Union Pacific(US:UNP) ZACKS·2025-10-23 16:06Core Insights - Union Pacific Corporation (UNP) reported third-quarter 2025 earnings of $3.08 per share, exceeding the Zacks Consensus Estimate of $2.99, marking a 12% year-over-year improvement due to strong operational efficiency [1][9] - Operating revenues reached $6.2 billion, surpassing the Zacks Consensus Estimate by 0.2% and reflecting a 2.5% year-over-year increase driven by solid core pricing gains [1][9] Financial Performance - Freight revenues, which constitute 95% of total revenues, increased by 3% to $5.93 billion, exceeding the estimate of $5.87 billion [2] - Total operating expenses rose by 1% year over year to $3.7 billion, with fuel expenses up by 1% and purchased services and materials expenses increasing by 6% [3] - Operating income improved by 6% year over year to $2.55 billion, while the operating ratio improved by 180 basis points to 58.5% [3][9] Segment Performance - Bulk freight revenues increased by 7% year over year to $1.93 billion, outperforming the projected increase of 3.8% [4] - Industrial freight revenues rose by 3% to $2.19 billion, slightly below the expected increase of 4.1% [5] - Premium freight revenues decreased by 2% to $1.8 billion, aligning with the anticipated decline of 3% [5] Liquidity and Debt - Union Pacific ended the third quarter of 2025 with cash and cash equivalents of $808 million, down from $1 billion at the end of 2024 [6] - Debt increased to $30.29 billion from $29.77 billion at the end of 2024 [6]