CSX Q3 2026 earnings rise 52% to $1.05 billion
Freight volume rose 5%, while dwell increased 12% and on-time arrivals declined to 56%.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
CSX Corporation reported third-quarter 2026 revenue of $4.017 billion, up 12% year over year, and net earnings of $1.052 billion, up 52%. Operating income rose 44% to $1.570 billion, diluted earnings per share rose 54% to $0.57, and operating margin was 39.1%, versus 30.3% a year earlier. Compared with adjusted third-quarter 2025 results that excluded a $164 million non-cash goodwill impairment, operating income increased 25%, net earnings 29%, and diluted EPS 30%.
Total volume increased 5% to 1.687 million units, with intermodal volume up 7%. Revenue growth reflected higher fuel surcharge revenue, volume, and pricing across merchandise, intermodal, and coal. Expenses declined 2% to $2.447 billion; the $164 million year-over-year decrease in goodwill impairment expense offset part of a $170 million increase in fuel expense. Locomotive fuel prices rose 67%. Dwell increased 12%, carload trip-plan performance fell 12%, intermodal trip-plan performance fell 11%, and on-time arrivals were 56%, down from 64%. For the first nine months, operating cash flow was $4.216 billion and free cash flow before dividends was $2.648 billion. CSX repurchased 11 million shares for $543 million in the quarter.
2 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointRevenue rose 12% to $4.017 billion in the third quarter.
- Moderate pointNet earnings increased 52% to $1.052 billion year over year.
Negative
- Moderate pointCarload and intermodal trip-plan performance fell 12% and 11%, respectively.
Filing Explained
CSX furnished its quarterly report; its balance sheet as of
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $4.017 billion
Net earnings: $1.052 billion
Operating income: $1.570 billion
+5 more
8 metrics
Revenue
$4.017 billion
Third quarter 2026; up 12% year over year
Net earnings
$1.052 billion
Third quarter 2026; up 52% year over year
Operating income
$1.570 billion
Third quarter 2026; up 44% year over year
Diluted earnings per share
$0.57
Third quarter 2026; up 54% year over year
Operating margin
39.1%
Third quarter 2026; expanded 880 basis points year over year
Total volume
1.687 million units
Third quarter 2026; up 5% year over year
Fuel expense
$451 million
Third quarter 2026, versus $281 million in third quarter 2025
Free cash flow before dividends
$2.648 billion
Nine months ended September 30, 2026
Key Terms
Fuel lag, Free Cash Flow, Revenue Ton-Miles (RTMs), FRA Personal Injury Frequency Index
4 terms
Fuel lag financial
"Fuel lag is the estimated revenue effect"
Free Cash Flow financial
"Free Cash Flow ("FCF") is supplemental information"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Revenue Ton-Miles (RTMs) technical
"The movement of one revenue-producing ton of freight over a distance of one mile."
FRA Personal Injury Frequency Index regulatory
"FRA Personal Injury Frequency Index of 0.97 in third quarter 2026"
Earnings Snapshot
Revenue: $4.017 billion
Third quarter 2026
Revenue
$4.017 billion
+12% year over year
Operating income
$1.570 billion
+44% year over year
Net earnings
$1.052 billion
+52% year over year
Diluted earnings per share
$0.57
+54% year over year
Operating margin
39.1%
Expanded 880 basis points year over year
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was CSX's revenue in Q3 2026?
CSX reported third-quarter revenue of $4.017 billion, an increase of 12% year over year.
How much were CSX's Q3 2026 net earnings and diluted EPS?
Third-quarter net earnings were $1.052 billion, and diluted earnings per share were $0.57. Net earnings increased 52% and diluted EPS increased 54% year over year.
Which CSX business segments had higher Q3 revenue?
Third-quarter revenue increased 11% in merchandise, 20% in intermodal, 10% in coal, 10% in trucking, and 7% in other. Merchandise, intermodal, and coal were identified as areas where higher volume and pricing contributed to overall revenue growth.
How did CSX's nine-month operating cash flow compare year over year?
For the nine months ended September 30, 2026, net cash provided by operating activities was $4.216 billion, compared with $3.227 billion in 2025. Free cash flow before dividends was $2.648 billion, versus $1.066 billion for the prior-year period.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 21, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction | (Commission File No.) | (I.R.S. Employer | ||||||
| of incorporation) | Identification No.) | |||||||
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(904 ) 359-3200
____________________________________________________________________________________________
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
_☐ _ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
_☐ _ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
_☐ _ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
_☐ _ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company _☐ _
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. _☐ _
Item 2.02 Results of Operations and Financial Condition.
On October 21, 2026, CSX Corporation issued a press release and its CSX Quarterly Financial Report on financial and operating results for the quarter ended September 30, 2026. A copy of the press release is attached as Exhibit 99.1 and a copy of the CSX Quarterly Financial Report is attached as Exhibit 99.2, each of which is incorporated by reference herein. These documents are available on the Company's website, www.csx.com.*
The information contained in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 hereto, has been “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that section. The information in this Current Report shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.
Item 9.01 Financial Statements and Exhibits.
