January 27, 2026-TRA Newswire -

Union Pacific: Good 4th Quarter / Good Overall 2025

Union Pacific Railroad announced that net income was up 5% in the 4th quarter of 2025 as CEO Jim Vena announced  "We had a record-breaking year and delivered best-ever safety, service, and operating results in 2025."

Vena reported "Our 2025 reported net income grew 6%, earnings per share increased 8%, and we improved our operating ratio. While we work through the regulatory process to create America's first transcontinental railroad, our team is focused on driving further safety, service, and operating improvements to support growth."

UP managed to do this with lower operating revenue for the 4th quarter (-1%) to $6.1 billion, carloads of goods carried down 4%, and operating income down 5% to $2.4 billion, when compared to the same period in 2024, as reported by the company. Pricing gains and fuel charge revenue partially offset the decline.

The railroad achieved a full year return on invested capital of 16.3%.  For all of 2025, operating revenue rose 1% (to $24.5 billion), net income was up 6% (to $7.1 billion).

Shippers should be happy that the number of miles an average car traveled last year was up 8% to 225 miles per day, and the amount of time freight cars spent in yards waiting to move was down to 20.9 hours, an 8% improvement. UP also got more bang for the buck with its locomotives as they pulled 139 gross ton-miles per horsepower day, up 3% from 2024. 

Union Pacific will need to file a letter to the Surface Transportation Board before February 17 advising the regulatory agency when they will be filing a revised application to acquire East Coast giant Norfolk Southern Railway. On January 16th the STB returned the merger application citing key information was not included. 

BNSF to spend $3.6 billion in CapEx investments during 2026

“Our 2026 capital plan focuses on strengthening and modernizing our network so we can continue to meet our customers’ evolving needs,” said BNSF President and CEO Katie Farmer. “We prioritize investing with the future in mind, improving efficiency, adding capacity, and ensuring our railroad is always ready to support growth while delivering the dependable, resilient service our customers count on.”

The largest component of this year’s capital plan, $2.8 billion, is devoted to maintenance. The company reported that Investing in BNSF’s existing infrastructure will result in fewer unscheduled service outages that can slow down the rail network and reduce capacity.
 
The maintenance projects will include replacing and upgrading rail, track infrastructure like ballast and rail ties, and maintaining rolling stock. It will consist of approximately 13,000 miles of track surfacing and/or undercutting work, the replacement of 2.5 million rail ties and more than 400 miles of rail.

The $3.6 billion capital investment plan for 2026 "demonstrate a continued dedication to operating a safe and reliable network that’s prepared to handle the anticipated needs of customers," according to a news release.
 
In 2026, $358 million of the capital plan is designated for expansion and efficiency projects, adding to the $2.6 billion invested in expansion projects over the past five years.

This year’s expansion plans support BNSF projects to increase network capacity and efficiency. Major facility projects include completing property acquisitions and continuing development activities for the planned Barstow International Gateway project in California and continuing development and starting construction activities for a future intermodal facility in the Phoenix area.

Major line expansion projects include track expansions at BNSF's Galesburg, IL and Winslow, AZ yards to increase switching capacity, supporting network service performance and asset (railcars and locomotives) productivity initiatives.