Union Pacific Reports Fourth Quarter and Full Year 2025 Results

Key Terms

diluted earnings per share financial

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

operating ratio financial

A company's operating ratio is a simple percentage that shows how much of its revenue is eaten up by the costs of running the business — calculated by dividing operating expenses by operating revenue. For investors it signals efficiency and profit potential: a lower operating ratio means the company keeps more of each dollar it earns (like a household with lower bills keeping more of its paycheck), while a higher ratio suggests tighter margins and less room to absorb shocks.

return on invested capital financial

A percentage that shows how effectively a company turns the money invested in its business—both borrowed funds and shareholders’ equity—into operating profit after taxes. It tells investors whether a company earns more from its core operations than it costs to fund those operations; think of it like the annual return you’d expect from renovating a rental property—higher percentages mean the company uses capital more efficiently and is more likely to create value for shareholders.

basis points financial

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

• Fourth quarter diluted earnings per share (EPS) of $3.11 and adjusted diluted EPS* of $2.86
• Fourth quarter operating ratio (OR) of 60.5% and adjusted OR* of 60.0%
• Full year diluted EPS of $11.98 and adjusted diluted EPS* of $11.66
• Full year OR of 59.8% and adjusted OR* of 59.3%
• Full year return on invested capital* of 16.3%

OMAHA, Neb.--(BUSINESS WIRE)-- Union Pacific Corporation (NYSE: UNP) today reported 2025 fourth quarter and full year results. "We had a record-breaking year and delivered best-ever safety, service, and operating results in 2025," said Jim Vena, Union Pacific Chief Executive Officer. "Our 2025 reported net income grew 6%, earnings per share increased 8%, and we improved our operating ratio. While we work through the regulatory process to create America's first transcontinental railroad, our team is focused on driving further safety, service, and operating improvements to support growth."

Reported 2025 fourth quarter net income was $1.8 billion and diluted EPS was $3.11. Results include industrial park land sales of $234 million, increasing diluted EPS $0.30, and $30 million of merger costs, reducing diluted EPS $0.05. Adjusted fourth quarter 2025 net income* of $1.7 billion, or adjusted diluted EPS* of $2.86, compares to adjusted fourth quarter 2024 net income* of $1.8 billion, or adjusted diluted EPS* of $2.96.

Reported full year 2025 net income of $7.1 billion, or diluted EPS of $11.98, compares to full year 2024 net income of $6.7 billion, or diluted EPS of $11.09. Reported full year net income grew 6% and full year diluted EPS improved 8%. Adjusted full year 2025 net income* of $6.9 billion, or adjusted diluted EPS* of $11.66, compares to adjusted full year 2024 net income* of $6.8 billion, or adjusted diluted EPS* of $11.11. Adjusted full year net income* grew 3% and adjusted diluted EPS* improved 5%.

Fourth Quarter Summary: 2025 vs. 2024

Financial Results: Record Fourth Quarter Net Income

• Net income of $1.8 billion includes industrial park land sales of $234 million.
• Operating revenue of $6.1 billion declined 1% driven by lower volume, partially offset by core pricing gains and fuel surcharge revenue.
• Revenue carloads declined 4%.
• Reported operating ratio was 60.5%, 180 basis points worse. Adjusted operating ratio* was 60.0%, 190 basis points worse.

* See attached supplemental schedule of non-GAAP measures for a reconciliation to GAAP.

Operating Results: Best Ever Quarterly Records for Freight Car Velocity and Terminal Dwell and Record Fourth Quarter for Train Length and Workforce Productivity

• Reportable personal injury rate and reportable derailment rate both improved.
• Freight car velocity was 239 daily miles per car, a 9% increase.
• Average terminal dwell was 19.8 hours, a 9% improvement.
• Average train length was 9,729 feet, a 3% increase.
• Workforce productivity was 1,151 car miles per employee, a 3% improvement.

Full Year Summary: 2025 vs. 2024

Financial Results: Best Ever Full Year for Freight Revenue Excluding Fuel Surcharge, Other Income, and Net Income

• Operating revenue of $24.5 billion was up 1% driven by core pricing gains and higher volume, partially offset by business mix, reduced fuel surcharge revenue, and lower other revenue.
• Freight revenue excluding fuel surcharge grew 3%.
• Revenue carloads increased 1%.
• Reported operating ratio of 59.8% improved 10 basis points. Adjusted operating ratio* of 59.3% improved 60 basis points.

