Core Insights - Union Pacific Corp. is experiencing a significant acceleration in operational and financial performance, driven by productivity gains and a strong earnings beat in the latest quarter [1] - The company has received a Buy rating from Bank of America Securities, with an increased price forecast reflecting confidence in its operational trajectory under CEO Jim Vena [2][3] - Analysts expect a strong earnings recovery, with projected EPS growth from $11.06 in 2024 to $13.20 in 2026, aligning with management's long-term growth targets [4] Financial Performance - In the second quarter, Union Pacific reported $6.15 billion in revenue, a 2% year-over-year increase, supported by 4% volume growth and strong core pricing [6] - Adjusted operating income rose 5% to $2.53 billion, with key efficiency metrics showing improvements: freight car velocity up 10%, locomotive productivity up 5%, and workforce productivity up 9% [6] - The board approved a 3% increase in the quarterly dividend to $1.38 per share, reaffirming full-year guidance towards the high end of long-term growth outlook [7] Analyst Ratings and Price Targets - Wells Fargo analyst maintained an Overweight rating and raised the price target from $250 to $260, while Evercore ISI slightly trimmed its price target from $244 to $238 [8] - Jefferies analyst upgraded the stock from Hold to Buy, significantly increasing the price target from $250 to $285 [8] Market Dynamics - The proposed merger talks with Norfolk Southern are seen as strategically aligned with U.S. infrastructure modernization efforts, despite potential dilution risks [5] - Union Pacific is expected to maintain healthy leverage between 2.7x and 3.0x, continue its share repurchase program, and reaccelerate top-line growth [5]

The US railroad industry has sought consolidation for decades. For Union Pacific and CEO Jim Vena, the stars are finally aligning https://t.co/zTIVICN4ec ...

Core Viewpoint - The two major U.S. railway companies, Union Pacific Railroad and Norfolk Southern Railway, are in advanced discussions regarding a potential business merger, although there is no guarantee that a transaction agreement will be reached or that the terms will be accurate [1] Group 1 - Union Pacific and Norfolk Southern confirmed on July 24 that they are engaged in deep negotiations for a potential merger [1] - The companies have stated that they cannot assure the completion of a transaction agreement [1] - There is uncertainty regarding the accuracy of the transaction terms being discussed [1]

Core Viewpoint - The article discusses Union Pacific Corporation (NYSE: UNP) as a significant dividend growth investment, highlighting its importance in the author's portfolio since the pandemic-related lockdowns in 2020 [1]. Group 1 - Union Pacific Corporation is identified as the fifth-largest dividend growth investment for the author [1]. - The company was one of the first investments made after the initial pandemic lockdowns in 2020 [1].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ____________ Commission File Number 1-6075 UNION PACIFIC CORPORATION (Exact name of registrant as specified in its charter) (St ...

Core Insights - Union Pacific Corporation (UNP) reported second-quarter 2025 earnings of $3.03 per share, exceeding the Zacks Consensus Estimate of $2.91, marking a 10.6% year-over-year improvement driven by strong operational efficiency [1][10] - Operating revenues reached $6.2 billion, slightly surpassing the Zacks Consensus Estimate of $6.1 billion, with a year-over-year increase of 2.5% attributed to higher volumes and solid core pricing gains [2][10] Financial Performance - Freight revenues, which constitute 95% of total revenues, increased by 4% to $5.8 billion, exceeding the estimate of $5.67 billion, while other revenues fell by 16% to $311 million [3] - Total operating expenses rose by 1% year-over-year to $3.6 billion, with fuel expenses decreasing by 8% and compensation and benefits expenses increasing by 5% [4] - The operating ratio improved by 230 basis points year-over-year to 58.1% on an adjusted basis [4] Segment Performance - Bulk freight revenues increased by 10% year-over-year to $1.9 billion, with segmental revenue carloads rising by 11% [5] - Industrial freight revenues totaled $2.2 billion, up 4% year-over-year, while Premium division freight revenues decreased by 4% to $1.73 billion [6] Liquidity and Debt - Union Pacific ended the second quarter of 2025 with cash and cash equivalents of $1.06 billion, up from $1 billion at the end of 2024, while debt increased to $30.3 billion from $29.6 billion [7] Merger Discussions - Union Pacific is in advanced discussions with Norfolk Southern (NSC) regarding a potential business combination, although no further details have been disclosed [8][9]

Union Pacific Nears Norfolk Deal to Create $200 Billion Railroad. Listen for more on Bloomberg Intelligence. https://t.co/BKEucZvCgL ...

