And a better aligned, qualified T&E crew base which is down about 6% year over year.

Apr 24, 2026 / receipt, needs a key / John Orr, COO | earnings call 2026-04-24 | transcript 00c517c0-e17d-4e0a-81bd-0c49d1809991 | chars 7811-7895 | segment 8

Yeah, Jason, you hit on that disciplined approach to this, and we're committed to it. We've adjusted our budgets accordingly, but it's across all streams. Productivity, obviously, we started in T&E. Our zero-based planning through 2025 and the version 3 that we're undertaking in 2026 is giving us a benefit on crew starts with a focus on continuing to create our own capacity through weight and train length that give us the opportunity to really make best use of our infrastructure.

Apr 24, 2026 / receipt, needs a key / Mark, other | earnings call 2026-04-24 | transcript 00c517c0-e17d-4e0a-81bd-0c49d1809991 | chars 39975-40459 | segment 40

Year-over-year, unscheduled stops declined 31%, and through zero-base plan migrations, Q4-24 versus Q4-25, we reduced qualified T&E headcount by 7% and 6% for the full year.

Jan 29, 2026 / receipt, needs a key / John Orr, other | earnings call 2026-01-29 | transcript d6ccbffb-e5bf-454a-905b-6626f11994d6 | chars 7837-8010 | segment 8

T&E productivity actually improved 9%.

Jan 29, 2026 / receipt, needs a key / Jason, other | earnings call 2026-01-29 | transcript d6ccbffb-e5bf-454a-905b-6626f11994d6 | chars 51198-51236 | segment 52

That discipline is clearly reflected in our financial outcomes GTMs increased 4% year-over-year, which were accurately delivered with 6% fewer qualified T&E.

Oct 23, 2025 / receipt, needs a key / John Orr, other | earnings call 2025-10-23 | transcript b5ab844e-54d9-4c38-8685-c802aca63f78 | chars 6348-6505 | segment 6

For example, we netted a reduction of over 100 weekly crew starts. This generated yields in train and T&E productivity, reduced final mile dwell for over 600 customers, and reduced overall transit.

Apr 23, 2025 / receipt, needs a key / John Orr, Chief Operating Officer | earnings call 2025-04-23 | transcript f4b6487b-401e-43a9-ac81-60cf36d2e8d5 | chars 7120-7317 | segment 7

On the labor productivity side, you know, I think last year we were probably more harvesting that from a T&E perspective. Now it's really more broad-based across all of our different crafts.

Apr 23, 2025 / receipt, needs a key / Jason, other | earnings call 2025-04-23 | transcript f4b6487b-401e-43a9-ac81-60cf36d2e8d5 | chars 27797-27987 | segment 29

Yeah, I think on the labor productivity front, as you called out, appreciate the call out there on the great labor productivity we've had in the fourth quarter. probably more focused on the T&E side. And I think as we move into 2025, we'll not only have continued benefits there, but we've got some, you know, runway in labor productivity across all the operating ranks.

Jan 29, 2025 / receipt, needs a key / John, other | earnings call 2025-01-29 | transcript 72fdfa16-16f6-4e1f-b256-b3875d4b2c0d | chars 22067-22437 | segment 23

You'll also see savings in the comp and bend from lower employee levels, largely driven from the previously announced downsizing actions that we took in our management ranks, but also sequential attrition of nearly 2% of our T&E workforce.

Jul 25, 2024 / receipt, needs a key / Mark George, CFO | earnings call 2024-07-25 | transcript 16149a80-f801-4cad-b045-81384f35e6b1 | chars 17299-17538 | segment 17

And, you know, I really watch our expense statements and the cost for T&E headcount in our KGTMs. And I made that clear in my opening remarks, that despite the fact that we're improving service, providing some of the best operating efficiencies in the network, we're doing it at a lower cost overall. And that's what I really focus on, eliminating the waste associated with overtime, taxis, hotels, those sorts of things that don't give you any value.

Jul 25, 2024 / receipt, needs a key / John Orr, other | earnings call 2024-07-25 | transcript 16149a80-f801-4cad-b045-81384f35e6b1 | chars 33494-33945 | segment 34

So we're knocking recruits out, reducing our exposure to, over time, reducing our exposure to taxi cabs, hotels, all the associated costs with that.

Jul 25, 2024 / receipt, needs a key / Alan Shaw, CEO | earnings call 2024-07-25 | transcript 16149a80-f801-4cad-b045-81384f35e6b1 | chars 44626-44774 | segment 45

That reduces hotels, van expenses, has a quality of life benefit.

Jan 26, 2024 / receipt, needs a key / Paul, other | earnings call 2024-01-26 | transcript fbaade7c-2313-4ccb-8cca-e0b2b433d7e4 | chars 47939-48004 | segment 50

First quarter 2026 vs. 2025 ADJUSTED(1) OPERATING EXPENSES ↓8%

ir_statement / Aug 25, 2026 / receipt

Productivity partially offsets inflationary and fuel price headwinds

ir_statement / Aug 25, 2026 / receipt

Usage & efficiency $19

ir_statement / Aug 25, 2026 / receipt

2026 Adjusted Operating Expense expected to be $8.2B - $8.4B

ir_statement / Aug 25, 2026 / receipt

Lowering capital spending from 2025 by ~$300M or 14%

ir_statement / Aug 25, 2026 / receipt

Our flywheel discipline is driving ~$150M+ of additional Cost Reduction in 2026

ir_statement / Aug 25, 2026 / receipt

PSR 2.0 - A SELF-REINFORCING OPERATING SYSTEM

ir_statement / Aug 25, 2026 / receipt

Higher fuel prices and other inflationary pressures coupled with increased volumes led to higher operating expenses

ir_statement / Aug 25, 2026 / receipt

2026 Adjusted Operating Expense now expected to be $8.8B - $8.9B

ir_statement / Aug 25, 2026 / receipt

Capex Expected to be $1.9B in 2026

ir_statement / Aug 25, 2026 / receipt

Lowering capital spending from 2025 by ~$300M or 14%

ir_statement / Aug 25, 2026 / receipt

Clean-sheeting local operations creates crew availability drives growth and productivity

ir_statement / Aug 25, 2026 / receipt