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THIRD QUARTER 2026 EARNINGSTHIRD QUARTER 2026 EARNINGSOCTOBER 22, 2026OCTOBER 22, 2026UNION PACIFIC CORPORATIONUNION PACIFIC CORPORATION Cautionary InformationCertain statements in this presentation are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements relate to future events or future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause the Company’s (or, as it relates to the Transaction (as defined below), the combined company of Norfolk Southern and Union Pacific (referred to hereinafter as the combined company) actual results, levels of activity, performance, or achievements or those of the railroad industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements may be identified by the use of words like “may,” “will,” “could,” “would,” “should,” “expect,” “anticipate,” “believe,” “project,” “estimate,” “intend,” “plan,” “pro forma,” or any variations or other comparable terminology.While the Company has based these forward-looking statements on those expectations, assumptions, estimates, beliefs and projections they view as reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which involve factors or circumstances that are beyond the Company’s control, including but not limited to, in addition to factors disclosed in the Company’s, as well as Norfolk Southern’s (as it relates to the proposed combination of it with the Company) respective filings with the U.S. Securities and Exchange Commission (the “SEC”): the occurrence of any event, change or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between the Company and Norfolk Southern providing for the acquisition of Norfolk Southern by Union Pacific (the “Transaction”); the risk that potential legal proceedings may be instituted against the Company or Norfolk Southern and result in significant costs of defense, indemnification or liability; the possibility that the Transaction does not close when expected or at all because required Surface Transportation Board or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the Transaction); the risk that the combined company will not realize expected benefits, cost savings, accretion, synergies and/or growth from the Transaction, or that such benefits may take longer to realize or be more costly to achieve than expected, including as a result of changes in, or problems arising from, general economic and market conditions, tariffs, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which the Company and Norfolk Southern operate; disruption to the parties’ businesses as a result of the announcement and pendency of the Transaction; the costs associated with the anticipated length of time of the pendency of the Transaction, including the restrictions contained in the definitive merger agreement on the ability of the Company and Norfolk Southern, respectively, to operate their respective businesses outside the ordinary course during the pendency of the Transaction; the diversion of the Company’s and Norfolk Southern’s management’s attention and time from ongoing business operations and opportunities on merger-related matters; the risk that the integration of each party’s operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate each party’s businesses into the other’s businesses; the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of the Company’s or Norfolk Southern’s customers, suppliers, employees, labor unions or other business partners, including those resulting from the announcement or completion of the Transaction; the dilution caused by the Company’s issuance of additional shares of its common stock in connection with the consummation of the Transaction; the risk of a downgrade of the credit rating of the Company’s indebtedness, which could give rise to an obligation to redeem existing indebtedness; a material adverse change in the financial condition of the Company, Norfolk Southern or the combined company; changes in domestic or international economic, political or business conditions, including those impacting the transportation industry (including customers, employees and supply chains); the Company’s, Norfolk Southern’s and the combined company’s ability to successfully implement its respective operational, productivity, and