Union Pacific has demonstrated structural pricing power by maintaining operating margins near 40% despite quarterly revenue remaining range-bound between $6.0 billion and $6.2 billion.
| 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 |
|---|
| Sales/Revenue | 18.49B | 24.51B | 24.25B | 24.12B | 24.88B | 21.8B | 19.53B | 21.71B | 22.83B | 21.24B | 19.94B | 21.81B | 23.99B | 21.96B | 20.93B | 19.56B | 16.96B | 14.14B | 17.97B | 16.28B | 15.58B | 13.58B | 12.21B | 11.55B | 12.49B | 11.97B | 11.88B | 11.27B | 10.55B | 11.08B | 8.79B |
| Revenue Growth % | -23.74% | 1.07% | 0.54% | -3.04% | 14.08% | 11.63% | -10.02% | -4.92% | 7.5% | 6.51% | -8.58% | -9.07% | 9.22% | 4.96% | 7% | 15.28% | 19.95% | -21.3% | 10.36% | 4.53% | 14.73% | 11.16% | 5.75% | -7.53% | 4.33% | 0.8% | 5.37% | 6.82% | -4.75% | 26.1% | 17.37% |
| Cost of Goods Sold | 10.02B | 9.96B | 13.21B | 13.59B | 13.67B | 11.29B | 10.35B | 12.09B | 13.29B | 12.23B | 11.67B | 12.84B | 14.31B | 13.67B | 13.39B | 6.75B | 3.18B | 2.23B | 7.21B | 6.67B | 6.45B | 5.82B | 4.95B | 4.04B | 4.05B | 3.16B | 3.22B | 2.76B | 2.83B | 3.68B | 2.63B |
| COGS % of Revenue | - | 40.62% | 54.48% | 56.35% | 54.95% | 51.78% | 53.01% | 55.71% | 58.22% | 57.58% | 58.53% | 58.85% | 59.66% | 62.23% | 64% | 34.53% | 18.74% | 15.75% | 40.13% | 40.99% | 41.39% | 42.88% | 40.51% | 35% | 32.39% | 26.39% | 27.14% | 24.47% | 26.85% | 33.25% | 29.99% |
| Gross Profit | 8.47B | 14.55B | 11.04B | 10.53B | 11.21B | 10.51B | 9.18B | 9.61B | 9.54B | 9.01B | 8.27B | 8.98B | 9.68B | 8.29B | 7.53B | 12.8B | 13.79B | 11.92B | 10.76B | 9.61B | 9.13B | 7.76B | 7.27B | 7.51B | 8.45B | 8.81B | 8.65B | 8.52B | 7.72B | 7.39B | 6.15B |
| Gross Margin % | 45.83% | 59.38% | 45.52% | 43.65% | 45.05% | 48.22% | 46.99% | 44.29% | 41.78% | 42.42% | 41.47% | 41.15% | 40.34% | 37.77% | 36% | 65.47% | 81.26% | 84.25% | 59.87% | 59.01% | 58.61% | 57.12% | 59.49% | 65% | 67.61% | 73.61% | 72.86% | 75.53% | 73.15% | 66.75% | 70.01% |
| Gross Profit Growth % | - | 31.83% | 4.84% | -6.03% | 6.57% | 14.54% | -4.52% | 0.79% | 5.88% | 8.95% | -7.88% | -7.24% | 16.66% | 10.12% | -41.17% | -7.12% | 15.68% | 10.75% | 11.98% | 5.24% | 17.72% | 6.73% | -3.21% | -11.1% | -4.18% | 1.84% | 1.63% | 10.31% | 4.38% | 20.22% | 6.68% |
| Operating Expenses | 1.02B | 4.71B | 1.33B | 1.45B | 1.29B | 1.18B | 1.34B | 1.06B | 1.02B | 948M | 997M | 924M | 924M | 849M | 788M | 7.08B | 6.52B | 6.18B | 12.57B | 5.91B | 5.84B | 5.55B | 5.28B | 4.96B | 5.71B | 5.45B | 5.45B | 5.37B | 5.42B | 5.21B | 4.02B |
| OpEx % of Revenue | - | 19.23% | 5.47% | 6% | 5.18% | 5.39% | 6.89% | 4.88% | 4.48% | 4.46% | 5% | 4.24% | 3.85% | 3.87% | 3.77% | 36.2% | 38.43% | 43.68% | 69.94% | 36.31% | 37.46% | 40.87% | 43.21% | 42.93% | 45.69% | 45.52% | 45.89% | 47.62% | 51.34% | 47.02% | 45.78% |
| Selling, General & Admin | 344M | 3.33B | 0 | 1.45B | 1.29B | 1.18B | 1.58B | 1.27B | 1.22B | 1.11B | 997M | 0 | 0 | 0 | 0 | 4.68B | 4.31B | 4.06B | 5.78B | 4.59B | 4.6B | 4.38B | 4.17B | 3.89B | 4.5B | 4.28B | 4.31B | 4.29B | 4.35B | 4.17B | 3.26B |
| SG&A % of Revenue | - | 13.57% | - | 6% | 5.18% | 5.39% | 8.07% | 5.87% | 5.36% | 5.25% | 5% | - | - | - | - | 23.94% | 25.43% | 28.73% | 32.18% | 28.2% | 29.52% | 32.22% | 34.11% | 33.69% | 36.03% | 35.71% | 36.29% | 38.01% | 41.2% | 37.6% | 37.1% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 1.39B | 1.33B | 0 | 0 | 0 | -231M | -215M | -202M | -167M | 0 | 226M | 151M | 128M | 108M | 2.4B | 84M | 73M | 87M | 1.32B | 1.24B | 1.18B | 1.11B | 1.07B | 1.21B | 1.17B | 1.14B | 1.08B | 1.07B | 1.04B | 762M |