(d) The following exhibits are being furnished herewith:
| Exhibit Number | Description | ||||
| 99.1 | Press Release, dated October 21, 2026 from CSX Corporation | ||||
| 99.2 | CSX Quarterly Financial Report | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
| * | Internet addresses are provided for informational purposes only and are not intended to be hyperlinks. | ||||
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CSX CORPORATION
By: /s/ ANGELA C. WILLIAMS
Angela C. Williams
Vice President and
Chief Accounting Officer
(Principal Accounting Officer)
Date: October 21, 2026
Exhibit 99.1
CSX Corp. Announces Third Quarter 2026 Results
•Record quarterly revenue of $4.02 billion, up 12% year-over-year; diluted EPS of $0.57, up 54%
•Operating income of $1.57 billion, up 44%; operating margin expanded 880 bps to 39.1%
•Total volume up 5%, with intermodal volume increasing by 7%
JACKSONVILLE, Fla. – October 21, 2026 – CSX Corp. (NASDAQ: CSX) today announced third quarter 2026 operating income of $1.57 billion and net earnings of $1.05 billion, or $0.57 per diluted share. In the third quarter of 2025, the company reported operating income of $1.09 billion and net earnings of $694 million, or $0.37 per diluted share. Excluding a non-cash goodwill impairment of $164 million in last year’s results, third quarter 2025 adjusted operating income, net earnings, and EPS were $1.25 billion, $818 million, and $0.44, respectively. On a year-over-year basis and compared to adjusted results, operating income increased 25%, net earnings increased 29%, and EPS increased 30%.
Total volume of 1.69 million units for the quarter was 5% higher than third quarter 2025. Revenue totaled $4.02 billion for the quarter, increasing 12% year-over-year, due to increased fuel surcharge revenue together with higher volume and pricing across merchandise, intermodal, and coal.
“CSX delivered strong earnings growth in the third quarter as disciplined execution helped us move more freight, for more customers, while maintaining our high standards for safety and service,” said Steve Angel, president and chief executive officer. “The hard work of our railroaders has positioned us well as we enter the fourth quarter, and we look forward to making continued progress toward best-in-class performance in 2027.”
CSX executives will conduct a conference call with the investment community this afternoon, October 21, at 4:30 p.m. Eastern Time. Investors, media, and the public may listen to the conference call by dialing 1-888-510-2008. For callers outside the U.S., dial 1-646-960-0306. Participants should dial in 10 minutes prior to the call and enter 3368220 as the passcode.
In conjunction with the call, a live webcast will be accessible and presentation materials will be posted on the company’s website at investors.csx.com. Following the earnings call, a webcast replay of the presentation will be archived on the company's website.
This earnings announcement, as well as additional detailed financial information, is contained in the CSX Quarterly Financial Report available through the company’s website at investors.csx.com and on Form 8-K with the Securities and Exchange Commission.
About CSX and its Disclosures
CSX, based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural, and consumer products. For nearly 200 years, CSX has played a critical role in the nation's economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation's population resides. It also links approximately 250 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike.
This announcement, as well as additional financial information, is available on the company's website at investors.csx.com. CSX also uses social media channels to communicate information about the company. Although social media channels are not intended to be the primary method of disclosure for material information, it is possible that certain information CSX posts on social media could be deemed to be material. Therefore, we encourage investors, the media, and others interested in the company to review the information we post on X (x.com/CSX) and on Facebook (facebook.com/OfficialCSX). The social media channels used by CSX may be updated from time to time. More information about CSX Corporation and its subsidiaries is available at www.csx.com.
Non-GAAP Disclosure
CSX reports its financial results in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). CSX also uses certain non-GAAP measures that fall within the meaning of Securities and Exchange Commission Regulation G and Regulation S-K Item 10(e), which may provide users of the financial information with additional meaningful comparisons to prior reported results. Non-GAAP measures do not have standardized definitions and are not defined by U.S. GAAP. Therefore, CSX’s non-GAAP measures are unlikely to be comparable to similar measures presented by other companies. The presentation of these non-GAAP measures should not be considered in isolation from, as a substitute for, or as superior to the financial information presented in accordance with GAAP.
Forward-looking Statements
This information and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, margins, volumes, rates, cost-savings, expenses, taxes, liquidity, capital expenditures, dividends, share repurchases or other financial items, statements of management's plans, strategies and objectives for future operations, and management's expectations as to future performance and operations and the time by which objectives will be achieved, statements concerning proposed new services, and statements regarding future economic, industry or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as “will,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate,” “preliminary” and similar expressions. Forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise any forward-looking statement. If the company updates any forward-looking statement, no inference should be drawn that the company will make additional updates with respect to that statement or any other forward-looking statements.
Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by any forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by any forward-looking statements include, among others: (i) the company's success in implementing its financial and operational initiatives; (ii) 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); (iii) legislative or regulatory changes; (iv) the inherent business risks associated with safety and security; (v) the outcome of claims and litigation involving or affecting the company; (vi) natural events such as severe weather conditions or pandemic health crises; (vii) changes in fuel prices, surcharges for fuel and the availability of fuel; (viii) adverse economic or operational effects from actual or threatened war or terrorist activities and any government response; and (ix) the inherent uncertainty associated with projecting economic and business conditions.
Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the company's SEC reports, accessible on the SEC's website at www.sec.gov and the company's website at www.csx.com.
