Earnings release
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Exhibit 99.1 Union Pacific Reports Second Quarter 2025 Results • Diluted earnings per share (EPS) of $3.15 and adjusted diluted EPS* of $3.03 • Operating ratio (OR) of 59.0% and adjusted OR* of 58.1% • Revenue carloads up 4% Omaha, Neb., July 24, 2025 – Union Pacific Corporation (NYSE: UNP) today reported 2025 second quarter net income of $1.9 billion, or $3.15 per diluted share. Results compare to 2024 second quarter net income of $1.7 billion, or $2.74 per diluted share. Second quarter 2025 results include a deferred tax benefit of $115 million, or $0.19 per diluted share, partially offset by a crew staffing agreement of $55 million, or $0.07 per diluted share. 2025 secondquarter adjusted net income* of $1.8 billion, or $3.03 per diluted share*, compares to 2024 second quarter adjusted net income* of $1.7 billion, or $2.71 per diluted share*. “We are delivering on our strategy and our second quarter results demonstrate our commitment to leading the industry as we set new standards for safety, service, and operational excellence.” said Jim Vena, Union Pacific Chief Executive Officer. "The foundation is built, we are growing with our customers, and we have strong momentum as we continue to maximize the value of our great franchise.” Second Quarter Summary: 2025 vs. 2024 Financial Results: Operational Fluidity and Service Supporting Revenue Growth; Second Quarter Records for Freight Revenue and Operating Income • Operating revenue of $6.2 billion grew 2% driven by higher volume and solid core pricing gains partially offset by reduced fuel surcharge, business mix, and lower other revenue. • Freight revenue excluding fuel surcharge grew 6%. • Reported operating ratio was 59.0%, an improvement of 100 basis points. Adjusted operating ratio* was 58.1%, an improvement of 230 basis points. Operating Results: Continued Improvement in Safety, Service, and Operational Excellence; Second Quarter Record for Locomotive Productivity and Best Ever Quarter for Workforce Productivity and Train Length • Reportable personal injury rate and reportable derailment rate both improved. • Freight car velocity was 221 daily miles per car, a 10% improvement. • Locomotive productivity was 141 gross ton-miles (GTMs) per horsepower day, a 5% improvement. • Average maximum train length was 9,689 feet, a 2% increase. • Workforce productivity improved 9% to 1,124 car miles per employee. * Adjusted diluted earnings per share and adjusted operating ratio are considered non-GAAP financial measures. See attached supplemental schedule of non-GAAP measures for a reconciliation to GAAP. -more-
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On Track With Investor Day Targets • Affirming 2025 Outlook: • Well-positioned to meet customer demand; challenging second half international intermodal comparison • Pricing dollars accretive to operating ratio • Earnings per share growth consistent with attaining the 3-year CAGR target of high-single to low-double digit • Industry-leading operating ratio and return on invested capital • No change to long-term capital allocation strategy - Capital plan of $3.4 billion - Share repurchases of $4.0 to $4.5 billion - Third quarter 2025 dividend increase of 3% Second Quarter 2025 Earnings Conference Call Union Pacific will webcast its second quarter 2025 earnings release presentation live at www.up.com/investor and via teleconference on Thursday, July 24, 2025, at 8:45 a.m. Eastern Time. Participants may join the conference call by dialing 877-407-8293 (or for international participants, 201- 689-8349). ABOUT UNION PACIFIC Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable, and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com. Union Pacific Investor contact: Diana Prauner at 402-544-4227 or dprauner@up.com Union Pacific Media contact: Clarissa Beyah at 402-957-4793 or cbeyah@up.com Supplemental financial information is attached.
