Union Pacific Corporation · NYSE:UNP
Union Pacific — Q4 2025 Earnings Presentation
14 slides from Union Pacific's earnings presentation, Jan 27, 2026
Slide 1: Fourth Quarter 2025 Earnings
UNION PACIFIC CORPORATION FOURTH QUARTER 2025 EARNINGS JANUARY 27, 2026 Cautionary Information Certain statements in this presentation are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statem
Slide 2: Full Year 2025 Highlights
EXECUTIVE SUMMARY F U L L Y E AR 2 0 2 5 Jim Vena Chief Executive Officer 3 Full Year 2025 Highlights Financials Reported Adjusted* Executive Summary: Operating Income $ 9.8B $ 10.0B • Best-ever performance across safety, service and operating; vs. 2024 1% 2% continued to build on ‘what’s possible’
Slide 3: Fourth Quarter Income Statement
FINANCIAL REVIEW F O U RT H Q U AR T E R 2 0 2 5 Jennifer Hamann Executive Vice President & Chief Financial Officer 5 Fourth Quarter Income Statement 2025 2024 Variance Freight Revenue Ex. Fuel $ 5,156) $ 5,201) (1) Freight Revenue Drivers: Fuel Surcharge 603) 588) 3) Freight Revenue 5,759) 5,789) (
Slide 4: 2025 Full Year Cash Generation, Debt, & Returns to Shareholders
2025 Full Year Cash Generation, Debt, & Returns to Shareholders Cash From Operations Cash Returns to Shareholders $9.3 $9.3 $5.9 $4.7 87% + 25% vs 2024 Cash Flow 77% Conversion* 2024 2025 2024 2025 Adjusted Debt* ROIC* 16.3% $32.8 15.8% $32.5 + 0.5 pts vs 2024 Adjusted 2.7 2.7 Debt / EBITDA* 2024 20
Slide 5: Fourth Quarter Commodity Review
Fourth Quarter Commodity Review Commodity Revenue Volume ARC (Millions) (Thousands) Bulk $ 1,919 516 $ 3,719 vs. 4Q’24 3% 3% Flat Industrial $ 2,116 561 $ 3,771 vs. 4Q’24 1% 1% Flat Premium vs. 4Q’24 $ 1,724 996 $ 1,731 6% 10% 5% Total $ 5,759 2,073 $ 2,778 vs. 4Q’24 1% 4% 4% 9 2026 S&P Global Marke
Slide 6: 2026 Volume Outlook
2026 Volume Outlook Commodity Business Line Outlook + Coal & Renewables Natural Gas Prices Bulk + Grain & Grain Products Export Soybeans; Renewable Fuels Tax Clarity + Industrial Chemicals & Plastics Winning New Business & Plant Expansions Industrial Forest Products Continued Weak Housing Demand Low
Slide 7: Key Performance Metrics
FOURT H QUARTER 2025 Key Performance Metrics Record Full Year Safety Performance Freight Car Intermodal Service Manifest Service Velocity Performance Index Performance Index 239 100 100 9% 11 pts 4 pts Quarterly Drivers Record Freight Improved Reduced Car Dwell Train Speed Car Touches 13 Year-over-y
Slide 8: Investing in Our Franchise: 2026 Capital Plan
Investing in Our Franchise Union Pacific 2026 Capital Plan of $3.3 Billion $1.9 B Infrastructure Replacement Rail, Ties, & Ballast $0.6 B Capacity & Commercial Facilities Intermodal and Manifest Terminals & Siding Extensions Capital Program $3.4 $3.5 $3.3 $0.4 B Locomotive & Equipment Locomotive Mod
Slide 9: On Track With Investor Day Targets
On Track With Investor Day Targets 2026 Outlook: • Meeting Customer Demand with Strong Service; Muted Economic Forecast • Pricing Dollars In Excess of Inflation • EPS Growth Mid-Single Digit; Consistent with Attaining the 3-Year CAGR Target of High-Single Digit to Low- Double Digit through 2027 • Op
Slide 10: Union Pacific Strategy
UNI ON PACIFI C STRATEGY Safety, Service & Operational Excellence = Growth ASSET SAFETY SERVICE COST CONTROL PEOPLE UTILIZATION Spend resources wisely, Be the best Deliver the service we sold Drive decision-making to Engage our teams and with a buffer for the at safety. our customers. those closest
Slide 11: Fourth Quarter 2025 Operating Ratio and EPS
APPENDIX 21 Fourth Quarter 2025 Operating Ratio and EPS Favorable / (Unfavorable) Operating Ratio EPS Reported Fourth Quarter 2024 58.7% $2.91 Fuel Price (net) (0.3 pts ($0.05) Merger Costs (0.5) pts ($0.05) 2024 Crew Staffing Agreement 0.6 pts ($0.05) Industrial Park Land Sales - ($0.30) Core Resul
Slide 12: Full Year 2025 Operating Ratio and EPS
Full Year 2025 Operating Ratio and EPS Favorable / (Unfavorable) Operating Ratio EPS Full Year 2024 Reported 59.9% $11.09 Fuel Price (net) -- ($0.14) Merger Costs (0.3) pts ($0.12) Core Results (0.6) pts ($0.69) Industrial Park Land Sales - ($0.32) Deferred Tax Adjustment - ($0.19) Other One-Timers*
Slide 13: Lower Fuel Prices & Productivity Offset Volume-Related Expenses, Inflation, and Merger Costs
Lower Fuel Prices & Productivity Offset Volume-Related Expenses, Inflation, and Merger Costs Full Year 2025 Reported Operating Expenses $ in Millions $67 ($84) $48 $14,664 $106 ($8) $14,537 ($2) +3% (3%) (1%) +4% Flat +4% Drivers: + Lower ‒ Merger ‒ Higher Asset + Fuel Price + Operating ‒ 2024 Sale
Slide 14: 2026 Full Year Financial Assumptions
2026 Full Year Financial Assumptions • Inflation (excluding fuel): 4% vs. 2025 • Fuel Price: $2.35 per gallon • Depreciation: Up 4% vs. 2025 • Merger Costs: ~$25 Million per Quarter • Tax Rate: ~24% 27