strategic initiatives; a significant adverse event on the Company’s or Norfolk Southern’s network, including, but not limited to, a mainline accident, discharge of hazardous materials, or climate-related or other network outage; the outcome of claims, litigation, governmental proceedings and investigations involving the Company or Norfolk Southern, including, in the case of Norfolk Southern, those with respect to the Eastern Ohio incident; the nature and extent of Norfolk Southern’s environmental remediation obligations with respect to the Eastern Ohio incident; new or additional governmental regulation and/or operational changes resulting from or related to the Eastern Ohio incident; and a cybersecurity incident or other disruption to our technology infrastructure.This list of important factors is not intended to be exhaustive. These and other important factors, including those discussed under “Risk Factors” in Norfolk Southern’s Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 9, 2026 (available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0000702165/000162828026006268/nsc-20251231.htm) and Norfolk Southern’s subsequent filings with the SEC, the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 6, 2026 (available at https://www.sec.gov/ix?doc=/Archives/edgar/data/100885/000010088526000037/unp-20251231.htm) and the Company’s subsequent filings with the SEC, may cause actual results, performance, or achievements to differ materially from those expressed or implied by these forward-looking statements. References to the Company’s and Norfolk Southern’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. The forward-looking statements herein are made only as of the date they were first issued, and unless otherwise required by applicable securities laws, the Company and Norfolk Southern disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by applicable law or regulation.2
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THIRD QUARTER 2026 EARNINGSTHIRD QUARTER 2026 EARNINGSOCTOBER 22, 2026OCTOBER 22, 2026UNION PACIFIC CORPORATIONUNION PACIFIC CORPORATION Cautionary InformationCertain statements in this presentation are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements relate to future events or future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause the Company’s (or, as it relates to the Transaction (as defined below), the combined company of Norfolk Southern and Union Pacific (referred to hereinafter as the combined company) actual results, levels of activity, performance, or achievements or those of the railroad industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements may be identified by the use of words like “may,” “will,” “could,” “would,” “should,” “expect,” “anticipate,” “believe,” “project,” “estimate,” “intend,” “plan,” “pro forma,” or any variations or other comparable terminology.While the Company has based these forward-looking statements on those expectations, assumptions, estimates, beliefs and projections they view as reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which involve factors or circumstances that are beyond the Company’s control, including but not limited to, in addition to factors disclosed in the Company’s, as well as Norfolk Southern’s (as it relates to the proposed combination of it with the Company) respective filings with the U.S. Securities and Exchange Commission (the “SEC”): the occurrence of any event, change or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between the Company and Norfolk Southern providing for the acquisition of Norfolk Southern by Union Pacific (the “Transaction”); the risk that potential legal proceedings may be instituted against the Company or Norfolk Southern and result in significant costs of defense, indemnification or liability; the possibility that the Transaction does not close when expected or at all because required Surface Transportation Board or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the Transaction); the risk that the combined company will not realize expected benefits, cost savings, accretion, synergies and/or growth from the Transaction, or that such benefits may take longer to realize or be more costly to achieve than expected, including as a result of changes in, or