(Source: Union Pacific press release, October 23, 2025)
Union Pacific Corporation reported 2025 third quarter net income of $1.8 billion, or $3.01 per diluted share. Results include merger costs of $41 million, or $0.07 per diluted share. Adjusted 2025 third quarter net income* of $1.8 billion, or $3.08 per diluted share* compares to 2024 third quarter net income of $1.7 billion, or $2.75 per diluted share.
“Our third quarter results serve as a proof point that we are successfully executing on our strategy” said Jim Vena, Union Pacific Chief Executive Officer. “We have a historic opportunity with the Norfolk Southern to create America’s first transcontinental railroad. As we work towards regulatory approval, our team is focused and driving continued improvements in our pursuit of what’s possible.”
Third Quarter Summary: 2025 vs. 2024
Financial Results: Strong Operating Income Growth Driven by Increased Revenue and Operating Efficiency; Best Ever Quarter Record for Freight Revenue excluding Fuel Surcharge
- Operating revenue of $6.2 billion grew 3% driven by solid core pricing gains, partially offset by lower fuel surcharge.
- Freight revenue excluding fuel surcharge grew 4%.
- Reported operating ratio was 59.2%, an improvement of 110 basis points. Adjusted operating ratio* was 58.5%, an improvement of 180 basis points.
Operating Results: Continued Momentum in Safety, Service, and Operational Excellence; Third Quarter Records for Freight Car Velocity and Locomotive Productivity and Best Ever Quarter Records for Terminal Dwell, Train Length, Workforce Productivity, and Fuel Consumption Rate
- Reportable personal injury rate and reportable derailment rate both improved.
- Freight car velocity was 226 daily miles per car, an 8% improvement.
- Locomotive productivity was 140 gross ton-miles (GTMs) per horsepower day, a 4% improvement.
- Average terminal dwell was 20.4 hours, a 9% improvement.
- Average train length was 9,801 feet, a 2% increase.
- Workforce productivity improved 6% to 1,165 car miles per employee.
* Adjusted diluted earnings per share and adjusted operating ratio are considered non-GAAP financial measures. See attached supplemental schedule of non-GAAP measures for a reconciliation to GAAP.
2025 Outlook:
- Meeting customer demand with strong service; challenging international intermodal comparison
- Pricing dollars accretive to operating ratio
- Earnings per share growth consistent with attaining the 3-year CAGR target of high-single to low-double digit
- Industry-leading operating ratio and return on invested capital
- Continued strong cash generation
- Capital allocation
- Capital plan of $3.4 billion
- Third quarter 2025 dividend increase of 3%
- Share repurchases paused for Norfolk Southern merger
Full story: Union Pacific