Core Viewpoint - Union Pacific Corporation is a leading player in the railroad industry, showcasing strong financial performance and a commitment to shareholder returns, despite facing some challenges in the competitive market environment. Financial Performance - Union Pacific reported a record net income of $7.1 billion in 2025, reflecting a 6% increase from the previous year, with earnings per share (EPS) rising by 8% to $11.98 [2][6] - The company's freight revenue, excluding fuel surcharge, grew by 3%, achieving a new full-year record, while the operating ratio improved by 60 basis points to 59.3%, indicating enhanced efficiency [3] Shareholder Returns - The company distributed $5.9 billion through dividends and share repurchases, marking a 25% increase from 2024, demonstrating its commitment to returning value to shareholders [4][6] Market Challenges - In the fourth quarter of 2025, Union Pacific faced a 1% decrease in operating revenue compared to 2024, with freight revenue also declining by 1% due to a 4% drop in volume [5] - The company continues to navigate a competitive market environment but maintains a strong financial foundation and strategic initiatives for future growth [5] Price Target - Goldman Sachs set a price target of $267 for Union Pacific, suggesting a potential increase of 14.81% from its current price of $232.55, supported by the company's strong financial outlook [2][6]

Core Viewpoint - Union Pacific Corporation is facing challenges in revenue growth despite maintaining a focus on operational efficiency and future investments [1][4][6] Financial Performance - Union Pacific reported earnings per share of $2.86, missing the Zacks Consensus Estimate of $2.90, representing a 1.7% year-over-year decline [2][6] - Operating revenues were $6.08 billion, below the expected $6.14 billion, reflecting a 1% decline from the previous year [2][6] Revenue Challenges - The decline in revenues was primarily due to lower volume, with a 4% year-over-year decrease in revenue carloads [3][6] - Freight revenue was impacted by a drop in Premium volumes, although there were gains in the Bulk and Industrial segments [3] Operational Efficiency - Union Pacific achieved a lower operating ratio, indicating improved efficiency [4] - The company has guided for mid-single-digit EPS growth and plans capital expenditures of approximately $3.3 billion in 2026, focusing on operational performance and future growth [4][6] Stock Performance - Union Pacific's stock is currently trading at $232.55, with a slight increase of 0.72%, and has a market capitalization of approximately $137.94 billion [5]

Group 1 - Significant bullish activity observed among deep-pocketed investors in Union Pacific, indicating potential upcoming developments [1][2] - Options activity shows a split sentiment among investors, with 50% bullish and 40% bearish; notable trades include 8 calls totaling $1,201,363 and 2 puts totaling $77,843 [2] - Price targets for Union Pacific are projected between $220.0 and $255.0 based on recent trading activity [3] Group 2 - Volume and open interest trends provide insights into liquidity and interest levels for Union Pacific's options, particularly within the $220.0 to $255.0 strike price range [4] - Recent options activity includes various trades, with bullish sentiment dominating; significant trades include a $823.5K call at a $240.00 strike price [7] Group 3 - Union Pacific, based in Omaha, Nebraska, is the largest public railroad in North America, operating over 30,000 miles of track and generating $24 billion in revenue in 2024 [8] - The company derives approximately 10% of its revenue from freight hauling to and from Mexico, owning about one-fourth of the Mexican railroad Ferromex [8] Group 4 - Current trading volume for Union Pacific stands at 3,662,439, with the stock price at $231.0, reflecting a 0.52% increase [11] - Analyst ratings indicate an average target price of $262.5, with one analyst maintaining a Neutral rating and another downgrading to Market Perform with a target of $255 [10][11]

Rail and supply chain infrastructure company OmniTRAX has named Ryan Dreier as its new chief commercial officer, the company said today. Dreier joined OmniTRAX as executive vice president in 2025 from BNSF Railway. In his new role, he will oversee commercial strategy, sales operations, transload, and new business development for a company that has seen growth of more than 50% over the last five years. “OmniTRAX’s ability to provide trusted, tailored service has fueled our record-setting growth,” OmniTRA ...

“The Union Pacific team delivered our best ever full year across safety, service and operating excellence,” Chief Executive Jim Vena said on the railroad’s earnings call on Tuesday morning. “As we close out the year, it’s clear the team is consistently delivering at the highest levels, and I’m confident that’s what we’ll continue to do.” For the year, the Omaha-based company (NYSE: UNP) said operating income rose 1%, to $9.8 billion, as revenue rose 1%, to $24.5 billion. Overall volume also was up 1%. Ea ...