Contact:
Matthew Korn, CFA, Investor Relations
904-366-4515
Austin Staton, Corporate Communications
855-955-6397
Exhibit 99.2
CSX Corp. Announces Third Quarter 2026 Results
•Record quarterly revenue of $4.02 billion, up 12% year-over-year; diluted EPS of $0.57, up 54%
•Operating income of $1.57 billion, up 44%; operating margin expanded 880 bps to 39.1%
•Total volume up 5%, with intermodal volume increasing by 7%
JACKSONVILLE, Fla. – October 21, 2026 – CSX Corp. (NASDAQ: CSX) today announced third quarter 2026 operating income of $1.57 billion and net earnings of $1.05 billion, or $0.57 per diluted share. In the third quarter of 2025, the company reported operating income of $1.09 billion and net earnings of $694 million, or $0.37 per diluted share. Excluding a non-cash goodwill impairment of $164 million in last year’s results, third quarter 2025 adjusted operating income, net earnings, and EPS were $1.25 billion, $818 million, and $0.44, respectively. On a year-over-year basis and compared to adjusted results, operating income increased 25%, net earnings increased 29%, and EPS increased 30%.
Total volume of 1.69 million units for the quarter was 5% higher than third quarter 2025. Revenue totaled $4.02 billion for the quarter, increasing 12% year-over-year, due to increased fuel surcharge revenue together with higher volume and pricing across merchandise, intermodal, and coal.
“CSX delivered strong earnings growth in the third quarter as disciplined execution helped us move more freight, for more customers, while maintaining our high standards for safety and service,” said Steve Angel, president and chief executive officer. “The hard work of our railroaders has positioned us well as we enter the fourth quarter, and we look forward to making continued progress toward best-in-class performance in 2027.”
CSX executives will conduct a conference call with the investment community this afternoon, October 21, at 4:30 p.m. Eastern Time. Investors, media, and the public may listen to the conference call by dialing 1-888-510-2008. For callers outside the U.S., dial 1-646-960-0306. Participants should dial in 10 minutes prior to the call and enter 3368220 as the passcode.
In conjunction with the call, a live webcast will be accessible and presentation materials will be posted on the company’s website at investors.csx.com. Following the earnings call, a webcast replay of the presentation will be archived on the company’s website.
This earnings announcement, as well as additional detailed financial information, is contained in the CSX Quarterly Financial Report available through the company’s website at investors.csx.com and on Form 8-K with the Securities and Exchange Commission.
| Table of Contents | The accompanying unaudited | CSX CORPORATION | CONTACTS: | ||||||||
| financial information should be | 500 Water Street, C900 | INVESTOR RELATIONS | |||||||||
Consolidated Financial Statements..….p. 3 | read in conjunction with the | Jacksonville, FL 32202 | Matthew Korn, CFA | ||||||||
Operating Statistics...............................p. 10 | Company’s most recent | www.csx.com | (904) 366-4515 | ||||||||
Non-GAAP Measures............................p. 12 | Annual Report on Form 10-K, | MEDIA | |||||||||
| Quarterly Reports on Form 10-Q, and | Austin Staton | ||||||||||
| any Current Reports on Form 8-K. | (855) 955-6397 | ||||||||||
1
About CSX and its Disclosures
CSX, based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural, and consumer products. For nearly 200 years, CSX has played a critical role in the nation's economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation's population resides. It also links approximately 250 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike.
This announcement, as well as additional financial information, is available on the company's website at investors.csx.com. CSX also uses social media channels to communicate information about the company. Although social media channels are not intended to be the primary method of disclosure for material information, it is possible that certain information CSX posts on social media could be deemed to be material. Therefore, we encourage investors, the media, and others interested in the company to review the information we post on X (x.com/CSX) and on Facebook (facebook.com/OfficialCSX). The social media channels used by CSX may be updated from time to time. More information about CSX Corporation and its subsidiaries is available at www.csx.com.
Non-GAAP Disclosure
CSX reports its financial results in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). CSX also uses certain non-GAAP measures that fall within the meaning of Securities and Exchange Commission Regulation G and Regulation S-K Item 10(e), which may provide users of the financial information with additional meaningful comparisons to prior reported results. Non-GAAP measures do not have standardized definitions and are not defined by U.S. GAAP. Therefore, CSX’s non-GAAP measures are unlikely to be comparable to similar measures presented by other companies. The presentation of these non-GAAP measures should not be considered in isolation from, as a substitute for, or as superior to the financial information presented in accordance with GAAP.
Forward-looking Statements
This information and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, margins, volumes, rates, cost-savings, expenses, taxes, liquidity, capital expenditures, dividends, share repurchases or other financial items, statements of management's plans, strategies and objectives for future operations, and management's expectations as to future performance and operations and the time by which objectives will be achieved, statements concerning proposed new services, and statements regarding future economic, industry or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as “will,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate,” “preliminary” and similar expressions. Forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise any forward-looking statement. If the company updates any forward-looking statement, no inference should be drawn that the company will make additional updates with respect to that statement or any other forward-looking statements.
Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by any forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by any forward-looking statements include, among others: (i) the company's success in implementing its financial and operational initiatives; (ii) 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); (iii) legislative or regulatory changes; (iv) the inherent business risks associated with safety and security; (v) the outcome of claims and litigation involving or affecting the company; (vi) natural events such as severe weather conditions or pandemic health crises; (vii) changes in fuel prices, surcharges for fuel and the availability of fuel; (viii) adverse economic or operational effects from actual or threatened war or terrorist activities and any government response; and (ix) the inherent uncertainty associated with projecting economic and business conditions.
Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the company's SEC reports, accessible on the SEC's website at www.sec.gov and the company's website at www.csx.com.
