Q2 2026 Union Pacific Corp Earnings Call Transcript
Key Points
- Union Pacific Corp (UNP) reported record financial results with a 12% increase in operating revenue to $6.9 billion.
- Net income totaled $2 billion, and earnings per share, adjusted for merger costs, grew to $3.41.
- The company achieved 2% volume growth and improved its operating ratio by 10 basis points.
- Domestic intermodal delivered its fourth consecutive record quarter in both volume and revenue.
- Union Pacific Corp (UNP) successfully paid down $1.5 billion of long-term debt, resulting in an adjusted debt-to-EBITDA ratio of 2.5 times.
- Fuel expenses increased significantly by 63% due to higher diesel fuel prices, impacting the operating ratio by 120 basis points.
- The business mix was a slight headwind as growth in domestic intermodal offset the mix benefit of less international intermodal traffic.
- Coal volume faced challenges due to weaker natural gas prices and mild weather, impacting overall demand.
- Compensation and benefits expenses increased by 7% due to higher wage and benefit costs.
- The company anticipates ongoing margin pressure from volatile fuel prices, with recent purchases over $4 a gallon.
Greetings, and welcome to the Union Pacific second quarter 2026 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.
It is now my pleasure to introduce your host, Mr. Jim Vena, Chief Executive Officer for Union Pacific. Thank you, Mr. Vena. You may begin.
Thank you, Rob. Really appreciate it. Listen, pretty special day here today. Great day to be putting our results out for the second quarter. And it's my wife's birthday, so it's a double win. And she would have complained big time if this quarter wasn't good. So let me just highlight how it is moving forward. She might have been mean to me today. So why don't we get started? Here with me today in Omaha is our Chief Financial Officer, Jennifer Heymann, our Executive Vice President of Marketing and Sales, Kenny Rocker. And our Executive Vice President of Operations, Eric Geringer. Good data railroad out there. Weather
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