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7/24/2025
Union Pacific Railroad CEO Jim Vena confirmed today that UP and rival Norfolk Southern Railway are engaged in "advanced discussions" about a possible merger.
Vena announced the news during an earnings call with analysists after discussing UP's second-quarter 2025 earnings results. During the call, both companies issued press releases to confirm media reports about the talks over the past week. There are no assurances as to whether an agreement will be reached, UP and NS officials said. They added that the companies do not intend to comment further.
For Q2, UP reported net income of $1.9 billion, or $3.15 per diluted share, compared with net income of $1.7 billion, or $2.74 diluted per share, in the same period last year. Q2 2025 operating revenue of $6.2 billion grew 2% driven by higher volume and solid core pricing gains partially offset by reduced fuel surcharge, business mix and lower other revenue, UP officials said in a press release.
Q2 results include a deferred tax benefit of $115 million, or $0.19 per diluted share, partially offset by a crew staffing agreement of $55 million, or $0.07 per diluted share. Q2 2025 adjusted net income of $1.8 billion, or $3.03 per diluted share, compares to Q2 2024 adjusted net income of $1.7 billion, or $2.71 per diluted share.
Freight revenue, excluding a fuel surcharge, grew 6%. The Class I also reported an operating ratio of 59%, and an adjusted OR of 58.1%, for the quarter, compared to 60% a year ago. UP set second-quarter records for freight revenue and operating income, company officials said.
“We are delivering on our strategy and our second quarter results demonstrate our commitment to leading the industry as we set new standards for safety, service, and operational excellence.” said Vena.
"The foundation is built, we are growing with our customers, and we have strong momentum as we continue to maximize the value of our great franchise.”
Also in Q2 2025 compared to the year-ago period, UP reported:
• Its reportable personal injury rate and reportable derailment rate both improved;• Freight-car velocity was 221 daily miles per car, a 10% improvement;• Locomotive productivity was 141 gross ton-miles per horsepower day, a 5% improvement; • Average maximum train length was 9,689 feet, a 2% increase; and • Workforce productivity improved 9% to 1,124 car miles per employee.