OMAHA, Neb. — Union Pacific today reported record financial and operational results for 2025 despite a drop in fourth-quarter operating income.
“The Union Pacific team delivered our best ever full year across safety, service and operating excellence,” CEO Jim Vena said on the railroad’s earnings call on Tuesday morning. “As we close out the year, it’s clear the team is consistently delivering at the highest levels, and I’m confident that’s what we’ll continue to do.”
For the year, operating income rose 1%, to $9.8 billion, as revenue rose 1%, to $24.5 billion. Overall volume also was up 1%. Earnings per share grew 8%, to $11.09. The railroad’s operating ratio was 59.8%, an improvement of 0.1 points.
“We remain disciplined, setting the best ever full-year record for workforce productivity as we utilized 3% fewer employees to move 1% more volume,” Vena said.
Fourth-quarter volume declined 4% due to a 10% drop in premium traffic, which includes intermodal and automotive business.
Most of the intermodal decline was due to a 30% drop in international volume, which came down from record levels in 2024. Domestic intermodal volume had a record quarter and year, said Kenny Rocker, the railroad’s executive vice president of marketing and sales.
Bulk traffic, which includes coal, was up 3%, while industrial products traffic notched out a 1% quarterly gain.
Fourth-quarter operating income declined 5%, to $2.4 billion, as revenue declined 1%, to $6.08 billion. Earnings per share increased 7%, to $3.11. The railroad’s fourth-quarter operating ratio was 60.5%, a 1.8-point increase compared to the fourth quarter of 2024, as expenses increased 2%, to $3.68 billion.
Quarterly freight car velocity increased 9% to a record 239 car-miles per day. Average train speed was up 7%, while terminal dwell was down 9% to a record 19.8 hours. Average train length was a record, at 9,729 feet.
Eric Gehringer, executive vice president of operations, noted that the railroad had its lowest ever train accident and employee injury rates in 2025.
Chief Financial Officer Jennier Hamann says UP expects to hit the three-year financial targets outlined at its September 2024 investor day. For this year, UP forecasts earnings per share growth of around 5%, along with operating ratio improvement despite a muted economic outlook.
Rocker says UP has a positive outlook for coal, grain, and chemicals and plastics traffic this year. The railroad’s outlook is negative, however, for forest products, intermodal, and automotive.
UP’s $3.3 billion 2026 capital plan includes $1.9 on track maintenance, $600 million for capacity improvements and siding extensions, $400 million for locomotive modernizations, and $400 million for technology projects.
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