Union Pacific Corp. (NYSE:UNP)

Operating Profit Margin

The operating profit margin shows a generally downward trend from early 2021 through late 2023. Starting at 40.11% in March 2021, it peaked slightly in June 2021 at 41.98%, reaching a high of 42.9% in June 2022, but then gradually declined to a low near 37.64% by December 2023. After this period, a gradual recovery is observed, rising steadily to 40.33% by June 2025, indicating a return toward earlier profitability levels.

Net Profit Margin

Net profit margin follows a pattern similar to operating profit margin, beginning at 27.38% in March 2021 and increasing to approximately 30.06% by June 2022. Subsequently, it experiences a gradual decline reaching its lowest point around 26.37% in December 2023. Following this dip, the margin recovers steadily, climbing back up to 28.43% by June 2025, suggesting fluctuations in overall profitability with a positive outlook toward the end of the period.

Return on Equity (ROE)

Return on equity exhibits significant volatility over the periods analyzed. It started at 31.54% in March 2021, sharply increasing to 57.26% by June 2022, indicating a period of substantial equity efficiency and profitability. However, after peaking, it fluctuates downward to around 39.38% by September 2024. A slight upward trend resumes thereafter, ending at 42.66% in June 2025. These fluctuations suggest changing dynamics in equity returns with periods of high leverage or profitability impact.

Return on Assets (ROA)

Return on assets shows a relatively stable upward trend, starting from 8.57% in March 2021 and steadily increasing to approximately 10.82% in December 2021. It maintains a narrow range around this upper 9% to low 10% level with minor fluctuations through the rest of the period, finishing slightly higher at 10.11% by June 2025. This indicates consistent efficiency in asset utilization, with slight improvement over time.

Operating Income

The operating income demonstrates notable fluctuations over the observed periods. Initially, there is a decline from 2143 million USD in March 2020 to 1654 million USD in June 2020, likely reflecting external pressures during that timeframe. This is followed by a general recovery and stabilization phase, with values oscillating around the 2000-2500 million USD range from the end of 2020 through mid-2023. From late 2023 onwards, operating income maintains a steady level, mostly between 2300 and 2525 million USD, indicating stability with minor variations up to June 2025.

Operating Revenues

The operating revenues exhibit an overall upward trend despite some short-term variances. Beginning at 5229 million USD in March 2020, revenues experienced a decline in mid-2020, reaching a low of 4244 million USD in June 2020, mirroring the pattern seen in operating income. Revenues then progressively increased, peaking at 6566 million USD in September 2022. Subsequently, a modest decline and stabilization occur, with revenues fluctuating between approximately 5900 and 6150 million USD from early 2023 to mid-2025.

Operating Profit Margin

The operating profit margin data is available from March 2021 onwards and reflects a relatively stable but slightly declining trend initially. Starting at 40.11% in the first quarter of 2021, it peaks at 42.9% mid-2021 but then gradually decreases to around 37.64%-38.02% during 2023. From late 2023 through mid-2025, the margin shows a modest recovery and stabilization in the range of 38% to 40.33%, suggesting improved efficiency or cost management in the later periods.

Overall Trends and Insights

There is a discernible impact on both operating income and revenues during the early part of 2020, followed by a recovery phase through 2021 and 2022. Operating revenues broadly grew through 2022 before stabilizing, while operating income exhibited more variability but ended at stable levels. The operating profit margin suggests the company managed to maintain profitability despite fluctuations, with a moderate decline in 2022 and 2023 followed by a slight improvement. The data indicates resilience and an ability to recover from downturns while maintaining relatively consistent margins in recent periods.

The financial data reveals several key trends across the observed periods. Net income exhibits notable fluctuations but generally demonstrates a positive trajectory over time. Beginning at 1,474 million US dollars in the first quarter of 2020, net income decreases to 1,132 million in the subsequent quarter before recovering and peaking at various points, such as 1,895 million in the third quarter of 2022. Although some quarters experience declines, the overall trend remains upward, culminating in 1,876 million by the second quarter of 2025.

Operating revenues follow a somewhat similar pattern with variations, starting at 5,229 million US dollars in the first quarter of 2020. Revenues dip to 4,244 million in the second quarter of 2020 but subsequently increase, reaching peaks such as 6,566 million in the third quarter of 2022. Though some quarterly decreases occur, operating revenues maintain a relatively stable and upward course, closing near 6,154 million by mid-2025.

