Core Insights - Union Pacific reported $6.24 billion in revenue for Q3 2025, a 2.5% year-over-year increase, with an EPS of $3.08 compared to $2.75 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] Financial Performance - The reported revenue of $6.24 billion surpassed the Zacks Consensus Estimate of $6.23 billion, resulting in a surprise of +0.16% [1] - EPS of $3.08 represented a surprise of +3.01% against the consensus estimate of $2.99 [1] - Operating Ratio was reported at 59.2%, slightly above the four-analyst average estimate of 59% [4] - Total Revenue Ton-Miles reached 108.86 billion, exceeding the average estimate of 106.18 billion [4] - Total Revenue Carloads were 2.16 million, slightly below the average estimate of 2.17 million [4] Revenue Breakdown - Freight Revenues from Bulk were $1.93 billion, a +6.9% change year-over-year, exceeding the average estimate of $1.92 billion [4] - Freight Revenues from Industrial Products were $2.19 billion, a +3.4% change year-over-year, below the average estimate of $2.23 billion [4] - Freight Revenues from Premium were $1.8 billion, a -2.1% change year-over-year, exceeding the average estimate of $1.76 billion [4] - Operating Revenues from Freight were $5.93 billion, a +2.8% year-over-year change, slightly above the average estimate of $5.91 billion [4] - Freight Revenues from Energy & Specialized Markets were $652 million, a -3% change year-over-year, below the average estimate of $714.03 million [4] - Freight Revenues from Intermodal were $1.2 billion, a -3.4% change year-over-year, exceeding the average estimate of $1.16 billion [4] Stock Performance - Union Pacific shares returned -2.2% over the past month, while the Zacks S&P 500 composite saw a +0.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1 - The company reported a profit beat in the third quarter [3] - There was an improvement in the operating ratio of more than 100 basis points [3] - The slight revenue miss was overshadowed by the profit beat and operating ratio improvement [3]

Core Insights - Union Pacific (UNP) reported quarterly earnings of $3.08 per share, exceeding the Zacks Consensus Estimate of $2.99 per share, and up from $2.75 per share a year ago, representing an earnings surprise of +3.01% [1][2] - The company generated revenues of $6.24 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.16% and showing an increase from $6.09 billion year-over-year [2] - Union Pacific has outperformed consensus EPS estimates three times over the last four quarters and has topped revenue estimates twice in the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.04 on revenues of $6.24 billion, while for the current fiscal year, the estimate is $11.74 on revenues of $24.66 billion [7] - The estimate revisions trend for Union Pacific was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Transportation - Rail industry, to which Union Pacific belongs, is currently in the bottom 10% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Union Pacific reported third quarter 2025 earnings per share of $3.01, with adjusted earnings per share of $3.08, reflecting a 12% increase year-over-year [3][8] - Operating revenue reached $6.2 billion, a 3% increase compared to the previous year, while freight revenue totaled $5.9 billion, also up 3% [5][8] - The adjusted operating ratio improved by 180 basis points to 58.5% [3][8] - Cash from operations totaled $7.1 billion, up 6% year-over-year, with a cash balance of over $800 million [9] Business Line Data and Key Metrics Changes - Bulk segment revenue increased by 7% on a 7% volume increase, driven by strong coal demand and export wheat shipments [13] - Industrial segment revenue rose by 3% with a corresponding volume increase, while premium revenue declined by 2% due to a 5% decrease in volume [14] - Intermodal volumes faced challenges, with a 17% decrease in international volume, although domestic segments achieved record-breaking volumes [15][16] Market Data and Key Metrics Changes - The company noted softer economic indicators such as automotive sales and housing starts, impacting overall market conditions [10] - International intermodal volumes are expected to decline further, reflecting tough comparisons against last year's strong growth [11] Company Strategy and Development Direction - The company is focused on executing its strategy to drive operational efficiencies and improve service reliability [3][10] - Union Pacific aims to achieve high single to low double-digit growth in earnings per share over the next three years, reaffirming its commitment to accretive pricing and industry-leading operating ratios [11][12] - The merger with Norfolk Southern Corporation is positioned as a strategic move to enhance competition and service offerings [25][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the operating environment but expressed confidence in achieving solid results despite a decline in volumes [10][11] - The team is committed to maintaining high service levels and operational excellence, which are seen as critical for future growth [19][20] - The company anticipates continued strength in bulk and industrial segments, while facing headwinds in international volumes and automotive markets [16][18] Other Important Information - The company has paused its share repurchase program to prioritize debt reduction, having paid down $1 billion in long-term notes during the quarter [9] - Union Pacific has maintained its commitment to providing annual dividend raises for 19 consecutive years [9] Q&A Session Summary Question: Thoughts on merger application and support from shippers and unions - Management provided a comprehensive overview of the merger process, emphasizing the importance of high service levels and financial stability as foundations for the merger [28][30] - The company has secured support from over 400 customers, indicating strong backing for the merger [36] Question: Sequential operating ratio and fourth quarter expectations - Management refrained from providing specific guidance but discussed the challenges posed by declining volumes and merger costs [39][42] Question: Competitors collaborating more since merger announcement - Management viewed competitor collaboration as a validation of Union Pacific's competitive position and expressed confidence in the merger's benefits for customers [48][49] Question: Productivity and efficiency amid weaker volumes - Management assured that they would not sacrifice service quality and would adjust resources as necessary to maintain productivity [54][56] Question: Opposition from BNSF regarding the merger - Management downplayed the significance of opposition from BNSF, asserting that the merger would enhance competition and benefit customers [60][62] Question: Pricing environment and future expectations - Management indicated that while the pricing environment remains challenging, they expect to continue yielding positive pricing results driven by service improvements [68][70]

