Union Pacific | 8-K: FY2025 Q3 Revenue Misses Estimate at USD 6.244 B

Revenue: As of FY2025 Q3, the actual value is USD 6.244 B, missing the estimate of USD 6.25 B.

EPS: As of FY2025 Q3, the actual value is USD 3.01, beating the estimate of USD 2.9762.

EBIT: As of FY2025 Q3, the actual value is USD 2.645 B.

Segment Revenue

• Freight Revenue: $5,927 million in Q3 2025, a 3% increase from $5,768 million in Q3 2024.
• Bulk Revenue: $1,930 million in Q3 2025, a 7% increase from $1,805 million in Q3 2024.
• Industrial Revenue: $2,194 million in Q3 2025, a 3% increase from $2,121 million in Q3 2024.
• Premium Revenue: $1,803 million in Q3 2025, a 2% decrease from $1,842 million in Q3 2024.

Operational Metrics

• Net Income: $1,788 million in Q3 2025, a 7% increase from $1,671 million in Q3 2024.
• Operating Income: $2,549 million in Q3 2025, a 6% increase from $2,416 million in Q3 2024.
• Operating Expenses: $3,695 million in Q3 2025, a 1% increase from $3,675 million in Q3 2024.
• Operating Ratio: 59.2% in Q3 2025, an improvement of 110 basis points from 60.3% in Q3 2024.

Cash Flow

• Operating Cash Flow: $7,065 million for the nine months ended September 30, 2025, compared to $6,684 million for the same period in 2024.
• Free Cash Flow: $1,856 million for the nine months ended September 30, 2025, compared to $1,855 million for the same period in 2024.

Unique Metrics

• Freight Car Velocity: 226 daily miles per car in Q3 2025, an 8% improvement from 210 daily miles per car in Q3 2024.
• Locomotive Productivity: 140 gross ton-miles per horsepower day in Q3 2025, a 4% improvement from 135 gross ton-miles per horsepower day in Q3 2024.

Outlook / Guidance

Union Pacific aims to meet customer demand with strong service and expects earnings per share growth consistent with attaining the 3-year CAGR target of high-single to low-double digit. The company plans a capital allocation of $3.4 billion and has increased its dividend by 3% in Q3 2025. Share repurchases are paused due to the Norfolk Southern merger.