AI Takeaway
Union Pacific delivered solid FY2025 results with revenue up 1.1% to $24.51B, net income surging 5.8% to $7.14B, and EPS growing 8.1% to $12.00, supported by disciplined cost management and aggressive capital returns to shareholders.
Revenue
$24.51B
++1.07% YoY
EPS (Basic)
$12.00
++8.11% YoY
Operating Income
$9.85B
++1.37% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue increased 1.1% year-over-year to $24.51B in FY2025, reflecting modest volume gains and pricing discipline across Union Pacific's freight network. This incremental growth came despite a challenging macroeconomic backdrop for rail freight demand.
Source: Source: 10-K Income Statement, Financial Data
Operating margin improved slightly to 40.17% from 40.05% in the prior year, demonstrating Union Pacific's continued operational efficiency. The company maintained one of the highest operating margins in the Class I railroad industry, reflecting its Precision Scheduled Railroading (PSR) framework.
Source: Source: 10-K Key Ratios, Financial Data
Net income grew 5.8% to $7.14B while diluted EPS rose 8.0% to $11.98, significantly outpacing the 1.1% revenue growth. The faster earnings growth reflects both operating leverage and the accretive impact of share buybacks reducing the share count.
Source: Source: 10-K Income Statement, Financial Data
2 more insights available
Upgrade to unlockUnion Pacific carries $31.81B in long-term debt, resulting in a debt-to-equity ratio of 2.77x. While common in the capital-intensive railroad industry, this level of leverage increases financial risk in a rising interest rate environment or during periods of revenue decline. Debt service obligations could constrain future capital allocation flexibility.
Source: Source: 10-K Balance Sheet, Financial Data
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Upgrade to unlockReported EPS of $2.86 versus the $2.90 analyst consensus — a -1.4% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $24.51B | $24.25B | +1.07% |
Operating Income | $9.85B | $9.71B | +1.37% |
Net Income | $7.14B | $6.75B | +5.80% |
EPS (Basic) | $12.00 | $11.10 | +8.11% |
EPS (Diluted) | $11.98 | $11.09 | +8.03% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $69.7B | $67.72B | +2.93% |
Current Assets | $4.55B | $4.02B | +13.28% |
Total Liabilities | $51.23B | $50.83B | +0.80% |
Current Liabilities | $5.01B | $5.25B | -4.57% |
Stockholders' Equity | $18.47B | $16.89B | +9.34% |
Cash & Equivalents | $1.27B | $1.02B | +24.61% |
Long-Term Debt | $31.81B | $31.19B | +1.99% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $9.29B | $9.35B | -0.60% |
Investing Cash Flow | $-3.76B | $-3.33B | -13.14% |
Financing Cash Flow | $-5.28B | $-6.07B | +13.04% |
Dividends Paid | $3.24B | $3.21B | +0.72% |
Share Buybacks | $2.68B | $1.5B | +78.01% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 40.2% | 40.1% | +0.12% |
Net Margin | 29.1% | — | — |
ROE | 38.7% | — | — |
ROA | 10.2% | — | — |
Current Ratio | $0.908 | — | — |
Debt to Equity | $2.774 | — | — |
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Union Pacific delivered solid FY2025 results with revenue of $24.51B (up 1.1%), net income of $7.14B (up 5.8%), and diluted EPS of $11.98 (up 8.0%). The company maintained a best-in-class operating margin of 40.17%, demonstrating continued operational efficiency across its rail network.
The key takeaways from UNP's FY2025 report are strong earnings growth outpacing revenue, with EPS up 8.1% to $12.00 driven by both profit improvement and share buybacks that surged 78% to $2.68B. The company returned nearly $5.92B to shareholders through dividends and buybacks while maintaining a 40.2% operating margin.
Union Pacific returned approximately $5.92B to shareholders in FY2025, comprising $3.24B in dividends and $2.68B in share repurchases. Share buybacks increased dramatically by 78.0% compared to the prior year's $1.51B, reflecting management's confidence in the company's financial strength.
Key risks for UNP include its high long-term debt of $31.81B (debt-to-equity of 2.77x), a current ratio below 1.0 at 0.91x indicating limited short-term liquidity buffer, and the risk of revenue growth deceleration given only 1.1% top-line growth in FY2025. Rising capital expenditure needs (investing outflows up 13.1% to $3.76B) also limit free cash flow flexibility.
Union Pacific's financial health is generally strong, with $9.29B in operating cash flow, a 40.17% operating margin, and $7.14B in net income for FY2025. However, the company carries significant long-term debt of $31.81B and a sub-1.0 current ratio of 0.91x, which are manageable given its predictable cash flows but warrant monitoring if economic conditions deteriorate.