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Union Pacific: Can Technology and Automation Restore Rail’s Competitive Edge?

Union Pacific Corporation’s fourth-quarter earnings call for 2025 highlighted a mix of operational successes and ongoing challenges. The company reported a full-year net income of $7.1 billion, representing a 6% increase, and earnings per share (EPS) of $11.98, up 8%. Despite a 4% decline in overall volume in the fourth quarter, Union Pacific achieved a 3% increase in freight revenue for the full year, supported by strong pricing gains and operational efficiency. However, fourth-quarter freight revenue reflected a 1% decrease. Operationally, Union Pacific faced significant weather challenges impacting broad regions of the United States, particularly in the South. Despite these disruptions, the company highlighted a rapid recovery, which is notable for its resilience and operational management prowess. Eric Gehringer, Executive Vice President, credited the rapid recovery to teamwork and strategic preparation with resources pre-positioned for such crisis scenarios.