Group 1 - The core point of the article is that Union Pacific (UNP.US) reported fourth-quarter revenue of $6.08 billion, which fell short of market expectations of $6.12 billion [1] Group 2 - The reported revenue indicates a slight miss compared to market forecasts, suggesting potential challenges in meeting investor expectations [1]

Financial Performance - Reported fourth quarter 2025 net income was $1.8 billion, with diluted EPS of $3.11, adjusted diluted EPS of $2.86, and includes $234 million from industrial park land sales[1][6] - Full year 2025 net income reached $7.1 billion, with diluted EPS of $11.98, reflecting a 6% increase in net income and an 8% increase in EPS compared to 2024[2] - Operating income for Q4 2025 was $2,401 million, a decrease of 5% year-over-year, while full-year operating income rose by 1% to $9,846 million[16] - Net income for Q4 2025 was $1,848 million, up 5% from Q4 2024, with full-year net income increasing by 6% to $7,138 million[16] - Earnings per share (EPS) for Q4 2025 were $3.12, a 7% increase compared to $2.92 in Q4 2024, with full-year EPS rising by 8% to $12.00[16] Revenue and Operating Metrics - Fourth quarter operating revenue was $6.1 billion, a 1% decline driven by lower volume, partially offset by core pricing gains and fuel surcharge revenue[6] - Full year operating revenue totaled $24.5 billion, up 1%, with freight revenue excluding fuel surcharge growing by 3%[9] - Total operating revenues for Q4 2025 were $6,085 million, a decrease of 1% compared to Q4 2024, while full-year revenues increased by 1% to $24,510 million[16] - Freight revenues in Q4 2025 were $5,759 million, down 1% from Q4 2024, but increased by 2% for the full year to $23,220 million[18] - Operating income for the full year was $9,846 million, with an operating ratio of 59.8%[27] Efficiency and Ratios - Fourth quarter operating ratio was reported at 60.5%, with an adjusted operating ratio of 60.0%, both showing a deterioration compared to the previous year[5][6] - Full year return on invested capital was 16.3%, indicating strong capital efficiency[5] - The operating ratio for Q4 2025 was 60.5%, an increase of 1.8 percentage points from 58.7% in Q4 2024[16] - Return on average common shareholders' equity was 40.4% in 2025, down from 42.6% in 2024[19] - The debt to net income ratio improved to 4.5 in 2025 from 4.6 in 2024, indicating a slight reduction in leverage[33] Cash Flow and Capital Management - Free cash flow for 2025 was $2,292 million, down from $2,808 million in 2024, reflecting a decrease of 18%[22] - Capital plan for 2026 is set at $3.3 billion, with consistent annual dividend increases planned[9] - The company declared dividends of $1.38 per share in Q4 2025, totaling $5.44 for the full year[27] Operational Improvements - Freight car velocity improved by 9% to 239 daily miles per car, and average terminal dwell improved by 9% to 19.8 hours[9] - The average train speed improved to 25.5 miles per hour in Q4 2025, a 7% increase from 23.9 miles per hour in Q4 2024[25] - The intermodal service performance index improved to 100% in Q4 2025, up 11 percentage points from 89% in Q4 2024[25] Asset and Liability Management - Total assets increased to $69,698 million in 2025 from $67,715 million in 2024, reflecting a growth of 3%[19] - Total liabilities rose to $51,231 million in 2025, up from $50,825 million in 2024, indicating a 1% increase[19] - The adjusted debt to adjusted EBITDA ratio remained stable at 2.7 for both 2025 and 2024, suggesting consistent operational performance relative to debt levels[34] Future Outlook - The company anticipates mid-single digit EPS growth, consistent with a 3-year CAGR target of high-single digit to low-double digit through 2027[9] - The company is focused on regulatory processes to create America's first transcontinental railroad while driving further safety and service improvements[1]

Financial Performance - Union Pacific reported a full year 2025 net income of $7.1 billion, an increase of 6% from $6.7 billion in 2024, with diluted EPS rising to $11.98 from $11.09, an 8% increase [1][2] - The fourth quarter net income was $1.8 billion, with diluted EPS at $3.11, compared to $1.76 billion and $2.91 in the same quarter of 2024 [1][2] - Adjusted full year net income for 2025 was $6.9 billion, up 3% from $6.8 billion in 2024, with adjusted diluted EPS at $11.66, a 5% increase from $11.11 [1][2] Operating Results - The full year operating ratio improved to 59.8%, a 10 basis point enhancement, while the adjusted operating ratio was 59.3%, improving by 60 basis points [1][2] - Fourth quarter operating ratio was reported at 60.5%, which is 180 basis points worse than the previous year, with an adjusted operating ratio of 60.0%, 190 basis points worse [1][2] - Revenue carloads for the full year increased by 1%, while fourth quarter carloads declined by 4% [1][2] Efficiency Metrics - Workforce productivity for the full year improved by 7% to 1,132 car miles per employee, while fourth quarter productivity was 1,151 car miles per employee, a 3% increase [1][2] - Average train length increased by 3% to 9,729 feet in the fourth quarter, and average terminal dwell improved by 9% to 19.8 hours [1][2] - Freight car velocity for the full year was 225 daily miles per car, an 8% increase, while fourth quarter velocity was 239 daily miles per car, a 9% increase [1][2] Revenue Breakdown - Operating revenue for 2025 was $24.5 billion, up 1% from $24.25 billion in 2024, driven by core pricing gains and higher volume [1][2] - Freight revenue excluding fuel surcharge grew by 3% for the full year, while total freight revenues for the fourth quarter decreased by 1% to $5.759 billion [1][2] - Key freight revenue categories included grain and grain products at $3.926 billion for the full year, a 3% increase, and coal and renewables at $1.786 billion, a 20% increase [2][3] Capital Allocation and Future Outlook - The company plans a capital allocation of $3.3 billion for 2026, with consistent annual dividend increases [1][2] - Union Pacific is focused on improving safety, service, and operational efficiencies while navigating the regulatory process for the creation of America's first transcontinental railroad [1][2]

