Union Pacific Corporation (0R2E.L) Q2 2025 Earnings Report

Union Pacific delivered a solid QQ2 2025 performance with resilient demand and continued focus on cost discipline and capital allocation. Revenue for the quarter was $6.154 billion, up 2.45% year over year, with gross profit of $2.837 billion and a net income of $1.876 billion, translating to earnings per share (EPS) of $3.16 (diluted $3.15). Operating income reached $2.518 billion, yielding an operating margin of approximately 40.9%. These results reflect a constructive operating environment for a large North American Class I railroad, supported by favorable mix and disciplined expense management, even as the business remains exposed to cyclicality inherent in industrial volumes.

Free cash flow remained robust at about $1.397 billion for the quarter, supported by operating cash flow of $2.333 billion and capital expenditures of $0.936 billion. The company allocated capital to shareholder returns, with net share repurchases of approximately $0.959 billion and dividends paid of about $0.795 billion in the period, contributing to a payout structure that complements a sustainable balance sheet. Despite meaningful debt levels, Union Pacific maintains a strong liquidity position with cash and cash equivalents around $1.06 billion and total debt of roughly $33.956 billion, yielding a net debt position of about $32.896 billion. The quarter’s results underscore Union Pacific’s ability to translate volume activity and pricing into earnings while maintaining a focus on efficiency and investment in the network.