Operating Results: Best Ever Full Year for Safety, Freight Car Velocity, Locomotive Productivity, Terminal Dwell, Train Length, Workforce Productivity, and Fuel Consumption Rate

• Union Pacific’s reportable personal injury and reportable derailment rates both improved, and the personal injury rate was industry-leading.
• Freight car velocity was 225 daily miles per car, an 8% increase.
• Locomotive productivity was 139 gross ton-miles per horsepower day, up 3%.
• Average terminal dwell was 20.9 hours, an 8% improvement.
• Workforce productivity was 1,132 car miles per employee, a 7% increase.

On Track with Investor Day Targets

• 2026 Outlook:
  • Meeting customer demand with strong service; muted economic forecast.
  • Pricing dollars in excess of inflation dollars.
  • Earnings per share growth of mid-single digit; consistent with attaining 3-year CAGR target of high-single digit to low-double digit through 2027.
  • Operating ratio improvement; industry-leading operating ratio and return on invested capital.
  • Continued strong cash generation.
  • Capital allocation:
    • Capital plan of $3.3 billion.
    • Consistent annual dividend increases.

* See attached supplemental schedule of non-GAAP measures for a reconciliation to GAAP.

Fourth Quarter 2025 Earnings Conference Call

Union Pacific will webcast its fourth quarter 2025 earnings release presentation live at www.up.com/investor and via teleconference on Tuesday, January 27, 2026, at 8:45 a.m. Eastern Time. Participants may join the conference call by dialing 877-407-8293 (or for international participants, 201-689-8349).

ABOUT UNION PACIFIC

Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable, and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.

Supplemental financial information is attached.

Certain statements in this communication are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements relate to future events or future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause the Company’s (or, as it relates to the Transaction (as defined below), the combined company of Norfolk Southern and Union Pacific (referred to hereinafter as the combined company) actual results, levels of activity, performance, or achievements or those of the railroad industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements may be identified by the use of words like “may,” “will,” “could,” “would,” “should,” “expect,” “anticipate,” “believe,” “project,” “estimate,” “intend,” “plan,” “pro forma,” or any variations or other comparable terminology.

While the Company has based these forward-looking statements on those expectations, assumptions, estimates, beliefs and projections they view as reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which involve factors or circumstances that are beyond the Company’s, including but not limited to, in addition to factors disclosed in the Company’s, as well as Norfolk Southern’s (as it relates to the proposed combination of it with the Company) respective filings with the U.S. Securities and Exchange Commission (the “SEC”): the occurrence of any event, change or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between the Company and Norfolk Southern providing for the acquisition of Norfolk Southern by Union Pacific (the “Transaction”); the risk that potential legal proceedings may be instituted against the Company or Norfolk Southern and result in significant costs of defense, indemnification or liability; the possibility that the Transaction does not close when expected or at all because required Surface Transportation Board or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the Transaction); the risk that the combined company will not realize expected benefits, cost savings, accretion, synergies and/or growth from the Transaction, or that such benefits may take longer to realize or be more costly to achieve than expected, including as a result of changes in, or problems arising from, general economic and market conditions, tariffs, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which the Company and Norfolk Southern operate; disruption to the parties’ businesses as a result of the announcement and pendency of the Transaction; the costs associated with the anticipated length of time of the pendency of the Transaction, including the restrictions contained in the definitive merger agreement on the ability of the Company and Norfolk Southern, respectively, to operate their respective businesses outside the ordinary course during the pendency of the Transaction; the diversion of the Company’s and Norfolk Southern’s management’s attention and time from ongoing business operations and opportunities on merger-related matters; the risk that the integration of each party’s operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate each party’s businesses into the other’s businesses; the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of the Company’s or Norfolk Southern’s customers, suppliers, employees, labor unions or other business partners, including those resulting from the announcement or completion of the Transaction; the dilution caused by the Company’s issuance of additional shares of its common stock in connection with the consummation of the Transaction; the risk of a downgrade of the credit rating of the Company’s indebtedness, which could give rise to an obligation to redeem existing indebtedness; a material adverse change in the financial condition of the Company, Norfolk Southern or the combined company; changes in domestic or international economic, political or business conditions, including those impacting the transportation industry (including customers, employees and supply chains); the Company’s, Norfolk Southern’s and the combined company’s ability to successfully implement its respective operational, productivity, and strategic initiatives; a significant adverse event on the Company’s or Norfolk Southern’s network, including, but not limited to, a mainline accident, discharge of hazardous materials, or climate-related or other network outage; the outcome of claims, litigation, governmental proceedings and investigations involving the Company or Norfolk Southern, including, in the case of Norfolk Southern, those with respect to the Eastern Ohio incident; the nature and extent of Norfolk Southern’s environmental remediation obligations with respect to the Eastern Ohio incident; new or additional governmental regulation and/or operational changes resulting from or related to the Eastern Ohio incident; and a cybersecurity incident or other disruption to our technology infrastructure.