格隆汇10月23日｜联合太平洋公布第三季度业绩，营收为62.4亿美元，同比增长2.5%，略低于市场预期 的62.5亿美元；调整后每股收益为3.08美元，高于市场预期的3美元。运营比率(OR)(铁路行业的一项关 键绩效指标)为 59.2%，提高了110个基点，高于市场预期。 ...

Core Insights - Union Pacific's quarterly profit slightly exceeded Wall Street expectations, indicating strong resilience in rail transport despite tariffs and economic fluctuations [1] - The company reported a non-GAAP earnings per share of $3.08, surpassing expectations by $0.08, with revenue of $6.24 billion, a year-over-year increase of 2.5%, but $10 million below expectations [1] - The operating ratio (OR) was 59.2%, improving by 110 basis points and exceeding market expectations; the adjusted operating ratio (OR*) was 58.5%, up by 180 basis points [1] Financial Performance - Non-fuel freight revenue increased by 4% [1] - The company reported improvements in casualty and derailment rates [1] - Freight car velocity increased to 226 miles per day, an 8% improvement [1] Industry Context - The North American rail industry faces challenges such as fluctuations in freight volume, rising labor and fuel costs, and increasing pressure from shippers for service reliability [1] - The intermodal business revenue was $1.5 billion, a decline of 3% year-over-year [1] Strategic Developments - Union Pacific is working to complete a $72 billion acquisition of competitor Norfolk Southern, which would create a transcontinental railway and become one of the largest freight railroads globally, pending regulatory approval [2]

Core Insights - Union Pacific Corp. reported third-quarter earnings of $1.79 billion on revenue of $6.24 billion, with a per-share profit of $3.01, exceeding analyst expectations [1] Financial Performance - The adjusted earnings per share, accounting for costs related to the proposed merger with Norfolk Southern, were $3.08 [1] - Revenue surpassed expectations of $6.23 billion, while the earnings per share exceeded the forecast of $2.99 from seven analysts surveyed [1]

Financial Performance - Union Pacific's reported operating income for the third quarter of 2025 was $2.5 billion, a 6% increase compared to the third quarter of 2024[13] - The adjusted operating income was $2.6 billion, a 7% increase compared to the same period[13] - The reported operating ratio was 59.2%, a 1.1 percentage point improvement compared to the third quarter of 2024[13] - The adjusted operating ratio was 58.5%, a 1.8 percentage point improvement[13] - Net income was reported at $1.8 billion, a 7% increase year-over-year, while adjusted net income also stood at $1.8 billion, reflecting a 9% increase[13] - Reported earnings per share (EPS) was $3.01, a 9% increase, and adjusted EPS was $3.08, a 12% increase compared to the third quarter of 2024[13] Revenue and Volume - Total freight revenue reached $5.927 billion, a 3% increase compared to the third quarter of 2024[17] - Bulk commodity revenue was $1.930 billion, a 7% increase compared to the third quarter of 2024, with a volume of 530 thousand, also a 7% increase[31] - Industrial commodity revenue was $2.194 billion, a 3% increase, with a volume of 574 thousand, also a 3% increase[31] - Premium commodity revenue was $1.803 billion, a 2% increase, with a volume of 1059 thousand, a 5% increase[31] Cash Flow and Capital Allocation - Union Pacific generated $7.1 billion in cash from operations year-to-date[22] - The company returned $5.1 billion to shareholders[26] - Free cash flow was $1.9 billion[26] - The company's capital plan includes $3.4 billion in investments[25]

OMAHA, Neb. (AP) — Union Pacific delivered 7% growth in its third-quarter earnings Thursday as its CEO continues to make the case for the potential benefits of acquiring one of the railroad's eastern rivals. The Omaha, Nebraska-based railroad said it earned $1.79 billion, or $3.01 per share, in the quarter. That's up from $1.67 billion, or $2.75 per share, a year ago. And without $41 million in merger costs the railroad would have made $3.08 per share but either number would have beat the Wall Street esti ...

Union Pacific Corp.’s quarterly profit slightly outpaced Wall Street estimates, a sign of resilience for rail volume in the face of tariffs and economic volatility. https://t.co/FYNjJtIBbN ...