| Operating Income | 7.46B | 9.84B | 9.71B | 9.08B | 9.92B | 9.34B | 7.83B | 8.55B | 8.52B | 8.06B | 7.27B | 8.05B | 8.75B | 7.45B | 6.75B | 5.72B | 4.98B | 3.38B | 4.08B | 3.38B | 2.88B | 1.79B | 1.29B | 2.13B | 2.32B | 2.07B | 1.9B | 1.8B | -171M | 1.25B | 1.53B |
| Operating Margin % | 40.33% | 40.14% | 40.05% | 37.66% | 39.87% | 42.83% | 40.11% | 39.4% | 37.3% | 37.95% | 36.47% | 36.91% | 36.49% | 33.9% | 32.23% | 29.27% | 29.36% | 23.89% | 22.68% | 20.73% | 18.51% | 13.22% | 10.6% | 18.47% | 18.61% | 17.31% | 16.02% | 16% | -1.62% | 11.31% | 17.45% |
| Operating Income Growth % | - | 1.3% | 6.95% | -8.42% | 6.2% | 19.2% | -8.42% | 0.43% | 5.66% | 10.85% | -9.69% | -8.01% | 17.55% | 10.39% | 17.84% | 14.92% | 47.41% | -17.08% | 20.74% | 17.03% | 60.67% | 38.61% | -39.29% | -8.22% | 12.16% | 8.88% | 5.49% | 1154.97% | -113.65% | -18.26% | 14.32% |
| EBITDA | 9.32B | 12.31B | 12.15B | 11.44B | 12.21B | 11.55B | 10.04B | 10.77B | 10.71B | 10.17B | 9.31B | 10.06B | 10.66B | 9.22B | 8.51B | 7.34B | 6.47B | 4.81B | 5.46B | 4.7B | 4.12B | 2.97B | 2.41B | 3.2B | 3.53B | 3.25B | 3.04B | 2.89B | 899M | 2.3B | 2.29B |
| EBITDA Margin % | 50.4% | 50.23% | 50.09% | 47.42% | 49.09% | 52.95% | 51.42% | 49.61% | 46.9% | 47.86% | 46.69% | 46.14% | 44.43% | 41.99% | 40.64% | 37.54% | 38.13% | 33.98% | 30.4% | 28.84% | 26.45% | 21.87% | 19.7% | 27.7% | 28.26% | 27.11% | 25.62% | 25.61% | 8.52% | 20.72% | 26.12% |
| EBITDA Growth % | -23.15% | 1.34% | 6.22% | -6.33% | 5.75% | 14.95% | -6.74% | 0.58% | 5.33% | 9.19% | -7.49% | -5.56% | 15.55% | 8.44% | 15.86% | 13.5% | 34.58% | -12.01% | 16.31% | 13.95% | 38.75% | 23.44% | -24.81% | -9.35% | 8.75% | 6.67% | 5.4% | 221.13% | -60.84% | 0.04% | 15.73% |
| D&A (Non-Cash Add-back) | 1.86B | 2.47B | 2.44B | 2.35B | 2.29B | 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 |
| EBIT | 8.03B | 10.47B | 10.06B | 9.57B | 10.34B | 9.63B | 8.12B | 8.8B | 8.61B | 8.35B | 7.46B | 8.05B | 8.75B | 7.57B | 6.85B | 5.84B | 5.04B | 3.57B | 4.17B | 3.49B | 3B | 1.94B | 1.38B | 2.21B | 2.58B | 2.18B | 2.03B | 1.94B | 18M | 1.28B | 1.61B |
| Net Interest Income | -957M | -1.29B | -1.19B | -1.29B | -1.27B | -1.15B | -1.13B | -987M | -840M | -703M | -687M | -617M | -557M | -522M | -532M | -569M | -598M | -595M | -490M | -432M | -448M | -504M | -527M | -574M | -632M | -700M | -723M | -733M | -714M | -605M | -501M |
| Interest Income | 30M | 16M | 76M | 52M | 0 | 5M | 12M | 63M | 30M | 16M | 11M | 5M | 4M | 4M | 3M | 3M | 4M | 5M | 21M | 50M | 29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 986.68M | 1.31B | 1.27B | 1.34B | 1.27B | 1.16B | 1.14B | 1.05B | 870M | 719M | 698M | 622M | 561M | 526M | 535M | 572M | 602M | 600M | 511M | 482M | 477M | 504M | 527M | 574M | 633M | 701M | 723M | 733M | 714M | 605M | 501M |
| Other Income/Expense | -415.23M | -673M | -919M | -849M | -845M | -860M | -854M | -807M | -776M | -474M | -477M | -396M | -410M | -398M | -427M | -460M | -548M | -405M | -419M | -366M | -359M | -359M | -686M | -496M | -379M | -1.41B | -593M | -602M | -525M | -577M | -420M |
| Pretax Income | 7.04B | 9.17B | 8.79B | 8.23B | 9.07B | 8.48B | 6.98B | 7.75B | 7.74B | 7.63B | 6.77B | 7.66B | 8.34B | 7.05B | 6.32B | 5.26B | 4.43B | 2.97B | 3.66B | 3.01B | 2.52B | 1.44B | 856M | 1.64B | 2.02B | 1.53B | 1.31B | 1.2B | -696M | 676M | 1.11B |