2
CSX Corporation
CONSOLIDATED INCOME STATEMENTS (Unaudited)
(Dollars in Millions, Except Per Share Amounts)
| Quarters Ended | Nine Months Ended | ||||||||||||||||||||||||||||
| Sep. 30, 2026 | Sep. 30, 2025 | Fav / (Unfav) | % Change | Sep. 30, 2026 | Sep. 30, 2025 | Fav / (Unfav) | % Change | ||||||||||||||||||||||
| Revenue | $ | 4,017 | $ | 3,587 | $ | 430 | 12 | % | $ | 11,434 | $ | 10,584 | $ | 850 | 8 | % | |||||||||||||
| Expense | |||||||||||||||||||||||||||||
| Labor and Fringe | 834 | 815 | (19) | (2) | 2,477 | 2,427 | (50) | (2) | |||||||||||||||||||||
| Purchased Services and Other | 657 | 730 | 73 | 10 | 1,917 | 2,214 | 297 | 13 | |||||||||||||||||||||
| Depreciation and Amortization | 413 | 424 | 11 | 3 | 1,239 | 1,276 | 37 | 3 | |||||||||||||||||||||
| Fuel | 451 | 281 | (170) | (60) | 1,199 | 825 | (374) | (45) | |||||||||||||||||||||
| Equipment and Other Rents | 92 | 86 | (6) | (7) | 273 | 267 | (6) | (2) | |||||||||||||||||||||
Goodwill Impairment (a) | — | 164 | 164 | NM | — | 164 | 164 | NM | |||||||||||||||||||||
| Total Expense | 2,447 | 2,500 | 53 | 2 | 7,105 | 7,173 | 68 | 1 | |||||||||||||||||||||
| Operating Income | 1,570 | 1,087 | 483 | 44 | 4,329 | 3,411 | 918 | 27 | |||||||||||||||||||||
| Interest Expense | (207) | (210) | 3 | 1 | (631) | (631) | — | — | |||||||||||||||||||||
| Other Income - Net | 21 | 21 | — | — | 69 | 69 | — | — | |||||||||||||||||||||
| Earnings Before Income Taxes | 1,384 | 898 | 486 | 54 | 3,767 | 2,849 | 918 | 32 | |||||||||||||||||||||
| Income Tax Expense | (332) | (204) | (128) | (63) | (906) | (680) | (226) | (33) | |||||||||||||||||||||
| Net Earnings | $ | 1,052 | $ | 694 | $ | 358 | 52 | % | $ | 2,861 | $ | 2,169 | $ | 692 | 32 | % | |||||||||||||
| Operating Margin | 39.1 | % | 30.3 | % | 37.9 | % | 32.2 | % | |||||||||||||||||||||
| Per Common Share | |||||||||||||||||||||||||||||
| Net Earnings Per Share, Assuming Dilution | $ | 0.57 | $ | 0.37 | $ | 0.20 | 54 | % | $ | 1.54 | $ | 1.16 | $ | 0.38 | 33 | % | |||||||||||||
Average Shares Outstanding, Assuming Dilution (Millions) | 1,853 | 1,867 | 1,858 | 1,876 | |||||||||||||||||||||||||
| NM - not meaningful | |||||||||||||||||||||||||||||
3
CSX Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Millions)
| (Unaudited) | ||||||||
| Sep. 30, 2026 | Dec. 31, 2025 | |||||||
| ASSETS | ||||||||
| Cash and Cash Equivalents | $ | 1,223 | $ | 670 | ||||
| Short-Term Investments | 382 | 5 | ||||||
| Other Current Assets | 2,028 | 1,875 | ||||||
| Properties - Net | 37,142 | 36,811 | ||||||
| Investment in Affiliates and Other Companies | 2,707 | 2,634 | ||||||
| Other Long-Term Assets | 1,672 | 1,687 | ||||||
| Total Assets | $ | 45,154 | $ | 43,682 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current Maturities of Long-Term Debt | $ | 1,702 | $ | 708 | ||||
| Other Current Liabilities | 2,607 | 2,425 | ||||||
| Long-Term Debt | 17,102 | 18,165 | ||||||
| Deferred Income Taxes - Net | 8,030 | 7,914 | ||||||
| Other Long-Term Liabilities | 1,331 | 1,310 | ||||||
| Total Liabilities | 30,772 | 30,522 | ||||||
| Total Shareholders' Equity | 14,382 | 13,160 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 45,154 | $ | 43,682 | ||||
4
CSX Corporation
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Unaudited)
(Dollars in Millions)
Nine Months Ended | ||||||||
| Sep. 30, 2026 | Sep. 30, 2025 | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net Earnings | $ | 2,861 | $ | 2,169 | ||||
| Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: | ||||||||
| Depreciation and Amortization | 1,239 | 1,276 | ||||||
| Deferred Income Tax Expense | 115 | 143 | ||||||
Goodwill Impairment (a) | — | 164 | ||||||
Other Operating Activities - Net (b) | 1 | (525) | ||||||
| Net Cash Provided by Operating Activities | 4,216 | 3,227 | ||||||
| INVESTING ACTIVITIES | ||||||||
Property Additions (c) | (1,712) | (2,225) | ||||||
| Purchases of Short-Term Investments | (515) | — | ||||||
| Proceeds from Sales of Short-Term Investments | 153 | 72 | ||||||
| Proceeds and Advances from Property Dispositions | 144 | 64 | ||||||
| Business Acquisitions, Net of Cash Acquired | — | (15) | ||||||
| Other Investing Activities | 23 | (41) | ||||||
| Net Cash Used in Investing Activities | (1,907) | (2,145) | ||||||
| FINANCING ACTIVITIES | ||||||||
Shares Repurchased (d) | (1,061) | (1,284) | ||||||
| Dividends Paid | (779) | (730) | ||||||
| Long-term Debt Repaid | (10) | (12) | ||||||
| Long-term Debt Issued | — | 600 | ||||||
| Other Financing Activities | 94 | 23 | ||||||
| Net Cash Used in Financing Activities | (1,756) | (1,403) | ||||||
| Net Increase (Decrease) in Cash and Cash Equivalents | 553 | (321) | ||||||
| CASH AND CASH EQUIVALENTS | ||||||||
| Cash and Cash Equivalents at Beginning of Period | 670 | 933 | ||||||
| Cash and Cash Equivalents at End of Period | $ | 1,223 | $ | 612 | ||||
5
CSX Corporation
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
a)Goodwill Impairment: During the prior year third quarter 2025, the Company recognized an impairment charge of $164 million related to Quality Carrier's remaining goodwill.