problems arising from, general economic and market conditions, tariffs, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which the Company and Norfolk Southern operate; disruption to the parties’ businesses as a result of the announcement and pendency of the Transaction; the costs associated with the anticipated length of time of the pendency of the Transaction, including the restrictions contained in the definitive merger agreement on the ability of the Company and Norfolk Southern, respectively, to operate their respective businesses outside the ordinary course during the pendency of the Transaction; the diversion of the Company’s and Norfolk Southern’s management’s attention and time from ongoing business operations and opportunities on merger-related matters; the risk that the integration of each party’s operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate each party’s businesses into the other’s businesses; the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of the Company’s or Norfolk Southern’s customers, suppliers, employees, labor unions or other business partners, including those resulting from the announcement or completion of the Transaction; the dilution caused by the Company’s issuance of additional shares of its common stock in connection with the consummation of the Transaction; the risk of a downgrade of the credit rating of the Company’s indebtedness, which could give rise to an obligation to redeem existing indebtedness; a material adverse change in the financial condition of the Company, Norfolk Southern or the combined company; changes in domestic or international economic, political or business conditions, including those impacting the transportation industry (including customers, employees and supply chains); the Company’s, Norfolk Southern’s and the combined company’s ability to successfully implement its respective operational, productivity, and strategic initiatives; a significant adverse event on the Company’s or Norfolk Southern’s network, including, but not limited to, a mainline accident, discharge of hazardous materials, or climate-related or other network outage; the outcome of claims, litigation, governmental proceedings and investigations involving the Company or Norfolk Southern, including, in the case of Norfolk Southern, those with respect to the Eastern Ohio incident; the nature and extent of Norfolk Southern’s environmental remediation obligations with respect to the Eastern Ohio incident; new or additional governmental regulation and/or operational changes resulting from or related to the Eastern Ohio incident; and a cybersecurity incident or other disruption to our technology infrastructure.This list of important factors is not intended to be exhaustive. These and other important factors, including those discussed under “Risk Factors” in Norfolk Southern’s Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 9, 2026 (available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0000702165/000162828026006268/nsc-20251231.htm) and Norfolk Southern’s subsequent filings with the SEC, the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 6, 2026 (available at https://www.sec.gov/ix?doc=/Archives/edgar/data/100885/000010088526000037/unp-20251231.htm) and the Company’s subsequent filings with the SEC, may cause actual results, performance, or achievements to differ materially from those expressed or implied by these forward-looking statements. References to the Company’s and Norfolk Southern’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. The forward-looking statements herein are made only as of the date they were first issued, and unless otherwise required by applicable securities laws, the Company and Norfolk Southern disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by applicable law or regulation.2
