Revenue and Financial Performance - In 2025, the company generated total freight revenues of $23.2 billion, with Bulk shipments accounting for 33%, Industrial shipments for 37%, and Premium shipments for 30% of total revenues[35][37][40]. - Total operating revenues for 2025 reached $24.51 billion, a slight increase from $24.25 billion in 2024 and $24.12 billion in 2023[271]. - Freight revenues accounted for $23.22 billion in 2025, up from $22.81 billion in 2024 and $22.57 billion in 2023[271]. - Net income for 2025 was $7.14 billion, compared to $6.75 billion in 2024 and $6.38 billion in 2023, reflecting a year-over-year growth of 5.8%[271]. - Earnings per share (EPS) for 2025 was $12.00, an increase from $11.10 in 2024 and $10.47 in 2023[271]. - Other income increased to $629 million in 2025, up from $350 million in 2024, contributing positively to overall financial performance[271]. - Comprehensive income for 2025 was $7.27 billion, an increase from $6.64 billion in 2024, driven by improved net income and other comprehensive income factors[272]. - Total assets increased to $69.698 billion in 2025 from $67.715 billion in 2024, representing a growth of 2.9%[274]. - Total operating expenses decreased to $14.66 billion in 2025 from $14.54 billion in 2024, indicating improved cost management[271]. - Cash provided by operating activities was $9.290 billion in 2025, slightly down from $9.346 billion in 2024[275]. Employee and Safety Metrics - The company employed an average of 29,287 employees in 2025, with a retention rate of 89%[43][53]. - The personal injury rate improved by 24% to 0.68, and the derailment incident rate improved by 19% to 1.75 in 2025 compared to 2024[48]. - The median annual compensation for all employees (excluding the CEO) was $107,889 as of December 31, 2025[52]. Environmental and Safety Initiatives - The company is committed to reducing greenhouse gas emissions, with freight rail being three to four times more fuel-efficient than trucks, thus contributing to lower scope 3 GHG emissions for customers[64]. - The company maintains a comprehensive security plan and has achieved accreditation under CALEA for law enforcement standards[55]. - The company collaborates with various government agencies and trade associations to enhance safety and security measures across its operations[58][63]. Capital Investments and Shareholder Returns - Capitalized costs to properties in 2025 were $3.9 billion, reflecting significant investment in asset management and expansion[265]. - Dividends paid increased to $3.236 billion in 2025 from $3.213 billion in 2024, a rise of 0.7%[275]. - Share repurchase programs totaled $2.694 billion in 2025, up from $1.505 billion in 2024, reflecting an increase of 78.9%[275]. - The company has authorized the repurchase of up to 100 million shares of common stock by March 31, 2028, with 6.1 million shares repurchased as of December 31, 2025[416]. - The average price paid for shares repurchased in 2025 was $227.20, with a total of 11.9 million shares repurchased[417]. - The company paused its share repurchase program due to the pending acquisition of Norfolk Southern[416]. Debt and Liabilities - Total liabilities increased to $51.231 billion in 2025 from $50.825 billion in 2024, a rise of 0.8%[274]. - Total debt as of December 31, 2025, was $31.814 billion, an increase from $31.192 billion in 2024[394]. - The fair value of total debt at December 31, 2025, was estimated at $26.5 billion, approximately $5.3 billion less than the carrying value[393]. - The company maintained an adjusted debt-to-EBITDA coverage ratio allowing for up to $47.7 billion of debt, with $33.5 billion outstanding as of December 31, 2025[396]. Pension and Employee Benefits - The projected benefit obligation (PBO) for pension plans decreased to $3.275 billion in 2025 from $3.513 billion in 2024, while the fair value of plan assets increased to $3.978 billion from $4.068 billion[333]. - The funded status of the pension plans improved to $703 million in 2025 from $555 million in 2024[334]. - The net periodic pension cost for 2025 was a benefit of $14 million, compared to a cost of $3 million in 2024 and no cost in 2023[339]. - Cash contributions to the non-qualified pension plan were $33 million in 2025, slightly up from $32 million in 2024[341]. - The accumulated benefit obligation (ABO) for all defined benefit pension plans was $3.2 billion as of December 31, 2025[336]. Taxation and Compliance - Total income tax expense for 2025 was $2,028 million, a slight decrease from $2,047 million in 2024[363]. - Federal taxes for 2025 amounted to $1,925 million, maintaining an effective tax rate of 21.0% consistent with previous years[364]. - Unrecognized tax benefits at December 31, 2025, were $27 million, down from $32 million in 2024, indicating a reduction in potential tax benefits[367]. Environmental Liabilities - The company has identified 343 sites for potential environmental remediation costs, with ongoing monitoring costs included in the environmental liability[413]. - Environmental liability has an ending balance of $259 million as of December 31, 2025, with accruals of $70 million during the year[414].

