Jan 27 (Reuters) – Union Pacific reported fourth-quarter profit and revenue below analysts’ estimates on Tuesday, as volatile freight demand and sustained macroeconomic pressures strained its operations.
North American railroads have faced uneven freight volumes, escalating labor and fuel costs and growing pressure from shippers seeking more reliable service, challenges that were further exacerbated by the uncertainty surrounding tariffs enacted under U.S. President Donald Trump.
Union Pacific’s intermodal shipments segment, which refers to transporting goods via two or more modes and is the company’s largest volume driver, generated revenue of $1.14 billion, down 9% from the year earlier.
Shares of the West Coast railroad operator were down about 1% in premarket trading.
Last year, Union Pacific had unveiled an $85 billion agreement to buy smaller rival Norfolk Southern, a merger that would connect their eastern and western networks to create the first coast-to-coast U.S. freight rail operator.
But the bid has attracted strong opposition from major rail unions, which say it threatens jobs and could raise cost for shippers.
The U.S. Surface Transportation Board earlier this month sent the proposal back for revision, citing missing information, as it applies tougher post-2001 competition rules.
Union Pacific posted an adjusted profit of $2.86 per share for the quarter ended December 31, compared with analysts’ average estimate of $2.87 per share, according to data compiled by LSEG.
Revenue from its bulk segment, which includes shipments of coal and food grains, rose 3% during the quarter.
The company reported total operating revenue of $6.09 billion, below the estimate of $6.12 billion.
It forecast earnings per share to grow in mid-single digit in 2026.
Last week, rival CSX also missed quarterly estimates as weaker industrial demand and declining export coal volumes outweighed pricing gains and firmer intermodal traffic.
(Reporting by Apratim Sarkar in Bengaluru; Editing by Shilpi Majumdar)
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