Union Pacific Reports Record Fourth Quarter and Full-Year 2025 Results, Achieves Best-Ever Safety, Service, and Operating Performance
Union Pacific Corporation (NYSE: UNP) today released its financial and operational results for the fourth quarter and full year 2025, reporting record-setting performance across several key metrics. The company achieved industry-leading safety and operational outcomes, while delivering strong revenue growth and profitability despite a challenging macroeconomic environment.
“A Landmark Year for Union Pacific”
“We had a record-breaking year and delivered best-ever safety, service, and operating results in 2025,” said Jim Vena, Chief Executive Officer of Union Pacific. “Our reported net income grew 6%, earnings per share increased 8%, and our operating ratio improved. As we continue working through the regulatory process to create America’s first transcontinental railroad, our team remains focused on driving further improvements in safety, service, and operational efficiency to support long-term growth.”
Fourth Quarter 2025 Financial Highlights
For the fourth quarter of 2025, Union Pacific reported net income of $1.8 billion, with diluted earnings per share of $3.11. This result includes $234 million from industrial park land sales, which contributed $0.30 per diluted share, and $30 million in merger-related costs, reducing EPS by $0.05. Adjusted fourth-quarter 2025 net income, excluding these items, was $1.7 billion, or $2.86 per adjusted diluted share, compared to $1.8 billion, or $2.96 per adjusted diluted share, in the fourth quarter of 2024.
Operating revenue for the quarter totaled $6.1 billion, representing a 1% decline from the prior year. The decrease was primarily driven by lower freight volume, partially offset by core pricing gains and fuel surcharge revenue. Revenue carloads declined 4% year-over-year. Reported operating ratio was 60.5%, 180 basis points higher than the prior year, while the adjusted operating ratio improved slightly to 60.0%, though still 190 basis points worse than the fourth quarter of 2024.
Fourth Quarter 2025 Operational Highlights
Union Pacific achieved record-breaking operational performance across several key metrics:
- Freight Car Velocity: Average of 239 daily miles per car, a 9% improvement over the prior year.
- Terminal Dwell: Average of 19.8 hours per car, reflecting a 9% improvement, demonstrating enhanced efficiency in handling freight.
- Train Length: Average of 9,729 feet, a 3% increase, optimizing capacity and network utilization.
- Workforce Productivity: Increased to 1,151 car miles per employee, up 3% from the previous year.
- Safety: Both the reportable personal injury rate and the reportable derailment rate improved during the quarter, underscoring Union Pacific’s commitment to a safe work environment.
Full-Year 2025 Financial Performance
Union Pacific’s full-year 2025 results reflect record financial performance and continued operational excellence. Reported net income for 2025 was $7.1 billion, or $11.98 per diluted share, representing a 6% increase in net income and an 8% increase in diluted EPS compared to 2024. Adjusted net income for 2025, excluding non-recurring items, was $6.9 billion, or $11.66 per adjusted diluted share, up 3% and 5% respectively from 2024.
Operating revenue for the full year was $24.5 billion, up 1% from the prior year, driven by core pricing gains and higher freight volumes. Revenue from freight excluding fuel surcharges increased 3%, while revenue carloads rose 1%. Reported operating ratio improved slightly to 59.8%, a 10 basis point improvement, and the adjusted operating ratio was 59.3%, up 60 basis points year-over-year.
Full-Year Operational Achievements
Union Pacific achieved best-ever full-year results in a number of operational areas:
- Freight Car Velocity: Averaged 225 daily miles per car, an 8% increase from 2024.
- Locomotive Productivity: Achieved 139 gross ton-miles per horsepower day, a 3% improvement.
- Terminal Dwell: Average of 20.9 hours, representing an 8% improvement.
- Train Length: Continued to see gains, supporting efficient network throughput.
- Workforce Productivity: Improved 7% to 1,132 car miles per employee.
- Fuel Consumption Rate: Continued optimization in fuel efficiency across operations.
- Safety: Reportable personal injury and derailment rates both improved, with the personal injury rate remaining industry-leading.
Strategic Investments and Capital Allocation
Union Pacific’s 2025 performance was supported by ongoing investments in infrastructure, equipment, and workforce development. The company maintains a disciplined capital allocation strategy, emphasizing long-term growth and shareholder returns. Key capital initiatives included:
- Investment in infrastructure and network enhancements to improve service reliability.
- Fleet modernization and equipment upgrades to optimize operational efficiency.
- Strategic land sales in industrial parks generating incremental income of $234 million in Q4 2025.
The company returned significant value to shareholders in 2025 through dividends and share repurchases, reinforcing its commitment to disciplined capital management.
Looking ahead to 2026, Union Pacific expects continued operational and financial progress while maintaining focus on safety, service, and customer satisfaction. Key guidance and priorities include:
Union Pacific plans to invest approximately $3.3 billion in capital expenditures in 2026 to support network expansion, equipment upgrades, and safety enhancements. The company also remains committed to providing consistent shareholder returns, including annual dividend increases aligned with its long-term capital allocation strategy.
Union Pacific’s record-setting 2025 results reflect the company’s strong operational execution, strategic pricing initiatives, and continued focus on safety and efficiency. The combination of disciplined capital allocation, robust network performance, and an experienced workforce positions Union Pacific to sustain growth and deliver long-term value for shareholders.
We are proud of our 2025 performance, which demonstrates the capabilities and commitment of our team,” concluded CEO Jim Vena. “As we continue building America’s first transcontinental railroad and strengthening our network, we remain focused on safety, service, and operational excellence, providing our customers and shareholders with long-term value.
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