Union Pacific and Norfolk Southern are engaged in advanced discussions regarding a potential business combination https://t.co/GFyL5AtGSa ...

Core Viewpoint - Union Pacific reported quarterly earnings of $3.03 per share, exceeding the Zacks Consensus Estimate of $2.89 per share, and showing an increase from $2.74 per share a year ago, indicating a positive earnings surprise of +4.84% [1][2] Financial Performance - The company achieved revenues of $6.15 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.72% and showing growth from $6.01 billion year-over-year [2] - Over the last four quarters, Union Pacific has surpassed consensus EPS estimates two times and topped revenue estimates once [2] Stock Performance - Union Pacific shares have increased by approximately 1.3% since the beginning of the year, while the S&P 500 has gained 8.1%, indicating underperformance relative to the broader market [3] Future Outlook - The company's earnings outlook will be crucial for assessing future stock performance, with current consensus EPS estimates at $2.96 for the coming quarter and $11.57 for the current fiscal year [7] - The Zacks Rank for Union Pacific is currently 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Transportation - Rail industry, to which Union Pacific belongs, is currently ranked in the top 14% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Union Pacific's stock performance [5]

Financial Data and Key Metrics Changes - The company reported second quarter earnings per share of $3.15, with adjusted earnings per share at $3.30, reflecting a 12% increase compared to last year's adjusted results [5][12] - Operating revenue reached $6.2 billion, a 2% improvement year-over-year, while freight revenue set a record at $5.8 billion, increasing by 4% [8][12] - The adjusted operating ratio improved to 58.1%, a 230 basis point enhancement from the previous year [5][12] Business Line Data and Key Metrics Changes - Bulk segment revenue increased by 10% with an 11% rise in volume, driven by strong coal demand and export shipments [18] - Industrial segment revenue grew by 4% on a 3% increase in volume, with solid rock shipments and industrial chemicals, although forest products remained soft [19] - Premium revenue decreased by 4% despite a 1% increase in volume, attributed to a mix impact from international intermodal shipments [19] Market Data and Key Metrics Changes - The company experienced a surge in coal shipments, with a 30% increase in coal and renewable shipments handled efficiently [27] - Intermodal volumes showed year-over-year growth, although automotive volumes declined due to reduced OEM production [20] - The company anticipates continued softness in the autos market and lower asset sales impacting other revenue in the upcoming quarters [14] Company Strategy and Development Direction - The company remains committed to operational excellence, safety, and service, aiming to maintain industry leadership through productivity improvements and strategic pricing [5][15] - A focus on capital deployment strategy remains unchanged, with ongoing investments in intermodal capabilities and infrastructure [15][25] - The company is exploring growth opportunities in various segments, including coal and industrial markets, while adapting to market changes [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving high single to low double-digit EPS growth consistent with three-year targets [15][37] - The company is prepared to handle potential volume moderation in the second half of 2025, while maintaining a focus on operational efficiency and customer service [14][81] - Management highlighted the importance of adapting to external pressures, including tariff implications and market uncertainties, while leveraging internal strengths [23][53] Other Important Information - The company announced advanced discussions regarding a potential business combination with Norfolk Southern, with no further comments until an agreement is reached [38] - The company has returned $4.3 billion to shareholders through share repurchases and dividends, marking the nineteenth consecutive year of annual increases [13] Q&A Session Summary Question: Concerns about potential distractions from organic momentum due to discussions of a business combination - Management emphasized the importance of adapting to industry changes and maintaining operational efficiency, viewing the discussions as a strategic opportunity rather than a distraction [41][44] Question: Thoughts on reciprocal switching and giving shippers more options - Management reiterated the commitment to providing high-level service and innovative solutions to meet diverse customer needs, regardless of industry changes [50][53] Question: Feedback from shippers regarding potential consolidation - Management refrained from discussing specific shipper feedback during ongoing negotiations, emphasizing the importance of confidentiality [90] Question: Progress on automation and regulatory changes - Management noted positive momentum in discussions with the FRA regarding automation and safety technologies, highlighting ongoing efforts to improve operational efficiency [115][116] Question: Insights on coal market sustainability and customer sentiment - Management acknowledged the current strength in coal demand driven by natural gas prices, while remaining cautious about long-term market shifts [132][133]

