Union Pacific Corporation (UNP): Business Model Canvas [Dec-2025 Updated]

You're digging into the core mechanics of the giant moving goods across the American West, and honestly, understanding the Business Model Canvas for Union Pacific Corporation is key to seeing where the next dollar comes from. This is about managing an irreplaceable 32,880-route mile network while chasing a razor-thin 58.5% adjusted operating ratio through Precision Scheduled Railroading. We're looking at a late 2025 reality where a proposed merger with Norfolk Southern could redefine transcontinental service, all underpinned by a \$3.4 billion capital plan. It's a massive operation. Below, I've broken down exactly how they turn bulk commodities and industrial freight into revenue, and what their key risks are right now.

Union Pacific Corporation (UNP) - Canvas Business Model: Key Partnerships

You're looking at the critical alliances that keep Union Pacific Corporation moving freight across the West, and right now, the biggest partnership news is the proposed combination with Norfolk Southern. This historic deal, valued at approximately $85 billion, aims to create the first coast-to-coast freight rail operator in the United States. Union Pacific Corporation and Norfolk Southern shareholders overwhelmingly approved the merger in November 2025. The full merger application, expected to run over 4,000 pages, was delayed until around December 16, 2025, for finalization before submission to the Surface Transportation Board (STB). If approved, the combined network would cover more than 50,000 route miles across 43 states and connect about 100 ports in North America, with a projected enterprise value exceeding $250 billion. The cash component of the deal offers Norfolk Southern shareholders $88.82 in cash plus one Union Pacific common share per share they own.

Beyond this potential mega-merger, Union Pacific Corporation relies on existing agreements for network fluidity. For instance, the Meridian Speedway, a 302-mile corridor between Meridian, Mississippi, and Shreveport, Louisiana, governed by a 2006 deal between former KCS and NS, is currently a point of contention. In August 2025, CPKC reinstated an 8,500-foot train length restriction on the Speedway, which specifically impacted the eastbound interline Union Pacific-Norfolk Southern intermodal train, Z-LAAI on Union Pacific. Union Pacific Corporation is actively seeking STB investigation to determine if CPKC is upholding its service promises related to its own merger conditions.

The reach of Union Pacific Corporation into local markets is heavily dependent on its relationships with smaller carriers. Union Pacific Corporation operates across 23 western states and maintains a vast ecosystem of local access partners. As of August 2025, the company highlighted its partnership strategy by adding 15 new Focus Sites across eight states. A dozen of these new large-scale development properties are specifically located on connecting short line railroads. In total, Union Pacific Corporation has 39 Focus Sites across its network, designed to spur local economic growth. Furthermore, the Site Solutions Tool provides visibility into more than 2,000 potential properties available within 800 meters of Union Pacific lines.

Here's a look at the scale of these local access partnerships:

Technology and fleet maintenance are secured through major equipment suppliers like Wabtec Corporation. Union Pacific Corporation has executed its largest-ever investment in modernized locomotives with Wabtec, a deal worth more than $1 billion for 600 locomotive modernizations. This is the third major modernization order since 2018, with the total order encompassing the modernization of 525 AC4400/AC6000 units and 75 Dash-9 units, scheduled for completion in 2025. These upgrades promise significant operational improvements, including up to an 18 per cent fuel efficiency improvement and a more than 80 per cent increase in reliability. This modernization effort is expected to yield approximately 210,000 tonnes in annual emission reductions. Also notable is Union Pacific Corporation's purchase of 10 FLXdrive battery-electric locomotives from Wabtec. The company is also working with Wabtec to increase low-carbon fuels consumed to 10% of total diesel consumption by 2025.

Intermodal traffic, a key revenue driver, is directly tied to port authority partnerships, especially on the West Coast. The Port of Los Angeles, a crucial gateway, reported handling 1,019,837 TEUs in July 2025, marking its busiest month ever and an 8.5% increase year-over-year. For the first seven months of 2025, the Port of Los Angeles handled 5,975,649 TEUs, up 5% compared to the same period in 2024. Through October 2025, the Port's total TEUs reached 8,665,481.65, a 2.05% year-over-year increase for the calendar year. In response to this traffic, Union Pacific Corporation launched a faster intermodal service between California's Inland Empire and Chicago in July 2025.