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Jim VenaJim VenaChief Executive OfficerChief Executive OfficerEXECUTIVE SUMMARYTHIRD QUARTER 20263 4Third Quarter 2026 HighlightsSAFETY + SERVICE & OPERATIONAL EXCELLENCE•Record Financial Results – Freight Revenue, Freight Revenue Excl. Fuel Surcharge, Operating Revenue, Operating Income and Net Income•Operating at a consistently high level while growing volume•Six percent carload growth, core pricing gains, and productivity more than offset higher fuel prices and inflation•Intermodal, Metals & Minerals, Energy & Specialized, and Grain & Grain Products growth was partially offset by lower Coal carloads Adjusted*ReportedFinancials $ 3.0B14%$ 2.9B15%Operating Incomevs. 3Q’2558.8%0.359.1%0.1Operating Ratiovs. 3Q’25$ 2.1B15%$ 2.1B16%Net Incomevs. 3Q’25$ 3.5315%$ 3.4916%Earnings per Sharevs. 3Q’25Executive Summary:*See Union Pacific website under Investors for a reconciliation to GAAP.
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Jim VenaJim VenaChief Executive OfficerChief Executive OfficerEXECUTIVE SUMMARYTHIRD QUARTER 20263 4Third Quarter 2026 HighlightsSAFETY + SERVICE & OPERATIONAL EXCELLENCE•Record Financial Results – Freight Revenue, Freight Revenue Excl. Fuel Surcharge, Operating Revenue, Operating Income and Net Income•Operating at a consistently high level while growing volume•Six percent carload growth, core pricing gains, and productivity more than offset higher fuel prices and inflation•Intermodal, Metals & Minerals, Energy & Specialized, and Grain & Grain Products growth was partially offset by lower Coal carloads Adjusted*ReportedFinancials $ 3.0B14%$ 2.9B15%Operating Incomevs. 3Q’2558.8%0.359.1%0.1Operating Ratiovs. 3Q’25$ 2.1B15%$ 2.1B16%Net Incomevs. 3Q’25$ 3.5315%$ 3.4916%Earnings per Sharevs. 3Q’25Executive Summary:*See Union Pacific website under Investors for a reconciliation to GAAP.
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FINANCIAL REVIEWTHIRD QUARTER 2026Jennifer HamannJennifer HamannExecutive Vice President & Chief Financial OfficerExecutive Vice President & Chief Financial Officer5 Third Quarter Income StatementFreight Revenue Drivers:Operating Expense Drivers:202520266)$ 5,325)$ 5,642)Freight Revenue Ex. Fuel95)602)1,171)Fuel Surcharge15)5,927)6,813)Freight Revenue21)317)384)Other Revenue15)6,244)7,197)Operating Revenue15)3,695)4,254)Operating Expenses15)$ 2,549)$ 2,943)Operating Income(1)96)95)Other Income(5) (327)(312)Interest Expense(23)(530)(650)Income Taxes16)$ 1,788)$ 2,076)Net Income16)$ 3.01)$ 3.49)Diluted EPS(0.1)59.2%59.1%Operating RatioVariance%%pts(15)$ 3.08)$ 3.53)Adjusted Diluted EPS*(0.3)58.5%)58.8%)Adjusted Operating Ratio**See Union Pacific website under Investors for a reconciliation to GAAP.%ptsFuel Surcharge 9.00%Volume 6.00%Price/Mix 0.00%Fuel PriceVolume-Related ExpensesInflationProductivity6
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FINANCIAL REVIEWTHIRD QUARTER 2026Jennifer HamannJennifer HamannExecutive Vice President & Chief Financial OfficerExecutive Vice President & Chief Financial Officer5 Third Quarter Income StatementFreight Revenue Drivers:Operating Expense Drivers:202520266)$ 5,325)$ 5,642)Freight Revenue Ex. Fuel95)602)1,171)Fuel Surcharge15)5,927)6,813)Freight Revenue21)317)384)Other Revenue15)6,244)7,197)Operating Revenue15)3,695)4,254)Operating Expenses15)$ 2,549)$ 2,943)Operating Income(1)96)95)Other Income(5) (327)(312)Interest Expense(23)(530)(650)Income Taxes16)$ 1,788)$ 2,076)Net Income16)$ 3.01)$ 3.49)Diluted EPS(0.1)59.2%59.1%Operating RatioVariance%%pts(15)$ 3.08)$ 3.53)Adjusted Diluted EPS*(0.3)58.5%)58.8%)Adjusted Operating Ratio**See Union Pacific website under Investors for a reconciliation to GAAP.%ptsFuel Surcharge 9.00%Volume 6.00%Price/Mix 0.00%Fuel PriceVolume-Related ExpensesInflationProductivity6
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7Strong Cash Generation & Balance SheetCash From Operations($ in millions)Cash Flow Conversion*Total Debt($ in millions)*See Union Pacific website under Investors for a reconciliation to GAAP.•Generated $8.3 Billion in Cash From Operations•Repaid $1.5 Billion of Debt•Invested $2.8 Billion in Capital•Free Cash Flow* of $2.4 Billion•Adjusted Debt / EBITDA* of 2.4x– “A” rated by Moody’s, S&P , and FitchReported Year-to-Date ResultsYTD 2025 YTD 2026$8,302$7,065+18%$31,814$30,651$30,327 $30,3242.7x2.5x 2.5x2.4x4Q'25 1Q'26 2Q'26 3Q'26Adjusted Debt / Adjusted EBITDA*81%95% 2026 Outlook Affirmed:• Meeting Increased Customer Demand with Strong Service; Mixed Economic Forecast• Reported EPS Growth of High-Single Digit; Consistent with Attaining the 3-Year CAGR Target of High-Single Digit to Low-Double Digit through 2027• Pricing Dollars In Excess of Inflation• Industry-Leading Operating Ratio and Return on Invested Capital• Continued Strong Cash Generation and Consistent Annual Dividend IncreasesUpdated: • Operating Ratio Improvement from Core Business; Reported Operating Ratio Challenged by High Fuel Prices• Capital Plan of $3.5 Billion8On Track With Investor Day Targets
