Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
Union Pacific Corp., consolidated income statement
US$ in millions
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).
Overall, the financial performance presented demonstrates a generally stable, though fluctuating, revenue and profitability profile over the five-year period. While operating revenues experienced growth initially, they plateaued and exhibited modest increases in later years. Expense management appears to be a consistent focus, with several expense categories showing increases, but operating income remains relatively strong. Net income demonstrates a positive trend, reaching its highest point in the final year of the period.
- Revenue Analysis
- Freight revenues, the primary driver of operating revenues, increased from US$20.244 billion in 2021 to US$23.159 billion in 2022, before declining slightly to US$22.571 billion in 2023. Revenues then recovered to US$22.811 billion in 2024 and continued to grow to US$23.220 billion in 2025. Other revenues show a decreasing trend, falling from US$1.560 billion in 2021 to US$1.290 billion in 2025. Total operating revenues mirrored the freight revenue trend, peaking in 2022 and experiencing moderate growth thereafter.
- Expense Analysis
- Compensation and benefits represent a significant and consistently increasing expense, rising from US$4.158 billion in 2021 to US$4.897 billion in 2025. Purchased services and materials also increased steadily, from US$2.016 billion to US$2.626 billion over the same period. Fuel costs experienced a substantial increase between 2021 and 2022, from US$2.049 billion to US$3.439 billion, but decreased in subsequent years, settling at US$2.390 billion in 2025. Depreciation expense also increased consistently throughout the period. Overall, operating expenses increased from US$12.466 billion to US$14.664 billion, demonstrating a consistent cost pressure.
- Profitability Analysis
- Operating income experienced a similar pattern to revenues, peaking in 2022 at US$9.917 billion before fluctuating around the US$9 billion mark. However, it showed a positive trend, reaching US$9.846 billion in 2025. Other income, net, also contributed to overall profitability, with a notable increase in 2025 to US$629 million. Interest expense increased from US$1.157 billion in 2021 to US$1.309 billion in 2025. Income before income taxes followed a similar trend to operating income, and net income increased from US$6.523 billion in 2021 to US$7.138 billion in 2025, representing a consistent, albeit modest, growth in profitability.
- Non-Operating Items
- Real estate income and interest income contributed positively to net income, with both showing increases over the period, particularly in 2025. Net periodic pension benefit also provided a positive contribution, increasing from US$25 million in 2021 to US$55 million in 2025. Non-operating property environmental remediation and restoration consistently represented a negative impact, though the amount remained relatively stable. The gain from the sale of investment in 2021 was a one-time event and did not recur.
In conclusion, the financial performance indicates a company capable of maintaining strong profitability despite increasing operating expenses and fluctuating revenue streams. The positive trend in net income suggests effective overall financial management and a resilient business model.
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