UNION PACIFIC CORP (UNP) Reports Q4 2025 Earnings Decline

By Chris Stiles • Tuesday, January 27 15:05 • Permanent Link

Union Pacific Corporation (NYSE: UNP) has reported its fourth-quarter and full-year 2025 results. The company's diluted earnings per share (EPS) for the fourth quarter were $3.11, while the adjusted diluted EPS stood at $2.86. This represents a decrease from the adjusted diluted EPS of $2.96 reported in the fourth quarter of 2024.

The operating ratio (OR) for the fourth quarter of 2025 was 60.5%, with the adjusted OR at 60.0%. This indicates a decline compared to the adjusted OR of 59.9% reported in the fourth quarter of 2024.

For the full year 2025, Union Pacific reported diluted EPS of $11.98, an increase from the full year 2024 diluted EPS of $11.09. The adjusted diluted EPS for the full year 2025 was $11.66, up from the adjusted diluted EPS of $11.11 reported for the full year 2024.

The company's full-year 2025 net income was $7.1 billion, reflecting a 6% growth from the full year 2024 net income of $6.7 billion. The adjusted full-year 2025 net income was $6.9 billion, compared to the adjusted full-year 2024 net income of $6.8 billion, representing a 3% increase.

In terms of operating results, Union Pacific achieved best-ever quarterly records for freight car velocity and terminal dwell in the fourth quarter of 2025. The reportable personal injury rate and reportable derailment rate also improved. However, revenue carloads declined by 4%, and the operating revenue of $6.1 billion decreased by 1% compared to the fourth quarter of 2024.

For the full year 2025, Union Pacific achieved its best-ever performance in various areas, including safety, freight car velocity, locomotive productivity, terminal dwell, train length, workforce productivity, and fuel consumption rate.

Looking ahead to 2026, Union Pacific aims to maintain strong service to meet customer demand, despite a muted economic forecast. The company expects earnings per share growth in the mid-single digits and plans to improve its operating ratio. Additionally, Union Pacific intends to continue its strong cash generation and has announced a capital plan of $3.3 billion.

The market has reacted to these announcements by moving the company's shares -0.44% to a price of $229.49. If you want to know more, read the company's complete 8-K report here.

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