Core Insights - Union Pacific Corporation (NYSE:UNP) is recognized as one of the 15 Best Wide Moat Dividend Stocks to invest in [1] - Union Pacific and Wabtec have entered into a $1.2 billion agreement for the modernization of Union Pacific's AC4400 locomotive fleet, marking it as the largest investment in locomotive modernization in rail industry history, with deliveries expected to start in 2027 [2][4] - The modernization initiative is part of a broader trend among US railroads to refresh aging fleets, driven by infrastructure funding and the need for more fuel-efficient and digitally enabled locomotives [3] Company Developments - The modernization program is expected to yield significant benefits, including over 5% reduction in fuel consumption, a 14% increase in tractive effort, and an 80% improvement in reliability, resulting in more than 1,700 upgraded units in service [4] - Union Pacific operates one of the largest rail networks in the US, covering over 23 states and playing a crucial role in the domestic and global supply chain [5] Market Perspective - Following the announcement, JPMorgan adjusted its price target for Union Pacific from $270 to $265 while maintaining a Neutral rating [5]

Core Insights - Union Pacific (UNP) has entered a $1.2 billion agreement with Wabtec Corporation to modernize its locomotive fleet, marking the largest locomotive-modernization deal in rail industry history [1][6] - The deal emphasizes upgrading existing locomotive assets to enhance network efficiency, service reliability, and asset productivity while maintaining disciplined capital deployment [1][2] - The modernization initiative aims to extend the life of AC4400 locomotives and incorporates next-generation diagnostics and control technologies, setting a benchmark for the industry [2][3] Financial and Operational Impact - The agreement is expected to deliver measurable gains, including over 5% lower fuel consumption, a 14% increase in tractive effort, and an 80% improvement in reliability [3] - Union Pacific's shares have increased by 10.1% over the past six months, outperforming the Transportation - Rail industry's growth of 5.1% [4] Strategic Partnerships - The partnership with Wabtec enhances long-term revenue visibility for Wabtec and reinforces its strategic relationship with one of North America's largest Class I railroads [3][6] - This collaboration reflects a broader industry trend towards sustainability, standardization, and lifecycle optimization in rail operations [2]

Group 1 - Union Pacific Corporation (NYSE:UNP) is recognized as one of the 12 Best Stocks to Buy for the Long Term [1] - TD Cowen has adjusted its price target for Union Pacific to $255 from $257 while maintaining a Buy rating, following the company's Q4 results [2] - The Q4 earnings report showed adjusted earnings of $2.86 per share, slightly below the expected $2.87, and operating revenue of $6.09 billion, also below the forecast of $6.12 billion [3][4] Group 2 - The company is facing challenges due to uneven freight demand and macroeconomic pressures, which have impacted performance [3] - Union Pacific's proposed acquisition of Norfolk Southern, valued at $85 billion, is under regulatory review and has faced opposition from rail unions concerned about job security and shipping costs [3] - Looking ahead, Union Pacific is guiding for mid-single-digit earnings growth in 2026 [4]