| Pretax Margin % | 38.08% | 37.4% | 36.26% | 34.13% | 36.47% | 38.88% | 35.73% | 35.69% | 33.9% | 35.93% | 33.93% | 35.1% | 34.78% | 32.09% | 30.19% | 26.92% | 26.13% | 21.03% | 20.34% | 18.48% | 16.21% | 10.58% | 7.01% | 14.17% | 16.14% | 12.8% | 11.03% | 10.66% | -6.6% | 6.1% | 12.67% |
| Income Tax | 1.53B | 2.03B | 2.05B | 1.85B | 2.07B | 1.96B | 1.63B | 1.83B | 1.77B | -3.08B | 2.53B | 2.88B | 3.16B | 2.66B | 2.38B | 1.97B | 1.65B | 1.08B | 1.32B | 1.15B | 919M | 410M | 252M | 581M | 675M | 567M | 468M | 419M | -63M | 244M | 380M |
| Effective Tax Rate % | 21.68% | 22.13% | 23.28% | 22.52% | 22.86% | 23.06% | 23.37% | 23.6% | 22.93% | -40.36% | 37.44% | 37.67% | 37.91% | 37.74% | 37.59% | 37.46% | 37.29% | 36.45% | 36.05% | 38.35% | 36.4% | 28.55% | 29.44% | 35.49% | 33.48% | 36.99% | 35.73% | 34.86% | 9.05% | 36.09% | 34.14% |
| 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 | 2.33B | 1.85B | 1.61B | 1.03B | 604M | 1.58B | 1.34B | 966M | 842M | 810M | -633M | 432M | 904M |
| Net Margin % | 29.82% | 29.12% | 27.82% | 26.45% | 28.13% | 29.92% | 27.38% | 27.27% | 26.13% | 50.43% | 21.23% | 21.88% | 21.59% | 19.98% | 18.84% | 16.83% | 16.39% | 13.36% | 12.99% | 11.39% | 10.31% | 7.56% | 4.94% | 13.72% | 10.74% | 8.07% | 7.09% | 7.19% | -6% | 3.9% | 10.29% |
| Net Income Growth % | -18.1% | 5.8% | 5.77% | -8.85% | 7.28% | 21.95% | -9.63% | -0.79% | -44.31% | 153.06% | -11.3% | -7.88% | 18.05% | 11.29% | 19.78% | 18.42% | 47.09% | -19.06% | 25.88% | 15.5% | 56.53% | 69.87% | -61.89% | 18.2% | 38.82% | 14.73% | 3.95% | 227.96% | -246.53% | -52.21% | -4.44% |
| Net Income (Continuing) | 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 | 1.06B | 1.26B | 934M | 842M | 783M | -633M | 432M | 733M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.5B | 0 | 0 |
| EPS (Diluted) | 9.29 | 11.97 | 11.09 | 10.45 | 11.21 | 9.95 | 7.88 | 8.38 | 7.91 | 13.36 | 5.07 | 5.49 | 5.75 | 4.71 | 4.14 | 3.36 | 2.76 | 1.87 | 2.27 | 1.73 | 1.48 | 0.96 | 0.58 | 1.48 | 1.21 | 0.89 | 0.78 | 0.75 | -0.64 | 0.44 | 1.04 |
| EPS Growth % | 9.36% | 7.94% | 6.12% | -6.78% | 12.66% | 26.27% | -5.97% | 5.94% | -40.79% | 163.51% | -7.65% | -4.52% | 22.08% | 13.77% | 23.21% | 21.74% | 47.59% | -17.62% | 31.21% | 16.89% | 54.17% | 65.52% | -60.81% | 22.31% | 35.96% | 14.1% | 4% | 217.19% | -245.45% | -57.69% | -9.57% |
| EPS (Basic) | - | 12.01 | 11.10 | 10.47 | 11.24 | 9.98 | 7.90 | 8.41 | 7.95 | 13.42 | 5.09 | 5.51 | 5.77 | 4.74 | 4.17 | 3.39 | 2.79 | 1.88 | 2.29 | 1.74 | 1.49 | 0.97 | 0.58 | 1.56 | 1.33 | 0.97 | 0.85 | 0.82 | -0.64 | 0.44 | 1.04 |
| Diluted Shares Outstanding | 593.6M | 593.5M | 608.6M | 610.2M | 624M | 655.4M | 679.1M | 706.1M | 754.3M | 801.7M | 835.4M | 869.4M | 901.1M | 931.6M | 953M | 979.6M | 1.01B | 1.01B | 1.03B | 1.07B | 1.09B | 1.07B | 1.05B | 1.07B | 1.11B | 1.09B | 1.08B | 1.08B | 984M | 992.4M | 872M |
| Basic Shares Outstanding | 593M | 592.5M | 607.6M | 609.2M | 622.7M | 653.8M | 677.3M | 703.5M | 750.9M | 798.4M | 832.4M | 866.2M | 897.1M | 926.6M | 946.2M | 971.4M | 996.4M | 1.01B | 1.02B | 1.06B | 1.08B | 1.05B | 1.04B | 1.02B | 1.01B | 992M | 986M | 986.4M | 984M | 982.8M | 866.8M |
| Dividend Payout Ratio | - | 45.33% | 47.62% | 49.74% | 45.14% | 42.93% | 49.09% | 43.89% | 38.54% | 18.5% | 44.39% | 49.12% | 31.51% | 30.38% | 29.06% | 25.43% | 21.65% | 28.78% | 20.6% | 19.62% | 20.05% | 30.6% | 51.32% | 14.76% | - | 20.5% | 23.63% | 24.44% | - | 97.69% | 39.05% |
