High-quality cash generation is evidenced by an OCF/NI ratio that peaked at 1.59 in 2024Q3, supporting consistent quarterly dividend payments of approximately $800 million.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 7.08B | 9.29B | 9.35B | 8.38B | 9.36B | 9.03B | 8.54B | 8.61B | 8.69B | 7.23B | 7.53B | 7.34B | 7.38B | 6.82B | 6.16B | 5.87B | 4.11B | 3.2B | 4.07B | 3.28B | 2.88B | 2.6B | 2.24B | 2.42B | 2.25B | 1.99B | 1.96B | 1.87B | 565M | 1.6B | 1.66B |
| Operating CF Margin % | - | 37.9% | 38.54% | 34.74% | 37.64% | 41.42% | 43.72% | 39.66% | 38.04% | 34.04% | 37.74% | 33.67% | 30.79% | 31.07% | 29.44% | 30.03% | 24.2% | 22.65% | 22.65% | 20.13% | 18.49% | 19.11% | 18.31% | 20.97% | 18.01% | 16.64% | 16.48% | 16.58% | 5.35% | 14.44% | 18.86% |
| Operating CF Growth % | -99.09% | -0.6% | 11.54% | -10.5% | 3.65% | 5.76% | -0.8% | -0.89% | 20.14% | -3.92% | 2.46% | -0.56% | 8.24% | 10.75% | 4.9% | 43.07% | 28.12% | -21.28% | 24.2% | 13.78% | 10.98% | 16% | -7.64% | 7.64% | 12.95% | 1.74% | 4.76% | 230.8% | -64.69% | -3.44% | 13.96% |
| Net Income | 5.51B | 7.14B | 6.75B | 6.38B | 7B | 6.52B | 5.35B | 5.92B | 5.97B | 10.71B | 4.23B | 4.77B | 5.18B | 4.39B | 3.94B | 3.29B | 2.78B | 1.89B | 2.34B | 1.85B | 1.61B | 1.03B | 604M | 1.33B | 1.34B | 966M | 842M | 783M | -633M | 432M | 904M |
| Depreciation & Amortization | 41.47M | 2.46B | 2.4B | 2.32B | 2.25B | 2.21B | 2.21B | 2.22B | 2.19B | 2.1B | 2.04B | 2.01B | 1.9B | 1.78B | 1.76B | 1.62B | 1.49B | 1.43B | 1.39B | 1.32B | 1.24B | 1.18B | 1.11B | 1.07B | 1.21B | 1.17B | 1.14B | 1.08B | 1.07B | 1.04B | 762M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 99M | 88M | 73M | 93M | 96M | 103M | 82M | 98M | 112M | 98M | 93M | 0 | 0 | 0 | 65M | 44M | 35M | 21M | 21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -101M | 241M | 28M | 117M | 262M | 154M | 340M | 566M | 338M | -5.07B | 831M | 765M | 895M | 723M | 887M | 1B | 672M | 718M | 547M | 332M | 235M | 320M | 359M | 494M | 573M | 424M | 447M | 529M | -74M | 300M | 166M |
| Other Non-Cash Items | 7.12B | -193M | -13M | -132M | -251M | -144M | 302M | -15M | 191M | -520M | 423M | -205M | -594M | -65M | -429M | 3.25B | -834M | -376M | -17M | -303M | -247M | 58M | 67M | -225M | -546M | -452M | -507M | -666M | -29M | -196M | -743M |
| Working Capital Changes | -364M | -361M | 186M | -303M | 8M | 203M | 266M | -170M | -126M | -127M | 745M | -177M | -309M | 161M | -269M | 276M | -351M | -293M | -250M | 28M | 14M | 151M | 96M | 30M | -324M | -120M | 36M | 140M | -316M | 21M | 568M |
| Change in Receivables | 104.87M | 34M | 179M | -177M | -169M | -217M | 90M | 160M | -262M | -235M | 98M | 255M | -197M | -83M | 70M | -217M | -518M | -72M | 38M | 47M | 68M | -201M | -40M | 59M | -92M | 10M | -16M | 62M | 84M | -124M | 14M |
| Change in Inventory | -40M | -18M | -26M | -2M | -120M | 17M | 113M | -9M | 7M | -32M | 19M | -24M | -59M | 7M | -46M | -80M | -59M | -25M | 3M | -58M | -64M | -22M | -42M | 10M | -23M | 96M | -23M | 6M | -47M | 8M | 12M |
| Change in Payables | 39.87M | -196M | 189M | -215M | 565M | 184M | -73M | -179M | -125M | 182M | 232M | -276M | 217M | 163M | -185M | 395M | 243M | -90M | 0 | 30M | -102M | 224M | 100M | 79M | -66M | -112M | 73M | 11M | -183M | 47M | 4M |
| Cash from Investing | -2.82B | -3.76B | -3.33B | -3.67B | -3.47B | -2.71B | -2.68B | -3.44B | -3.41B | -3.09B | -3.39B | -4.48B | -4.25B | -3.4B | -3.63B | -3.12B | -2.49B | -2.15B | -2.76B | -2.43B | -2.04B | -2.05B | -1.71B | -856M | -1.52B | -1.54B | -1.54B | -1.61B | -1.9B | -1.77B | -1.09B |
| Capital Expenditures | -202M | -3.79B | -3.45B | -3.61B | -3.62B | -2.94B | -2.93B | -3.45B | -3.44B | -3.26B | -3.5B | -4.65B | -4.35B | -3.5B | -3.74B | -3.26B | -2.48B | -100M | -3.17B | -3.12B | -2.78B | -2.17B | -1.88B | -1.75B | -1.89B | -1.57B | -1.78B | -1.83B | -2.11B | -2.1B | -1.36B |