Union Pacific Corporation (NYSE:UNP) is one of the stocks in focus as Jim Cramer shared his weekly game plan. While discussing the stock, Cramer highlighted that transports are being called the “hottest group” in the market. He commented: Hottest group in this market? Well, some would say it’s the transports, including the rails… I like Union Pacific, which is trying to merge with Norfolk Southern. Let’s see what they have to say. A stock market graph. Photo by energepic.com Union Pacific Corporation ...

Core Insights - Union Pacific Corporation (NYSE:UNP) is recognized as one of the 12 Most Profitable Dividend Stocks to consider for investment in 2026 [1] Merger Update - Union Pacific's proposed $85 billion merger with Norfolk Southern was rejected by the US Surface Transportation Board (STB) due to an incomplete application, which lacked necessary information regarding market share and competitive impact [2][3][4] - The STB's decision was made "without prejudice," allowing Union Pacific and Norfolk Southern the opportunity to resubmit their application after addressing the identified gaps [2][4] - Canadian National's submission highlighted deficiencies in the merger application, particularly regarding competitive disclosures and the identification of affected routes and shippers [5] Company Overview - Union Pacific operates one of the largest rail networks in the US, covering over 23 states in the western two-thirds of the country, playing a crucial role in the domestic and global supply chain [7] - The company argues that the merger would enhance service reliability, shift freight from trucks to rail, maintain shipper choice, and provide broad public benefits while safeguarding union jobs [6]

Core Viewpoint - Union Pacific Railroad is celebrating 250 years of American independence and innovation with its first-ever coast-to-coast steam tour featuring the Big Boy No. 4014, the world's largest operating steam locomotive [1] Group 1 - The steam tour will include two commemorative locomotives, one of which is the new locomotive No. 1776 – America250, honoring the signing of the Declaration of Independence [1]

Core Insights - Union Pacific achieved its highest-ever quarterly freight revenue, operating income, and cash from operations, driven by strong volume growth, pricing gains, and productivity improvements [6][18] - The company is in advanced discussions with Norfolk Southern regarding a potential business combination, although no agreement has been confirmed [6][39] - Management remains confident in achieving its multi-year EPS CAGR target despite anticipated sequential volume moderation in the upcoming quarters [6][21] Financial Performance - Adjusted diluted earnings per share reached $3.03, a 12% increase, excluding a $115 million deferred tax benefit and a $55 million labor expense [4][11] - Operating revenue was $6.2 billion, a 2% increase, with freight revenue hitting a record $5.8 billion, up 4% [4][13] - The adjusted operating ratio improved to 58.1%, reflecting a 230 basis point enhancement [4][18] Revenue Drivers - Freight revenue excluding fuel surcharge grew 6%, achieving record quarterly and year-to-date totals [4][12] - Volume growth contributed 375 basis points to freight revenue, with Bulk segment volumes up 11%, Industrial up 3%, and Premium up 1% [4][8] - Core pricing and mix provided a 200 basis point benefit to freight revenue, with net pricing above inflation for the third consecutive quarter [4][12] Cost and Efficiency Metrics - Fuel expenses decreased by 8% due to an 11% drop in fuel prices, while the fuel consumption rate improved by 2% [4][17] - Compensation and benefits expenses rose by 5%, primarily due to the Brakeperson buyout, but increased only 1% when adjusted for this expense [4][15] - Workforce productivity improved by 9%, reaching an all-time quarterly record, while locomotive productivity increased by 5% [4][36] Shareholder Returns - The company returned $4.3 billion to shareholders through buybacks and dividends in the second quarter, with a 3% dividend increase announced, marking 19 consecutive years of increases [4][19] - The adjusted debt-to-EBITDA ratio ended at 2.8x, maintaining A-ratings from three credit agencies [4][19] Segment Trends - Bulk revenue increased by 10% with an 11% rise in volume, while Industrial revenue grew by 4% with a 3% increase in volume [8][24] - Premium revenue decreased by 4% despite a 1% increase in volume, reflecting challenges in international and domestic intermodal volumes [8][26] - Management anticipates continued growth in coal volumes driven by favorable natural gas pricing and new customer demand [8][27] Future Outlook - Management reaffirmed a high single to low double-digit 3-year EPS CAGR target, expecting 2025 EPS growth to align with this range [8][21] - The company plans to maintain operational improvements and cost control while seeking pricing opportunities that reflect service value [21][38] - External pressures, including tariff implications and changes in consumer behavior, are acknowledged as potential challenges for the second half of the year [8][21]