This list of important factors is not intended to be exhaustive. These and other important factors, including those discussed under “Risk Factors” in Norfolk Southern’s Annual Report on Form 10-K for the year ended December 31, 2024 (available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0000702165/000070216525000008/nsc-20241231.htm) and Norfolk Southern’s subsequent filings with the SEC, the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 7, 2025 (available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0000100885/000010088525000042/unp-20241231.htm) and the Company’s subsequent filings with the SEC, as well as the risks described in the Company’s registration statement on Form S-4 (No. 290282), as filed with the SEC on September 16, 2025, as amended on September 30, 2025 (available at https://www.sec.gov/Archives/edgar/data/100885/000119312525224307/d908896ds4a.htm), may cause actual results, performance, or achievements to differ materially from those expressed or implied by these forward-looking statements. References to the Company’s and Norfolk Southern’s website are provided for convenience and, therefore, information on or available through the website is not, and should not be deemed to be, incorporated by reference herein. The forward-looking statements herein are made only as of the date they were first issued, and unless otherwise required by applicable securities laws, the Company and Norfolk Southern disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by applicable law or regulation.

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Condensed Consolidated Statements of Income (unaudited)
Millions, except per share amounts and percentages, for the periods ended December 31,	4th Quarter									Full Year
		2025			2024		%				2025			2024		%
Operating revenues
Freight revenues	$	5,759		$	5,789		(1	)%		$	23,220		$	22,811		2	%
Other revenues		326			332		(2	)			1,290			1,439		(10	)
Total operating revenues		6,085			6,121		(1	)			24,510			24,250		1
Operating expenses
Compensation and benefits		1,222			1,261		(3	)			4,897			4,899		-
Purchased services and materials		670			619		8				2,626			2,520		4
Depreciation		624			606		3				2,465			2,398		3
Fuel		595			581		2				2,390			2,474		(3	)
Equipment and other rents		229			248		(8	)			912			920		(1	)
Other		344			281		22				1,374			1,326		4
Total operating expenses		3,684			3,596		2				14,664			14,537		1
Operating income		2,401			2,525		(5	)			9,846			9,713		1
Other income, net		332			68		F				629			350		80
Interest expense		(325	)		(312	)	4				(1,309	)		(1,269	)	3
Income before income taxes		2,408			2,281		6				9,166			8,794		4
Income tax expense		(560	)		(519	)	8				(2,028	)		(2,047	)	(1	)
Net income	$	1,848		$	1,762		5	%		$	7,138		$	6,747		6	%
Share and per share
Earnings per share - basic	$	3.12		$	2.92		7	%		$	12.00		$	11.10		8	%
Earnings per share - diluted	$	3.11		$	2.91		7			$	11.98		$	11.09		8
Weighted average number of shares - basic		592.5			604.2		(2	)			595.0			607.6		(2	)
Weighted average number of shares - diluted		593.5			605.2		(2	)			595.9			608.6		(2	)
Dividends declared per share	$	1.38		$	1.34		3			$	5.44		$	5.28		3
Operating ratio		60.5	%		58.7	%	1.8 pts				59.8	%		59.9	%	(0.1) pts
Effective tax rate		23.3	%		22.8	%	0.5 pts				22.1	%		23.3	%	(1.2) pts