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7Strong Cash Generation & Balance SheetCash From Operations($ in millions)Cash Flow Conversion*Total Debt($ in millions)*See Union Pacific website under Investors for a reconciliation to GAAP.•Generated $8.3 Billion in Cash From Operations•Repaid $1.5 Billion of Debt•Invested $2.8 Billion in Capital•Free Cash Flow* of $2.4 Billion•Adjusted Debt / EBITDA* of 2.4x– “A” rated by Moody’s, S&P , and FitchReported Year-to-Date ResultsYTD 2025 YTD 2026$8,302$7,065+18%$31,814$30,651$30,327 $30,3242.7x2.5x 2.5x2.4x4Q'25 1Q'26 2Q'26 3Q'26Adjusted Debt / Adjusted EBITDA*81%95% 2026 Outlook Affirmed:• Meeting Increased Customer Demand with Strong Service; Mixed Economic Forecast• Reported EPS Growth of High-Single Digit; Consistent with Attaining the 3-Year CAGR Target of High-Single Digit to Low-Double Digit through 2027• Pricing Dollars In Excess of Inflation• Industry-Leading Operating Ratio and Return on Invested Capital• Continued Strong Cash Generation and Consistent Annual Dividend IncreasesUpdated: • Operating Ratio Improvement from Core Business; Reported Operating Ratio Challenged by High Fuel Prices• Capital Plan of $3.5 Billion8On Track With Investor Day Targets
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MARKETING & SALES REVIEWTHIRD QUARTER 2026Kenny RockerKenny RockerExecutive Vice President – Marketing & SalesExecutive Vice President – Marketing & Sales9 ARCVolume(Thousands)Revenue(Millions)Commodity$ 4,004 10%529Flat$ 2,11610%Bulkvs. 3Q’25$ 4,136 8%6066% $ 2,509 14%Industrialvs. 3Q’25$ 1,88911%1,158 9%$ 2,188 21%Premiumvs. 3Q’25$ 2,9718%2,2936%$ 6,81315%Totalvs. 3Q’25Third Quarter Commodity Review 10
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MARKETING & SALES REVIEWTHIRD QUARTER 2026Kenny RockerKenny RockerExecutive Vice President – Marketing & SalesExecutive Vice President – Marketing & Sales9 ARCVolume(Thousands)Revenue(Millions)Commodity$ 4,004 10%529Flat$ 2,11610%Bulkvs. 3Q’25$ 4,136 8%6066% $ 2,509 14%Industrialvs. 3Q’25$ 1,88911%1,158 9%$ 2,188 21%Premiumvs. 3Q’25$ 2,9718%2,2936%$ 6,81315%Totalvs. 3Q’25Third Quarter Commodity Review 10
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11Fourth Quarter 2026 Volume OutlookOutlookBusiness LineCommodityExport Grain; Supportive Renewable Fuels PolicyGrain & Grain ProductsBulkNatural Gas Prices & High InventoryCoal & RenewablesStrong Industrial Development PipelineMetalsIndustrialWinning New Business & Plant ExpansionsIndustrial Chemicals & PlasticsStrong Over-the-Road Conversions, Business WinsIntermodalPremiumBusiness Wins Offset Softer Vehicle SalesAutomotive+++++ OPERATIONS REVIEWTHIRD QUARTER 2026Eric GehringerEric GehringerExecutive Vice President – OperationsExecutive Vice President – Operations12
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11Fourth Quarter 2026 Volume OutlookOutlookBusiness LineCommodityExport Grain; Supportive Renewable Fuels PolicyGrain & Grain ProductsBulkNatural Gas Prices & High InventoryCoal & RenewablesStrong Industrial Development PipelineMetalsIndustrialWinning New Business & Plant ExpansionsIndustrial Chemicals & PlasticsStrong Over-the-Road Conversions, Business WinsIntermodalPremiumBusiness Wins Offset Softer Vehicle SalesAutomotive+++++ OPERATIONS REVIEWTHIRD QUARTER 2026Eric GehringerEric GehringerExecutive Vice President – OperationsExecutive Vice President – Operations12
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13Key Performance MetricsDelivering the Service We Sold To Our CustomersTHIRD QUARTER 2026 Year-over-year change in metrics. Freight Car VelocityIntermodal Service Performance Index*Manifest Service Performance Index*228 92936ptsQuarterly Drivers11% Intermodal Volume GrowthImproved FreightCar Terminal DwellRecord Industrial Volume7pts1% * Service Performance Index calculation uses best monthly performance over last 3 years. New benchmark set in 2025. Key Efficiency MetricsTHIRD QUARTER 2026Locomotive ProductivityWorkforce ProductivityTrain Length1,219 140 Flat9,969Quarterly DriversOptimized Active FleetLower Workforce LevelsReduced Train Starts Year-over-year change in metrics.5% 2% 14