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 [2][3] - Geopolitical uncertainties and tariff-related economic tensions are negatively impacting consumer sentiment and growth expectations [2] Oil Prices Impact - A decrease in oil prices, which fell by 7% in the October-December 2025 period, is expected to positively affect the bottom-line growth of transportation companies, as fuel costs are a significant input [4] Company Earnings Expectations Union Pacific Corporation (UNP) - The Zacks Consensus Estimate for UNP's Q4 2025 earnings is $2.89 per share, reflecting a 0.7% decline year-over-year, with revenues estimated at $6.14 billion, indicating 0.3% growth [7] - Cost-cutting measures are anticipated to support bottom-line performance, although geopolitical uncertainties and inflation may negatively impact results [8] - Current predictions do not indicate an earnings beat for UNP, with an Earnings ESP of -1.25% and a Zacks Rank of 3 [9] United Parcel Service (UPS) - The Zacks Consensus Estimate for UPS's Q4 earnings is $2.23 per share, showing a year-over-year decline of 19.27%, with revenues expected at $24.01 billion, down 5.1% [10] - Cost controls and network efficiency are expected to help UPS mitigate lower volumes, with total operating revenues forecasted to decline by 5.4% year-over-year [12] - The model predicts an earnings beat for UPS, with an Earnings ESP of +0.74% and a Zacks Rank of 3 [13] American Airlines Group Inc. (AAL) - The Zacks Consensus Estimate for AAL's Q4 revenues is $14.07 billion, indicating a 3.02% year-over-year growth, while earnings are expected to be 38 cents per share, down 55.81% from the previous year [14][15] - AAL's performance is expected to benefit from increased domestic air-travel demand, although rising labor and airport costs, along with geopolitical uncertainties, may weigh on operations [15] - Current predictions do not indicate an earnings beat for AAL, with an Earnings ESP of -1.21% and a Zacks Rank of 3 [16] JetBlue Airways Corporation (JBLU) - The Zacks Consensus Estimate for JBLU's Q4 loss per share has widened to 45 cents, indicating a significant increase in losses compared to the previous year, with revenues expected at $2.22 billion, reflecting 2.6% growth [17] - JBLU's efforts to expand connectivity in response to demand are likely to support performance, while lower oil prices may also benefit the airline [18] - Current predictions do not indicate an earnings beat for JBLU, with an Earnings ESP of -5.89% and a Zacks Rank of 3 [19]

Core Viewpoint - Analysts forecast that Union Pacific (UNP) will report quarterly earnings of $2.90 per share, reflecting a year-over-year decline of 0.3%, with revenues expected to reach $6.14 billion, an increase of 0.2% compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised downward by 1.2% over the past 30 days, indicating a collective reassessment by analysts [2]. - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Revenue Estimates - Analysts predict 'Freight Revenues- Bulk' will reach $1.93 billion, indicating a year-over-year change of +3.3% [4]. - 'Operating Revenues- Other revenues' are expected to be $319.31 million, reflecting a year-over-year decline of -3.8% [5]. - 'Freight Revenues- Industrial Products' are estimated at $2.18 billion, suggesting a change of +4.4% year over year, while 'Freight Revenues- Premium' is projected at $1.71 billion, indicating a decline of -6.5% [5]. Operational Metrics - The 'Operating Ratio' is expected to be 58.8%, slightly up from 58.7% reported in the same quarter last year [6]. - 'Revenue Ton-Miles' is projected at 105.12 billion, compared to 104.42 billion in the same quarter last year [6]. - 'Revenue Carloads - Total' is expected to reach 2.10 million, down from 2.16 million a year ago [7]. Additional Metrics - 'Gross Ton-Miles (GTMs)' is anticipated to be 221.48 billion, compared to 218.56 billion in the same quarter last year [8]. - 'Locomotive Fuel Statistics - Fuel consumed in gallons' is projected at 231 million gallons, down from 236 million gallons a year ago [8]. - The consensus estimate for 'Revenue Ton-Miles - Bulk' stands at 49.09 billion, compared to 47.94 billion reported in the same quarter last year [9]. Stock Performance - Union Pacific shares have decreased by -2.4% over the past month, contrasting with the Zacks S&P 500 composite's increase of +0.7% [9].

Core Viewpoint - The article emphasizes the importance of conducting thorough due diligence before making any investment decisions, highlighting that the content is for informational and educational purposes only [2][3]. Group 1: Company and Industry Insights - The article does not provide specific insights or data regarding any particular company or industry, focusing instead on general investment advice and disclaimers [1][2][3].