The net profit margin, measured in percentage terms, shows consistent strength throughout the periods where data is available. From early 2021 onward, margins generally remain within a range of approximately 26% to just over 30%, with a peak of 30.06% in the second quarter of 2022. Despite minor fluctuations, the margin stays largely stable, indicating effective cost management and profitability relative to revenue despite external pressures that impact absolute net income and operating revenue figures.

Altogether, the data suggests resilient financial performance with growing revenues and broadly stable profit margins, despite some volatility likely related to market or operational factors impacting specific quarters. The upward trends in both net income and operating revenues are indicative of underlying growth and improved earnings capacity over the medium term.

Net Income

Fluctuates over the observed quarters but generally increases, with occasional peaks followed by modest pullbacks.

Operating Revenues

Exhibit a dip in early 2020 but subsequently recover and grow incrementally, maintaining stability in later periods.

Net Profit Margin

Remains relatively steady around the high twenties percentage range, indicating sustained profitability despite revenue and income variations.

The analysis of the quarterly financial data reveals several notable trends concerning net income, shareholders' equity, and return on equity (ROE) over the observed periods.

Net Income

Net income displayed fluctuations across the quarters with an overall upward tendency. Starting at $1,474 million in the first quarter of 2020, net income dipped to its lowest point of $1,132 million in the second quarter of 2020. Subsequently, there was a general recovery and growth, peaking intermittently such as $1,895 million in the third quarter of 2022. Though there were some declines in the following periods, net income remained relatively stable and strong, ending with a considerable increase to $1,876 million in the second quarter of 2025.

Common Shareholders’ Equity

Shareholders' equity showed a declining trend from $15,991 million in the first quarter of 2020, declining to a low of $11,743 million in the third quarter of 2022. However, after this period, equity began to recover gradually, increasing to $16,258 million by the second quarter of 2025. Despite this recovery, the equity level in 2025 was only slightly above the starting point in early 2020, indicating a relatively flat performance over the medium term with some volatility in between.

Return on Equity (ROE)

ROE was not reported in the early quarters but when available, it exhibited a strong upward trend from 31.54% in the first quarter of 2021, climbing sharply to a peak of 60.21% in the fourth quarter of 2022. Following this peak, ROE declined steadily to around 40.79%-42.66% by mid-2025. Despite this decline, the ROE remained notably high, indicating efficient utilization of shareholders’ equity to generate profits throughout the latter periods.

In summary, net income demonstrated resilient growth with some volatility, shareholders’ equity experienced a period of decline before recovering toward the later quarters, and ROE showed strong profitability peaks followed by a moderate decline but stayed at elevated levels. This suggests an improvement in profitability performance relative to equity over most of the observed periods despite some challenges in maintaining equity levels consistently.

Net Income

The net income demonstrates notable fluctuations across the observed periods. Starting at 1,474 million USD in the first quarter of 2020, it experienced a decline to 1,132 million USD in the subsequent quarter of the same year, followed by a recovery phase culminating in a peak around mid-2021 with values reaching 1,798 million USD. Afterward, net income showed some volatility but generally maintained a range between approximately 1,600 and 1,900 million USD through 2022 and 2023. The trend from the end of 2023 to the first half of 2025 reveals a relatively stable net income, hovering mostly above 1,600 million USD, with sporadic increases, peaking at 1,876 million USD in June 2025.

Total Assets

Total assets remained relatively stable throughout the timeframe, with values fluctuating mildly. Beginning at 62,216 million USD in early 2020, total assets showed a modest upward trend with some minor oscillations, reaching approximately 68,576 million USD by mid-2025. The increase is gradual without abrupt changes, indicating steady asset base growth and potentially cautious asset management or reinvestment.

Return on Assets (ROA)

The ROA figures start from Q1 2020 data absence but appear beginning in Q1 2021 at 8.57%, then show a steady improvement through 2021, peaking at around 10.82% by Q4 of 2021. Subsequently, ROA remains fairly consistent, fluctuating between approximately 9.5% and 10.6%, indicating effective asset utilization to generate earnings. Despite minor downward adjustments post the peak, the company maintained a healthy level of profitability relative to its assets through to mid-2025, ending near 10.11%.

Overall Insights

There is a clear pattern of recovery and stabilization in net income after an initial dip in early 2020, with net income stabilizing in a high range in the latter years. The gradual growth in total assets, in combination with stable and relatively high ROA figures, suggests effective asset use and operational performance. Together, these indicators reflect a company managing its assets prudently while maintaining earning power amid industry or economic changes over the observed period.