Core Insights - Union Pacific reported $6.09 billion in revenue for Q4 2025, a year-over-year decline of 0.6% and below the Zacks Consensus Estimate of $6.14 billion, resulting in a surprise of -0.82% [1] - The company's EPS for the quarter was $2.86, down from $2.91 a year ago, with an EPS surprise of -1.47% compared to the consensus estimate of $2.90 [1] Financial Performance Metrics - Operating Ratio was reported at 60.5%, higher than the average estimate of 58.8% from four analysts [4] - Revenue Ton-Miles reached 106.52 billion, exceeding the three-analyst average estimate of 105.12 billion [4] - Total Revenue Carloads were 2.07 million, slightly below the average estimate of 2.1 million from three analysts [4] - Revenue Ton-Miles for Industrial Products was 31.1 billion, compared to the average estimate of 31.99 billion [4] - Freight Revenues from Bulk were $1.92 billion, slightly below the average estimate of $1.93 billion, but showed a year-over-year increase of 3% [4] - Other Operating Revenues were $326 million, exceeding the average estimate of $319.31 million, but reflecting a year-over-year decline of 1.8% [4] - Freight Revenues from Industrial Products were $2.12 billion, below the average estimate of $2.18 billion, with a year-over-year increase of 1.2% [4] - Freight Revenues from Premium services were $1.72 billion, slightly above the average estimate of $1.71 billion, but down 6% year-over-year [4] - Total Freight Revenues were $5.76 billion, below the average estimate of $5.82 billion, reflecting a year-over-year decline of 0.5% [4] - Freight Revenues from Forest Products were $302 million, below the average estimate of $334.54 million, showing a year-over-year decline of 6.8% [4] - Freight Revenues from Energy & Specialized Markets were $659 million, below the average estimate of $705.38 million, with a year-over-year decline of 3% [4] - Freight Revenues from Intermodal services were $1.14 billion, slightly above the average estimate of $1.12 billion, but down 8.7% year-over-year [4] Stock Performance - Union Pacific shares have returned -1.6% over the past month, while the Zacks S&P 500 composite has increased by 0.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Union Pacific reported a higher profit in the fourth quarter despite a slight decline in revenue due to lower volumes [1] Financial Performance - The company experienced a profit increase in the fourth quarter [1] - Revenue fell slightly, indicating a headwind from lower volumes [1]

The upcoming report from Norfolk Southern (NSC) is expected to reveal quarterly earnings of $2.78 per share, indicating a decline of 8.6% compared to the year-ago period. Analysts forecast revenues of $3 billion, representing a decline of 0.8% year over year.The consensus EPS estimate for the quarter has undergone a downward revision of 3.5% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timefr ...

Financial Data and Key Metrics Changes - Union Pacific reported a full-year net income of $7.1 billion, an increase of 6%, and earnings per share of $11.98, up 8% compared to 2024 [9] - The adjusted operating ratio improved by 60 basis points to 59.3% versus 2024 [10] - Full-year cash from operations totaled $9.3 billion, roughly flat compared to 2024, while cash return to shareholders grew by 25% to $5.9 billion [16] Business Line Data and Key Metrics Changes - In the fourth quarter, operating revenue was $6.1 billion, a decrease of 1% year-over-year, with freight revenue of $5.8 billion also down 1% on a 4% lower volume [12] - Bulk segment revenue increased by 3% due to a 3% increase in volume, while industrial revenue was up 1% on a 1% increase in volume [18][19] - Premium revenue declined by 6% despite a 10% increase in volume, reflecting business mix and higher fuel surcharges [19] Market Data and Key Metrics Changes - The competitive and global market environment impacted pricing and mix, particularly in agricultural sectors [12] - Domestic intermodal volumes faced challenges due to lower West Coast imports and customer shifts, although 2025 was the best-ever year for domestic intermodal [20] - The outlook for 2026 indicates a softer environment, with industrial production forecasted to be flat and housing starts expected to decline by more than 2% [21][22] Company Strategy and Development Direction - The company aims to maintain a strong focus on safety, service, and operational excellence to drive growth [30] - Capital spending for 2026 is targeted at approximately $3.3 billion, prioritizing core infrastructure and modernization of the locomotive fleet [28] - The merger with Norfolk Southern is expected to enhance competition and improve service delivery, with a focus on regulatory compliance [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in operational capabilities despite a challenging economic backdrop, with expectations for mid-single-digit earnings growth in 2026 [33] - The company anticipates inflation to exceed 4% in 2026, impacting margins, but remains committed to improving operating ratios [32] - Management highlighted the importance of maintaining a buffer of resources to adapt to market conditions and customer demands [61] Other Important Information - The company achieved best-ever results in safety performance, with significant improvements in personal injury and derailment rates [25] - The merger application with Norfolk Southern is undergoing additional scrutiny, with expectations to resubmit soon [40][88] Q&A Session Summary Question: How will the company improve operating ratio in 2026 given inflation and pricing challenges? - Management indicated that improvements will come from productivity gains and a more favorable business mix, despite not expecting price increases to contribute positively [46][47] Question: Can you elaborate on the $2 billion targeted net revenue gains from the merger? - Management expressed confidence in the projected traffic growth and emphasized that the operational efficiency will handle the increased traffic effectively [53][56] Question: What is the outlook for capital expenditures and growth into 2027? - Management clarified that capital expenditures are aligned with network needs and emphasized a conservative approach to growth expectations for 2027 [68][70]