Key partnership metrics related to international traffic include:

• July 2025 TEUs handled at Port of Los Angeles: 1,019,837.
• Year-to-date (Jan-Oct 2025) TEUs at Port of Los Angeles: 8,665,481.65.
• Year-over-year TEU growth at Port of Los Angeles (Jan-Jul 2025): 5%.
• Union Pacific Corporation locomotive modernization deal value with Wabtec: Over $1 billion.
• Total locomotives in Wabtec modernization deal: 600.

Finance: draft 13-week cash view by Friday.

Union Pacific Corporation (UNP) - Canvas Business Model: Key Activities

You're looking at the core engine of Union Pacific Corporation, the day-to-day work that turns assets into revenue. These activities are all about moving freight reliably and efficiently across the western United States.

Operating and maintaining the 32,880-route mile rail network.

Union Pacific Corporation's physical footprint is massive, requiring constant upkeep to support operations. As of December 31, 2024, the network included 32,880 route miles, with Union Pacific owning 26,291 miles of that total. The 2025 capital plan, set at approximately $3.4 billion, dedicates nearly $2 billion toward upgrading and replacing infrastructure like rail, ties, and ballasts.

The company is also focused on expanding its physical reach to support growth:

• Expanding intermodal footprint in Kansas City, Los Angeles, and Northern California.
• Offering more than 2,000 buildings and industrial sites with potential rail service within a half mile of rail lines.
• New Kansas City Intermodal Terminal (KCIT) expected to open mid-2025.

Executing Precision Scheduled Railroading (PSR) for efficiency.

The execution of the PSR philosophy drives the core operational metrics. For the third quarter of 2025, Union Pacific Corporation achieved an operating ratio of 59.2%, with an adjusted operating ratio of 58.5%. This focus on moving cars, not just trains, translates directly into measurable improvements in asset utilization.

Here's how key PSR metrics looked in the third quarter of 2025 compared to prior periods:

Managing a fleet of 7,154 locomotives and 59,189 rail cars.

Fleet management centers on utilization and productivity, with capital dollars allocated to modernization. The 2024 capital plan earmarked $0.6 billion for locomotives and equipment, with a similar amount expected in the 2025 plan. As of December 31, 2024, locomotive in-service utilization was 65%, and freight car utilization was 75%.

Productivity within the fleet management activity showed gains through the third quarter of 2025:

• Locomotive productivity reached 140 gross ton-miles (GTMs) per horsepower day, a 4% improvement year-over-year.
• Workforce productivity improved to 1,165 car miles per employee, a 6% increase.

Core pricing strategy to achieve pricing dollars net of inflation.

Union Pacific Corporation's pricing strategy is designed to ensure that revenue gains outpace cost inflation. For the first quarter of 2025, the company reported that core pricing dollars net of inflation were accretive to operating ratio. This positive trend was affirmed through the third quarter of 2025, where pricing dollars were accretive to operating ratio. The 2025 outlook also affirmed that pricing dollars accretive to operating ratio remains a key component of the financial strategy.

Technology development for digital customer experience and network optimization.

Technology is a key enabler for both internal network optimization and external customer transparency. The 2025 capital plan allocated funds for technology investments to help move rail cars through terminals faster. Specific digital customer experience advancements include:

• Union Pacific has 65 available Application Programming Interfaces (APIs) for functions like shipment tracking and invoicing, with 100 customers now active on these systems.
• Comprehensive container GPS tracking is complete on approximately 90% of the container fleet.
• A total of 1,500 railcars are scheduled to be equipped with RailPulse by the end of 2025, providing real-time data via sensors.

Finance: draft 13-week cash view by Friday.

Union Pacific Corporation (UNP) - Canvas Business Model: Key Resources

The foundation of Union Pacific Corporation's business model rests on several massive, difficult-to-replicate physical and financial assets. These resources enable its Class I freight-hauling operations across the western two-thirds of the United States.

Irreplaceable, vast rail network and rights-of-way across 23 western states. Union Pacific Railroad operates over 32,200 miles of track, spanning 23 U.S. states west of Chicago and New Orleans. This network includes 32,693 route miles, providing a critical link to all major West Coast and Gulf Coast ports, as well as six major Mexico gateways. The company also strategically expanded its physical reach in 2025 by adding 15 new Focus Sites, bringing the total to 39 strategically located sites across key hubs like Texas and Illinois. This network forms a duopoly on transcontinental freight rail lines in the Western, Midwestern and West South Central United States.

