Union Pacific Corp.

Strong Financial Performance: Union Pacific reported a record fourth quarter net income of $1.8 billion and earnings per share of $2.91, both reflecting a 7% year-over-year improvement. The fourth quarter operating ratio improved to an adjusted 58%, highlighting effective cost control and operational efficiency amidst challenges.

2025 Earnings Guidance: The company expects earnings per share growth consistent with their three-year compound annual growth rate (CAGR) target of high single-digit to low double-digit growth. Despite economic uncertainties, the management believes in their capability to outperform market trends and maintain pricing power.

Operational Efficiency and Cost Management: The company achieved a record for workforce productivity and plans to manage all-in costs per employee to around a 4% increase in 2025 through technology and process improvements. This efficiency is critical in offsetting declining coal demand and ongoing challenges in the international intermodal business.