Union Pacific (UNP) Baird 55th Annual Global Industrial Conference summary

Strategic achievements and current performance

• Achieved industry-leading operating ratio, reaching 59.1% by Q3 2025, with high car velocity and top service performance metrics through 2024 and into 2025.

• Service levels now in the high 90s to 100%, measured by customer commitments, not internal metrics.

• Financially strong with good free cash flow, recent $1B debt repayment, and a pause on share buybacks.

• Projecting high single-digit growth over the next three years, with a recent dividend at $2.44.

• Significant safety improvements, with a 20%+ drop in accident rate and a goal to be the safest U.S. railroad.

Merger rationale, progress, and expected benefits

• Merger aims to create a seamless coast-to-coast rail network, reducing handoffs and improving efficiency.

• Boards of both companies unanimously approved the merger, with shareholder vote scheduled for November 14, 2025.

• Surface Transportation Board (STB) application is pending, targeting approval by early December 2025.

• Guarantees jobs for all unionized employees, using natural attrition for efficiency gains.

• Anticipates closing the transaction by early 2027, with a commitment to seamless integration.

Technology and customer experience

• Integration will provide customers with a single relationship, bill, and point of contact, streamlining logistics.

• Advanced gate and terminal technology, such as the UP Go app, enables efficient, paperless operations.

• New systems support billing, asset tracking, and regulatory compliance with minimal disruption.

• Eliminates need for third-party logistics to stitch together end-to-end rail service, reducing friction and cost.

• Watershed markets near major rivers will benefit from reduced fixed costs and faster transit times.