UNION PACIFIC (UNP) Company Report

Union Pacific and Wabtec agreed to a US$1.2 billion program to modernize AC4400 locomotives, the largest single locomotive modernization in rail industry history.
Upgrades include the FDL Advantage engine, LOCOTROL Expanded Architecture and new Modular Control Architecture for next-generation data, diagnostics and software capabilities.
The program is expected to reduce fuel consumption by over 5%, boost tractive effort by about 14% and improve reliability by roughly 80%, extending fleet life.
Production will occur at Wabtec’s U.S. facilities, with deliveries starting in 2027, and the agreement was signed in Q4 2025.
This is Wabtec’s fourth major modernization order from Union Pacific since 2018, bringing total modernized units to over 1,700 across UP’s fleet.

2 days ago

Morningstar

Union Pacific signs $1.2B locomotive modernization deal with Wabtec

UNP

New Projects/Investments

Union Pacific and Wabtec signed a $1.2 billion agreement to modernize AC4400 locomotives—the largest locomotive-modernization investment in rail industry history.
The upgrades are expected to deliver >5% fuel savings, a 14% increase in tractive effort, and an 80% improvement in reliability, enhancing operational efficiency and service reliability.
Signed in Q4 2025, the deal builds on a prior 2022 order (due for completion in 2026) and will result in over 1,700 modernized locomotives, with deliveries beginning in 2027 from Wabtec’s U.S. facilities.

3 days ago

Press Release

Union Pacific reports Q4 2025 results

UNP

Earnings

Guidance Update

M&A

Q4 operating revenue was $6.085 billion, with operating income of $2.401 billion (down 5% YoY) and net income of $1.848 billion (up 5% YoY); diluted EPS rose 7% to $3.11.
Reported Q4 operating ratio deteriorated to 60.5% (versus 58.7% in Q4 2024); adjusted operating ratio was 60.0%.
For full year 2025, operating income reached $9.8 billion, operating ratio improved to 59.8%, and EPS was $11.98.
2026 outlook calls for mid-single-digit EPS growth, further operating ratio improvement, and a $3.3 billion capital plan.

Jan 27, 2026, 1:45 PM

Presentation

Union Pacific reports Q4 2025 and full-year results

UNP

Earnings

Guidance Update

M&A

Union Pacific delivered 2025 full-year net income of $7.1 billion (+6%), EPS of $11.98 (+8%), and freight revenue ex-fuel up 3%; full-year adjusted operating ratio improved to 59.3%.
In Q4, operating revenue was $6.1 billion (-1%), freight revenue $5.8 billion (-1% on 4% lower volume), adjusted EPS $2.86, and adjusted operating ratio 60%.
Full-year cash from operations totaled $9.3 billion; returned $5.9 billion to shareholders (+25%) via dividends and buybacks; year-end adjusted debt/EBITDA was 2.7×.
2026 outlook calls for mid-single-digit EPS growth, with price dollars exceeding ~4% inflation, $3.3 billion CapEx, and an expected improvement in operating ratio.
Merger with Norfolk Southern remains on track for H1 2027 despite an STB request for additional information.

Jan 27, 2026, 1:45 PM

Transcript

Union Pacific reports Q4 2025 results and 2026 outlook

UNP

Earnings

Guidance Update

M&A

Q4 2025 operating revenue of $6.1 B (–1% YoY), operating income of $2.4 B (–5%), EPS of $3.11 (record; adjusted EPS $2.86) and an adjusted operating ratio of 60%. Full-year cash from operations was $9.3 B, with $5.9 B returned to shareholders (up 25%) through dividends and buybacks.
2026 guidance anticipates mid-single-digit EPS growth, an improved operating ratio versus 2025 and $3.3 B in capital expenditures; price dollars are expected to exceed ~4% inflation despite volume and cost headwinds.
Merger with Norfolk Southern remains on track for H1 2027 close; the STB has requested further detail, with a response expected in March, and the transaction is projected to drive $2 B in net revenue synergies.
Continued operational excellence delivered record safety, service, fluidity and productivity metrics, with workforce levels down 5% and freight revenue performance supported by pricing and mix gains amid lower volumes.

