Union Pacific Corporation (NYSE:UNP) reported second-quarter 2025 earnings that beat analyst forecasts, driven by stronger freight volumes and enhanced operational efficiency. Following the announcement, the railroad’s shares climbed 1.3%.
The company posted adjusted earnings per share of $3.03, exceeding the consensus estimate of $2.90. Revenue totaled $6.2 billion, slightly above the anticipated $6.15 billion. Freight revenue—excluding fuel surcharges—increased 6% year-over-year, contributing to an overall revenue growth of 2%.
Union Pacific saw a 4% rise in revenue carloads, reflecting increased demand across its rail network. Operational efficiency improved markedly, with the adjusted operating ratio dropping by 230 basis points to 58.1% compared to the prior year.
“We are delivering on our strategy, and our second-quarter results underscore our commitment to industry leadership in safety, service, and operational excellence,” said Jim Vena, CEO of Union Pacific. “Our foundation is strong, customer growth is underway, and momentum is building as we continue to unlock the full potential of our franchise.”
Operational metrics reflected notable progress, with freight car velocity up 10% to 221 daily miles per car. Locomotive productivity rose 5% to 141 gross ton-miles per horsepower day, and workforce productivity improved 9% to 1,124 car miles per employee.
Union Pacific reaffirmed its 2025 outlook, aiming for earnings per share growth aligned with its three-year target of high single-digit to low double-digit compound annual growth. The company also maintained its $3.4 billion capital expenditure plan and $4.0 to $4.5 billion share repurchase target, while announcing a 3% dividend increase for Q3 2025.
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