b)Other Operating Activities - Net: During the prior year nine months ended September 30, 2025, the Company made $429 million of federal and state tax payments related to the 2024 tax year, which were previously postponed under tax relief announcements for those impacted by the 2024 hurricane season.
c)Property Additions: Property additions for the prior year nine months ended September 30, 2025, include $440 million related to rebuilding the Blue Ridge subdivision as a result of impacts from Hurricane Helene. The Blue Ridge subdivision reopened in September 2025.
d)Shares Repurchased: During third quarters and nine months ended 2026 and 2025, the Company engaged in the following repurchase activities:
| Quarters Ended | Nine Months Ended | ||||||||||||||||
| Sep. 30, 2026 | Sep. 30, 2025 | Sep. 30, 2026 | Sep. 30, 2025 | ||||||||||||||
Shares Repurchased (Millions) | 11 | 3 | 23 | 41 | |||||||||||||
Cost of Shares (Dollars in Millions) (1) | $ | 543 | $ | 112 | $ | 1,049 | $ | 1,264 | |||||||||
| Average Cost per Share Repurchased | $ | 48.75 | $ | 33.07 | $ | 45.42 | $ | 30.61 | |||||||||
Excise Taxes Paid for Net Share Repurchases (Dollars in Millions) (2) | $ | — | $ | — | $ | 12 | $ | 20 | |||||||||
(1) Amounts exclude the impact of excise tax on net share repurchases imposed as part of the Inflation Reduction Act of 2022. | |||||||||||||||||
(2) Excise tax payments made in 2026 were related to share repurchases in 2025. Excise tax payments made in 2025 were related to share repurchases in 2024. | |||||||||||||||||
6
CSX Corporation
VOLUME AND REVENUE (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| Volume (Thousands of Units); Revenue (Dollars in Millions); Revenue Per Unit (Dollars) | ||||||||||||||||||||||||||||||||||||||
Quarters Ended September 30, 2026 and September 30, 2025 | ||||||||||||||||||||||||||||||||||||||
| Volume | Revenue | Revenue Per Unit | ||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||||||||||||||
| Chemicals | 176 | 164 | 7 | % | $ | 790 | $ | 697 | 13 | % | $ | 4,489 | $ | 4,250 | 6 | % | ||||||||||||||||||||||
| Agricultural and Food Products | 114 | 110 | 4 | 430 | 382 | 13 | 3,772 | 3,473 | 9 | |||||||||||||||||||||||||||||
| Minerals | 103 | 104 | (1) | 246 | 226 | 9 | 2,388 | 2,173 | 10 | |||||||||||||||||||||||||||||
| Automotive | 97 | 99 | (2) | 325 | 306 | 6 | 3,351 | 3,091 | 8 | |||||||||||||||||||||||||||||
| Metals and Equipment | 75 | 67 | 12 | 267 | 224 | 19 | 3,560 | 3,343 | 6 | |||||||||||||||||||||||||||||
| Forest Products | 72 | 68 | 6 | 277 | 247 | 12 | 3,847 | 3,632 | 6 | |||||||||||||||||||||||||||||
| Fertilizers | 42 | 48 | (13) | 118 | 126 | (6) | 2,810 | 2,625 | 7 | |||||||||||||||||||||||||||||
| Total Merchandise | 679 | 660 | 3 | 2,453 | 2,208 | 11 | 3,613 | 3,345 | 8 | |||||||||||||||||||||||||||||
| Intermodal | 820 | 768 | 7 | 634 | 527 | 20 | 773 | 686 | 13 | |||||||||||||||||||||||||||||
| Coal | 188 | 184 | 2 | 537 | 490 | 10 | 2,856 | 2,663 | 7 | |||||||||||||||||||||||||||||
| Trucking | — | — | — | 227 | 207 | 10 | — | — | — | |||||||||||||||||||||||||||||
| Other | — | — | — | 166 | 155 | 7 | — | — | — | |||||||||||||||||||||||||||||
| Total | 1,687 | 1,612 | 5 | % | $ | 4,017 | $ | 3,587 | 12 | % | $ | 2,381 | $ | 2,225 | 7 | % | ||||||||||||||||||||||
Nine Months Ended September 30, 2026 and September 30, 2025 | ||||||||||||||||||||||||||||||||||||||
| Volume | Revenue | Revenue Per Unit | ||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||||||||||||||
| Chemicals | 521 | 494 | 5 | % | $ | 2,286 | $ | 2,096 | 9 | % | $ | 4,388 | $ | 4,243 | 3 | % | ||||||||||||||||||||||
| Agricultural and Food Products | 349 | 342 | 2 | 1,283 | 1,208 | 6 | 3,676 | 3,532 | 4 | |||||||||||||||||||||||||||||
| Minerals | 290 | 282 | 3 | 680 | 625 | 9 | 2,345 | 2,216 | 6 | |||||||||||||||||||||||||||||
| Automotive | 286 | 289 | (1) | 932 | 897 | 4 | 3,259 | 3,104 | 5 | |||||||||||||||||||||||||||||
| Metals and Equipment | 212 | 202 | 5 | 743 | 657 | 13 | 3,505 | 3,252 | 8 | |||||||||||||||||||||||||||||
| Forest Products | 206 | 208 | (1) | 772 | 746 | 3 | 3,748 | 3,587 | 4 | |||||||||||||||||||||||||||||
| Fertilizers | 141 | 143 | (1) | 391 | 388 | 1 | 2,773 | 2,713 | 2 | |||||||||||||||||||||||||||||
| Total Merchandise | 2,005 | 1,960 | 2 | 7,087 | 6,617 | 7 | 3,535 | 3,376 | 5 | |||||||||||||||||||||||||||||
