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]

Union Pacific Corp. (NYSE: UNP) on Thursday said third-quarter earnings were $1.79 billion on revenue of $6.24 billion. The Omaha, Nebraska-based company said per-share profit was $3.01. Adjusted earnings for costs related to its proposed transcontinental merger with Norfolk Southern (NYSE: NSC) were $3.08 per share. The results exceeded expectations of revenue of $6.23 billion and $2.99 EPS of seven analysts surveyed by Zacks Investment Research. Norfolk Southern reports earnings Thursday after the clo ...

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 reported a 9% rise in third-quarter profit on Thursday, powered by strong pricing. ...

OMAHA, Neb.--(BUSINESS WIRE)--Union Pacific Corporation (NYSE: UNP) today reported 2025 third quarter net income of $1.8 billion, or $3.01 per diluted share. Results include merger costs of $41 million, or $0.07 per diluted share. Adjusted 2025 third quarter net income* of $1.8 billion, or $3.08 per diluted share* compares to 2024 third quarter net income of $1.7 billion, or $2.75 per diluted share. "Our third quarter results serve as a proof point that we are successfully executing on our stra. ...

Core Insights - The favorable antitrust ruling for Alphabet's Google has allowed the company to maintain its core search business, positively impacting its stock performance and contributing 3.1% to the fund this quarter [3] - UnitedHealth's stock rebounded after a significant decline earlier in the year, adding 0.9% to the fund, driven by optimistic comments from the new CEO and investment interest from Berkshire Hathaway [4] - Progressive was the largest detractor in the quarter, reducing performance by 0.5% due to concerns over lower interest rates affecting investment income [5] Performance Summary - The Bretton Fund achieved a return of 8.21% for the third quarter, outperforming the S&P 500 Index, which returned 8.12% [7] - Over the past year, the fund's return was 8.92%, while the S&P 500 Index returned 17.60% [7] - The fund's inception date was September 30, 2010, and it has delivered a 12.89% return since inception [7] Portfolio Composition - As of September 30, 2025, Alphabet Inc. constituted 11.51% of the fund's net assets, making it the largest holding [11] - Other significant holdings included AutoZone Inc. at 7.11% and The Progressive Corporation at 6.84% [11] - The fund also held positions in major companies like American Express, JPMorgan Chase, and UnitedHealth, each contributing to the overall portfolio diversity [11] Investment Actions - The fund sold its position in Union Pacific Corp after nearly 15 years, achieving a 13% annualized internal rate of return [14] - The decision to sell was influenced by concerns over a pending acquisition that could dilute shareholder value and distract management from core operations [15]

Core Thesis - Westinghouse Air Brake Technologies Corporation (WAB) is positioned as a dominant player in the global freight and transit markets, providing essential rail infrastructure solutions, which include locomotives, braking systems, and digital rail technologies [2][4] Financial Performance - WAB has demonstrated strong financial returns, with a five-year compound annual growth rate (CAGR) of 24.7% compared to the S&P 500's 14.6%, and a three-year CAGR of 31% versus the S&P's 19.4% [3] - The company has a 10-year median return on invested capital of approximately 8% and maintains a balanced capital structure with a debt-to-equity ratio of 44% [4] Revenue Composition - The freight segment contributes 72% of WAB's revenues, while the transit segment accounts for 28%, providing a stable international demand [4] - Historical revenue growth has averaged 13% annually, with a forward outlook driven by fleet modernization, decarbonization initiatives, and emerging-market transit build-outs [4] Market Position and Strategy - WAB combines recurring aftermarket revenues with exposure to long-cycle equipment orders, resulting in a durable and predictable business model [2][4] - Management has reaffirmed guidance and highlighted strategic wins in digital and clean-energy rail solutions, maintaining disciplined cost control for long-term visibility [5] Valuation - The stock is currently trading modestly above its intrinsic value estimate of $177, indicating potential for long-term growth [5]

Core Thesis - Canadian National Railway Company (CNI) is positioned as a long-term compounder in the transportation sector, benefiting from structural advantages that create a natural monopoly and durable pricing power [2][3][5] Structural Advantages - High capital costs, regulatory hurdles, and land rights create significant barriers to entry for competitors, making it nearly impossible for new entrants to disrupt the market [2][3] - Rail transport is the most cost-effective and energy-efficient mode for long-distance freight, further enhancing CNI's competitive edge [2][3] Network and Diversification - CNI's unmatched network spans the Pacific, Atlantic, and Gulf of Mexico, providing a strategic geographic footprint that no other Class I railroad can replicate [3][4] - The company's diversified freight mix, including grain, petroleum, intermodal, and forestry products, reduces reliance on any single commodity, contributing to operational stability [3][4] Financial Performance and Capital Allocation - CNI reported net revenues of $4.27 billion, showcasing its financial strength and operational excellence [4] - The company maintains disciplined capital allocation, supported by robust free cash flow that funds dividends and share buybacks while allowing for reinvestment in infrastructure and technology [3][4][5] Long-term Growth Potential - Structural growth in cross-border trade among the U.S., Canada, and Mexico enhances CNI's long-term positioning in the freight rail sector [3][5] - The combination of pricing power, operational efficiency, strategic reach, and financial durability positions CNI as a resilient and high-quality business for long-term investors [4][5]

Core Insights - Berkshire Hathaway shares have declined over 8% since Warren Buffett announced his retirement plans, significantly underperforming the S&P 500, which has gained approximately 18% during the same period [1][2] - Buffett confirmed he will step down as CEO at the end of 2025, passing leadership to Vice Chairman Greg Abel, expressing confidence in Abel's capabilities [2] - The market's skepticism regarding Berkshire's future performance has increased, leading to a widening gap in stock performance compared to the S&P 500 since the announcement [2][3] Market Sentiment - The decline in Berkshire's stock is attributed to the diminishing "Buffett premium," which has historically boosted the company's share price due to Buffett's esteemed reputation as an investor [3] - Investors are questioning whether Berkshire can maintain its growth trajectory without Buffett's leadership, given his significant role in the company's success over the past six decades [3] Structural Challenges - Berkshire's large size and substantial cash reserves pose challenges in finding suitable acquisitions that can drive growth [4] - The company's heavy reliance on insurance, utilities, and railroads has hindered its ability to capitalize on the tech-driven market rally that has benefited the broader U.S. market [4] Stability Factors - Despite the challenges, Buffett's ongoing role as chairman provides a level of stability for the company during this transition period [6]