Union Pacific Reports Fourth Quarter and Full Year 2025 Results

• Fourth quarter diluted earnings per share (EPS) of $3.11 and adjusted diluted EPS* of $2.86
• Fourth quarter operating ratio (OR) of 60.5% and adjusted OR* of 60.0%
• Full year diluted EPS of $11.98 and adjusted diluted EPS* of $11.66
• Full year OR of 59.8% and adjusted OR* of 59.3%
• Full year return on invested capital* of 16.3%

Union Pacific Corporation (NYSE:UNP) today reported 2025 fourth quarter and full year results. "We had a record-breaking year and delivered best-ever safety, service, and operating results in 2025," said Jim Vena, Union Pacific Chief Executive Officer. "Our 2025 reported net income grew 6%, earnings per share increased 8%, and we improved our operating ratio. While we work through the regulatory process to create America's first transcontinental railroad, our team is focused on driving further safety, service, and operating improvements to support growth."

Reported 2025 fourth quarter net income was $1.8 billion and diluted EPS was $3.11. Results include industrial park land sales of $234 million, increasing diluted EPS $0.30, and $30 million of merger costs, reducing diluted EPS $0.05. Adjusted fourth quarter 2025 net income* of $1.7 billion, or adjusted diluted EPS* of $2.86, compares to adjusted fourth quarter 2024 net income* of $1.8 billion, or adjusted diluted EPS* of $2.96.

Reported full year 2025 net income of $7.1 billion, or diluted EPS of $11.98, compares to full year 2024 net income of $6.7 billion, or diluted EPS of $11.09. Reported full year net income grew 6% and full year diluted EPS improved 8%. Adjusted full year 2025 net income* of $6.9 billion, or adjusted diluted EPS* of $11.66, compares to adjusted full year 2024 net income* of $6.8 billion, or adjusted diluted EPS* of $11.11. Adjusted full year net income* grew 3% and adjusted diluted EPS* improved 5%.

Fourth Quarter Summary: 2025 vs. 2024

Financial Results: Record Fourth Quarter Net Income

• Net income of $1.8 billion includes industrial park land sales of $234 million.
• Operating revenue of $6.1 billion declined 1% driven by lower volume, partially offset by core pricing gains and fuel surcharge revenue.
• Revenue carloads declined 4%.
• Reported operating ratio was 60.5%, 180 basis points worse. Adjusted operating ratio* was 60.0%, 190 basis points worse.

Operating Results: Best Ever Quarterly Records for Freight Car Velocity and Terminal Dwell and Record Fourth Quarter for Train Length and Workforce Productivity

• Reportable personal injury rate and reportable derailment rate both improved.
• Freight car velocity was 239 daily miles per car, a 9% increase.
• Average terminal dwell was 19.8 hours, a 9% improvement.
• Average train length was 9,729 feet, a 3% increase.
• Workforce productivity was 1,151 car miles per employee, a 3% improvement.

Full Year Summary: 2025 vs. 2024

Financial Results: Best Ever Full Year for Freight Revenue Excluding Fuel Surcharge, Other Income, and Net Income

• Operating revenue of $24.5 billion was up 1% driven by core pricing gains and higher volume, partially offset by business mix, reduced fuel surcharge revenue, and lower other revenue.
• Freight revenue excluding fuel surcharge grew 3%.
• Revenue carloads increased 1%.
• Reported operating ratio of 59.8% improved 10 basis points. Adjusted operating ratio* of 59.3% improved 60 basis points.

Operating Results: Best Ever Full Year for Safety, Freight Car Velocity, Locomotive Productivity, Terminal Dwell, Train Length, Workforce Productivity, and Fuel Consumption Rate

• Union Pacific's reportable personal injury and reportable derailment rates both improved, and the personal injury rate was industry-leading.
• Freight car velocity was 225 daily miles per car, an 8% increase.
• Locomotive productivity was 139 gross ton-miles per horsepower day, up 3%.
• Average terminal dwell was 20.9 hours, an 8% improvement.
• Workforce productivity was 1,132 car miles per employee, a 7% increase.

On Track with Investor Day Targets

• 2026 Outlook:
  • Meeting customer demand with strong service; muted economic forecast.
  • Pricing dollars in excess of inflation dollars.
  • Earnings per share growth of mid-single digit; consistent with attaining 3-year CAGR target of high-single digit to low-double digit through 2027.
  • Operating ratio improvement; industry-leading operating ratio and return on invested capital.
  • Continued strong cash generation.
  • Capital allocation:
    • Capital plan of $3.3 billion.
    • Consistent annual dividend increases.

