Union Pacific Reports Fourth Quarter and Full Year 2025 Results

Financial Performance - Union Pacific reported a full year 2025 net income of $7.1 billion, an increase of 6% from $6.7 billion in 2024, with diluted EPS rising to $11.98 from $11.09, an 8% increase [1][2] - The fourth quarter net income was $1.8 billion, with diluted EPS at $3.11, compared to $1.76 billion and $2.91 in the same quarter of 2024 [1][2] - Adjusted full year net income for 2025 was $6.9 billion, up 3% from $6.8 billion in 2024, with adjusted diluted EPS at $11.66, a 5% increase from $11.11 [1][2] Operating Results - The full year operating ratio improved to 59.8%, a 10 basis point enhancement, while the adjusted operating ratio was 59.3%, improving by 60 basis points [1][2] - Fourth quarter operating ratio was reported at 60.5%, which is 180 basis points worse than the previous year, with an adjusted operating ratio of 60.0%, 190 basis points worse [1][2] - Revenue carloads for the full year increased by 1%, while fourth quarter carloads declined by 4% [1][2] Efficiency Metrics - Workforce productivity for the full year improved by 7% to 1,132 car miles per employee, while fourth quarter productivity was 1,151 car miles per employee, a 3% increase [1][2] - Average train length increased by 3% to 9,729 feet in the fourth quarter, and average terminal dwell improved by 9% to 19.8 hours [1][2] - Freight car velocity for the full year was 225 daily miles per car, an 8% increase, while fourth quarter velocity was 239 daily miles per car, a 9% increase [1][2] Revenue Breakdown - Operating revenue for 2025 was $24.5 billion, up 1% from $24.25 billion in 2024, driven by core pricing gains and higher volume [1][2] - Freight revenue excluding fuel surcharge grew by 3% for the full year, while total freight revenues for the fourth quarter decreased by 1% to $5.759 billion [1][2] - Key freight revenue categories included grain and grain products at $3.926 billion for the full year, a 3% increase, and coal and renewables at $1.786 billion, a 20% increase [2][3] Capital Allocation and Future Outlook - The company plans a capital allocation of $3.3 billion for 2026, with consistent annual dividend increases [1][2] - Union Pacific is focused on improving safety, service, and operational efficiencies while navigating the regulatory process for the creation of America's first transcontinental railroad [1][2]