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**** This news release and related materials contain statements about the Company’s future that are not statements of historical fact, including specifically the statements regarding the potential impacts of public health crises, including pandemics, epidemics and the outbreak of other contagious diseases, such as the coronavirus and its variant strains (COVID); the Russia-Ukraine and Israel-Hamas wars and other geopolitical tensions in the Middle East, and any impacts on our business operations, financial results, liquidity, and financial position, and on the world economy (including customers, employees, and supply chains), including as a result of fluctuations in volume and carloadings; expectations as to general macroeconomic conditions, including slowdowns and recessions, domestically or internationally, and future volatility in interestrates and fuel prices; closing of customer manufacturing, distribution, or production facilities; expectations as to operational or service improvements; expectations as to hiring challenges; availability of employees; expectations regarding the effectiveness of steps taken or to be taken to improve operations, service, infrastructure improvements, and transportation plan modifications (including those in response to increased traffic); expectations as to cost savings, revenue growth, and earnings; the time by which goals, targets, or objectives will be achieved; projections, predictions, expectations, estimates, or forecasts as to business, financial, and operational results, future economic performance, and planned capital investments ; proposed new products and services; estimates of costs relating to environmental remediation and restoration; estimates and expectations regarding tax matters; estimates and expectations regarding current or potential tariffs; expectations that claims, litigation, environmental costs, commitments, contingent liabilities, labor negotiations or agreements, cyber incidents or other matters. These statements are, or will be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements also generally include, without limitation, information, or statements regarding: projections, predictions, expectations, estimates, or forecasts as to the Company’s and its subsidiaries’ business, financial, and operational results, and future economic performance; andmanagement’s beliefs, expectations, goals, and objectives and other similar expressions concerning matters that are not historical facts. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times that, or by which, such performance or results will be achieved. Forward-looking information, including expectations regarding operational and financial improvements and the Company’s future performance or results are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statement. Important factors, including risk factors, could affect the Company’s and its subsidiaries’ future results and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements. Information regarding risk factors and other cautionary information are available in the Company’s Annual Report on Form 10-K for 2024, which was filed with the SEC on February 7, 2025. The Company updates information regarding risk factors if circumstances require such updates in its periodic reports on Form 10-Q and its subsequent Annual Reports on Form 10-K (or such other reports that may be filed with the SEC). Forward-looking statements speak only as of, and are based only upon information available on, the date the statementswere made. The Company assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References to the Company’s website are provided for convenience and, therefore, information on or available through the website is not, and should not be deemed to be, incorporated by reference herein. ###
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UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Condensed Consolidated Statements of Income (unaudited) Millions, except per share amounts and percentages, for the periods ended June 30, 2nd quarter Year-to-date 2025 2024 % 2025 2024 % Operating revenues Freight revenues $ 5,843 $ 5,638 4 % $ 11,534 $ 11,254 2 % Other revenues 311 369 (16) 647 784 (17) Total operating revenues 6,154 6,007 2 12,181 12,038 1 Operating expenses Compensation and benefits 1,249 1,187 5 2,461 2,410 2 Purchased services and materials 642 644 - 1,273 1,257 1 Depreciation 613 596 3 1,223 1,190 3 Fuel 576 625 (8) 1,179 1,283 (8) Equipment and other rents 230 219 5 471 435 8 Other 319 336 (5) 