By Elias Schisgall
Union Pacific posted a higher profit in the fourth quarter despite revenue falling slightly due to a headwind from lower volumes.
The Omaha-based railroad company on Tuesday reported a profit of $1.85 billion, or $3.11 a share, compared with $1.76 billion, or $2.91 a share, a year earlier.
The per-share results were boosted by 30 cents from $234 million in industrial park land sales, but took a 5 cent hit from costs related to Union Pacific's effort to merge with Norfolk Southern.
Union Pacific Chief Executive Jim Vena said the company is working on revising its merger application with Norfolk after the Surface Transportation Board ruled that the initial application was incomplete earlier this month.
"This is a normal procedural step we have seen in previous acquisitions that were ultimately approved," Vena wrote in a Tuesday letter to employees. "We view this as a short-term blip and do not expect a significant change to the timeline; we still target closing in the first half of 2027."
On an adjusted basis, Union Pacific reported earnings of $2.86 a share, in line with the expectations of analysts polled by FactSet.
Operating revenues fell to $6.09 billion, compared with $6.12 billion a year earlier. Analysts were expecting $6.11 billion. The company attributed the decline to lower volumes, partially offset by fuel surcharge revenue and gains in core pricing.
Revenue carloads fell 4% to 2.1 million during the quarter, the company said.
The company's bulk freight segment posted revenue of $1.92 billion, up 3% from $1.86 billion a year earlier. Industrial revenue also rose 1% to $2.12 billion, compared with $2.09 billion a year earlier.
Premium revenues fell to $1.72 billion, down 6% from $1.83 billion a year earlier.
Freight car velocity, a measure of daily miles per car, rose 9% to 239.
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
January 27, 2026 10:00 ET (15:00 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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