The scale of the physical infrastructure is best captured by looking at the core operating assets:

Large fleet of rolling stock: 7,154 locomotives and rail cars. While the outline suggests a combined figure of 7,154, the most recent specific data available indicates 7,154 locomotives and 59,189 rail cars as of early 2024. The fleet composition is continuously managed, with 84% of new additions over the past 25 years being GRL 286,000-pound cars.

Human capital: approximately 32,973 employees (late 2025 workforce). The workforce size reflects ongoing optimization efforts. The employee count for fiscal year 2025 was reported at 32,439, a decrease from 32,973 employees in 2024. This workforce manages the complex operations, including the operation of major facilities like Bailey Yard, which spans 2,850 acres.

The human capital supports critical operational metrics, including:

• Freight Car Velocity: 226 daily miles per car (August 2025).
• Operating Ratio: 59.2% (Q3 2025).
• Workforce Productivity: Increased 9% to 1,124 car miles per employee (Q3 2025).
• Reportable Derailment Rate: Improved year-over-year (2024 YTD vs 2023 YTD).

Financial capital supporting the $3.4 billion 2025 capital plan. Union Pacific Corporation affirmed its commitment to reinvestment, planning capital expenditures of approximately $3.4 billion for 2025, which was in-line with the prior year's spending. A portion of this, the remaining $1.5 billion after infrastructure renewal, is earmarked to support growth initiatives, such as terminal investments in the Houston and Gulf Coast regions.

Proprietary technology for real-time tracking and network control. The operational backbone includes proprietary technology systems. The core logistics and transportation management platform is named NetControl, which processes inventory, scheduling, and provides real-time shipment tracking. Furthermore, derailment prevention relies on approximately 7,000 wayside detection devices installed along the tracks, generating more than 16 million data points every day to monitor equipment condition.

Union Pacific Corporation (UNP) - Canvas Business Model: Value Propositions

You're looking at the core promises Union Pacific Corporation makes to its customers as of late 2025. These aren't just nice-to-haves; they are the hard numbers backing up why shippers choose rail over other options, especially as the Norfolk Southern merger moves through regulatory channels.

Environmental Leadership and Efficiency

For long-haul movements, rail remains the most fuel-efficient, sustainable mode available. Rail transport lowers greenhouse gas (GHG) emissions by up to 75% compared to trucks. Union Pacific is actively investing to push this advantage further. The company is fostering the U.S. biofuel market, aiming for 5-7% utilization of biofuels in its locomotives during 2025. Also, the fleet modernization program is set to upgrade another 240 locomotives during 2025 and 2026 to boost reliability and fuel efficiency.

Service Reliability and Velocity

Service consistency is a major focus, and the operational data from the third quarter of 2025 shows real progress. We've seen improvements in how fast cars move across the network, which directly translates to lower inventory costs for you. Honestly, these numbers show the team is executing on service excellence.

Here's a quick look at the key operational metrics from Q3 2025:

The company also reported a record monthly performance in September 2025, exceeding 230 miles per day.

Cost Advantage Over Trucking

For bulk and industrial shipments, rail offers a significant cost advantage over over-the-road trucking, which was mired in a freight recession in Q2 2025. Union Pacific's efficiency, measured by the operating ratio (OR), demonstrates this cost control. The reported Q3 2025 Operating Ratio was 59.2%, with an adjusted OR of 58.5%, an improvement of 180 basis points from the prior year. Furthermore, Union Pacific led the industry in Return on Invested Capital (ROIC) for Q2 2025 at 14.3%.

Strategic Network Expansion

The proposed merger with Norfolk Southern Corporation presents the potential for a truly transformative value proposition: single-line service across a transcontinental network. This move, if approved by regulators, would create "America's first transcontinental railroad," linking ports from the Atlantic to the Pacific. To focus capital on this regulatory process, Union Pacific paused share repurchases, though it did proceed with a 3% quarterly dividend increase.

Digital Visibility and Management

You get real-time visibility and simplified management through significant technology investments. This focus on a customer-centric digital experience is key to making those long-haul shipments feel as manageable as shorter ones. If onboarding takes 14+ days, churn risk rises, so speed here matters.

Key digital tools and adoption rates as of late 2025 include:

• The launch of the redesigned customer portal, My Portal, which organizes tools into Plan, Ship, and Pay categories.
• The updated portal was available for Manifest and Bulk customers in August 2025, with rollout to Intermodal and Auto customers expected in November 2025.
• 65 available Application Programming Interfaces (APIs) for functions like shipment tracking and invoices.
• Approximately 90% of the container fleet has GPS installed for end-to-end visibility.
• 100 customers are actively using the APIs, out of more than 300 that have signed up.
• A plan to equip 1,500 railcars with RailPulse technology by year-end 2025 for real-time load status.

