Union Pacific Corp. (UNP)

Union Pacific reported on 22 October 2026 that third-quarter operating revenue grew 15 percent to $7.2 billion, a record for the company 1.

Net income was $2.1 billion and diluted earnings per share, the profit per share of stock, were $3.49, against $3.01 a year earlier 1.

Volume growth of 6 percent and higher fuel surcharges, the charges added to freight bills when fuel costs rise, drove the revenue gain, the company said 1.

Fuel was the pressure point: the company said higher fuel prices worsened its operating ratio, operating costs as a share of revenue, by 140 basis points 1. The reported ratio still improved 10 basis points to 59.1 percent 1.

The 10-Q said locomotive fuel prices climbed to record levels, with the average price per gallon up 64 percent from a year earlier 2.

The open question is the Norfolk Southern acquisition, which needs approval from the Surface Transportation Board (STB), the federal regulator of rail mergers 2. On 18 August 2026 the STB set a schedule and lifted a hold on the case, a step that was not a ruling on the merits 26.

The company currently expects the merger to be completed in the second half of 2027 2. Separately, it announced on 16 October that Jennifer Hamann plans to retire as chief financial officer in early 2027 5.

Union Pacific Corporation was incorporated in Utah in 1969 and runs its business through Union Pacific Railroad Company, its principal operating company 3.

Revenue was $24.1 billion in 2023, and the operating ratio, operating costs as a share of revenue, was 62.3 percent 3. Fuel alone cost $2,891 million that year 3.

Jim Vena became chief executive on 14 August 2023, after serving as chief operating officer from January 2019 to December 2020 3. The operating ratio then improved 2.4 points to 59.9 percent in 2024 and another 0.1 points to 59.8 percent in 2025 3.

The latest gain came from core pricing gains and productivity initiatives, partly offset by a worse mix of business, inflation and acquisition-related expenses, the 10-K said 3.

Coal and renewables revenue fell 23 percent in 2024 to $1,483 million, then rose 20 percent in 2025 to $1,786 million 3. Coal carloads rose 14 percent in 2025 3.

Freight revenue, the money from hauling goods, was $22.8 billion in 2024 and $23.2 billion in 2025 3. Total revenue was $24.5 billion in 2025 and net income was $7,138 million, against $6,747 million a year earlier 3.

The chief executive's letter reported an 8 percent increase in earnings per share and a 1 percent increase in total volume for 2025 3. Volume was led by coal, industrial chemicals and plastics, grain, and rock, while automotive and energy shipments were weaker 3.

Average employees fell from 31,490 in 2023 to 29,287 in 2025, and car miles per employee rose from 1,000 to 1,132 3.

The personal injury rate of 0.68 fell 24 percent in 2025, and freight car velocity rose 8 percent to 225 daily miles per car 3.

Other subsidiary revenues fell in 2025 because the company transferred its commuter operations to Metra 3.

The company said it paid $3.2 billion in dividends and repurchased shares totaling $2.7 billion during 2025, and then paused repurchases because of the Norfolk Southern deal 3.

On 28 July 2025 Union Pacific and Norfolk Southern signed a merger agreement under which Union Pacific would acquire Norfolk Southern 2. Each Norfolk Southern share converts into one Union Pacific share and $88.82 in cash 2.

Shareholders of both companies approved the deal at meetings on 14 November 2025 2. The companies filed a joint application with the STB on 19 December 2025, and on 16 January 2026 the board said it was not complete 2.

The companies filed a revised application on 30 April 2026, and the board accepted it as complete effective 28 May 2026 while holding the case and asking for more information 2. The companies finished their answers on 27 July 2026 2.

The railroad and its network

Union Pacific Railroad Company connects 23 states in the western two-thirds of the country by rail 3. It is the only railroad serving all six major Mexico gateways, the 10-K said 3.

The network has 32,889 route miles, of which the company owns 26,294 and operates the rest under trackage rights or leases 3. Trackage rights let one railroad run its trains on another's track 3.

At the end of 2025 the company owned or leased 6,964 locomotives, 53,790 freight cars and 45,806 containers 3.

Freight revenue from shipments to and from Mexico was $820 million in the third quarter of 2026 2.