| Intermodal | 2,369 | 2,213 | 7 | 1,772 | 1,511 | 17 | 748 | 683 | 10 | |||||||||||||||||||||||||||||
| Coal | 548 | 537 | 2 | 1,515 | 1,428 | 6 | 2,765 | 2,659 | 4 | |||||||||||||||||||||||||||||
| Trucking | — | — | — | 655 | 620 | 6 | — | — | — | |||||||||||||||||||||||||||||
| Other | — | — | — | 405 | 408 | (1) | — | — | — | |||||||||||||||||||||||||||||
| Total | 4,922 | 4,710 | 5 | % | $ | 11,434 | $ | 10,584 | 8 | % | $ | 2,323 | $ | 2,247 | 3 | % | ||||||||||||||||||||||
7
CSX Corporation
VOLUME AND REVENUE
Total revenue increased 12% in third quarter 2026 when compared to third quarter 2025 primarily due to increased fuel surcharge revenue as well as higher volume and pricing across merchandise, intermodal and coal.
Fuel Surcharge
Fuel surcharge revenue is included in the individual markets and does not include amounts for trucking. Fuel lag is the estimated revenue effect resulting from the difference between highway diesel prices in the quarter and the prices used for fuel surcharge, which are on a two-month lag for non-intermodal traffic.
| Quarters Ended | Nine Months Ended | ||||||||||||||||
| (Dollars in Millions) | Sep. 30, 2026 | Sep. 30, 2025 | Sep. 30, 2026 | Sep. 30, 2025 | |||||||||||||
| Fuel Surcharge Revenue | $ | 466 | $ | 234 | $ | 1,107 | $ | 673 | |||||||||
| Fuel Lag (Unfavorable) Favorable | $ | (36) | $ | (11) | $ | (129) | $ | (12) | |||||||||
Merchandise Volume
Chemicals - Increased primarily due to higher shipments of petcoke, waste, plastics and crude oil.
Agricultural and Food Products - Increased due to higher shipments of domestic and export grains and feed ingredients, partially offset by decreased shipments of ethanol.
Minerals - Decreased due to lower shipments of limestone, partially offset by higher shipments of construction-related materials.
Automotive - Decreased due to the impact of a temporary outage at a customer location associated with re-tooling efforts.
Metals and Equipment - Increased due to higher steel, equipment, and aluminum shipments.
Forest Products - Increased due to higher lumber and building products shipments, including benefits from a tighter trucking environment, which were partially offset by lower shipments of pulp and paper products, which includes the impacts of customer plant closures.
Fertilizers - Shipments decreased as higher input costs led to reduced fertilizer demand.
Intermodal Volume
Domestic shipments increased due to wins with key customers, new service offerings and a tightening truck environment. International shipments decreased slightly.
Coal Volume
Export coal increased due to higher shipments of metallurgical and thermal coal, including the benefits of increased production from re-opened mines. Domestic coal decreased due to lower shipments to utility plants, partially offset by higher shipments to steel manufacturing locations and lake terminals.
| Quarters Ended | Nine Months Ended | ||||||||||||||||||||||
| (Millions of Tons) | Sep. 30, 2026 | Sep. 30, 2025 | Change | Sep. 30, 2026 | Sep. 30, 2025 | Change | |||||||||||||||||
| Coal Tonnage | |||||||||||||||||||||||
| Domestic | 10.7 | 11.0 | (3) | % | 30.0 | 30.4 | (1) | % | |||||||||||||||
| Export | 10.6 | 9.9 | 7 | 32.0 | 30.2 | 6 | |||||||||||||||||
| Total Coal | 21.3 | 20.9 | 2 | % | 62.0 | 60.6 | 2 | % | |||||||||||||||
Trucking Revenue
Trucking revenue increased $20 million versus the prior year primarily due to higher fuel surcharge.
Other Revenue
Other revenue increased $11 million primarily due to higher revenue for intermodal storage and equipment usage.
8
CSX Corporation
EXPENSE
Expenses of $2.4 billion decreased $53 million, or 2%, in third quarter 2026 when compared to third quarter 2025. Third quarter 2026 expense included offsetting impacts of a $170 million increase in fuel expense and a $164 million decrease in goodwill impairment expense compared to prior year.
Labor and Fringe expense increased $19 million due to the following:
•Incentive compensation increased $53 million driven by higher expected payouts.
•An increase of $38 million was due to wage and healthcare cost inflation.
•A decrease of $22 million was due to prior year management and executive severance costs.
•The remaining $50 million net decrease was mostly due to lower headcount.
