UNION PACIFIC CORP SEC 10-Q Report
Union Pacific Corp, a leading railroad operator in North America, has released its Form 10-Q report for the second quarter of 2025. The report highlights the company's robust financial performance and significant operational improvements, driven by volume increases, core pricing gains, and enhanced efficiency. Below is a detailed summary of the key financial and business highlights from the report.
Financial Highlights
Total Operating Revenues: $6,154 million, increased by 2% compared to the same period in 2024 driven by volume increases and core pricing gains.
Operating Income: $2,525 million, increased by 5% reflecting top-line growth, solid operational performance, and productivity gains.
Net Income: $1,876 million, increased by 12% due to improved operational performance and a reduction in income tax expense.
Earnings Per Share - Diluted: $3.15, increased from $2.74 in the same period of 2024, reflecting higher net income and share repurchases.
Operating Ratio: 59.0%, improved by 1.0 point from the previous year, driven by core pricing gains, productivity initiatives, and volume growth.
Business Highlights
Revenue Segments: Freight revenues increased by 4% in the second quarter of 2025 compared to the same period in 2024, driven by volume increases and core pricing gains. Bulk shipments, including grain and grain products, fertilizer, food and refrigerated, and coal and renewables, saw a 10% increase in freight revenues due to volume growth and core pricing gains.
Geographical Performance: Freight revenues from shipments to and from Mexico increased by 1% to $751 million in the second quarter of 2025, driven by volume growth in grain, petroleum products, and intermodal shipments, despite a decline in automotive-related shipments.
Sales Units: Revenue carloads increased by 4% in the second quarter of 2025 compared to 2024, with significant growth in coal and renewables (30% increase) and grain and grain products (8% increase).
Operational Efficiency: Freight car velocity improved by 10% in the second quarter of 2025 compared to 2024, reflecting enhanced operational performance. Terminal dwell time decreased by 7%, and locomotive productivity increased by 5%, indicating better asset utilization.
Future Outlook: The company plans to invest approximately $3.4 billion in capital expenditures in 2025, focusing on growth strategy, safety, and operational efficiency improvements. This includes modernization of the locomotive fleet and acquiring freight cars to support replacement and growth opportunities.
Service Performance: The intermodal service performance index improved by 6 points, and the manifest service performance index improved by 13 points in the second quarter of 2025 compared to 2024, demonstrating enhanced service reliability.
Workforce Productivity: Workforce productivity increased by 9% in the second quarter of 2025 compared to 2024, as the company handled more volume with fewer employees, reflecting improved efficiency.
Train Length: Average train length increased by 2% in the second quarter of 2025 compared to 2024, driven by initiatives to improve train length, particularly in coal and grain train volumes.
SEC Filing: UNION PACIFIC CORP [ UNP ] - 10-Q - Jul. 24, 2025