Union Pacific reported a 16% enhance in third-quarter revenue Thursday as increased freight volumes, pricing features and gasoline surcharges lifted income, with intermodal site visitors main the railroad’s progress.
The Omaha-based railroad (NYSE: UNP) earned $2.08 billion, or $3.49 per diluted share, in contrast with $1.79 billion, or $3.01 per share, a 12 months earlier. Adjusted earnings of $3.53 per share exceeded the $3.47 consensus estimate compiled by Zacks Funding Analysis.
Working income elevated 15% to $7.2 billion, whereas freight income excluding gasoline surcharges rose 6%. Whole income carloads grew 6% to 2.29 million. Intermodal quantity elevated 11% to 956,000 containers and trailers, and intermodal income climbed 27% to $1.52 billion. Industrial volumes rose 6%, whereas bulk site visitors was basically flat.
“Union Pacific’s third quarter outcomes show our capability to securely ship the service we offered to our prospects whereas effectively dealing with 6% quantity progress,” Chief Government Jim Vena mentioned within the earnings launch.
Working earnings elevated 15% to $2.94 billion. The reported working ratio improved barely to 59.1% from 59.2%, though the adjusted ratio deteriorated 30 foundation factors to 58.8%. Increased gasoline costs added 140 foundation factors to the ratio, the corporate mentioned. Workforce productiveness improved 5%, whereas common terminal dwell declined 2% to 19.9 hours.
Union Pacific reaffirmed its forecast for high-single-digit progress in reported earnings per share for 2026 and up to date its capital spending plan to $3.5 billion. Vena additionally pointed to approaching steps within the Floor Transportation Board’s evaluate of the railroad’s proposed merger with Norfolk Southern (NYSE: NSC).
Why it issues: Union Pacific’s earnings present how intermodal progress and pricing features are supporting income at the same time as increased gasoline prices strain working effectivity.
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