What was Union Pacific's profit in the fourth quarter?

Union Pacific's fourth-quarter profit was $1.85 billion, or $3.11 per share.

Why did Union Pacific's revenue decrease in the fourth quarter?

Revenue slightly decreased to $6.09 billion mainly due to lower freight volumes, though this was partially offset by fuel surcharge revenue and gains in core pricing.

What is the status of Union Pacific's merger with Norfolk Southern?

Union Pacific is revising its merger application with Norfolk Southern after a procedural ruling, but still targets closing the deal in the first half of 2027.

Home / Business and Economy / Union Pacific Profit Soars Despite Revenue Dip

Union Pacific Profit Soars Despite Revenue Dip

29 Jan

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Summary

Q4 profit reached $1.85 billion, showing a substantial increase.
Revenue slightly declined to $6.09 billion due to lower volumes.
Merger efforts with Norfolk Southern face procedural delays.

Union Pacific Profit Soars Despite Revenue Dip

Union Pacific announced a fourth-quarter profit of $1.85 billion, or $3.11 per share, marking an increase from the prior year's $1.76 billion profit. This performance occurred even as operating revenues saw a minor decrease to $6.09 billion, primarily attributed to reduced volumes, though partially offset by fuel surcharges and core pricing gains.

The company's results were influenced by $234 million from industrial park land sales, which contributed positively to earnings per share. Conversely, costs associated with the potential merger with Norfolk Southern impacted per-share results. Chief Executive Jim Vena indicated that the company is revising its merger application following a ruling from the Surface Transportation Board, viewing it as a temporary setback with a targeted closing in the first half of 2027.

Despite the revenue decline, certain segments showed growth. The bulk freight segment's revenue increased by 3% to $1.92 billion, and industrial revenue rose by 1% to $2.12 billion. However, premium revenues experienced a 6% decrease. The operational efficiency saw improvement, with freight car velocity increasing by 9%.