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 practical, hands-on leadership experience 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.

Operational performance and growth

• Achieved record safety performance and operational efficiency in 2025, leading the industry in employee safety and car velocity.

• Operational ratio consistently below 60, with industry-leading return on invested capital and strong pricing.

• 2025 saw a 24% increase in train size, 8% reduction in active train count, and 25% increase in car velocity compared to 2019.

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

• Growth in railcar volumes and product movement, balancing efficiency and business expansion.

Merger strategy and regulatory considerations

• Merger with Norfolk Southern positioned as the largest railroad combination, aiming to create the first true U.S. transcontinental railroad.

• Amended merger application addressed all Surface Transportation Board requests, using robust data and enhanced analysis.

• Superior data confirmed merger benefits, including $3.5 billion in annual shipper savings and removal of 2.1 million trucks from roads.

• Commitment to maintaining competition, with market share projected at around 40% and safeguards for customer access.

• Minimal customer overlap, with plans to ensure continued access and support for reciprocal switching.