Finance: draft 13-week cash view by Friday.

Union Pacific Corporation (UNP) - Canvas Business Model: Customer Relationships

You're looking at how Union Pacific Corporation (UNP) manages its relationships with the shippers who rely on its network, which is critical since service performance directly impacts their bottom line. Honestly, for a railroad this size, it's a mix of high-touch personal service and scalable digital self-service.

Dedicated account management for large, contract-based shippers.

For your biggest customers, UNP assigns dedicated account managers. This isn't just a sales role; it's about deep integration into their supply chain planning. While specific contract values aren't public, we know these relationships drive significant, stable volume. For instance, the Bulk segment, which includes grain and coal, generated 32% of freight revenues in 2024. Furthermore, UNP is actively working to secure volume, such as expecting to partially offset the long-term coal revenue decline in 2025 under a new contract with the electric utility Lower Colorado River Authority of Texas.

Self-service digital tools via the My Portal for tracking and billing.

The move toward digital self-service is clear with the rollout of the redesigned customer portal, My Portal. As of late 2025, this portal is available for Manifest and Bulk customers, with the rollout planned for Intermodal and Auto customers in November 2025. This tool groups critical functions into three intuitive categories: Plan, Ship, and Pay, helping customers do business more efficiently.

Long-term, high-volume contracts with major industrial customers.

The Industrial segment is responsible for the largest portion of revenues, bringing in $6.488 billion year-to-date (YTD). These relationships are often cemented through long-term agreements. The focus is on securing core pricing gains, which were accretive to the operating ratio in Q3 2025. Year-to-date intermodal volumes were up 4% as of the latest reports, driven by strong domestic growth.

Proactive communication on service exceptions and network fluidity.

The commitment to better communication is evident in the service metrics that track fluidity. For example, Manifest Service Performance Index (SPI) reached a record 98% in December 2024, and Intermodal SPI ended that month at 97%. These indices measure performance against a historical benchmark, showing a focus on continuous improvement for customers. For Q2 2025, freight car velocity improved 10% to 221 daily miles per car. The company is also using advanced analytics, with plans to expose exception closure times to customers.

Customer-centric service improvements driving the 58.5% adjusted operating ratio.

Service improvements are directly tied to financial performance. Union Pacific Corporation achieved an adjusted operating ratio of 58.5% in the third quarter of 2025, an improvement of 180 basis points year-over-year. This focus on operational excellence is what drives that number down. Here's a look at some of the key operational metrics supporting this efficiency as of mid-to-late 2025:

These operational gains help Union Pacific Corporation meet its commitment to leading the industry in service, as stated by the Chief Executive Officer in July 2025.

You should definitely review the rollout schedule for My Portal for your specific segment to ensure you're ready to use the new self-service features by November 2025. Finance: draft 13-week cash view by Friday.

Union Pacific Corporation (UNP) - Canvas Business Model: Channels

You're looking at how Union Pacific Corporation (UNP) gets its value proposition-safe, reliable, efficient rail service-into the hands of its customers as of late 2025. The channels are a mix of heavy physical assets and increasingly sophisticated digital tools.

Physical rail network: direct rail access to customer facilities and ports.

The core channel remains the physical track. Union Pacific Corporation operates across 23 western states. This extensive footprint allows for direct rail access to many major industrial centers and key Pacific ports. Operational efficiency, a key driver of the adjusted operating ratio of 58.5% in the third quarter of 2025, directly impacts the reliability of this physical channel.

Key operational metrics showing the throughput of this physical channel for the third quarter of 2025 include:

Intermodal terminals and ramps across the western U.S.

Terminals are critical connection points for the intermodal segment, which saw year-to-date volumes up 4% through Q3 2025. Union Pacific Corporation has been actively investing in these facilities to improve truck turn times, which is a direct measure of channel effectiveness for intermodal customers. The new Kansas City Intermodal Terminal (KCIT) began operations in July 2025, adding capacity to this channel.

Technology integration at these ramps is a major focus for channel efficiency:

• 93% of truck drivers serving UP terminals now use the UPGo mobile app.
• Ingating speed is 65% faster due to the app and Precision Gating Technology (PGT).
• Gate exceptions are reduced by 45% through PGT implementation.
• GPS tracking is completed on approximately 90% of the container fleet, enhancing visibility within the terminal channel.
• 1,500 railcars are slated to be equipped with the RailPulse digital platform by year-end 2025.