Competitive pressure from CPKC
As reported in recent financial statements, Union Pacific's quarterly revenue has remained largely range-bound between $6.0 billion and $6.2 billion, indicating a period of top-line stagnation that reflects broader industrial production trends rather than a significant expansion of the company's core freight market share.
The lack of meaningful revenue growth suggests that the company is currently struggling to outpace the cyclical headwinds facing the US industrial sector. Investors should monitor whether the recent leadership transition can catalyze volume growth, as current figures imply a reliance on pricing power to offset stagnant carloadings.
According to the provided income statement data, Union Pacific has maintained a consistent operating margin hovering near 40%, demonstrating significant structural pricing power and effective cost control that persists even when gross margins experience minor fluctuations due to shifting commodity mixes and fuel surcharge lags.
The stability of the operating margin suggests that the company's implementation of Precision Scheduled Railroading continues to provide a buffer against inflationary pressures. This performance appears to justify the quality premium the market assigns to the stock relative to its Eastern rail peers.
Based on the reported figures, Union Pacific consistently converts approximately 40% of its revenue into operating income, a testament to the company's ability to scale its massive fixed-cost rail network without incurring proportional increases in overhead expenses during periods of moderate volume growth.
The efficiency of the operating income generation indicates that management has successfully optimized the network's asset utilization. However, the lack of significant SG&A scaling suggests that further margin expansion may be limited without a substantial increase in high-margin industrial freight volumes.
While Union Pacific displays strong profitability, the emergence of the CPKC network as a direct competitor for North-South traffic, as noted in recent industry developments, poses a credible threat to the company's long-term pricing power and its ability to maintain current operating margin levels.
Short-term investors should be wary that the company's reliance on historical pricing power may be challenged by this new, integrated competitor. The potential for market share erosion in the automotive and chemical segments warrants further investigation into the company's long-term competitive positioning.
Quick answers to the most common questions about buying UNP stock.
For fiscal year 2025, Union Pacific Corporation (UNP) reported total revenue of $24.51B. This represents a 179.0% increase compared to $8.79B in 1996.
Union Pacific Corporation (UNP) is profitable, generating $7.14B in net income for the fiscal year ending 2025 with a net profit margin of 29.1%.
Union Pacific Corporation (UNP) reported an operating income of $9.84B, resulting in an operating profit margin of 40.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Union Pacific Corporation (UNP) generated $14.55B in gross profit for the year, representing a gross profit margin of 59.4%. This demonstrates the company's core pricing power and production efficiency.