678 691 (2) Total operating expenses 3,629 3,607 1 7,285 7,266 - Operating income 2,525 2,400 5 4,896 4,772 3 Other income, net 123 103 19 201 195 3 Interest expense (335) (319) 5 (657) (643) 2 Income before income taxes 2,313 2,184 6 4,440 4,324 3 Income tax expense (437) (511) (14) (938) (1,010) (7) Net income $ 1,876 $ 1,673 12 % $ 3,502 $ 3,314 6 % Share and per share Earnings per share - basic $ 3.16 $ 2.75 15 % $ 5.86 $ 5.44 8 % Earnings per share - diluted $ 3.15 $ 2.74 15 $ 5.85 $ 5.43 8 Weighted average number of shares - basic 594.1 609.4 (3) 597.5 609.3 (2) Weighted average number of shares - diluted 594.8 610.3 (3) 598.4 610.3 (2) Dividends declared per share $ 1.34 $ 1.30 3 $ 2.68 $ 2.60 3 Operating ratio 59.0 % 60.0 % (1.0) pts 59.8 % 60.4 % (0.6) pts Effective tax rate 18.9 % 23.4 % (4.5) pts 21.1 % 23.4 % (2.3) pts 1
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UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Freight Revenues Statistics (unaudited) 2nd quarter Year-to-date For the periods ended June 30, 2025 2024 % 2025 2024 % Freight revenues (millions) Grain & grain products $ 964 $ 901 7 % $ 1,914 $ 1,844 4 % Fertilizer 201 203 (1) 411 404 2 Food & refrigerated 267 278 (4) 527 563 (6) Coal & renewables 469 339 38 885 727 22 Bulk 1,901 1,721 10 3,737 3,538 6 Industrial chemicals & plastics 646 593 9 1,253 1,165 8 Metals & minerals 561 530 6 1,082 1,045 4 Forest products 340 342 (1) 661 680 (3) Energy & specialized markets 665 658 1 1,298 1,337 (3) Industrial 2,212 2,123 4 4,294 4,227 2 Automotive 632 659 (4) 1,213 1,270 (4) Intermodal 1,098 1,135 (3) 2,290 2,219 3 Premium 1,730 1,794 (4) 3,503 3,489 - Total $ 5,843 $ 5,638 4 % $ 11,534 $ 11,254 2 % Revenue carloads (thousands) Grain & grain products 216 200 8 % 430 410 5 % Fertilizer 55 62 (11) 104 109 (5) Food & refrigerated 43 46 (7) 86 92 (7) Coal & renewables 205 158 30 390 335 16 Bulk 519 466 11 1,010 946 7 Industrial chemicals & plastics 177 169 5 346 333 4 Metals & minerals 191 184 4 365 354 3 Forest products 52 55 (5) 103 108 (5) Energy & specialized markets 149 147 1 292 301 (3) Industrial 569 555 3 1,106 1,096 1 Automotive 209 218 (4) 404 425 (5) Intermodal [a] 817 798 2 1,691 1,537 10 Premium 1,026 1,016 1 2,095 1,962 7 Total 2,114 2,037 4 % 4,211 4,004 5 % Average revenue per car Grain & grain products $ 4,467 $ 4,493 (1)% $ 4,451 $ 4,493 (1)% Fertilizer 3,627 3,311 10 3,959 3,727 6 Food & refrigerated 6,237 5,943 5 6,147 6,086 1 Coal & renewables 2,283 2,156 6 2,267 2,173 4 Bulk 3,659 3,692 (1) 3,700 3,740 (1) Industrial chemicals & plastics 3,647 3,507 4 3,625 3,497 4 Metals & minerals 2,950 2,885 2 2,967 2,955 - Forest products 6,508 6,249 4 6,387 6,272 2 Energy & specialized markets 4,439 4,462 (1) 4,436 4,439 - Industrial 3,885 3,825 2 3,881 3,855 1 Automotive 3,034 3,033 - 3,004 2,991 - Intermodal [a] 1,345 1,421 (5) 1,355 1,444 (6) Premium 1,688 1,766 (4) 1,673 1,779 (6) Average $ 2,764 $ 2,768 - % $ 2,739 $ 2,811 (3)%
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[a] For intermodal shipments each container or trailer equals one carload. 2
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UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Condensed Consolidated Statements of Financial Position (unaudited) Millions Jun. 30, 2025 Dec. 31, 2024 Assets Cash and cash equivalents $ 1,060 $ 1,016 Other current assets 3,123 3,005 Investments 2,785 2,664 Properties, net 59,017 58,343 Operating lease assets 1,193 1,297 Other assets 1,398 1,390 Total assets $ 68,576 $ 67,715 Liabilities and common shareholders' equity Debt due within one year $ 2,522 $ 1,425 Other current liabilities 3,930 3,829 Debt due after one year 30,291 29,767 Operating lease liabilities 831 925 Deferred income taxes 13,029 13,151 Other long-term liabilities 1,715 1,728 Total liabilities 52,318 50,825 Total common shareholders' equity 16,258 16,890 Total liabilities and common shareholders' equity $ 68,576 $ 67,715 Debt / net income 4.7 4.6 Adjusted debt / adjusted EBITDA* 2.8 2.7 * Adjusted debt / adjusted EBITDA is a non-GAAP measure. See page 10 for a reconciliation to GAAP. 3