Financial Data and Key Metrics Changes - Union Pacific reported second quarter earnings per share of $3.15, with adjusted earnings per share at $3.30, reflecting a 12% increase compared to last year's adjusted results [4][10] - Operating revenue reached $6.2 billion, a 2% improvement year-over-year, while freight revenue set a record at $5.8 billion, increasing by 4% [6][10] - The adjusted operating ratio improved to 58.1%, a 230 basis point enhancement from last year's adjusted results [4][10] Business Line Data and Key Metrics Changes - Bulk segment revenue increased by 10% with an 11% rise in volume, driven by strong coal demand and export shipments [16][20] - Industrial segment revenue rose by 4% on a 3% increase in volume, with solid rock shipments and industrial chemicals, although forest products remained soft [18][20] - Premium revenue decreased by 4% despite a 1% increase in volume, attributed to a mix of increased international intermodal shipments and lower fuel surcharges [19][20] Market Data and Key Metrics Changes - The company experienced a 30% surge in coal and renewable shipments, demonstrating its operational agility [25][30] - Intermodal volumes showed year-over-year growth, although automotive volumes declined due to reduced OEM production [19][20] - The company anticipates continued softness in the autos market and lower asset sales impacting other revenue in the third quarter [12][13] Company Strategy and Development Direction - Union Pacific is focused on maintaining operational excellence, safety, and service quality while exploring growth opportunities across its diverse franchise [13][20] - The company reaffirmed its three-year targets introduced in September, aiming for high single to low double-digit EPS growth [13][34] - The capital deployment strategy remains unchanged, with a commitment to delivering value for stakeholders [13][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to handle volume growth while improving safety and service performance [5][10] - The company expects volume to moderate in the second half of 2025, with a focus on operational improvements and cost control [12][13] - Management highlighted the importance of adapting to market changes and leveraging technology for efficiency [30][31] Other Important Information - Union Pacific and Norfolk Southern are engaged in advanced discussions regarding a potential business combination, with no further comments until an agreement is reached [35][36] - The company announced a 3% dividend increase, marking the nineteenth consecutive year of annual increases [11] Q&A Session All Questions and Answers Question: Why consider a potential business combination now? - Management emphasized the importance of adapting to technological changes and maintaining operational efficiency, suggesting that the discussions are part of a broader strategy to enhance capabilities [39][41] Question: Thoughts on reciprocal switching and open access for shippers? - Management reiterated the commitment to providing high-level service and innovative solutions to meet diverse customer needs, regardless of regulatory changes [48][52] Question: Feedback from shippers regarding consolidation? - Management stated that negotiations are private and emphasized the importance of maintaining confidentiality during discussions [84][88] Question: Progress on automation and regulatory changes? - Management noted positive momentum in discussions with the FRA regarding automation and safety technologies, highlighting ongoing efforts to improve operational efficiency [112][115] Question: Long-term outlook for revenue growth and intermodal partnerships? - Management expressed optimism about the intermodal business, citing strong service products and competitive positioning in the market [136][138]

Union Pacific said it is in advanced discussions with Norfolk Southern about a potential combination of the two rail giants https://t.co/BoWwruISqJ ...

Financial Performance - Earnings per Share (EPS) reached $3.15, a 15% year-over-year increase[5, 10] - Operating Income totaled $2.5 billion, representing a 5% increase compared to the previous year[5, 10] - Net Income amounted to $1.9 billion, showing a 12% year-over-year growth[5, 10] - The Operating Ratio improved to 59%, a decrease of 1 percentage point[5, 10] - Adjusted Earnings Per Share was $3.03, up 12%[8, 9] - Adjusted Operating Ratio improved to 58.1%, an improvement of 230 basis points[8, 9] Operational Efficiency - Freight Car Velocity increased to 221, a 10% improvement[5, 10] - Workforce Productivity reached 1,124, a 9% increase[5, 10] Cash Flow and Shareholder Returns - The company generated $4.5 billion in Cash From Operations[15, 20] - $4.3 billion was returned to shareholders[15, 20] - Free Cash Flow was $1.1 billion[15, 20] Revenue Analysis - Freight Revenue totaled $5.843 billion, a 4% increase[11, 18] - Bulk commodity revenue reached $1.901 billion, a 10% increase[25, 30] - Industrial commodity revenue was $2.212 billion, a 4% increase[25, 30] - Premium commodity revenue totaled $1.730 billion, a 4% increase[25, 30] Capital Allocation - The Capital Plan is set at $3.4 billion[23, 24] - Share Repurchases are planned between $4.0 to $4.5 billion[23, 24]

