Core Insights - Union Pacific Corp. reported third-quarter earnings of $1.79 billion on revenue of $6.24 billion, with a per-share profit of $3.01, exceeding analyst expectations [1] Financial Performance - The adjusted earnings per share, accounting for costs related to the proposed merger with Norfolk Southern, were $3.08 [1] - Revenue surpassed expectations of $6.23 billion, while the earnings per share exceeded the forecast of $2.99 from seven analysts surveyed [1]

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]

Industry Overview - The Zacks Transportation sector is facing challenges due to increased expenses, inflation-driven high interest rates, a decline in freight demand, and supply-chain issues [1][2] - Geopolitical uncertainties and tariff-related economic tensions are negatively impacting consumer sentiment and growth expectations [1] Economic Factors - Inflation concerns and risks of an economic slowdown are likely to increase market volatility [2] - Supply-chain disruptions are expected to keep costs elevated in the near future [2] Oil Prices Impact - A decrease in oil prices by 4.2% during the July-September 2025 period is anticipated to positively affect the profitability of transportation companies, as fuel costs are a major expense [3] Company Earnings Expectations - Investors are awaiting earnings results from Southwest Airlines Co. (LUV), Union Pacific Corporation (UNP), American Airlines Group Inc. (AAL), and Norfolk Southern Corporation (NSC), all scheduled for release this week [4] Southwest Airlines (LUV) - LUV is expected to report a 1.3% increase in passenger revenues compared to the third quarter of 2024 [6] - The Zacks Consensus Estimate for LUV's third-quarter 2025 revenues is $6.97 billion, reflecting a 1.44% year-over-year growth [7] - LUV's earnings estimate has been revised upward by over 100% in the past 60 days to 1 cent per share, but this represents a 93.33% decline from the previous year's actual [7][8] Union Pacific Corporation (UNP) - The Zacks Consensus Estimate for UNP's third-quarter 2025 revenues is $6.23 billion, indicating a 2.34% increase year-over-year [9] - Freight revenues are estimated at $5.86 billion, a 1.7% increase from the previous year, while other revenues are expected to decline by 3.6% [9] - The earnings estimate for UNP is $2.99 per share, reflecting an 8.73% increase from the year-ago actual [10][11] American Airlines Group Inc. (AAL) - AAL's loss estimate for the third quarter has widened to 27 cents per share, compared to a profit of 30 cents in the same quarter last year [12] - The Zacks Consensus Estimate for AAL's revenues is $13.63 billion, indicating a slight decline of 0.13% year-over-year [13] - AAL's earnings prediction does not suggest a likely earnings beat, with an Earnings ESP of -0.68% and a Zacks Rank of 3 [14] Norfolk Southern Corporation (NSC) - The earnings estimate for NSC has been revised downward by 4.50% to $3.18 per share, indicating a 2.15% decline from the previous year [15] - The revenue estimate for NSC is $3.09 billion, reflecting a 1.26% year-over-year growth [15] - E-commerce demand is expected to support shipment volumes, but challenges such as inflation, high interest rates, and weak freight demand may negatively impact performance [16][17]