Purchased Services and Other expense decreased $73 million due to the following:
•Efficiency savings, net of inflation, of $42 million were driven by cost reductions across operating and support functions.
•Gains on property dispositions were $11 million in third quarter 2026 compared to $7 million in the prior year.
•All other net costs decreased $27 million, primarily due to the effects of higher costs in the prior year related to network disruptions, including rerouting impacts, and technology contract restructuring costs.
Depreciation and Amortization expense decreased $11 million primarily as a result of an equipment depreciation study, partially offset by increases related to a larger asset base.
Fuel costs increased $170 million mostly due to a 67% increase in locomotive fuel prices as well as higher non-locomotive fuel prices, partially offset by efficiency savings.
Equipment and Other Rents expense increased $6 million due to longer merchandise cycle times and higher volume.
Goodwill Impairment expense in the prior year for Quality Carriers was $164 million.
Employee Counts (Estimated)
| Quarters Ended | Nine Months Ended | ||||||||||||||||||||||
| Average: | Sep. 30, 2026 | Sep. 30, 2025 | Change | Sep. 30, 2026 | Sep. 30, 2025 | Change | |||||||||||||||||
| Rail | 19,842 | 21,068 | (1,226) | 20,053 | 21,266 | (1,213) | |||||||||||||||||
| Trucking | 2,113 | 2,207 | (94) | 2,097 | 2,137 | (40) | |||||||||||||||||
| Total | 21,955 | 23,275 | (1,320) | 22,150 | 23,403 | (1,253) | |||||||||||||||||
| Ending: | |||||||||||||||||||||||
| Rail | 19,745 | 21,053 | (1,308) | ||||||||||||||||||||
| Trucking | 2,125 | 2,168 | (43) | ||||||||||||||||||||
| Total | 21,870 | 23,221 | (1,351) | ||||||||||||||||||||
Fuel Expense
| Quarters Ended | Nine Months Ended | ||||||||||||||||
(Dollars and Gallons in Millions, Except Price Per Gallon) | Sep. 30, 2026 | Sep. 30, 2025 | Sep. 30, 2026 | Sep. 30, 2025 | |||||||||||||
Estimated Locomotive Fuel Consumption (Gallons) | 90.6 | 93.2 | 275.1 | 283.3 | |||||||||||||
Price per Gallon (Dollars) | $ | 4.24 | $ | 2.54 | $ | 3.69 | $ | 2.43 | |||||||||
| Total Locomotive Fuel Expense | $ | 384 | $ | 237 | $ | 1,014 | $ | 688 | |||||||||
| Non-Locomotive Fuel Expense | 67 | 44 | 185 | 137 | |||||||||||||
| Total Fuel Expense | $ | 451 | $ | 281 | $ | 1,199 | $ | 825 | |||||||||
9
CSX Corporation
OPERATING STATISTICS (Estimated)
In the third quarter of 2026, velocity decreased by 2% and dwell increased by 12% versus prior year. Carload trip plan performance decreased by 12% and intermodal trip plan performance decreased by 11%. The Company continues to focus on operational improvements and executing the operating plan to deliver safe, reliable, and efficient service to customers.
The Federal Railroad Administration (“FRA”) personal injury frequency index of 0.97 in third quarter 2026 improved 17% compared to prior year and the FRA train accident rate of 2.77 improved 5%. 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.
| Quarters Ended | Nine Months Ended | |||||||||||||||||||||||||
| Sep. 30, 2026 | Sep. 30, 2025 | Improvement / (Deterioration) | Sep. 30, 2026 | Sep. 30, 2025 | Improvement / (Deterioration) | |||||||||||||||||||||
| Operations Performance | ||||||||||||||||||||||||||
Train Velocity (Miles Per Hour) | 18.6 | 18.9 | (2) | % | 18.5 | 18.0 | 3 | % | ||||||||||||||||||
Dwell (Hours) | 10.6 | 9.5 | (12) | % | 10.8 | 10.5 | (3) | % | ||||||||||||||||||
| Cars Online | 128,828 | 121,278 | (6) | % | 128,107 | 127,698 | — | % | ||||||||||||||||||
| On-Time Originations | 69 | % | 75 | % | (8) | % | 70 | % | 71 | % | (1) | % | ||||||||||||||
| On-Time Arrivals | 56 | % | 64 | % | (13) | % | 57 | % | 59 | % | (3) | % | ||||||||||||||
| Carload Trip Plan Performance | 73 | % | 83 | % | (12) | % | 73 | % | 76 | % | (4) | % | ||||||||||||||
| Intermodal Trip Plan Performance | 83 | % | 93 | % | (11) | % | 86 | % | 91 | % | (5) | % | ||||||||||||||
| Fuel Efficiency | 0.92 | 0.94 | 2 | % | 0.94 | 0.97 | 3 | % | ||||||||||||||||||
Revenue Ton-Miles (Billions) | ||||||||||||||||||||||||||
| Merchandise | 33.4 | 32.8 | 2 | % | 100.4 | 98.3 | 2 | % | ||||||||||||||||||
| Coal | 9.3 | 9.9 | (6) | % | 26.9 | 27.6 | (3) | % | ||||||||||||||||||
| Intermodal | 8.0 | 7.7 | 4 | % | 23.4 | 22.3 | 5 | % | ||||||||||||||||||
| Total Revenue Ton-Miles | 50.7 | 50.4 | 1 | % | 150.7 | 148.2 | 2 | % | ||||||||||||||||||
Total Gross Ton-Miles (Billions) | 98.9 | 98.8 | — | % | 292.1 | 292.3 | — | % | ||||||||||||||||||
| Safety | ||||||||||||||||||||||||||
| FRA Personal Injury Frequency Index | 0.97 | 1.17 | 17 | % | 0.85 | 1.04 | 18 | % | ||||||||||||||||||
| FRA Train Accident Rate | 2.77 | 2.91 | 5 | % | 2.86 | 3.53 | 19 | % | ||||||||||||||||||
Certain operating statistics are estimated and can continue to be updated as actuals settle. 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.