| CapEx % of Revenue | 1.09% | 15.47% | 14.24% | 14.95% | 14.55% | 13.47% | 14.98% | 15.91% | 15.05% | 15.33% | 17.58% | 21.32% | 18.12% | 15.92% | 17.86% | 16.67% | 14.63% | 0.71% | 17.63% | 19.14% | 17.83% | 15.97% | 15.36% | 15.17% | 15.11% | 13.13% | 15.01% | 16.27% | 20% | 18.96% | 15.48% |
| Acquisitions | 0 | 0 | 0 | 0 | 194M | 2.94B | 2.93B | 0 | 0 | -19M | 60M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -2.62B | 29M | 127M | -61M | -45M | -2.73B | -2.68B | 3M | 26M | 220M | 112M | 174M | 97M | 91M | 105M | 3.32B | 2.48B | 309M | 3.18B | 691M | 736M | 122M | 164M | 896M | 366M | 192M | 241M | 220M | 213M | 329M | 805M |
| Cash from Financing | -4.4B | -5.28B | -6.07B | -4.63B | -5.89B | -7.16B | -4.9B | -5.65B | -5.22B | -4.15B | -4.25B | -3.06B | -2.98B | -3.05B | -2.68B | -2.62B | -2.38B | -458M | -935M | -800M | -784M | -752M | -75M | -1.41B | -473M | -440M | -486M | -256M | 1.42B | 71M | -602M |
| Debt Issued (Net) | -1.06B | 567M | -1.43B | -591M | 3.79B | 2.9B | 1.5B | 2.78B | 5.35B | 1.9B | 779M | 2.77B | 1.88B | 514M | -63M | -476M | -518M | -28M | 1.05B | 789M | -657M | -699M | 157M | -1.37B | -1.2B | -1.22B | -796M | -692M | -1.79B | -572M | -2.05B |
| Equity Issued (Net) | -128M | -2.68B | -1.5B | -705M | -6.28B | -7.29B | -3.71B | -5.8B | -8.22B | -4.01B | -3.1B | -3.46B | -3.23B | -2.22B | -1.47B | -1.42B | -1.25B | 0 | -1.61B | -1.38B | -17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -2.43B | -3.24B | -3.21B | -3.17B | -3.16B | -2.8B | -2.63B | -2.6B | -2.3B | -1.98B | -1.88B | -2.34B | -1.63B | -1.33B | -1.15B | -837M | -602M | -544M | -481M | -364M | -322M | -314M | -310M | -234M | -201M | -198M | -199M | -198M | -255M | -422M | -353M |
| Share Repurchases | -128M | -2.68B | -1.5B | -705M | -6.28B | -7.29B | -3.71B | -5.8B | -8.22B | -4.01B | -3.1B | -3.46B | -3.23B | -2.22B | -1.47B | -1.42B | -1.25B | 0 | -1.61B | -1.38B | -17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -780.16M | 72M | 77M | -156M | -235M | 31M | -67M | -20M | -48M | -46M | -41M | -26M | -3M | -12M | 1M | 108M | -12M | 114M | 106M | 150M | 212M | 261M | 78M | 199M | 597M | 977M | 509M | 634M | 3.46B | 1.06B | 1.8B |
| Net Change in Cash | -142.53M | 255M | -46M | 87M | 4M | -835M | 962M | -472M | 53M | -2M | -114M | -195M | 154M | 369M | -154M | 131M | -764M | 601M | 371M | 51M | 54M | -204M | 450M | 160M | 256M | 8M | -70M | -1M | 86M | -101M | -39M |
| Free Cash Flow | 4.2B | 5.5B | 5.89B | 4.77B | 5.74B | 6.1B | 5.61B | 5.16B | 5.25B | 3.97B | 4.02B | 2.69B | 3.04B | 3.33B | 2.42B | 2.61B | 1.62B | 3.1B | 902M | 160M | 102M | 426M | 361M | 670M | 363M | 420M | 175M | 35M | -1.55B | -501M | 297M |
| FCF Margin % | 22.7% | 22.44% | 24.31% | 19.79% | 23.08% | 27.96% | 28.74% | 23.75% | 22.99% | 18.71% | 20.16% | 12.35% | 12.67% | 15.15% | 11.58% | 13.36% | 9.57% | 21.95% | 5.02% | 0.98% | 0.65% | 3.14% | 2.96% | 5.8% | 2.91% | 3.51% | 1.47% | 0.31% | -14.65% | -4.52% | 3.38% |
| FCF Growth % | -28.53% | -6.7% | 23.49% | -16.88% | -5.81% | 8.61% | 8.86% | -1.77% | 32.12% | -1.17% | 49.22% | -11.35% | -8.66% | 37.31% | -7.24% | 60.94% | -47.71% | 244.12% | 463.75% | 56.86% | -76.06% | 18.01% | -46.12% | 84.57% | -13.57% | 140% | 400% | 102.26% | -208.58% | -268.69% | -25% |
| FCF per Share | 7.07 | 9.27 | 9.68 | 7.82 | 9.20 | 9.30 | 8.27 | 7.30 | 6.96 | 4.96 | 4.81 | 3.10 | 3.37 | 3.57 | 2.54 | 2.67 | 1.61 | 3.07 | 0.88 | 0.15 | 0.09 | 0.40 | 0.34 | 0.63 | 0.33 | 0.39 | 0.16 | 0.03 | -1.57 | -0.50 | 0.34 |
| FCF Conversion (FCF/Net Income) | 0.76x | 1.30x | 1.39x | 1.31x | 1.34x | 1.38x | 1.60x | 1.45x | 1.46x | 0.67x | 1.78x | 1.54x | 1.43x | 1.55x | 1.56x | 1.78x | 1.48x | 1.70x | 1.74x | 1.77x | 1.79x | 2.53x | 3.70x | 1.53x | 1.68x | 2.06x | 2.33x | 2.31x | -0.89x | 3.70x | 1.83x |
| Interest Paid | 872M | 1.31B | 1.26B | 1.27B | 1.16B | 1.09B | 1.05B | 1.03B | 728M | 666M | 652M | 592M | 554M | 528M | 561M | 572M | 614M | 578M | 500M | 467M | 492M | 510M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 482M | 543M | 1.34B | 1.49B | 2.06B | 1.66B | 1.21B | 1.38B | 1.21B | 2.11B | 1.35B | 2.16B | 2.49B | 1.66B | 1.55B | 625M | 936M | 452M | 699M | 839M | 549M | 29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Competitive pressure from CPKC
