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Union Pacific Posts Profit Beat, Accelerates STB Filing for $85 Billion Norfolk Southern Bid

The stronger quarter, powered by pricing and efficiency gains, precedes a planned late‑November or early‑December merger application that would start a lengthy review.

Overview

  • Union Pacific reported Q3 net income of $1.79 billion, or $3.01 per share, with adjusted EPS of $3.08 on $6.24 billion in revenue and an operating ratio of 59.2%.
  • Management said a detailed merger application to acquire Norfolk Southern will be submitted to the Surface Transportation Board by late November or early December, kicking off an estimated 12 to 18 month review.
  • Results were lifted by core pricing, efficiency gains and resilient bulk shipments such as coal and grain, while intermodal volumes declined.
  • The railroad cited record operational metrics, including faster car velocity, higher train speed, lower terminal dwell at 20.4 hours and best‑ever workforce productivity.
  • Reactions to the $85 billion proposal remain split, with support from the largest rail union and some customers and opposition from rivals and certain shipper groups, and Norfolk Southern also posted higher adjusted profit.