UNP Q2 2025

Q1 2026 Q4 2025 Q3 2025 Q2 2025

Earnings

Union Pacific posted a solid second quarter, with adjusted diluted EPS of $3.03 beating the $2.90 consensus estimate by 4.57%, while total operating revenue of $6.15 billion edged ahead of expectations and grew 2.5% year over year. The headline drive… Read more Union Pacific posted a solid second quarter, with adjusted diluted EPS of $3.03 beating the $2.90 consensus estimate by 4.57%, while total operating revenue of $6.15 billion edged ahead of expectations and grew 2.5% year over year. The headline driver was broad-based freight volume growth, with total revenue carloads rising 4% and bulk commodity strength particularly pronounced; Coal & Renewables revenue surged 38% to $469 million on a 30% carload increase, helping push bulk freight revenue up 10% to $1.90 billion. Operational improvements added further lift, with freight car velocity climbing 10% and workforce productivity gaining 9%, contributing to an adjusted operating ratio that improved 230 basis points to 58.1%. The quarter also carried some noise, including a $115 million deferred tax benefit and a $55 million crew staffing charge. Looking ahead, Union Pacific reaffirmed its 2025 outlook, including $4.00 to $4.50 billion in share repurchases and a 3% dividend increase in the third quarter, though management noted a challenging second-half comparison for international intermodal. Adding broader industry context, the company's proposed merger with Norfolk Southern, an $85 billion deal that would create a transcontinental rail network spanning 43 states, looms as a potential long-term reshaping of the competitive landscape.