Union Pacific Reports 7% Profit Increase in Q4
Union Pacific (UNP) surpassed Wall Street expectations by reporting a 7% increase in fourth-quarter profit. The railroad's net income reached $1.76 billion, translating to $2.91 per share.
Despite an additional $40 million cost associated with employee buyouts, Union Pacific optimized its operations to enhance efficiency. Analysts surveyed by FactSet Research had anticipated earnings per share of $2.80.
"The Union Pacific team had a very successful year, ending on a high note in the fourth quarter," said CEO Jim Vena.
While the Trump administration's potential tariffs could impact import volumes, Vena expressed optimism about industry deregulation and automated inspection approvals.
Revenue declined slightly by 1% to $6.12 billion, attributed to an increase in less profitable intermodal carloads. However, volume grew by 5%.
Union Pacific remains on track to meet its long-term goals of high single-digit to low double-digit earnings per share growth over the next three years.
CSX, another major freight railroad, is scheduled to release its earnings later today. Analysts predict the company will report earnings of 42 cents per share on revenue of $3.5578 billion.