10
CSX Corporation
OPERATING STATISTICS (Estimated), continued
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). Train velocity measures actual train miles and times of a train movement on CSX's network.
Dwell - Average amount of time in hours between car arrival to and departure from the yard.
Cars Online - Average number of active freight rail cars on lines operated by CSX, excluding rail cars that are being repaired, in storage, those that have been sold, or private cars dwelling at a customer location more than one day.
On-Time Originations - Percent of scheduled road trains that depart the origin yard on-time or ahead of schedule.
On-Time Arrivals - Percent of scheduled road trains that arrive at the destination yard on-time to within two hours of scheduled arrival.
Carload Trip Plan Performance - Percent of measured cars (excludes unit trains and other non-scheduled service as well as empty automotive shipments) destined for a customer that complete their scheduled plan at or ahead of the original estimated time of arrival or interchange (as applicable).
Intermodal Trip Plan Performance - Percent of measured containers (excludes port shipments along with empty containers and other non-scheduled service) destined for a customer that complete their scheduled plan at or ahead of the original estimated time of arrival, notification or interchange (as applicable).
Fuel Efficiency - Gallons of locomotive fuel per 1,000 gross ton-miles.
Revenue Ton-Miles (RTMs) - The movement of one revenue-producing ton of freight over a distance of one mile.
Gross Ton-Miles (GTMs) - The movement of one ton of train weight over one mile. GTMs are calculated by multiplying total train weight by distance the train moved. Total train weight is comprised of the weight of the freight cars and their contents.
FRA Personal Injury Frequency Index - Number of FRA-reportable injuries per 200,000 man-hours.
FRA Train Accident Rate - Number of FRA-reportable train accidents per million train-miles.
11
CSX Corporation
NON-GAAP MEASURES (Unaudited)
The Company reports its financial results in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company also uses certain non-GAAP measures that fall within the meaning of Securities and Exchange Commission Regulation G and Regulation S-K Item 10(e), which may provide users of the financial information with additional meaningful comparison to prior reported results. Non-GAAP measures do not have standardized definitions and are not defined by GAAP. Therefore, the Company’s non-GAAP measures are unlikely to be comparable to similar measures presented by other companies. The presentation of these non-GAAP measures should not be considered in isolation from, as a substitute for, or as superior to the financial information presented in accordance with GAAP. Reconciliations of non-GAAP measures to corresponding GAAP measures are below.
Prior Year Adjusted Operating Results
Management believes that adjusted operating income, adjusted operating margin, adjusted net earnings, and adjusted net earnings per share, assuming dilution are important in evaluating the Company's performance and for planning and forecasting future business operations and future profitability. These non-GAAP measures provide meaningful supplemental information regarding operating results because they exclude the third quarter 2025 non-cash impairment of the remaining amount 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 prior year 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 to adjusted operating results (non-GAAP measures).
| Quarter Ended September 30, 2025 | ||||||||||||||||||||||||||
| (Dollars in millions, except per share amounts) | Operating Income | Operating Margin | Net Earnings | Net Earnings Per Share, Assuming Dilution | ||||||||||||||||||||||
| GAAP Operating Results | $ | 1,087 | 30.3 | % | $ | 694 | $ | 0.37 | ||||||||||||||||||
Goodwill Impairment | 164 | 4.6 | 124 | 0.07 | ||||||||||||||||||||||
| Adjusted Operating Results (non-GAAP) | $ | 1,251 | 34.9 | % | $ | 818 | $ | 0.44 | ||||||||||||||||||
| Nine Months Ended September 30, 2025 | ||||||||||||||||||||||||||
| (Dollars in millions, except per share amounts) | Operating Income | Operating Margin | Net Earnings | Net Earnings Per Share, Assuming Dilution | ||||||||||||||||||||||
| GAAP Operating Results | $ | 3,411 | 32.2 | % | $ | 2,169 | $ | 1.16 | ||||||||||||||||||
Goodwill Impairment | 164 | 1.6 | 124 | 0.06 | ||||||||||||||||||||||
| Adjusted Operating Results (non-GAAP) | $ | 3,575 | 33.8 | % | $ | 2,293 | $ | 1.22 | ||||||||||||||||||
12
CSX Corporation
Free Cash Flow
Management believes that Free Cash Flow ("FCF") is supplemental information 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. 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. FCF should be considered in addition to, rather than a substitute for, cash provided by operating activities.
The following table reconciles cash provided by operating activities (GAAP measure) to FCF before dividends (non-GAAP measure).
| Nine Months Ended | ||||||||
| (Dollars in Millions) | Sep. 30, 2026 | Sep. 30, 2025 | ||||||
Net Cash Provided by Operating Activities | $ | 4,216 | $ | 3,227 | ||||
| Property Additions | (1,712) | (2,225) | ||||||
| Proceeds and Advances from Property Dispositions | 144 | 64 | ||||||
| Free Cash Flow (before payment of dividends) | $ | 2,648 | $ | 1,066 | ||||
13