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UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Condensed Consolidated Statements of Cash Flows (unaudited) Year-to-date Millions, for the periods ended June 30, 2025 2024 Operating activities Net income $ 3,502 $ 3,314 Depreciation 1,223 1,190 Deferred and other income taxes (123) 43 Other - net (59) (514) Cash provided by operating activities 4,543 4,033 Investing activities Capital investments* (1,842) (1,699) Other - net 3 107 Cash used in investing activities (1,839) (1,592) Financing activities Share repurchase programs (2,679) (100) Debt issued 1,995 800 Dividends paid (1,599) (1,588) Debt repaid (409) (1,807) Net Issued/(paid) commercial paper - 297 Other - net 43 30 Cash used in financing activities (2,649) (2,368) Net change in cash, cash equivalents, and restricted cash 55 73 Cash, cash equivalents, and restricted cash at beginning of year 1,028 1,074 Cash, cash equivalents, and restricted cash at end of period $ 1,083 $ 1,147 Free cash flow** Cash provided by operating activities $ 4,543 $ 4,033 Cash used in investing activities (1,839) (1,592) Dividends paid (1,599) (1,588) Free cash flow $ 1,105 $ 853 * Capital investments include locomotive and freight car early lease buyouts of $178 million in 2025 and $96 million in 2024. ** Free cash flow is defined as cash provided by operating activities less cash used in investing activities and dividends paid. Free cash flow is considered non-GAAP financial measure by SEC Regulation G and Item 10 of SEC Regulation S-K and may not be defined and calculated by other companies in the same manner. We believe free cash flow is important to management and investors in evaluating our financial performance and measures our ability to generate cash without additional external financing. Free cash flow should be considered in addition to, rather than as a substitute for, cash provided by operating activities. 4
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UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Operating and Performance Statistics (unaudited) 2nd quarter Year-to-date For the periods ended June 30, 2025 2024 % 2025 2024 % Operating/performance statistics Freight car velocity (daily miles per car) 221 201 10 % 218 202 8 % Average train speed (miles per hour)* 23.9 23.3 3 23.8 23.7 - Average terminal dwell time (hours)* 21.2 22.7 (7) 21.7 23.1 (6) Locomotive productivity (GTMs per horsepower day) 141 134 5 138 134 3 Gross ton-miles (GTMs) (millions) 220,258 206,806 7 433,050 412,835 5 Train length (feet) 9,689 9,544 2 9,590 9,415 2 Intermodal service performance index (%) 99 93 6 pts 96 93 3 pts Manifest service performance index (%) 97 84 13 pts 95 85 10 pts Intermodal car trip plan compliance (%) 88 83 5 pts 86 83 3 pts Manifest car trip plan compliance (%) 74 64 10 pts 72 65 7 pts Workforce productivity (car miles per employee) 1,124 1,031 9 1,108 1,015 9 Total employees (average) 29,711 30,556 (3) 29,929 30,804 (3) Locomotive fuel statistics Average fuel price per gallon consumed $ 2.42 $ 2.73 (11) % $ 2.46 $ 2.77 (11) % Fuel consumed in gallons (millions) 232 223 4 468 453 3 Fuel consumption rate** 1.058 1.080 (2) 1.082 1.097 (1) Revenue ton-miles (millions) Grain & grain products 21,486 19,995 7 % 42,630 40,644 5 % Fertilizer 3,346 3,570 (6) 6,777 6,857 (1) Food & refrigerated 4,709 4,693 - 9,249 9,610 (4) Coal & renewables 23,117 16,351 41 43,331 35,234 23 Bulk 52,658 44,609 18 101,987 92,345 10 Industrial chemicals & plastics 8,004 8,069 (1) 15,741 15,496 2 Metals & minerals 8,564 8,301 3 16,662 16,366 2 Forest products 5,533 5,663 (2) 10,802 11,243 (4) Energy & specialized markets 10,011 10,229 (2) 19,730 20,815 (5) Industrial 32,112 32,262 - 62,935 63,920 (2) Automotive 4,756 4,879 (3) 9,200 9,415 (2) Intermodal 18,024 18,242 (1) 37,439 35,577 5 Premium 22,780 23,121 (1) 46,639 44,992 4 Total 107,550 99,992 8 % 211,561 201,257 5 % * Surface Transportation Board (STB) reported performance measures. ** Fuel consumption is computed as follows: gallons of fuel consumed divided by gross ton-miles in thousands. 5
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UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Condensed Consolidated Statements of Income (unaudited) Millions, except per share amounts and percentages, 2025 1st qtr 2nd qtr Year-to-date Operating revenues Freight revenues $ 5,691 $ 5,843 $ 11,534 Other revenues 336 311 647 Total operating revenues 6,027 6,154 12,181 Operating expenses Compensation and benefits 1,212 1,249 2,461 Purchased services and materials 631 642 1,273 Depreciation 610 613 1,223 Fuel 603 576 1,179 Equipment and other rents 241 230 471 Other 359 319 678 Total operating expenses 3,656 3,629 7,285 Operating income 2,371 2,525 4,896 Other income, net 78 123 201 Interest expense (322) (335) (657) Income before income taxes 2,127 2,313 4,440 Income tax expense (501) (437) (938) Net income $ 1,626 $ 1,876 $ 3,502 Share and per share Earnings per share - basic $ 2.71 $ 3.16 $ 5.86 Earnings per share - diluted $ 2.70 $ 3.15 $ 5.85 Weighted average number of shares - basic 601.0 594.1 597.5 Weighted average number of shares - diluted 601.9 594.8 598.4 Dividends declared per share $ 1.34 $ 1.34 $ 2.68 Operating ratio 60.7 % 59.0 % 59.8 % Effective tax rate 23.6 % 18.9 % 21.1 % 6