Jan 27, 2026, 1:45 PM

Transcript

Union Pacific reports Q4 and full-year 2025 results

UNP

Earnings

Guidance Update

M&A

Full-year 2025 net income of $7.1 billion (+6%) and EPS of $11.98 (+8%), with freight revenue ex-fuel up 3%; adjusted operating ratio improved 60 bps to 59.3%
Q4 2025 operating revenue of $6.1 billion (–1%), freight revenue down 1% on 4% lower volume, other revenue of $326 million (–2%); net income reached a record $1.8 billion and EPS was $3.11; adjusted EPS $2.86 and adjusted OR 60%
Initial 2026 guidance calls for mid-single-digit EPS growth, operating ratio improvement versus 2025, and $3.3 billion of capital expenditures
Merger with Norfolk Southern remains on track for first half of 2027 closing; STB requested additional information with no expected material delay

Jan 27, 2026, 1:45 PM

Transcript

Union Pacific reports Q4 2025 and full year results

UNP

Earnings

Q4 diluted EPS of $3.11 and adjusted EPS of $2.86; Q4 operating ratio of 60.5% (adjusted 60.0%)
Full year diluted EPS of $11.98 and adjusted EPS of $11.66; full year operating ratio of 59.8% (adjusted 59.3%)
Q4 operating revenue of $6.1 billion, down 1%; full year operating revenue of $24.5 billion, up 1%
Q4 net income of $1.8 billion and full year net income of $7.1 billion, a 6% year-over-year increase
Full year return on invested capital of 16.3%

Jan 27, 2026, 12:47 PM

8-K

Union Pacific reports Q4 and FY 2025 results

UNP

Earnings

Q4 net income of $1.8 billion, diluted EPS $3.11 (adjusted $2.86); operating ratio of 60.5% (adjusted 60.0%)
Full year net income of $7.1 billion, diluted EPS $11.98 (adjusted $11.66); annual operating ratio 59.8% (adjusted 59.3%)
Operating revenue of $24.5 billion, up 1%; freight revenue excluding fuel surcharge grew 3% and revenue carloads increased 1%
Return on invested capital of 16.3%, with operating ratio improving 10 bps year-over-year

Jan 27, 2026, 12:45 PM

Press Release

Union Pacific proposes transcontinental merger with Norfolk Southern

UNP

M&A

Union Pacific filed a merger application with Norfolk Southern to the Surface Transportation Board to create America’s first transcontinental railroad, aiming for faster, more reliable and lower-cost coast-to-coast single-line service.
The application includes 2,000 letters of support from customers, public officials, industry associations and unions, underscoring broad stakeholder backing.
The merger is expected to reduce costs by cutting interchanges, as interline traffic over 1,000–1,500 miles costs on average 35% more than comparable single-line service.
CEO Jim Vena says the deal will inject new competition into the rail industry, forcing rivals to improve service or lower prices and strengthening the U.S. supply chain.

Jan 15, 2026, 2:15 PM

Press Release

Union Pacific and Norfolk Southern File STB Merger Application

UNP

M&A

Union Pacific and Norfolk Southern submitted a nearly 7,000-page merger application to the STB, with shareholders of both companies voting 99% in favor of the transaction.
The combination will create a coast-to-coast network, converting 10,000 lanes into faster single-line service, and eliminate an estimated 2,400 daily rail car handlings and 60,000 car-miles per day.
The merged railroad aims to shift 2 million truckloads to rail annually, reduce emissions, and deploy $2.1 billion of incremental capital with $133 million in annual capital synergies.
All existing union employees are guaranteed jobs post-merger, with approximately 900 net new union jobs expected by the end of year three.
The transaction is subject to STB review and oversight, with an anticipated close in early 2027.