Union Pacific (UNP) JPMorgan Industrials Conference 2026 summary

Operational performance and safety

• Achieved status as the safest Class I railroad for employee safety, with merger partner leading in derailment safety; industry-wide safety also improved in 2025.

• Service levels reached record highs, with customer feedback confirming best-ever performance.

• Since 2019, increased traffic by 113,000 carloads while operating 24% fewer trains, reflecting significant efficiency gains; carload volumes surpassed 2019 levels.

• Increased train size by 24%, reduced active train count by 8%, and improved car velocity by 25% since 2019.

• Maintains 500 locomotives ready due to over 1,000 excess from efficiency improvements.

Financial and volume trends

• Operating ratio improved to 59.3% by Q1 2026, with notable gains in train length, workforce productivity, and locomotive productivity.

• Strong start to the first quarter, with overall volumes flat; domestic intermodal growing, international intermodal down, finished vehicles and parts down 7%.

• Industrial volumes up 4%, with industrial chemicals and plastics up 7%; forest products down 6%.

• Bulk segment up 14%, with grain and coal loadings up 17%.

• Fuel prices rose to about $2.70/gallon, up $0.20 from Q4 2025, with spot prices as high as $3.90; fuel surcharge lag will impact Q1 expenses.

Merger process and strategic outlook

• Announced proposed merger with Norfolk Southern, highlighting potential synergies, growth opportunities, and risks related to regulatory approvals, integration, and market conditions.

• Application process guided by STB, with responses to 15 pages of specific requests; transparency emphasized.

• Raised synergy target for truckload conversion, citing network advantages and broad geographic reach.

• Committed to open gateways and reciprocal switching to foster competition and customer choice.

• Will not accept concessions that impair core network value; merger seen as incremental and value-adding.