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13Key Performance MetricsDelivering the Service We Sold To Our CustomersTHIRD QUARTER 2026 Year-over-year change in metrics. Freight Car VelocityIntermodal Service Performance Index*Manifest Service Performance Index*228 92936ptsQuarterly Drivers11% Intermodal Volume GrowthImproved FreightCar Terminal DwellRecord Industrial Volume7pts1% * Service Performance Index calculation uses best monthly performance over last 3 years. New benchmark set in 2025. Key Efficiency MetricsTHIRD QUARTER 2026Locomotive ProductivityWorkforce ProductivityTrain Length1,219 140 Flat9,969Quarterly DriversOptimized Active FleetLower Workforce LevelsReduced Train Starts Year-over-year change in metrics.5% 2% 14
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Jim VenaJim VenaChief Executive OfficerChief Executive OfficerHOW WE WINTHIRD QUARTER 202615 Safety, Service & Operational Excellence = GrowthUNION PACIFIC STRATEGY PEOPLECOST CONTROLASSET UTILIZATIONSERVICESAFETYEngage our teams and stakeholders.Spend resources wisely, with a buffer for the unexpected.Drive decision-making to those closest to the work.Deliver the service we sold our customers.Be the bestat safety.16
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Jim VenaJim VenaChief Executive OfficerChief Executive OfficerHOW WE WINTHIRD QUARTER 202615 Safety, Service & Operational Excellence = GrowthUNION PACIFIC STRATEGY PEOPLECOST CONTROLASSET UTILIZATIONSERVICESAFETYEngage our teams and stakeholders.Spend resources wisely, with a buffer for the unexpected.Drive decision-making to those closest to the work.Deliver the service we sold our customers.Be the bestat safety.16
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QUESTION & ANSWERQUESTION & ANSWEROCTOBER 22, 2026OCTOBER 22, 2026UNION PACIFIC CORPORATIONUNION PACIFIC CORPORATION APPENDIX18
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QUESTION & ANSWERQUESTION & ANSWEROCTOBER 22, 2026OCTOBER 22, 2026UNION PACIFIC CORPORATIONUNION PACIFIC CORPORATION APPENDIX18
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Third Quarter 2026 Operating Ratio and EPS EPSOperating Ratio$3.0159.2%Reported Third Quarter 2025($0.02))----2025 Industrial Park Land Sale($0.15(1.4) ptsFuel Price (net)$0.030.4 ptsMerger Costs Comparison($0.32)(1.1)ptsCore Results$3.4959.1%Reported Third Quarter 2026Favorable / (Unfavorable)19 +Lower Car Hire Expense+Operating Equipment Lease Expense‒Volume-Related Costs‒Fuel Price‒Higher Gross Ton Miles+Fuel Consumption‒Wage Inflation‒IncentiveCompensation‒Training Costs+Lower Employee Levels ‒Inflation‒Subsidiary and Intermodal Volume-Related Costs‒Higher Active Locomotive Fleet+Merger Costs3Q 2025Third Quarter 2026 Reported Operating Expenses $ in MillionsProductivity Partially Offsets Fuel Price, Inflation, and Volume-Related CostsCompensation & BenefitsDepreciation+4%+69% Purchased Services & MaterialsEquipment & Other RentsFuelOther+9% (3%)+4%+1%3Q2026$50$424$63$25($6)$3$3,695$4,254Drivers:20‒Environmental Costs‒Destroyed Equipment+Property Taxes
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Third Quarter 2026 Operating Ratio and EPS EPSOperating Ratio$3.0159.2%Reported Third Quarter 2025($0.02))----2025 Industrial Park Land Sale($0.15(1.4) ptsFuel Price (net)$0.030.4 ptsMerger Costs Comparison($0.32)(1.1)ptsCore Results$3.4959.1%Reported Third Quarter 2026Favorable / (Unfavorable)19 +Lower Car Hire Expense+Operating Equipment Lease Expense‒Volume-Related Costs‒Fuel Price‒Higher Gross Ton Miles+Fuel Consumption‒Wage Inflation‒IncentiveCompensation‒Training Costs+Lower Employee Levels ‒Inflation‒Subsidiary and Intermodal Volume-Related Costs‒Higher Active Locomotive Fleet+Merger Costs3Q 2025Third Quarter 2026 Reported Operating Expenses $ in MillionsProductivity Partially Offsets Fuel Price, Inflation, and Volume-Related CostsCompensation & BenefitsDepreciation+4%+69% Purchased Services & MaterialsEquipment & Other RentsFuelOther+9% (3%)+4%+1%3Q2026$50$424$63$25($6)$3$3,695$4,254Drivers:20‒Environmental Costs‒Destroyed Equipment+Property Taxes