Transport Tracker: Issue #1238, week ending July 15: Transport earnings ramp next week

Research evidence excerpt

Transport Tracker: Issue #1238, week ending July 15: Transport earnings ramp next week

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Transport Tracker

Issue #1238, week ending July 15:

Transport earnings ramp next week

Industry Overview

Hoexter’s Thought of the Week 16 July 2026

6 Transport companies to report over the next week Equity

United StatesOver the next week (Thu am -Thu PM), six transports are set to report 2Q26: 3 rails

Transport/Infrastructure

(CSX, UNP, NSC), a truckload/multi-modal carrier (KNX), a rail equipment provider (WAB),

and a fuel forwarder (WKC).

WAB (Wed, July 22, pre-market): We target 2Q26 EPS of $2.60, in line with Street’s

$2.61. We estimate 2Q26 Freight margins of 25.2%, up 20 bps year-year. CFO John

Olin noted on our Hoexter’s 20-minute call (see WAB note) that WAB continues to see

2026 margin expansion as 2H-weighted, with modest 1H26 expansion pressured by

unfavorable mix (equipment growth outpacing higher-margin services), peak tariff

impacts, and tougher comps, followed by more meaningful 2H improvement as these

headwinds ease (we target +40 bps/+190 bps in 1H26/2H26). Debate into quarter is

focus on backlog growth (or seq. decline).

CSX (Wed, Jully 22, post-mkt): We target 2Q26 EPS of $0.51, in line with Street. As

noted in our 2Q preview (see CSX note), CSX targeted its 2Q26 operating ratio to Ken Hoexter

improve sequentially from a normalized 64.0% in 1Q26, yet below its historic ~350 bps ResearchBofAS Analyst

improvement, reflecting cost pressures from higher incentive compensation (we target +1 646 855 1498

ken.hoexter@bofa.com

$30 mil), increased purchased services tied to locomotive overhauls and advisory costs

Adam Roszkowski, CFA

(we target $703 mil in 2Q26, up from $660 mil in 1Q26), and a strong 1Q26 starting Research Analyst

point.