Financial Data and Key Metrics Changes - Union Pacific reported a full-year net income of $7.1 billion, an increase of 6%, and earnings per share of $11.98, up 8% compared to 2024 [9] - The adjusted operating ratio improved by 60 basis points to 59.3% versus 2024 [10] - Full-year cash from operations totaled $9.3 billion, roughly flat compared to 2024, while cash return to shareholders grew by 25% to $5.9 billion [16] Business Line Data and Key Metrics Changes - In the fourth quarter, operating revenue was $6.1 billion, a decrease of 1% year-over-year, with freight revenue of $5.8 billion also down 1% on a 4% lower volume [12] - Bulk segment revenue increased by 3% due to a 3% increase in volume, while industrial revenue was up 1% on a 1% increase in volume [18][19] - Premium revenue declined by 6% despite a 10% increase in volume, reflecting business mix and higher fuel surcharges [19] Market Data and Key Metrics Changes - The competitive and global market environment impacted quarterly pricing and mix, particularly in agricultural sectors [12] - Domestic intermodal volumes faced challenges due to lower West Coast imports and customer shifts, although 2025 was the best-ever year for domestic intermodal [20] - The outlook for 2026 indicates a softer environment, with industrial production forecasted to be flat and housing starts expected to decline by more than 2% [21][22] Company Strategy and Development Direction - The company aims to maintain a strong focus on safety, service, and operational excellence to drive growth and improve margins [30][32] - Capital spending for 2026 is targeted at approximately $3.3 billion, prioritizing core infrastructure and modernization of the locomotive fleet [28] - The merger with Norfolk Southern is expected to enhance competition and improve service delivery, with a focus on regulatory compliance and transparency [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in operational capabilities despite a challenging macroeconomic environment, with expectations for mid-single-digit earnings growth in 2026 [33] - The company anticipates inflation of slightly over 4% in 2026, impacting cost structures but remains committed to improving operating ratios [32] - Management highlighted the importance of maintaining a buffer of resources to handle increased traffic post-merger and ensure service reliability [61][62] Other Important Information - The company achieved best-ever results in safety performance, with significant improvements in personal injury and derailment rates [25] - The company plans to continue investing in targeted capacity projects to support growth initiatives and enhance operational efficiency [28] Q&A Session Summary Question: How will the company improve operating ratio in 2026 given inflation and lack of price support? - Management indicated that improvements will come from productivity gains and a more favorable business mix, despite challenges in pricing [46][48] Question: Can you elaborate on the $2 billion targeted net revenue gains from the merger? - Management expressed confidence in the traffic growth estimates and the ability to handle increased business efficiently, emphasizing the importance of capacity investments [53][56] Question: What is the outlook for mid-single-digit growth into 2027? - Management acknowledged the pressure on 2027 growth targets but remains optimistic about capitalizing on market opportunities [67][73] Question: How does the new switching regulation impact the business? - Management supports increased competition and optionality for customers, emphasizing the need for clarity in regulatory details [81][84]