Revenue Performance - Union Pacific and CSX both experienced annual revenue declines of 1 percent, with Union Pacific reporting $6.1 billion and CSX $3.5 billion in operating revenue, as poor volumes offset pricing gains and higher revenues from fuel surcharges [1] - Revenue carloads at Union Pacific fell 4 percent to 2.1 million, while CSX saw a 1 percent increase in volumes to 1.6 million units [2] Net Income and Profitability - Despite the decline in volume, Union Pacific's net income increased by 5 percent to $1.8 billion, while CSX's net income decreased by 2 percent to $720 million [2] Operational Challenges - Both railroads are recovering from disruptions caused by Winter Storm Fern, with Union Pacific expecting full recovery by Thursday and areas in southern states like Texas, Louisiana, and Arkansas being 70 percent recovered [3] - CSX is actively working to restore operations, with some terminals and corridors operating at reduced capacity due to road conditions and crew availability, although all intermodal terminals have reopened [4] Future Outlook - Looking ahead to 2026, both Union Pacific and CSX anticipate a year focused on execution and cost discipline rather than a significant rebound in freight volumes [5] - Union Pacific is targeting mid-single-digit earnings-per-share (EPS) growth off its 2025 base, with a three-year annual growth target of high-single-digit to low-double-digit EPS growth through 2027, alongside planned capital expenditures of $3.3 billion next year [6] - Margin expansion for Union Pacific may not primarily come from rate increases, as rail inflation is expected to rise by 4 percent in 2026; instead, the focus will be on productivity gains such as improved asset utilization and workforce efficiency [7]

Company Overview - Union Pacific (UNP) is based in Omaha and operates in the Transportation sector, with a year-to-date share price change of 0.53% [3] - The company currently pays a dividend of $1.38 per share, resulting in a dividend yield of 2.37%, which is significantly higher than the Transportation - Rail industry's yield of 0.91% and the S&P 500's yield of 1.36% [3] Dividend Performance - The current annualized dividend of Union Pacific is $5.52, reflecting a 1.5% increase from the previous year [4] - Over the past five years, Union Pacific has increased its dividend three times, achieving an average annual increase of 7.19% [4] - The company's current payout ratio is 47%, indicating that it pays out 47% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, Union Pacific anticipates solid earnings growth, with the Zacks Consensus Estimate for 2026 projected at $12.38 per share, representing a year-over-year earnings growth rate of 6.17% [5] Investment Considerations - Union Pacific is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6] - The company is positioned as a more secure dividend option compared to high-growth firms or tech start-ups, which typically do not offer dividends [6]

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]

Core Insights - Union Pacific Corporation (UNP) reported disappointing fourth-quarter 2025 results, with earnings and revenues missing the Zacks Consensus Estimate [1][9] Financial Performance - Quarterly earnings (excluding 25 cents from non-recurring items) were $2.86 per share, missing the Zacks Consensus Estimate of $2.90 and decreasing 1.7% year-over-year [1] - Operating revenues were $6.08 billion, missing the Zacks Consensus Estimate of $6.14 billion and falling 1% year-over-year due to lower volume, partially offset by core pricing gains and fuel surcharge revenue [2] - Revenue carloads declined 4% year-over-year, with freight revenues (94.5% of total revenues) falling 1% year-over-year to $5.75 billion [2] - Operating income decreased 5% year-over-year to $2.40 billion, while total operating expenses increased 2% year-over-year to $3.68 billion [3] - The operating ratio improved by 190 basis points year-over-year to 60% on an adjusted basis [3] Segment Performance - Bulk freight revenues increased 3% year-over-year to $1.91 billion, with segmental revenue carloads also up 3% [4] - Industrial freight revenues rose 1% year-over-year to $2.11 billion, with segmental revenue carloads increasing 1% [4] - Premium division freight revenues decreased 6% year-over-year to $1.72 billion, with premium revenue carloads down 10% [5] Liquidity and Financial Outlook - Union Pacific ended Q4 2025 with cash and cash equivalents of $1.26 billion, up from $808 million in the prior quarter, while debt remained flat at $30.29 billion [6] - For 2026, earnings per share are expected to grow in the mid-single digits, with capital expenditure projected at approximately $3.3 billion [7] - The company aims to improve its operating ratio and continue generating strong cash while increasing annual dividend payouts [7]

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]