initiatives, better price management, and productivity. Wants proof of execution over a few quarters first.

Steve emphasized customer service as the foundation and said opportunities to work with rail partners to convert truck freight are materializing. Noted intermodal numbers show early success.

Kevin cited easier H2 comps from prior year demand downtick, customer outage recoveries in chemicals/fertilizer/forest products, potential mine restarts in Q4, and continued truck conversions.

Sean stayed away from specific guidance but noted easier comps in H2 from cycling hurricane impacts. Kevin said intermodal acceleration in late March partly from tariff-related pull-forward.

Kevin confirmed stable merchandise pricing with intermodal showing encouraging signs of contractual rate stabilization. Coal RPU remains benchmark-driven.

Russ directly tied the lower Q4 growth to a variable comp headwind that drops to $100M and to seasonality, with Q4 becoming the strongest calendar quarter.

Dietrich highlighted savings from structural cost-out through DRIVE, SG&A reduction, and lower maintenance costs. Views cost reduction as ongoing journey. Network 2.0 enabling further efficiencies as Q3 demonstrated leverage from the transformation.

Dietrich confirmed $100M of the $300M Freight OI decline is separation costs (sales force hiring acceleration, IT, other prep). Remaining $200M is market-driven from lower ADV consistent with LTL industry trends.

Dietrich warned against linear revenue-to-EPS mapping given dynamic puts and takes. Clarified $300M is customs clearance staffing and administrative expenses from adapting to the trade environment.

Carere clarified that China to US trade was the primary driver of the $170M headwind, with de minimis changes being the largest component. Subramaniam noted trade environment likely to change in next 30-60 days.

Carere projected strong Q4 freight margins with sequential revenue improvement, though still down YoY. Expected similar trajectory into FY26, with volume recovery as the key catalyst.

CFO directly addressed the guidance cut drivers and provided Q3/Q4 cadence detail including Cyber Week timing, USPS headwind trajectory, and DRIVE savings ramp.

Mark George gave a substantive answer citing truck rejection rates, fuel, and pricing opportunity across franchises.

Jason confirmed 200bps sequential OR improvement expected Q1 to Q2 despite headwinds from inflation, lower land sales, merger losses, and fuel.

Ed confirmed losses are primarily in intermodal and tracking expectations. Team is fighting to earn from both road and other modes.

CFO outlined three OpEx drivers: outsized 4% inflation (wages 3.75-4%, health and welfare +12%, insurance premiums +25%), normalized land sales reverting to $30-40M from outsized 2025 levels, and $150M productivity target partially offsetting. CEO noted leakage despite higher productivity targets. Range driven by volume outcome variability.

CEO acknowledged revenue headwinds will put short-term pressure on OR but committed to controlling costs via labor productivity, fuel efficiency, and every P&L line item. CFO noted nearly $500M cumulative productivity has kept cost profile flat despite inflation. CEO also emphasized safety, service, and employee retention as paramount priorities alongside cost control.

CMO confirmed merchandise pricing success driven by service improvement and customer trust. Intermodal pricing flat, taking what market gives. Seaborne met coal pricing the biggest drag.

CEO confirmed exceeding 2025 productivity target with runway in comp, materials, fuel, purchase services, and equipment rents. Long-term path to sub-60% OR with economic recovery as turbo boost.

Gave a third quarter revenue framework of about $1.52 billion to $1.55 billion but explicitly deferred the operating ratio half of the question to a later follow-up.

Adam expressed continued improvement citing 5 months of normal sequential trends, weight per shipment turning positive YoY, positive ISM trends, and retail driving volume while awaiting industrial contribution.

Adam guided Q1 revenue $1.25B-$1.30B. Low end = continued sub-seasonality as in Q4; top end = normal seasonality. OR expected up ~150bp ±20bp sequentially from Q4 (ten-year average Q4-Q1 increase is 100-150bp).

Adam guided Q3-Q4 OR increase of 250-350bp range (normal is 200-250bp). Revenue trend down 6.5-7% expected to continue. Q4 revenue ~$1.29B at current trajectory.

Adam guided 80-120bp OR increase Q2 to Q3 on flat revenue, worse than 10-year average of flat to up 50bp. September wage increase and fringe benefit inflation are key cost drivers.

Confirmed softness was front-loaded in April first week then stabilized. Weight per shipment down 1.5-2% sequentially vs normal 0.5-1%. Competitors having equipment availability issues creates OD opportunity.

Adam confirmed pricing discipline intact at 3.8% ex-fuel in Q4, accelerating to 4.5% in January vs normal 3.6-4% seasonality.

Vena framed the CN agreement as a growth story that will not impair revenue synergies for either railroad.

Jennifer confirmed fuel will be a Q2 headwind at over $4/gallon but expressed full-year confidence in OR improvement through efficiency gains and consistent pricing.

Jim noted customers are mainly concerned about service continuity during integration, drawing parallels to the successful CPKC Mexico integration. Kenny highlighted Hub, SWIFT, and ONE expressing excitement about UP's intermodal investments.

Kenny emphasized leading with service metrics in contract renewals without commenting specifically on 2026. Jim pushed back that the strong service product should eliminate any excuse for not winning business and pricing properly.

Jim emphasized deliberate decision-making and extensive homework behind the NS discussions, without commenting on specific stakeholder reactions.

Jim acknowledged increased uncertainty but firmly stood by the three-year EPS CAGR guidance, emphasizing fundamental railroad performance and strong April volumes.

Kenny confirmed continued price accretion in 2025, linking it to service quality and disciplined commercial strategy.