Union Pacific (UNP) Q3 2025 Financial Results Summary
Omaha, Neb., October 23, 2025 – Union Pacific Corporation (NYSE: UNP) today reported its financial results for the third quarter of 2025. Below is a summary of the key metrics:
Financial Highlights
- Net Income: $1.8 billion, resulting in a Diluted EPS of $3.01 (an increase of 9% compared to $2.75 in Q3 2024) and an Adjusted Diluted EPS of $3.08 (up 12% year-over-year).
- Operating Revenue: Totaled $6.2 billion, showing a 3% increase from Q3 2024.
- Operating Ratio:
- Reported at 59.2%, an improvement of 110 basis points from 60.3% in the same quarter of 2024.
- Adjusted Operating Ratio was 58.5%, improving by 180 basis points year-over-year.
Operational Highlights
- Freight Revenue: Excluding fuel surcharge, freight revenue grew 4%.
- Productivity Metrics:
- Freight car velocity improved by 8% to 226 daily miles per car.
- Locomotive productivity increased 4% to 140 gross ton-miles per horsepower day (GTM/hp/day).
- Average terminal dwell improved by 9% to 20.4 hours.
- Average train length increased by 2% to 9,801 feet.
- Workforce productivity rose by 6% to 1,165 car miles per employee.
Dividend and Share Repurchase
- Quarterly Dividend: Union Pacific declared a dividend increase of 3%, with the quarterly dividend amount raised to $1.38 per share.
- Share Repurchases: Repurchase programs have been paused in light of the ongoing Norfolk Southern merger.
2025 Outlook
- Union Pacific highlighted its continued delivery to meet customer demand while navigating challenging international intermodal conditions.
- The company aims to maintain a strong cash generation, with a capital allocation plan of $3.4 billion.
- Earnings Growth: The company expects consistent earnings per share growth aligned with the 3-year CAGR target of high-single to low-double digit.
Key Performance Metrics Comparison: Q3 2025 vs. Q3 2024
- Operating Revenue: Up 3% ($6.2 billion vs. $6.0 billion).
- Adjusted Operating Income: $2.59 billion, up from $2.48 billion, marking a 4% increase.
- Effective Tax Rate: Decreased from 23.7% to 22.9%, improving efficiency in taxation.
- Shareholder Equity: Increased to $17.3 billion from $16.9 billion.
Cash Flow and Investment
- Free Cash Flow: For the year-to-date 2025, the free cash flow remained stable at $1.856 billion, up slightly from $1.855 billion in the same period last year.
- Cash Utilization: Total cash utilized in investing activities was $2.791 billion, partly funded through cash generated from operating activities and debt issued.
Debt Metrics
- Debt/Net Income Ratio: At 4.5, slightly reduced from 4.6 in December 2024.
- Adjusted Debt/Adjusted EBITDA: Remains stable at 2.6, indicating effective management of debt relative to earnings.
Union Pacific continues to position itself strategically within the industry while emphasizing operational excellence and shareholder returns. Further details can be found in the company’s filings and reports available on their investor relations platform.
| 3rd quarter 2025 | 3rd quarter 2024 | % | Year-to-date 2025 | Year-to-date 2024 | % | |
|---|---|---|---|---|---|---|
| Operating revenues | ||||||
| Freight | $5,927 | $5,768 | 3 | $17,461 | $17,022 | 3 |
| Other revenues | 317 | 323 | -2 | 964 | 1,163 | -13 |
| Total operating | 6,244 | 6,091 | 3 | $18,425 | $18,185 | 1 |
| revenues | ||||||
| Operating expenses | ||||||
| Compensation | $1,214 | $1,212 | 0 | $3,675 | $3,737 | -2 |
| Purchased services | 683 | 644 | 6 | 1,956 | 1,947 | 0 |
| Fuel | 616 | 610 | 1 | 1,795 | 1,806 | -1 |
| Other | 352 | 354 | -1 | 1,030 | 1,029 | 0 |
| Total operating | 3,695 | 3,629 | 2 | $10,980 | $10,820 | 1 |
| expenses | ||||||
| Operating income | 2,549 | 2,462 | 4 | $7,445 | $7,365 | 1 |
| Other income, net | 96 | 87 | 10 | 297 | 282 | 5 |
| Interest expense | -327 | -322 | 1 | -984 | -957 | 3 |
| Income before | 2,318 | 2,227 | 4 | $6,758 | $6,690 | 1 |
| income taxes | ||||||
| Income tax expense | -530 | -518 | 2 | -1,468 | -1,492 | -2 |
| Net income | $1,788 | $1,626 | 10 | $5,290 | $4,985 | 6 |
| Share and per | ||||||
| share Earnings per | $3.02 | $2.75 | 10 | $8.88 | $8.19 | 8 |
| share – basic | $3.01 | $2.75 | 9 | $8.87 | $8.18 | 8 |
| – diluted | ||||||
| Weighted average | 592.4 | 601.0 | -3 | 595.8 | 608.0 | -2 |
| number of shares | – basic | |||||
| Weighted average | 593.2 | 601.9 | -3 | 596.7 | 609.0 | -2 |
| number of shares | – diluted | |||||
| Dividends declared | $1.38 | $1.34 | 3 | $4.06 | $3.94 | 3 |
| per share | ||||||
| Operating ratio | 59.2% | 60.3% | -1.1pts | 59.6% | 60.4% | -0.8pts |
| Effective tax rate | 22.9% | 23.7% | -0.8pts | 21.7% | 23.5% | -1.8pts |
| Sep. 30, 2025 | Dec. 31, 2024 | |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | $808 | $1,016 |
| Other current assets | 3,096 | 3,005 |
| Investments | 2,841 | 2,664 |
| Properties, net | 59,392 | 58,343 |
| Operating lease assets | 1,090 | 1,297 |
| Other assets | 1,420 | 1,390 |
| Total assets | $68,647 | $67,715 |
| Liabilities and common shareholders’ | ||
| equity | ||
| Debt due within one year | $1,521 | $1,425 |
| Other current liabilities | 3,699 | 3,829 |
| Debt due after one year | 30,286 | 29,767 |
| Operating lease liabilities | 764 | 925 |
| Deferred income taxes | 13,329 | 13,151 |
| Other long-term liabilities | 1,744 | 1,728 |
| Total liabilities | 51,343 | 50,825 |
| Total common shareholders’ equity | 17,304 | 16,890 |
| Total liabilities and common | $68,647 | $67,715 |
| shareholders’ equity | ||
| Debt / net income | 4.5 | 4.6 |
| Adjusted debt / adjusted EBITDA* | 2.6 | 2.7 |