According to the provided financial data, Union Pacific consistently maintains an OCF/NI ratio well above 1.0, with a peak of 1.59 in 2024Q3, suggesting that the company's reported net income is supported by high-quality cash generation rather than aggressive accounting accruals or non-cash revenue recognition.
The persistent gap between net income and operating cash flow indicates that depreciation and other non-cash charges are significant, which is typical for a capital-intensive railroad. Investors should view this as a positive signal of earnings quality, as the cash reality consistently exceeds the accounting profit.
As reported in quarterly filings, Union Pacific's free cash flow margins have remained largely stable, fluctuating between 16.8% and 29.9% over the last ten quarters, demonstrating the company's ability to generate substantial discretionary cash even during periods of varying industrial demand and network operational challenges.
The ability to maintain positive free cash flow despite the heavy maintenance requirements of a 32,000-mile network suggests strong underlying operational efficiency. This trajectory supports the company's ongoing commitment to shareholder returns, provided that capital expenditures do not escalate beyond current historical norms.
Based on the provided cash flow statements, Union Pacific's capital expenditure as a percentage of revenue has averaged approximately 15% to 16%, reflecting the non-discretionary nature of maintaining a massive rail infrastructure to ensure network fluidity and long-term asset reliability across its Western corridors.
This high level of capital intensity is a permanent feature of the business model, serving as both a barrier to entry and a constant drain on cash flow. Analysts should monitor whether these expenditures are effectively driving network velocity or merely maintaining the status quo against inflationary cost pressures.
As indicated by the quarterly cash flow data, working capital changes have been inconsistent, swinging from a positive $328 million in 2024Q3 to a negative $390 million in 2024Q2, which suggests that timing differences in collections and inventory management can create meaningful short-term cash flow volatility.
These fluctuations appear to be driven by the cyclical nature of bulk commodity shipments and the timing of fuel surcharge collections. While these swings are generally self-correcting, they warrant investigation to ensure they do not mask underlying issues with customer payment terms or inventory buildup.
Based on the reported figures, Union Pacific consistently prioritizes shareholder returns, with quarterly dividend payments remaining remarkably stable near $800 million, while share repurchases are utilized as a flexible lever to manage excess cash depending on the prevailing market environment and internal capital requirements.
The commitment to a consistent dividend suggests management's confidence in the long-term cash-generating capacity of the rail network. However, the variability in buyback activity indicates a disciplined approach to capital allocation that avoids over-leveraging the balance sheet during periods of lower operational cash flow.
Quick answers to the most common questions about buying UNP stock.
Union Pacific Corporation (UNP) generated $9.29B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Union Pacific Corporation (UNP) generated $5.50B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Union Pacific Corporation (UNP) spent $3.79B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Union Pacific Corporation (UNP) returned $3.24B to shareholders via cash dividends and spent $2.68B on share repurchases. This shows the company's commitment to returning capital to its equity investors.