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UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Freight Revenue Statistics (unaudited) 2025 1st qtr 2nd qtr Year-to-date Freight revenues (millions) Grain & grain products $ 950 $ 964 $ 1,914 Fertilizer 210 201 411 Food & refrigerated 260 267 527 Coal & renewables 416 469 885 Bulk 1,836 1,901 3,737 Industrial chemicals & plastics 607 646 1,253 Metals & minerals 521 561 1,082 Forest products 321 340 661 Energy & specialized markets 633 665 1,298 Industrial 2,082 2,212 4,294 Automotive 581 632 1,213 Intermodal 1,192 1,098 2,290 Premium 1,773 1,730 3,503 Total $ 5,691 $ 5,843 $ 11,534 Revenue carloads (thousands) Grain & grain products 214 216 430 Fertilizer 49 55 104 Food & refrigerated 43 43 86 Coal & renewables 185 205 390 Bulk 491 519 1,010 Industrial chemicals & plastics 169 177 346 Metals & minerals 174 191 365 Forest products 51 52 103 Energy & specialized markets 143 149 292 Industrial 537 569 1,106 Automotive 195 209 404 Intermodal [a] 874 817 1,691 Premium 1,069 1,026 2,095 Total 2,097 2,114 4,211 Average revenue per car Grain & grain products $ 4,434 $ 4,467 $ 4,451 Fertilizer 4,339 3,627 3,959 Food & refrigerated 6,058 6,237 6,147 Coal & renewables 2,250 2,283 2,267 Bulk 3,744 3,659 3,700 Industrial chemicals & plastics 3,601 3,647 3,625 Metals & minerals 2,986 2,950 2,967 Forest products 6,264 6,508 6,387 Energy & specialized markets 4,433 4,439 4,436 Industrial 3,877 3,885 3,881 Automotive 2,971 3,034 3,004 Intermodal [a] 1,364 1,345 1,355 Premium 1,658 1,688 1,673 Average $ 2,714 $ 2,764 $ 2,739
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[a] For intermodal shipments each container or trailer equals one carload. 7
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UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Non-GAAP Measures Reconciliation to GAAP (unaudited) Financial Performance* Millions, except per share amounts and percentages, for the three months ended June 30, 2025 Reported results (GAAP) Deferred tax adjustment Crew staffing agreement Adjusted results (non-GAAP) Operating expenses $ 3,629 $ - $ (55) $ 3,574 Operating income 2,525 - 55 2,580 Income tax expense (437) (115) (13) (565) Net income 1,876 (115) 42 1,803 Earnings per share - diluted 3.15 (0.19) 0.07 3.03 Operating ratio 59.0 % - % (0.9)% 58.1 % Millions, except per share amounts and percentages, for the three months ended June 30, 2024 Reported results (GAAP) Gain on sale of intermodal equipment Environmental remediation Adjusted results (non-GAAP) Operating expenses $ 3,607 $ 46 $ (23) $ 3,630 Operating income 2,400 (46) 23 2,377 Income tax expense (511) 11 (6) (506) Net income 1,673 (35) 17 1,655 Earnings per share - diluted 2.74 (0.06) 0.03 2.71 Operating ratio 60.0 % 0.8 % (0.4)% 60.4 % * The above tables reconcile our results for the three months ended as of June 30, 2025 and 2024, to adjust results that exclude the impact of certain items identified as affecting comparability. We use adjusted operating expenses, adjusted operating income, adjusted income tax expense, adjusted net income, adjusted diluted earnings per share (EPS), and adjusted operating ratio, as applicable, among other measures, to evaluate our actual operating performance. The measures listed in the above tables are considered non- GAAP by SEC Regulation G and Item 10 of SEC Regulation S-K. We believe these non-GAAP financial measures provide valuable information regarding earnings and business trends by excluding specific items that we believe are not indicative of our ongoing operating results of our business, providing a useful way for investors to make a comparison of our performance over time and against other companies in our industry. Since these are not measures of performance calculated in accordance with GAAP, they should be considered in addition to, rather than as a substitute for, operating expenses, operating income, income tax expense, net income, diluted EPS, and operating ratio as indicators of operating performance. 8
