Union Pacific Corp
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.45%.
Did UNP Beat Earnings? Q3 2025 Results
Union Pacific turned in a stronger-than-expected third quarter, with adjusted diluted EPS of $3.08 beating the $2.98 consensus estimate by 3.49%, even as revenue of $6.24 billion came in just fractionally below the $6.25 billion forecast, a gap of 0.10%, while still rising 2.5% year over year. The real driver behind the earnings beat was operational discipline and pricing momentum: freight revenue excluding fuel surcharge grew 4%, a figure management called a quarterly best, while the adjusted operating ratio improved 180 basis points to 58.5%. The Bulk segment was the standout, with freight revenue climbing 7% to $1.93 billion on a 13% surge in coal and renewables volume. Institutional investors have continued adding to positions ahead of what management has called a transformative pending acquisition of Norfolk Southern, with share repurchases paused to preserve capital for the deal. Looking ahead, Union Pacific reiterated targets consistent with a high-single to low-double digit three-year EPS CAGR, though it flagged a challenging international intermodal comparison on the horizon.
- Solid core pricing gains driving revenue growth
- Freight car velocity improved 8% to 226 daily miles per car
- Workforce productivity improved 6% to 1,165 car miles per employee
- Average terminal dwell improved 9% to 20.4 hours
- Locomotive productivity improved 4% to 140 GTMs per horsepower day
- Train length increased 2% to 9,801 feet
- Bulk segment revenue grew 7% driven by coal & renewables and fertilizer
- Average revenue per car increased 3% to $2,740
“Our third quarter results serve as a proof point that we are successfully executing on our strategy”
Union Pacific CEO, on the earnings call
Forward Guidance & Outlook
Union Pacific expects to meet customer demand with strong service while facing a challenging international intermodal comparison. Pricing dollars are expected to be accretive to operating ratio. EPS growth is targeted consistent with attaining a 3-year CAGR of high-single to low-double digits. The company projects industry-leading operating ratio and return on invested capital with continued strong cash generation. The capital plan is set at $3.4 billion. A 3% dividend increase was enacted in Q3 2025, while share repurchases are paused for the Norfolk Southern merger.
UNP YoY Financials
UNP Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.