Q3 2025 Union Pacific Corp Earnings Call Transcript
Key Points
- Union Pacific Corp (UNP) reported a 12% increase in adjusted earnings per share, reaching $3.08, driven by core pricing gains and operational efficiencies.
- Freight revenue excluding fuel grew for the sixth consecutive quarter, setting a best-ever record.
- The company achieved best-ever quarterly records in workforce productivity, fuel consumption, terminal dwell, and train line performance.
- Union Pacific Corp (UNP) improved its adjusted operating ratio to 58.5%, a 180 basis point improvement from the previous year.
- The company successfully reduced its debt, paying down $1 billion in long-term notes, and improved its adjusted debt-to-EBITDA ratio to 2.6x.
- Volume was down slightly in the quarter, contributing to a 25 basis points reduction in freight revenue.
- Fuel surcharge revenue decreased by $33 million due to lower fuel prices, impacting freight revenue by 50 basis points.
- The company faces challenges with international intermodal volumes, which are down 17% year-over-year.
- Merger-related costs and paused share repurchases present headwinds to earnings and margin expansion.
- The macroeconomic environment, including softer automotive sales and housing starts, poses challenges to achieving high-end growth targets.
Greetings, and welcome to the Union Pacific's third-quarter 2025 earnings call. (Operator Instructions) As a reminder, this conference is being recorded and the slides for today's presentation are available on Union Pacific's website.
At this time, it is now my pleasure to introduce your host, Mr. Jim Vena, Chief Executive Officer for Union Pacific. Thank you. Mr. Vena, you may now begin your presentation.
Thank you very much, Rob. Listen, thanks, everyone, for joining us. Beautiful 36-degree day here in morning in Omaha, Nebraska, absolutely perfect day to be railroading this type of day that I love, not too hot, not too cold. It's just a slam dunk. So Eric and team should continue to deliver what they've delivered this past quarter, and we'll get into that in a minute.
So here with me, we're going to review the third-quarter 2025 numbers. Here with me is Jennifer, our Chief Financial Officer; Eric, our Operations Chief; Marketing Sales Chief, Kenny Rocker. As you'll hear
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