Secure customer portal, My Portal, for all transaction and data needs.

The digital channel is evolving rapidly. Union Pacific Corporation rolled out the next phase of its redesigned customer portal, My Portal, in August 2025, organizing tools into Plan, Ship, and Pay categories. This is the primary self-service channel for data access and transactions.

The rollout status as of late 2025 shows segmentation:

• The updated portal is currently available for Manifest and Bulk customers.
• Rollout to Intermodal and Auto customers is scheduled for November 2025.

Beyond the portal, direct system integration via APIs serves as a high-level digital channel. Union Pacific Corporation has 65 available APIs covering invoices, shipment tracking, and car orders, with 100 customers actively using them.

Direct sales team and customer support centers.

While specific headcount for the direct sales team isn't public, the digital tools are designed to support them and automate routine interactions. The focus on operational improvements, such as the Q3 2025 adjusted operating ratio of 58.5% and strong core pricing gains, is a key part of the value proposition delivered through these direct channels. The company's executive team, including Kenny Rocker, EVP - Marketing & Sales, continues to address customers directly at industry conferences.

Interline gateways connecting to eastern and Mexican railroads.

Union Pacific Corporation relies on interline gateways to provide transcontinental service. The pending merger with Norfolk Southern, approved by shareholders on November 14, 2025, is set to fundamentally reshape this channel, aiming to create the first transcontinental railroad. The pro-forma combined company is estimated to have revenues of approximately $36 billion and EBITDA of approximately $18 billion. For Mexican traffic, service points like Calexico and El Paso serve as key border gateways, connecting to the Mexican rail network.

For example, in September 2025, an announcement confirmed offering service via steel wheel through Chicago connecting LATC, CA to Worcester, MA, demonstrating an active interline channel management strategy.

Union Pacific Corporation (UNP) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Union Pacific Corporation as of late 2025, grounded in the latest reported financials. These segments drive the freight revenue, which accounted for 95% of the top line in the second quarter of 2025. Total operating revenue for Union Pacific Corporation in Q2 2025 was $6.154 billion.

The customer base is primarily segmented by the type of commodity moved, which translates directly into their freight revenue streams. Here's how the major freight categories stacked up based on Q2 2025 revenue figures:

The Industrial segment, which includes chemicals, plastics, and metals, brought in $2.2 billion in revenue for Q2 2025. By the third quarter, this segment saw its revenue increase by 3%. This growth was fueled by wins in petrochemicals, construction, and metal shipments, though energy and specialized markets volume softened. Union Pacific Corporation provides transportation services for these goods to roughly 10,000 customers.

The Bulk segment, covering commodities like grain, coal, and fertilizers, generated $1.9 billion in revenue in Q2 2025. This segment showed strong momentum, with Q3 2025 revenue growing 7%. Specifically, Coal & renewables revenue was up 16% in Q3 2025, and Grain & grain products revenue increased 6%.

The Premium segment focuses on finished goods and intermodal traffic. In Q2 2025, this segment accounted for $1.73 billion in revenue. However, the third quarter showed a 2% revenue decrease, driven by a 3% decline in Intermodal revenue. Automotive shipments, a key part of this segment, decreased year-to-date in 2025 due to production uncertainty.

Union Pacific Corporation serves other critical partners within the transportation ecosystem as well. These include:

• Short Line Railroads: Regional carriers connecting to the main network.
• Large-scale manufacturers and retailers.
• Specific customers mentioned in service offerings include grain processors and animal feeders.
• Automakers like General Motors and Toyota North America are major customers within the Premium segment.

Business volumes, measured by total revenue carloads, increased 4% year-over-year in Q2 2025. Freight revenue, excluding the fuel surcharge, grew 6% in Q2 2025.

Union Pacific Corporation (UNP) - Canvas Business Model: Cost Structure

You're looking at the major drains on Union Pacific Corporation's cash flow, which, like any Class I railroad, are dominated by the sheer scale of the physical network. The cost structure is heavily weighted toward fixed assets and continuous upkeep. Honestly, maintaining that massive rail infrastructure across 23 western states is the foundation of their biggest fixed costs.

