Union Pacific Corporation (NYSE:UNP) reported subpar fourth-quarter 2025 financial results on Tuesday.
The rail transportation company announced net income of $1.8 billion, or $3.11 per diluted share.
Adjusted diluted EPS was $2.86, which missed the analyst estimate of $2.87.
The company's operating revenue decreased 1% to $6.09 billion, which missed the analyst estimate of $6.12 billion.
Operational Metrics
The reported operating ratio (OR) was 60.5%, 180 basis points worse, and the adjusted OR was 60.0%, 190 basis points worse.
Freight car velocity improved 9% to 239 daily miles per car.
Average terminal dwell fell 9% to 19.8 hours, and workforce productivity improved 3% to 1,151 car miles per employee.
Locomotive productivity increased 4% to 141 gross ton-miles (GTMs) per horsepower day, and average train length increased 3% to 9,729 feet.
Safety also improved, with the reportable personal injury rate and reportable derailment rate both showing improvement.
Segment Performance
Freight revenue excluding fuel surcharge grew 3%.
The Bulk segment saw revenue grow 3%, lifted by a 23% rise in Coal & renewables revenue, offset by a 2% decline in Grain & grain products.
Industrial segment revenue increased 1%. In the Premium segment, revenue decreased 6%, driven by a 9% decline in Intermodal revenue.
Union Pacific CEO Jim Vena said that while Union Pacific navigates the regulatory process to form the nation's first transcontinental railroad, the team remains focused on further enhancing safety, service, and operational performance to support future growth.
Outlook
The company projected a 2026 outlook for EPS growth, consistent with attaining the 3-year CAGR target of high-single digit to low-double digit through 2027. The capital plan is $3.3 billion.
UNP Price Action: Union Pacific shares were up 1.13% at $233.49 at the time of publication on Tuesday, according to Benzinga Pro data.
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