Stock Analysis on Net
Stock Analysis on Net

Union Pacific Corp. (NYSE:UNP)

Common-Size Income Statement 

Union Pacific Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Freight revenues 94.74 94.07 93.58 93.10 92.85
Other revenues 5.26 5.93 6.42 6.90 7.15
Operating revenues 100.00% 100.00% 100.00% 100.00% 100.00%
Compensation and benefits -19.98 -20.20 -19.98 -18.67 -19.07
Purchased services and materials -10.71 -10.39 -10.85 -9.82 -9.25
Depreciation -10.06 -9.89 -9.61 -9.03 -10.13
Fuel -9.75 -10.20 -11.99 -13.83 -9.40
Equipment and other rents -3.72 -3.79 -3.93 -3.61 -3.94
Other -5.61 -5.47 -6.00 -5.18 -5.39
Operating expenses -59.83% -59.95% -62.35% -60.13% -57.17%
Operating income 40.17% 40.05% 37.65% 39.87% 42.83%
Real estate income 2.28 1.08 1.72 1.53 1.21
Interest income 0.23 0.21 0.22 0.09 0.02
Net periodic pension benefit 0.22 0.23 0.22 0.34 0.11
Non-operating property environmental remediation and restoration -0.13 -0.15 -0.15 -0.19 -0.08
Interest from IRS refund claims 0.00 0.10 0.00 0.00 0.00
Gain from sale of investment 0.00 0.00 0.00 0.00 0.17
Other -0.03 -0.03 0.04 -0.06 -0.06
Other income, net 2.57% 1.44% 2.04% 1.71% 1.36%
Interest expense -5.34 -5.23 -5.56 -5.11 -5.31
Income before income taxes 37.40% 36.26% 34.13% 36.47% 38.88%
Income tax expense -8.27 -8.44 -7.69 -8.34 -8.97
Net income 29.12% 27.82% 26.45% 28.13% 29.92%

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The common-size income statement reveals several noteworthy trends over the five-year period. Operating revenues remain consistently at 100%, as expected. A significant shift is observed in the composition of revenues, with freight revenues steadily increasing as a percentage of operating revenues, while other revenues decrease. Simultaneously, operating expenses as a percentage of operating revenues demonstrate volatility, peaking in 2022 before declining in subsequent years, though remaining elevated compared to 2021.

Revenue Composition
Freight revenues exhibit a consistent upward trend, rising from 92.85% to 94.74% of operating revenues. Conversely, other revenues experience a decline, decreasing from 7.15% to 5.26% over the same period. This suggests a growing reliance on freight services as the primary revenue driver.
Operating Expenses
Operating expenses increased substantially from -57.17% to -62.35% between 2021 and 2023, driven primarily by increases in purchased services and materials, and fuel costs. Expenses then decreased to -59.83% in 2024 and -59.83% in 2025, but remain higher than the 2021 level. Fuel costs experienced a particularly large increase in 2022, then decreased in subsequent years, but remained above 2021 levels. Compensation and benefits remained relatively stable, fluctuating between -18.67% and -20.20%.
Profitability
Operating income as a percentage of operating revenues decreased from 42.83% in 2021 to 37.65% in 2023, reflecting the increase in operating expenses. It then recovered to 40.05% and 40.17% in 2024 and 2025, respectively. Net income followed a similar pattern, declining from 29.92% to 26.45% before increasing to 29.12%. This indicates a sensitivity of profitability to expense management.
Non-Operating Items
Other income, net, shows an increasing trend, rising from 1.36% to 2.57% of operating revenues. This is primarily driven by increases in real estate income and interest income. Interest expense remains relatively stable, fluctuating between -5.11% and -5.56%. The impact of non-periodic pension benefit also fluctuates, but remains relatively small.
Tax Rate
Income tax expense as a percentage of operating revenues decreased from -8.97% to -7.69% between 2021 and 2023, then increased to -8.44% and -8.27% in 2024 and 2025. This suggests some fluctuation in the effective tax rate.

Overall, the financial performance demonstrates a shift towards greater reliance on freight revenues, coupled with challenges in managing operating expenses. While profitability experienced a temporary decline, it has shown signs of recovery in the most recent years, aided by increases in non-operating income and potentially improved expense control.