Union Pacific reported fourth-quarter net income of $1.8 billion and diluted EPS of $3.11, including $234 million from industrial park land sales. On an adjusted basis, net income was $1.7 billion, or $2.86 per diluted share, down from $1.8 billion and $2.96 a year ago. Operating revenue declined 1% year-over-year to $6.1 billion as a 4% drop in revenue carloads more than offset core pricing gains and fuel surcharge revenue. The reported operating ratio worsened by 180 basis points to 60.5%, and the adjusted ratio deteriorated 190 basis points to 60.0%.

Despite volume headwinds, the railroad set best-ever quarterly records for freight car velocity (239 daily miles per car, up 9%) and average terminal dwell (19.8 hours, 9% faster). Average train length increased 3% to 9,729 feet, and workforce productivity rose 3% to 1,151 car miles per employee. Safety metrics also improved: both the reportable personal injury rate and derailment rate declined compared to the prior year quarter.

For the full year, reported net income grew 6% to $7.1 billion and diluted EPS rose 8% to $11.98. Adjusted net income was $6.9 billion, up 3%, with adjusted EPS of $11.66, a 5% increase. Operating revenue reached $24.5 billion, a 1% gain driven by core pricing and higher volume, while freight carloads rose 1%. The full-year reported operating ratio improved 10 basis points to 59.8%, and the adjusted ratio tightened 60 basis points to 59.3%. Full-year freight revenue excluding fuel surcharge grew 3%.

Management projects mid-single-digit earnings per share growth in 2026, consistent with a three-year high-single- to low-double-digit CAGR target through 2027. Pricing gains are expected to outpace inflation, and the company anticipates further operating ratio improvements and industry-leading return on invested capital. Capital expenditures are planned at $3.3 billion, supported by continued strong cash generation and annual dividend increases.