Group 1 - North America's largest railroad operator, Union Pacific (UNP.US), is in deep negotiations with Norfolk Southern (NSC.US) for a potential merger, which would be the largest in railroad history if completed [1] - Union Pacific has a market capitalization of approximately $135 billion, more than double Norfolk Southern's $64 billion, and a merger would connect Union Pacific's extensive network in the West with Norfolk Southern's major lines on the East Coast, creating a comprehensive transcontinental transportation artery [1] - The merger would pose significant competitive pressure on other major railroad operators, including CSX Transportation (CSX.US) and Berkshire Hathaway's BNSF Railway [1] Group 2 - The railroad industry has historically faced strict regulatory scrutiny for mergers, but the regulatory environment has loosened since the Trump administration, with Patrick Fuchs, a pro-industry consolidation supporter, serving as the chairman of the Surface Transportation Board [4] - In 2023, Canadian Pacific Railway successfully completed the acquisition of Kansas City Southern for approximately $31 billion, setting a record for mergers at that time [4] - Union Pacific's CEO, Jim Vena, acknowledged the intention to pursue large mergers while recognizing the political and regulatory complexities involved [4] Group 3 - Jefferies analyst Stephanie Moore indicated that a merger between Union Pacific and Norfolk Southern would create a unified railroad network across the Americas, significantly enhancing transportation efficiency and reducing unnecessary cargo transfers during cross-continental transport [4] - Such a large-scale merger could reclaim some market share from trucking, injecting new momentum into a sub-industry that has seen stagnation or decline in freight volumes over the past two decades [4] Group 4 - In its second-quarter earnings report, Union Pacific reported a net profit of $1.9 billion, with diluted earnings per share of $3.15, showing a significant increase from $1.7 billion (or $2.74 per share) in the same period of 2024 [4] - The company's market and sales executive vice president noted positive signals regarding current tariff policies, with some clients shifting production from Asia to Mexico [5]

Market Overview - Pre-market futures are mixed but showing signs of weakening, following record high closes on the S&P 500, with profit-taking being a potential factor [1] - The tech-heavy Nasdaq is up by 42 points (+0.18%), while the Dow is down by 300 points (-0.67%) due to UnitedHealth's DOJ probe [2] Job Market Data - Initial Jobless Claims decreased to 217K, marking the lowest level in 14 weeks and the sixth consecutive week of decline [3] - Continuing Claims are reported at 1.955 million, slightly above the previous week's revised figure, indicating a stall just below 2 million [4] Q2 Earnings Reports - American Airlines (AAL) reported earnings of 95 cents per share, exceeding expectations by +20.25%, but shares fell -6% due to warnings of softer demand [5] - Honeywell (HON) surpassed earnings expectations with $2.75 per share, a +4.2% increase from the previous year, but shares are down -2.7% as the company plans to split into three segments [6] - Union Pacific (UNP) reported earnings of $3.03 per share, beating expectations by +4.84%, with revenues of $6.2 billion also exceeding forecasts, though shares are down -3% [7] Economic Indicators - S&P flash Services PMI for July is expected to rise to 53.2, while Manufacturing PMI is anticipated to dip to 52.7, both remaining above the growth threshold of 50 [8][9] - New Home Sales for June are projected at 645K units, an increase from 623K in the previous month, despite disappointing Existing Home Sales figures [10] Upcoming Earnings Reports - Intel and Deckers Outdoor are scheduled to report their Q2 earnings after the market closes today [11]

Core Insights - Union Pacific reported revenue of $6.15 billion for the quarter ended June 2025, reflecting a 2.5% increase year-over-year and a surprise of +0.72% over the Zacks Consensus Estimate of $6.11 billion [1] - Earnings per share (EPS) reached $3.03, up from $2.74 in the same quarter last year, surpassing the consensus EPS estimate of $2.89 by +4.84% [1] Financial Performance Metrics - Operating Ratio was reported at 59%, slightly better than the five-analyst average estimate of 59.5% [4] - Average revenue per car for Bulk was $3,659, compared to the four-analyst average estimate of $3,700.32 [4] - Revenue Carloads for Bulk were 519 thousand, exceeding the average estimate of 493.75 thousand [4] - Average revenue per car for Industrial Products was $3,885, slightly below the average estimate of $3,891.73 [4] - Freight Revenues for Bulk totaled $1.9 billion, surpassing the average estimate of $1.83 billion, marking a +10.5% year-over-year change [4] - Operating Revenues from Other revenues were $311 million, below the average estimate of $335.95 million, reflecting a -15.7% year-over-year change [4] - Freight Revenues for Industrial Products reached $2.21 billion, slightly above the average estimate of $2.18 billion, with a +4.2% year-over-year change [4] - Freight Revenues for Premium were $1.73 billion, matching the average estimate, but down -3.6% compared to the year-ago quarter [4] - Total Freight Revenues were $5.84 billion, exceeding the average estimate of $5.76 billion, with a +3.6% year-over-year change [4] - Freight Revenues for Forest products were $340 million, slightly below the average estimate of $341.76 million, reflecting a -0.6% year-over-year change [4] - Freight Revenues for Energy & specialized markets were $665 million, below the average estimate of $699.68 million, with a +1.1% year-over-year change [4] - Freight Revenues for Intermodal were $1.1 billion, slightly below the average estimate of $1.12 billion, down -3.3% compared to the year-ago quarter [4] Stock Performance - Union Pacific shares returned +1.9% over the past month, while the Zacks S&P 500 composite increased by +5.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]