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UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Non-GAAP Measures Reconciliation to GAAP (unaudited) Financial Performance* Millions, except per share amounts and percentages, for the six month ended June 30, 2025 Reported results (GAAP) Deferred tax adjustment Crew staffing agreement Adjusted results (non-GAAP) Operating expenses $ 7,285 $ - $ (55) $ 7,230 Operating income 4,896 - 55 4,951 Income tax expense (938) (115) (13) (1,066) Net income 3,502 (115) 42 3,429 Earnings per share - diluted 5.85 (0.19) 0.07 5.73 Operating ratio 59.8 % - % (0.4)% 59.4 % Millions, except per share amounts and percentages, for the six month ended June 30, 2024 Reported results (GAAP) Gain on sale of intermodal equipment Environmental remediation Adjusted results (non-GAAP) Operating expenses $ 7,266 $ 46 $ (23) $ 7,289 Operating income 4,772 (46) 23 4,749 Income tax expense (1,010) 11 (6) (1,005) Net income 3,314 (35) 17 3,296 Earnings per share - diluted 5.43 (0.06) 0.03 5.40 Operating ratio 60.4 % 0.3 % (0.2)% 60.5 % * The above tables reconcile our results for the six months ended as of June 30, 2025 and 2024, to adjust results that exclude the impact of certain items identified as affecting comparability. We use adjusted operating expenses, adjusted operating income, adjusted income tax expense, adjusted net income, adjusted diluted EPS, and adjusted operating ratio, as applicable, among other measures, to evaluate our actual operating performance. The measures listed in the above tables are considered non-GAAP by SEC Regulation G and Item 10 of SEC Regulation S-K. We believe these non-GAAP financial measures provide valuable information regarding earnings and business trends by excluding specific items that we believe are not indicative of our ongoing operating results of our business, providing a useful way for investors to make a comparison of our performance over time and against other companies in our industry. Since these are not measures of performance calculated in accordance with GAAP, they should be considered in addition to, rather than as a substitute for, operating expenses, operating income, income tax expense, net income, diluted EPS, and operating ratio as indicators of operating performance. 9
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UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Non-GAAP Measures Reconciliation to GAAP (unaudited) Debt / net income Millions, except ratios for the trailing twelve months ended [1] Jun. 30, 2025 Dec. 31, 2024 Debt $ 32,813 $ 31,192 Net income 6,935 6,747 Debt / net income 4.7 4.6 Adjusted debt / adjusted EBITDA* Millions, except ratios for the trailing twelve months ended [1] Jun. 30, 2025 Dec. 31, 2024 Net income $ 6,935 $ 6,747 Add: Income tax expense 1,975 2,047 Depreciation 2,431 2,398 Interest expense 1,283 1,269 EBITDA $ 12,624 $ 12,461 Adjustments: Other income, net (356) (350) Interest on operating lease liabilities [2] 46 48 Adjusted EBITDA (a) $ 12,314 $ 12,159 Debt $ 32,813 $ 31,192 Operating lease liabilities 1,143 1,271 Adjusted debt (b) $ 33,956 $ 32,463 Adjusted debt / adjusted EBITDA (b/a) 2.8 2.7 [1] The trailing twelve months income statement information ended June 30, 2025, is recalculated by taking the twelve months ended December 31, 2024, subtracting the six months ended June 30, 2024, and adding the six months ended June 30, 2025. [2] Represents the hypothetical interest expense we would incur (using the incremental borrowing rate) if the property under our operating leases were owned or accounted for as finance leases. * Adjusted debt (total debt plus operating lease liabilities plus after-tax unfunded pension and OPEB (other post-retirement benefit) obligations) to adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and adjustments for other income and interest on present value of operating leases) is considered a non-GAAP financial measure by SEC Regulation G and Item 10 of SEC Regulation S-K and may not be defined and calculated by other companies in the same manner. We believe this measure is important to management and investors in evaluating the Company’s ability to sustain given debt levels (including leases) with the cash generated from operations. In addition, a comparable measure is used by rating agencies when reviewing the Company’s credit rating. Adjusted debt to adjusted EBITDA should be considered in addition to, rather than as a substitute for, other information provided in accordance with GAAP. The most comparable GAAP measure is debt to net income ratio. The tables above provide reconciliations from net income to adjusted EBITDA, debt to adjusted debt, and debt to net income to adjusted debt to adjusted EBITDA. At June 30, 2025, and December 31, 2024, the incremental borrowing rate on operating leases was 4.0% and 3.8%, respectively. Pension and OPEB were funded at June 30, 2025, and December 31, 2024. 10