Union Pacific (UNP) RBC Capital Markets Canadian Industrials Conference summary

Keynote themes and leadership insights

• Focus on transformational change and consolidation as major industry forces, with emphasis on practical, hands-on leadership experience in driving these changes.

• Precision Scheduled Railroading (PSR) highlighted as a transformative operational model, improving efficiency and service quality.

• Leadership style rooted in operational experience, direct engagement with frontline employees, and a commitment to continuous improvement.

• Emphasis on safety, operational excellence, and delivering value to shareholders and customers.

• Recognition of industry mentors and the importance of cultural change in implementing operational improvements.

Strategic achievements and operational performance

• Achieved record safety performance in 2025, leading the industry in employee safety.

• Delivered best-ever freight car velocity and terminal dwell, enhancing service reliability.

• Set records in workforce and locomotive productivity, train length, fuel efficiency, and net income.

• Maintained industry-leading operating ratio and return on invested capital, outperforming rail peers.

• Operational ratio (OR) consistently below 60, supporting strong pricing and returns.

Growth, capacity, and efficiency improvements

• Carload volumes in 2025 surpassed 2019 levels, supported by record safety and service.

• Increased train size by 24% and car velocity by 25% since 2019.

• Reduced active train count by 8%, reflecting operational efficiency gains.

• Asset utilization improvements since 2019, running 24% fewer trains with faster speeds and fewer touchpoints.

• Technology and data-driven decision-making, including investments in new operating systems and AI tools.