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Freight Revenues Statistics (unaudited)
For the Periods Ended December 31,	4th Quarter								Full Year
		2025			2024	%				2025		2024	%
Freight revenues (millions)
Grain & grain products	$	1,037		$	1,061	(2	)%		$	3,926	$	3,828	3	%
Fertilizer		218			199	10				856		811	6
Food & refrigerated		233			253	(8	)			1,018		1,085	(6	)
Coal & renewables		431			351	23				1,786		1,483	20
Bulk		1,919			1,864	3				7,586		7,207	5
Industrial chemicals & plastics		612			582	5				2,512		2,345	7
Metals & minerals		543			507	7				2,193		2,081	5
Forest products		302			324	(7	)			1,290		1,326	(3	)
Energy & specialized markets		659			679	(3	)			2,609		2,688	(3	)
Industrial		2,116			2,092	1				8,604		8,440	2
Automotive		581			581	-				2,398		2,452	(2	)
Intermodal		1,143			1,252	(9	)			4,632		4,712	(2	)
Premium		1,724			1,833	(6	)			7,030		7,164	(2	)
Total	$	5,759		$	5,789	(1	)%		$	23,220	$	22,811	2	%
Revenue carloads (thousands)
Grain & grain products		235			234	-	%			880		850	4	%
Fertilizer		54			51	6				216		213	1
Food & refrigerated		36			40	(10	)			163		177	(8	)
Coal & renewables		191			175	9				797		702	14
Bulk		516			500	3				2,056		1,942	6
Industrial chemicals & plastics		176			170	4				704		672	5
Metals & minerals		189			179	6				747		719	4
Forest products		48			52	(8	)			203		213	(5	)
Energy & specialized markets		148			154	(4	)			587		607	(3	)
Industrial		561			555	1				2,241		2,211	1
Automotive		190			197	(4	)			793		824	(4	)
Intermodal [a]		806			911	(12	)			3,357		3,357	-
Premium		996			1,108	(10	)			4,150		4,181	(1	)
Total		2,073			2,163	(4	)%			8,447		8,334	1	%
Average revenue per car
Grain & grain products	$	4,414		$	4,532	(3	)%		$	4,461	$	4,505	(1	)%
Fertilizer		4,095			3,918	5				3,970		3,809	4
Food & refrigerated		6,352			6,152	3				6,233		6,104	2
Coal & renewables		2,255			2,012	12				2,241		2,113	6
Bulk		3,719			3,723	-				3,690		3,710	(1	)
Industrial chemicals & plastics		3,478			3,445	1				3,568		3,493	2
Metals & minerals		2,863			2,820	2				2,935		2,893	1
Forest products		6,387			6,210	3				6,369		6,229	2
Energy & specialized markets		4,450			4,412	1				4,446		4,426	-
Industrial		3,771			3,771	-				3,840		3,818	1
Automotive		3,065			2,952	4				3,024		2,976	2
Intermodal [a]		1,418			1,376	3				1,380		1,404	(2	)
Premium		1,731			1,656	5				1,694		1,714	(1	)
Average	$	2,778		$	2,677	4	%		$	2,749	$	2,737	-	%
[a] For intermodal shipments each container or trailer equals one carload.

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Condensed Consolidated Statements of Financial Position (unaudited)
Millions, except percentages	Dec. 31, 2025		Dec. 31, 2024
Assets
Cash and cash equivalents	$	1,266	$	1,016
Other current assets		3,289		3,005
Investments		2,885		2,664
Properties, net		59,645		58,343
Operating lease assets		1,036		1,297
Other assets*		1,577		1,390
Total assets	$	69,698	$	67,715
Liabilities and Common Shareholders' Equity
Debt due within one year	$	1,520	$	1,425
Other current liabilities		3,494		3,829
Debt due after one year		30,294		29,767
Operating lease liabilities		738		925
Deferred income taxes		13,421		13,151
Other long-term liabilities		1,764		1,728
Total liabilities		51,231		50,825
Total common shareholders' equity		18,467		16,890
Total liabilities and common shareholders' equity	$	69,698	$	67,715

Return on Average Common Shareholders' Equity	40.4	%	42.6	%
Return on Invested Capital as Adjusted (ROIC)**	16.3	%	15.8	%

*	Prior periods have been reclassified to conform to the current period disclosure.
**	ROIC is a non-GAAP measure; however, we believe this measure is important to management and investors in evaluating efficiency and effectiveness of our long-term capital investments. See page 11 for a reconciliation to GAAP.

