Omaha: Union Pacific Corporation, one of the United States’ leading freight rail operators, reported robust third-quarter earnings on Thursday, surpassing Wall Street expectations. The results, buoyed by strong coal and food grain volumes, mark the company’s first earnings report since announcing its $85 billion merger with Norfolk Southern, which aims to create the nation’s first coast-to-coast freight rail network.
Union Pacific posted an adjusted quarterly profit of $3.08 per share, comfortably beating analysts’ estimate of $2.99. Total operating revenue reached $6.24 billion, in line with market forecasts. Revenue from the bulk shipment segment, which includes coal and food grains, surged 7% to $1.93 billion compared to the same quarter last year.
The earnings report also reflected $41 million in merger-related costs, equivalent to $0.07 per share on a diluted basis. Despite the strong performance, Union Pacific shares dipped 1.4% in pre-market trading, though the stock has risen 11.4% since the merger announcement.
The proposed merger with Norfolk Southern, still awaiting regulatory clearance from the Surface Transportation Board, has garnered positive responses from U.S. leadership. President Donald Trump expressed support, citing executive orders aimed at boosting coal production, a key revenue driver for Union Pacific. The companies anticipate filing the formal merger application by the end of January 2026.
CEO Jim Vena highlighted that, while growth opportunities remain strong, the railroad industry continues to face challenges including rising labor and fuel costs, fluctuating freight volumes, and increasing competition from technology-driven trucking and shipping services. Analysts note that rivals such as CSX have also recently reported earnings beats, driven by improved intermodal volumes and higher merchandise segment pricing.
Union Pacific’s solid third-quarter performance underscores its strategic positioning in the bulk freight sector and sets the stage for a potentially transformative merger that could reshape freight logistics in the United States.