Significant operating expenses (OpEx) drive the day-to-day. For the third quarter of 2025, Union Pacific Corporation reported total operating expenses of $3.7 billion. Within that, compensation and benefits actually decreased by 1% in Q3 2025, which management attributed to 4% lower workforce levels and record productivity offsetting wage inflation. Fuel expense grew by 1% year-over-year in Q3 2025.

Capital expenditures are a huge, recurring cost, essential for network maintenance and modernization. Union Pacific Corporation reaffirmed its capital plan of $3.4 billion for the full year 2025. This spending is crucial because, as you know, running 21st-century logistics on 19th-century analog infrastructure creates an expensive problem.

Here's the quick math on how that $3.4 billion CapEx was planned to be allocated for 2025:

Costs associated with safety and casualty management are non-negotiable, though they fluctuate. In Q3 2025, the company noted that lower casualty costs helped offset higher state and local taxes within the other expense line item. To be fair, track infrastructure failures are cited as a leading cause of unplanned outages, responsible for about 52 percent of derailments, which compounds costs through delays and emergency deployment.

Finally, you have the one-time, non-operating costs related to strategic moves. Merger-related costs, specifically associated with the proposed acquisition of Norfolk Southern Corporation, totaled $41 million in the third quarter of 2025. Due to focusing resources on that merger, share repurchases were paused for the quarter.

• Reported Operating Ratio (Q3 2025): 59.2%
• Adjusted Operating Ratio (Q3 2025): 58.5%
• Freight Car Velocity (Q3 2025): 226 daily miles per car
• Average Terminal Dwell (Q3 2025): 20.4 hours

Finance: draft 13-week cash view by Friday.

Union Pacific Corporation (UNP) - Canvas Business Model: Revenue Streams

You're looking at the core ways Union Pacific Corporation brings in cash. For a railroad this size, it's almost entirely about moving stuff from point A to point B, but the details of what they move matter a lot for revenue stability.

Freight revenue from the movement of goods, accounting for over 95% of the top line. Based on the full fiscal year 2024 figures, the combination of core freight segments plus accessorial charges-which are directly tied to freight movement-represented approximately 96.35% of the total operating revenue of $24.25 billion for that year. The most recent available total revenue, for the twelve months ending September 30, 2025, was $24.546 billion.

The breakdown of revenue streams is best seen through the segment reporting, which clearly shows the primary revenue drivers. For instance, in the first quarter of 2025, total operating revenue was $6.0 billion, with freight revenue excluding the fuel surcharge growing by 4%.

Here is the revenue breakdown by segment, using the detailed figures from fiscal year 2024:

Bulk freight revenue from commodities like grain and coal. This segment is foundational, historically making up a significant portion of the total freight revenue. In fiscal year 2024, Bulk shipments generated 32% of the company's total freight revenues. This includes commodities such as grain and grain products, fertilizer, food and refrigerated goods, and coal and renewables.

Industrial freight revenue from chemicals, metals, and forest products. The Industrial segment was the largest revenue generator in fiscal year 2024, bringing in $8.44 billion. Shipments here cover a diverse set of goods, including lumber, paper commodities, raw steel, finished pipe, stone, drilling fluid, and soda ash.

Premium freight revenue from intermodal and automotive shipments. For fiscal year 2024, Premium shipments accounted for 31% of total freight revenues. This stream is composed of finished automobiles, automotive parts, and merchandise moving in intermodal containers, both domestic and international. International intermodal volumes saw a 26% increase in the fourth quarter of 2024, driven by import demand.

Ancillary revenues from fuel surcharges, demurrage, and accessorial charges. These charges are critical, though they can fluctuate based on external factors like fuel prices. Accessorial Revenues in fiscal year 2024 totaled $554.00 million. You saw the impact of fuel costs in the second quarter of 2025, where operating revenue of $6.2 billion was partially offset by reduced fuel surcharge revenue. For example, the January 2025 Monthly Intermodal Fuel Surcharge was set at 29.5%. In the third quarter of 2025, the fuel surcharge component alone was $602 million, representing a 5% decline year-over-year.

• In Q3 2025, freight revenue excluding the fuel surcharge was $5.3 billion.
• The operating ratio for the full year 2024 was 59.9%, improving to 58.7% in the fourth quarter of 2024.
• For Q1 2025, the operating ratio was 60.7%, flat compared to 2024, with lower fuel prices creating a 90 basis point headwind.
• The company reported full year 2024 net income of $6.7 billion.
• Diluted Earnings Per Share (EPS) for full year 2024 was $11.09.

Finance: draft 13-week cash view by Friday.