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Condensed Consolidated Statements of Cash Flows (unaudited)
	Full Year
Millions, for the periods ended December 31,		2025			2024
Operating activities
Net income	$	7,138		$	6,747
Depreciation		2,465			2,398
Deferred and other income taxes		241			28
Other - net		(554	)		173
Cash provided by operating activities		9,290			9,346
Investing activities
Capital investments*		(3,791	)		(3,452	)
Other - net		29			127
Cash used in investing activities		(3,762	)		(3,325	)
Financing activities
Dividends paid		(3,236	)		(3,213	)
Share repurchase programs		(2,679	)		(1,505	)
Debt issued		1,995			800
Debt repaid		(1,428	)		(2,226	)
Other - net		72			77
Cash used in financing activities		(5,276	)		(6,067	)
Net change in cash, cash equivalents, and restricted cash		252			(46	)
Cash, cash equivalents, and restricted cash at beginning of year		1,028			1,074
Cash, cash equivalents, and restricted cash at end of period	$	1,280		$	1,028
Free cash flow**
Cash provided by operating activities	$	9,290		$	9,346
Cash used in investing activities		(3,762	)		(3,325	)
Dividends paid		(3,236	)		(3,213	)
Free cash flow	$	2,292		$	2,808

*	Capital investments include locomotive and freight car early lease buyouts of $311 million in 2025 and $143 million in 2024.
**	Free cash flow is a non-GAAP measure; however, we believe this measure is important to management and investors in evaluating our financial performance and measures our ability to generate cash without additional external financing.

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Operating and Performance Statistics (unaudited)
For the periods ended December 31,	4th Quarter							Full Year
		2025		2024	%				2025		2024	%
Operating/performance statistics
Freight car velocity (daily miles per car)		239		219	9	%			225		208	8	%
Average train speed (miles per hour)*		25.5		23.9	7				24.3		23.6	3
Average terminal dwell time (hours)*		19.8		21.8	(9	)			20.9		22.6	(8	)
Locomotive productivity (GTMs per horsepower day)		141		136	4				139		135	3
Gross ton-miles (GTMs) (millions)		217,566		218,558	-				873,644		847,386	3
Train length (feet)		9,729		9,462	3				9,678		9,469	2
Intermodal service performance index (%)		100		89	11 pts				99		90	9 pts
Manifest service performance index (%)		100		96	4 pts				100		89	11 pts
Workforce productivity (car miles per employee)		1,151		1,118	3				1,132		1,062	7
Total employees (average)		28,418		29,789	(5	)			29,287		30,336	(3	)
Locomotive fuel statistics
Average fuel price per gallon consumed	$	2.49	$	2.41	3	%		$	2.49	$	2.64	(6	)%
Fuel consumed in gallons (millions)		234		236	(1	)			937		917	2
Fuel consumption rate**		1.074		1.078	-				1.072		1.082	(1	)
Revenue ton-miles (millions)
Grain & grain products		23,722		23,207	2	%			87,998		84,302	4	%
Fertilizer		3,502		3,291	6				13,780		13,204	4
Food & refrigerated		4,080		4,313	(5	)			17,888		18,547	(4	)
Coal & renewables		22,039		17,126	29				89,383		72,106	24
Bulk		53,343		47,937	11				209,049		188,159	11
Industrial chemicals & plastics		7,696		7,457	3				31,524		30,436	4
Metals & minerals		8,486		8,013	6				33,814		32,793	3
Forest products		4,957		5,369	(8	)			21,095		21,967	(4	)
Energy & specialized markets		9,960		10,690	(7	)			39,722		41,925	(5	)
Industrial		31,099		31,529	(1	)			126,155		127,121	(1	)
Automotive		4,257		4,452	(4	)			17,952		18,425	(3	)
Intermodal		17,822		20,506	(13	)			73,781		76,011	(3	)
Premium		22,079		24,958	(12	)			91,733		94,436	(3	)
Total		106,521		104,424	2	%			426,937		409,716	4	%

*	Surface Transportation Board (STB) reported performance measures.
**	Fuel consumption is computed as follows: gallons of fuel consumed divided by gross ton-miles in thousands.