联合太平洋铁路(UNP)二季度运营收入61.5亿美元，低于市场预期的61.7亿美元； 每股收益3.15美元， 超出市场预期的2.92美元。 ...

Exhibit 99.1 Union Pacific Reports Second Quarter 2025 Results * 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. -more- • Diluted earnings per share (EPS) of $3.15 and adjusted diluted EPS* of $3.03 • Operating ratio (OR) of 59.0% and adjusted OR* of 58.1% • Revenue carloads up 4% • Operating revenue of $6.2 billion grew 2% driven by higher volume and solid core ...

Core Insights - Union Pacific (NYSE:UNP) is expected to announce earnings on July 24, 2025, with historical trends indicating a pattern of negative one-day returns post-announcement [1][2] - Analysts project earnings of $2.90 per share and revenues of $6.15 billion for the upcoming quarter, reflecting growth from the previous year's earnings of $2.74 per share and revenues of $6.01 billion [2] - The company currently has a market capitalization of $136 billion, with $24 billion in revenue, $9.7 billion in operating profits, and a net income of $6.7 billion over the past twelve months, indicating strong operational profitability [3] Historical Performance - Over the last five years, Union Pacific's stock has experienced a decrease on the day following earnings announcements in 55% of cases, with a median drop of -2.4% and a maximum decline of -6.8% [1][6] - Positive one-day returns occurred approximately 45% of the time, with the median of positive returns being 2.1% and the median of negative returns being -2.4% [6] Trading Strategies - Traders may consider pre-earnings positioning based on historical odds and evaluate the relationship between immediate and medium-term returns post-earnings to guide their strategies [5][7] - A strategy involving the correlation between one-day and five-day returns can be employed, where a positive one-day return may lead to a long position for the subsequent five days [7]

Core Viewpoint - Analysts project that Union Pacific (UNP) will report quarterly earnings of $2.89 per share, reflecting a year-over-year increase of 5.5%, with revenues expected to reach $6.11 billion, a 1.7% increase from the same quarter last year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been adjusted downward by 0.2%, indicating a reassessment by covering analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock price performance [3]. Key Metrics Projections - Analysts estimate 'Freight Revenues- Bulk' will reach $1.83 billion, a year-over-year change of +6.1% [5]. - 'Operating Revenues- Other revenues' are expected to be $334.89 million, indicating a -9.2% change from the prior-year quarter [5]. - 'Freight Revenues- Industrial Products' is projected at $2.18 billion, reflecting a +2.6% change from the year-ago quarter [5]. - 'Freight Revenues- Premium' is expected to reach $1.73 billion, suggesting a -3.5% year-over-year change [6]. - The 'Operating Ratio' is projected at 59.5%, down from 60.0% in the same quarter last year [6]. - The consensus for 'Average revenue per car - Bulk' stands at $3700.32, slightly up from $3692.00 year-over-year [6]. - 'Revenue Carloads - Bulk' is expected to reach 493.75 thousand, compared to 466.00 thousand last year [7]. - 'Average revenue per car - Industrial Products' is projected at $3891.73, up from $3825.00 in the same quarter last year [7]. - 'Average revenue per car - Premium' is forecasted to be $1678.52, down from $1766.00 year-over-year [8]. - 'Revenue Carloads - Premium' is expected to reach 1.03 million, slightly up from 1.02 million last year [8]. - The total 'Revenue Carloads' is projected at 2.08 million, compared to 2.04 million in the same quarter last year [9]. Stock Performance - Over the past month, Union Pacific shares have returned +1.1%, while the Zacks S&P 500 composite has changed +5.4% [10]. - Currently, UNP holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [10].