Bulk: grain, fertilizer, food and coal

Bulk shipments are grain and grain products, fertilizer, food and refrigerated goods, and coal and renewables, and made up 33 percent of 2025 freight revenue 3. Coal from the Powder River Basin in Wyoming is the largest part of the coal business 3.

Bulk revenue was $2,116 million in the third quarter, against $1,930 million a year earlier 2. Grain and grain products carloads rose 5 percent to 225 thousand 2.

Industrial: construction, chemicals and metals

Industrial covers construction materials, chemicals, plastics, forest products, metals, petroleum, waste, salt and sand, and generated 37 percent of 2025 freight revenue 3. Housing, infrastructure and manufacturing demand drive its shipments 3.

Industrial revenue was $2,509 million in the third quarter, against $2,194 million a year earlier 2. Metals and minerals carloads rose 8 percent and energy and specialized markets carloads rose 7 percent 2.

Premium: autos and intermodal

Premium is finished automobiles, auto parts and merchandise in intermodal containers, which are boxes moved by rail, and made up 30 percent of 2025 freight revenue 3. Much of the international business moves through West Coast ports to inland terminals 3.

Intermodal revenue was $1,517 million in the third quarter, up 27 percent, on carloads of 956 thousand, up 11 percent 2. Automotive revenue was $671 million, up 11 percent 2.

People

Jennifer Hamann joined in 1992 and was named chief financial officer in January 2020, and the company announced on 16 October that she will retire after 35 years 4.

V. James Vena is chief executive, Jennifer Hamann is chief financial officer, Christina Conlin is chief legal officer, Eric Gehringer leads operations and Kenny Rocker leads marketing and sales 3.

The company averaged 29,287 employees in 2025 3. It works with 13 major rail unions, representing approximately 83 percent of its workforce 3.

Rivals and problems

The 10-K names BNSF Railway, owned by Burlington Northern Santa Fe, as the main railroad competitor, running parallel routes in many of the same corridors 3. Trucks and barges also compete, and barges are strong for grain and bulk goods 3.

On 6 August BNSF, CSX and a group of shipper associations asked the STB to reject the application early, FreightWaves reported 7.

On 18 September 2026 the STB denied motions from several parties asking that the application be dismissed 2. The board has not ruled on the merits 62.

Fuel is the other problem: fuel expense was $1,040 million in the third quarter, against $616 million a year earlier 2.

The umbrella, in words

Union Pacific Railroad Company is the principal operating company, and it is the one significant subsidiary Exhibit 21 of the 10-K lists 38.

The railroad owns a 37.03 percent economic interest in TTX Company, a rail car pooling company that North American railroads jointly own 2.

On land, the company owns 26,294 route miles of track and its Omaha headquarters building, which has 1.2 million square feet of space 3.

On control, Vanguard Capital Management reported on a Schedule 13G that it beneficially owned 44,823,799 shares, 7.55 percent of the common stock, as of 31 March 2026 9.

For 2026 the company said it is on track with its investor day targets and expects reported earnings per share growth of high-single digit 1. It describes this as consistent with a three-year compound annual growth rate target of high-single to low-double digit through 2027 1.

The company also expects pricing dollars in excess of inflation dollars, an industry-leading operating ratio and return on invested capital, and consistent annual dividend increases 1.

It updated two points: operating ratio improvement from the core business, with the reported ratio challenged by high fuel prices, and a capital plan of $3.5 billion 1. The 10-Q says the plan covers modernizing the locomotive fleet and acquiring freight cars 2.

On the merger, the company currently expects completion in the second half of 2027, subject to STB approval and other conditions 2. It expects about 225 million shares to be issued and about $20 billion of cash paid, funded by new debt and cash from operations 2.

The company says the combined railroad would span over 50,000 miles across 43 states, with access to 10 international interchanges and about 100 ports 2. Either railroad may owe the other a $2.5 billion fee if the agreement ends in certain circumstances 2.

The STB's schedule sets 18 November 2026 for comments and protests and 16 February 2027 for responses 6. A public hearing date is still to be set 6.

FreightWaves reported that final briefs are due 28 May 2027, with a final decision due within 90 days after the record closes, if the environmental review is finished 7. The close of the record is still to be set 7.

Chief financial officer Jennifer Hamann plans to retire in early 2027, and the company said it will give more detail on the transition later 5. A buyback authorization from 1 April 2025 allows up to 100 million shares by 31 March 2028, though repurchases are paused 2.