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Condensed Consolidated Statements of Income (unaudited)
Millions, except per share amounts and percentages,	2025
		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Full Year
Operating revenues
Freight revenues	$	5,691		$	5,843		$	5,927		$	5,759		$	23,220
Other revenues		336			311			317			326			1,290
Total operating revenues		6,027			6,154			6,244			6,085			24,510
Operating expenses
Compensation and benefits		1,212			1,249			1,214			1,222			4,897
Purchased services and materials		631			642			683			670			2,626
Depreciation		610			613			618			624			2,465
Fuel		603			576			616			595			2,390
Equipment and other rents		241			230			212			229			912
Other		359			319			352			344			1,374
Total operating expenses		3,656			3,629			3,695			3,684			14,664
Operating income		2,371			2,525			2,549			2,401			9,846
Other income, net		78			123			96			332			629
Interest expense		(322	)		(335	)		(327	)		(325	)		(1,309	)
Income before income taxes		2,127			2,313			2,318			2,408			9,166
Income tax expense		(501	)		(437	)		(530	)		(560	)		(2,028	)
Net income	$	1,626		$	1,876		$	1,788		$	1,848		$	7,138
Share and per share
Earnings per share - basic	$	2.71		$	3.16		$	3.02		$	3.12		$	12.00
Earnings per share - diluted	$	2.70		$	3.15		$	3.01		$	3.11		$	11.98
Weighted average number of shares - basic		601.0			594.1			592.4			592.5			595.0
Weighted average number of shares - diluted		601.9			594.8			593.2			593.5			595.9
Dividends declared per share	$	1.34		$	1.34		$	1.38		$	1.38		$	5.44
Operating ratio		60.7	%		59.0	%		59.2	%		60.5	%		59.8	%
Effective tax rate		23.6	%		18.9	%		22.9	%		23.3	%		22.1	%

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Freight Revenue Statistics (unaudited)
	2025
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year
Freight revenues (millions)
Grain & grain products	$	950	$	964	$	975	$	1,037	$	3,926
Fertilizer		210		201		227		218		856
Food & refrigerated		260		267		258		233		1,018
Coal & renewables		416		469		470		431		1,786
Bulk		1,836		1,901		1,930		1,919		7,586
Industrial chemicals & plastics		607		646		647		612		2,512
Metals & minerals		521		561		568		543		2,193
Forest products		321		340		327		302		1,290
Energy & specialized markets		633		665		652		659		2,609
Industrial		2,082		2,212		2,194		2,116		8,604
Automotive		581		632		604		581		2,398
Intermodal		1,192		1,098		1,199		1,143		4,632
Premium		1,773		1,730		1,803		1,724		7,030
Total	$	5,691	$	5,843	$	5,927	$	5,759	$	23,220
Revenue carloads (thousands)
Grain & grain products		214		216		215		235		880
Fertilizer		49		55		58		54		216
Food & refrigerated		43		43		41		36		163
Coal & renewables		185		205		216		191		797
Bulk		491		519		530		516		2,056
Industrial chemicals & plastics		169		177		182		176		704
Metals & minerals		174		191		193		189		747
Forest products		51		52		52		48		203
Energy & specialized markets		143		149		147		148		587
Industrial		537		569		574		561		2,241
Automotive		195		209		199		190		793
Intermodal [a]		874		817		860		806		3,357
Premium		1,069		1,026		1,059		996		4,150
Total		2,097		2,114		2,163		2,073		8,447
Average revenue per car
Grain & grain products	$	4,434	$	4,467	$	4,532	$	4,414	$	4,461
Fertilizer		4,339		3,627		3,875		4,095		3,970
Food & refrigerated		6,058		6,237		6,306		6,352		6,233
Coal & renewables		2,250		2,283		2,181		2,255		2,241
Bulk		3,744		3,659		3,641		3,719		3,690
Industrial chemicals & plastics		3,601		3,647		3,548		3,478		3,568
Metals & minerals		2,986		2,950		2,944		2,863		2,935
Forest products		6,264		6,508		6,315		6,387		6,369
Energy & specialized markets		4,433		4,439		4,462		4,450		4,446
Industrial		3,877		3,885		3,828		3,771		3,840
Automotive		2,971		3,034		3,027		3,065		3,024
Intermodal [a]		1,364		1,345		1,393		1,418		1,380
Premium		1,658		1,688		1,701		1,731		1,694
Average	$	2,714	$	2,764	$	2,740	$	2,778	$	2,749
[a] For intermodal shipments each container or trailer equals one carload.