Fourth Quarter 2025 Earnings Conference Call

Union Pacific will webcast its fourth quarter 2025 earnings release presentation live at www.up.com/investor and via teleconference on Tuesday, January 27, 2026, at 8:45 a.m. Eastern Time. Participants may join the conference call by dialing 877-407-8293 (or for international participants, 201-689-8349).

ABOUT UNION PACIFIC

Union Pacific (NYSE:UNP) delivers the goods families and businesses use every day with safe, reliable, and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.

Supplemental financial information is attached.

Certain statements in this communication are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements relate to future events or future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause the Company's (or, as it relates to the Transaction (as defined below), the combined company of Norfolk Southern and Union Pacific (referred to hereinafter as the combined company) actual results, levels of activity, performance, or achievements or those of the railroad industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements may be identified by the use of words like "may," "will," "could," "would," "should," "expect," "anticipate," "believe," "project," "estimate," "intend," "plan," "pro forma," or any variations or other comparable terminology.

While the Company has based these forward-looking statements on those expectations, assumptions, estimates, beliefs and projections they view as reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which involve factors or circumstances that are beyond the Company's, including but not limited to, in addition to factors disclosed in the Company's, as well as Norfolk Southern's (as it relates to the proposed combination of it with the Company) respective filings with the U.S. Securities and Exchange Commission (the "SEC"): the occurrence of any event, change or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between the Company and Norfolk Southern providing for the acquisition of Norfolk Southern by Union Pacific (the "Transaction"); the risk that potential legal proceedings may be instituted against the Company or Norfolk Southern and result in significant costs of defense, indemnification or liability; the possibility that the Transaction does not close when expected or at all because required Surface Transportation Board or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the Transaction); the risk that the combined company will not realize expected benefits, cost savings, accretion, synergies and/or growth from the Transaction, or that such benefits may take longer to realize or be more costly to achieve than expected, including as a result of changes in, or problems arising from, general economic and market conditions, tariffs, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which the Company and Norfolk Southern operate; disruption to the parties' businesses as a result of the announcement and pendency of the Transaction; the costs associated with the anticipated length of time of the pendency of the Transaction, including the restrictions contained in the definitive merger agreement on the ability of the Company and Norfolk Southern, respectively, to operate their respective businesses outside the ordinary course during the pendency of the Transaction; the diversion of the Company's and Norfolk Southern's management's attention and time from ongoing business operations and opportunities on merger-related matters; the risk that the integration of each party's operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate each party's businesses into the other's businesses; the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of the Company's or Norfolk Southern's customers, suppliers, employees, labor unions or other business partners, including those resulting from the announcement or completion of the Transaction; the dilution caused by the Company's issuance of additional shares of its common stock in connection with the consummation of the Transaction; the risk of a downgrade of the credit rating of the Company's indebtedness, which could give rise to an obligation to redeem existing indebtedness; a material adverse change in the financial condition of the Company, Norfolk Southern or the combined company; changes in domestic or international economic, political or business conditions, including those impacting the transportation industry (including customers, employees and supply chains); the Company's, Norfolk Southern's and the combined company's ability to successfully implement its respective operational, productivity, and strategic initiatives; a significant adverse event on the Company's or Norfolk Southern's network, including, but not limited to, a mainline accident, discharge of hazardous materials, or climate-related or other network outage; the outcome of claims, litigation, governmental proceedings and investigations involving the Company or Norfolk Southern, including, in the case of Norfolk Southern, those with respect to the Eastern Ohio incident; the nature and extent of Norfolk Southern's environmental remediation obligations with respect to the Eastern Ohio incident; new or additional governmental regulation and/or operational changes resulting from or related to the Eastern Ohio incident; and a cybersecurity incident or other disruption to our technology infrastructure.

This list of important factors is not intended to be exhaustive. These and other important factors, including those discussed under "Risk Factors" in Norfolk Southern's Annual Report on Form 10-K for the year ended December 31, 2024 (available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0000702165/000070216525000008/nsc-20241231.htm) and Norfolk Southern's subsequent filings with the SEC, the Company's most recent Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 7, 2025 (available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0000100885/000010088525000042/unp-20241231.htm) and the Company's subsequent filings with the SEC, as well as the risks described in the Company's registration statement on Form S-4 (No. 290282), as filed with the SEC on September 16, 2025, as amended on September 30, 2025 (available at https://www.sec.gov/Archives/edgar/data/100885/000119312525224307/d908896ds4a.htm), may cause actual results, performance, or achievements to differ materially from those expressed or implied by these forward-looking statements. References to the Company's and Norfolk Southern's website are provided for convenience and, therefore, information on or available through the website is not, and should not be deemed to be, incorporated by reference herein. The forward-looking statements herein are made only as of the date they were first issued, and unless otherwise required by applicable securities laws, the Company and Norfolk Southern disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by applicable law or regulation.