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Union Pacific Lifts Earnings Outlook on Record Quarter

Union Pacific raised its full-year earnings guidance Thursday after posting record second-quarter financial results driven by volume expansion and operational improvements. Operating income climbed 9% while adjusted earnings per share increased 13% to $3, marking record revenue, operating income, and net income for the quarter. The railroad now expects high single-digit percentage earnings growth, up from prior mid single-digit guidance, citing an improved economic outlook. Domestic intermodal delivered its fourth consecutive record quarter, with private asset, rail asset, and parcel volumes all rising double digits. Premium business advanced 4% overall, though bulk operations declined 1% as grain traffic gains failed to offset coal's 14% drop. Key metrics strengthened significantly: car miles per day increased 5% to 231 while terminal dwell fell 7% to 19.7 hours. Average train speed rose 3%. Workforce productivity reached record levels as train and engine crew headcount declined 2%.