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Non-GAAP Measures Reconciliation to GAAP (unaudited)
Financial performance*
Millions, except per share amounts and percentages, for the three months ended December 31, 2025	Reported results (GAAP)			Acquisition- related expense			Industrial park land sales			Adjusted results (non-GAAP)
Operating expense	$	3,684		$	(30	)	$	-		$	3,654
Operating income		2,401			30			-			2,431
Other income, net		332			-			(234	)		98
Income tax expense [a]		(560	)		-			56			(504	)
Net income		1,848			30			(178	)		1,700
Earnings per share - diluted	$	3.11		$	0.05		$	(0.30	)	$	2.86
Operating ratio		60.5	%	(0.5) pts			- pts				60.0	%

Millions, except per share amounts and percentages, for the three months ended December 31, 2024	Reported results (GAAP)			Crew staffing agreement			Adjusted results (non-GAAP)
Operating expenses	$	3,596		$	(40	)	$	3,556
Operating income		2,525			40			2,565
Income tax expense		(519	)		(10	)		(529	)
Net income		1,762			30			1,792
Earnings per share - diluted	$	2.91		$	0.05		$	2.96
Operating ratio		58.7	%	(0.6) pts				58.1	%

[a]	Certain acquisition-related costs are non-deductible for income tax purposes.
*	The above tables reconcile our results for the three months ended December 31, 2025 and 2024, to adjust results that exclude the impact of certain items identified as affecting comparability. We use adjusted operating expenses, adjusted operating income, adjusted income tax expense, adjusted net income, adjusted diluted earnings per share (EPS), and adjusted operating ratio, as applicable, among other measures, to evaluate our actual operating performance. The measures listed in the above tables are considered non-GAAP by SEC Regulation G and Item 10 of SEC Regulation S-K. We believe these non-GAAP financial measures provide valuable information regarding earnings and business trends by excluding specific items that we believe are not indicative of our ongoing operating results of our business, providing a useful way for investors to make a comparison of our performance over time and against other companies in our industry. Since these are not measures of performance calculated in accordance with GAAP, they should be considered in addition to, rather than as a substitute for, operating expenses, operating income, income tax expense, net income, diluted EPS, and operating ratio as indicators of operating performance.

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Non-GAAP Measures Reconciliation to GAAP (unaudited)
Financial performance*
Millions, except per share amounts and percentages	Reported results (GAAP)			Acquisition- related expense			Industrial park land sales			Deferred tax adjustment			Crew staffing agreement			Adjusted results (non-GAAP)
For the year ended December 31, 2025
Operating expense	$	14,664		$	(72	)	$	-		$	-		$	(55	)	$	14,537
Operating income		9,846			72			-			-			55			9,973
Other income, net		629			-			(250	)		-			-			379
Income tax expense [a]		(2,028	)		-			60			(115	)		(13	)		(2,096	)
Net income		7,138			72			(190	)		(115	)		42			6,947
Earnings per share - diluted	$	11.98		$	0.12		$	(0.32	)	$	(0.19	)	$	0.07		$	11.66
Operating ratio		59.8	%	(0.3) pts			- pts			- pts			(0.2) pts				59.3	%

Millions, except per share amounts and percentages	Reported results (GAAP)			Crew staffing agreement			Gain on sale of intermodal equipment			Environmental remediation			Adjusted results (non-GAAP)
For the year ended December 31, 2024
Operating expenses	$	14,537		$	(40	)	$	46		$	(23	)	$	14,520
Operating income		9,713			40			(46	)		23			9,730
Income tax expense		(2,047	)		(9	)		11			(6	)		(2,051	)
Net income		6,747			31			(35	)		17			6,760
Earnings per share - diluted	$	11.09		$	0.05		$	(0.06	)	$	0.03		$	11.11
Operating ratio		59.9	%	(0.1) pts			0.2 pts			(0.1) pts				59.9	%

[a]	Certain acquisition-related costs are non-deductible for income tax purposes.
*	The above tables reconcile our results for the year ended and as of December 31, 2025 and 2024, to adjust results that exclude the impact of certain items identified as affecting comparability. We use adjusted operating expenses, adjusted operating income, adjusted income tax expense, adjusted net income, adjusted diluted earnings per share (EPS), and adjusted operating ratio as applicable, among other measures, to evaluate our actual operating performance. The measures listed in the above tables are considered non-GAAP by SEC Regulation G and Item 10 of SEC Regulation S-K. We believe these non-GAAP financial measures provide valuable information regarding earnings and business trends by excluding specific items that we believe are not indicative of our ongoing operating results of our business, providing a useful way for investors to make a comparison of our performance over time and against other companies in our industry. Since these are not measures of performance calculated in accordance with GAAP, they should be considered in addition to, rather than as a substitute for, operating expenses, operating income, income tax expense, net income, diluted EPS, and operating ratio as indicators of operating performance.

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Non-GAAP Measures Reconciliation to GAAP (unaudited)
Debt / net income
Millions, except ratios		2025			2024
Debt	$	31,814		$	31,192
Net income		7,138			6,747
Debt / net income		4.5			4.6

Adjusted debt / adjusted EBITDA*
Millions, except ratios		2025				2024
Net income	$	7,138			$	6,747
Add:
Income tax expense		2,028				2,047
Depreciation		2,465				2,398
Interest expense		1,309				1,269
EBITDA	$	12,940			$	12,461
Adjustments:
Other income, net		(629	)			(350	)
Interest on operating lease liabilities [1]		40				48
Adjusted EBITDA (a)	$	12,351			$	12,159
Debt	$	31,814			$	31,192
Operating lease liabilities		1,008				1,271
Adjusted debt (b)	$	32,822			$	32,463
Adjusted debt / adjusted EBITDA (b/a)		2.7				2.7

[1]	Represents the hypothetical interest expense we would incur (using the incremental borrowing rate) if the property under our operating leases were owned or accounted for as finance leases
*	Adjusted debt (total debt plus operating lease liabilities plus after-tax unfunded pension and OPEB (other post-retirement benefit) obligations) to adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and adjustments for other income and interest on present value of operating leases) is considered a non-GAAP financial measure by SEC Regulation G and Item 10 of SEC Regulation S-K and may not be defined and calculated by other companies in the same manner. We believe this measure is important to management and investors in evaluating the Company’s ability to sustain given debt levels (including leases) with the cash generated from operations. In addition, a comparable measure is used by rating agencies when reviewing the Company’s credit rating. Adjusted debt to adjusted EBITDA should be considered in addition to, rather than as a substitute for, other information provided in accordance with GAAP. The most comparable GAAP measure is debt to net income ratio. The tables above provide reconciliations from net income to adjusted EBITDA, debt to adjusted debt, and debt to net income to adjusted debt to adjusted EBITDA. At December 31, 2025 and 2024, the incremental borrowing rate on operating leases was 4.0% and 3.8%, respectively. Pension and OPEB were funded at December 31, 2025 and 2024.

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Non-GAAP Measures Reconciliation to GAAP (unaudited)
Return on average common shareholders' equity
Millions, except percentages	2025			2024
Net income	$	7,138		$	6,747
Average equity	$	17,679		$	15,839
Return on average common shareholders' equity		40.4	%		42.6	%
Return on invested capital as adjusted (ROIC)*
Millions, except percentages	2025			2024
Net income	$	7,138		$	6,747
Interest expense		1,309			1,269
Interest on average operating lease liabilities		46			55
Taxes on interest		(299	)		(308	)
Net operating profit after taxes as adjusted	$	8,194		$	7,763
Average equity	$	17,679		$	15,839
Average debt		31,503			31,886
Average operating lease liabilities		1,140			1,436
Average invested capital as adjusted	$	50,322		$	49,161
Return on invested capital as adjusted		16.3	%		15.8	%

*

ROIC is considered a non-GAAP financial measure by SEC Regulation G and Item 10 of SEC Regulation S-K and may not be defined and calculated by other companies in the same manner. We believe this measure is important to management and investors in evaluating the efficiency and effectiveness of our long-term capital investments. In addition, we currently use ROIC as a performance criterion in determining certain elements of equity compensation for our executives. ROIC should be considered in addition to, rather than as a substitute for, other information provided in accordance with GAAP. The most comparable GAAP measure is return on average common shareholders’ equity. The tables above provide reconciliations from return on average common shareholders’ equity to ROIC. At December 31, 2025 and 2024, the incremental borrowing rate on operating lease liabilities was 4.0% and 3.8%, respectively.

 

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Union Pacific Investor contact: Diana Prauner at 402-544-4227 or dprauner@up.com

Union Pacific Media contact: Clarissa Beyah at 402-957-4793 or cbeyah@up.com

Source: Union Pacific Corporation