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• It's like **a utility company, but for moving vast amounts of freight by rail.**
• Think of it as **AT&T, but for freight transportation across the country,** leveraging a massive physical network.
• It's similar to **Kinder Morgan, but operating railroads for diverse goods instead of pipelines for energy.**

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• Intermodal Freight Transportation: Provides bulk transportation of shipping containers and truck trailers, often linking ports to inland distribution centers.
• Agricultural Product Transportation: Moves various farm-related commodities, including grains, processed foods, beverages, and fertilizers.
• Automotive Product Transportation: Specializes in the shipment of finished automobiles, trucks, and automotive parts for manufacturers and dealerships.
• Chemical Product Transportation: Carries a broad array of chemical products, such as plastics, industrial chemicals, petroleum products, and fertilizers.
• Industrial Product Transportation: Handles the movement of diverse industrial goods, including construction materials, metals, minerals, forest products, and paper.

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Union Pacific (UNP) is a freight railroad company, meaning it primarily sells its services to other businesses rather than individuals. Due to the diversified nature of freight transportation, railroads typically serve thousands of customers across various industries, and no single customer usually accounts for a significant percentage (e.g., 10% or more) of their total revenue.

However, Union Pacific has numerous large corporate customers and partners that rely heavily on its rail network for the transport of goods across North America. These companies represent key sectors that form the backbone of Union Pacific's freight volumes.

Here are some of the types of companies that are major customers or significant partners for Union Pacific, along with examples of prominent public companies within those categories:

• Intermodal Logistics Companies: These companies manage the movement of freight in containers and trailers, often for retail goods, e-commerce, and parcel delivery, leveraging rail for long-haul transport.
  • J.B. Hunt Transport Services (NASDAQ: JBHT)
  • Hub Group (NASDAQ: HUBG)
  • XPO, Inc. (NYSE: XPO)
• Automotive Manufacturers: Major car manufacturers rely on rail to transport finished vehicles, parts, and components across the country to dealerships and assembly plants.
  • Ford Motor Company (NYSE: F)
  • General Motors Company (NYSE: GM)
  • Stellantis N.V. (NYSE: STLA)
• Chemical and Petrochemical Companies: These companies ship a wide range of products, including plastics, fertilizers, and industrial chemicals, often in specialized rail cars.
  • Dow Inc. (NYSE: DOW)
  • LyondellBasell Industries N.V. (NYSE: LYB)
  • Exxon Mobil Corporation (NYSE: XOM) (for its chemical divisions)
• Agricultural Companies: Major agribusinesses and food processors use rail to transport grains, fertilizers, processed foods, and refrigerated goods.
  • Archer-Daniels-Midland Company (NYSE: ADM)
  • Bunge Global SA (NYSE: BG)
  • Tyson Foods, Inc. (NYSE: TSN)
• Retail and E-commerce Giants: While often working through intermodal partners, large retailers and e-commerce companies are significant ultimate users of rail for their extensive supply chains.
  • Walmart Inc. (NYSE: WMT)
  • Amazon.com, Inc. (NASDAQ: AMZN)

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• Wabtec Corporation (WAB)
• Caterpillar Inc. (CAT)
• Siemens AG (SIEGY)

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Jim Vena Chief Executive Officer

Jim Vena was appointed Chief Executive Officer of Union Pacific in August 2023, bringing over 40 years of experience in the railroad industry. He began his career at Canadian National Railway (CN) as a laborer and progressed through various roles in Engineering, Mechanical, and Operating departments, even operating trains as a locomotive engineer. He later held management positions in Operations, Marketing, Strategic Planning, and Labor Relations at CN, ultimately serving as executive vice president and chief operating officer. Vena previously served as Union Pacific's chief operating officer from 2019 to 2020, during which he led a team that achieved significant efficiency savings and delivered the company's best service. He also served as a senior advisor to the chairman in 2021 before returning as CEO. Vena has served as chairman of the Association of American Railroads (AAR) and as a board member for Direct ChassisLink Inc. (DCLI), a privately held company, and FedEx. There is no information indicating he founded or sold other companies, or has a pattern of managing private equity-backed companies.

Jennifer Hamann Executive Vice President, Chief Financial Officer

Jennifer Hamann was appointed Executive Vice President and Chief Financial Officer of Union Pacific on January 1, 2020. In this role, she is responsible for all aspects of the company's financial activities, including accounting, tax, real estate, investor relations, treasury, audit, and capital planning. Hamann joined Union Pacific in 1992 as a member of the corporate audit staff. Her extensive career at the company includes leadership positions in Human Resources, Investor Relations (Assistant Vice President), Corporate Audit (General Auditor), Marketing and Sales (Vice President and General Manager-Automotive), and Finance (Vice President-Planning and Analysis, Senior Vice President-Finance). She holds an MBA from the University of Nebraska at Omaha and is a Certified Public Accountant. Hamann serves on the boards of Grupo Ferroviario Mexicano and TTX Company, and was appointed as an independent director to the Steel Dynamics Board of Directors in 2023. While she was involved with Missouri-Pacific Corp. in an Investor Relations capacity, which was later acquired, there is no indication she founded or managed other companies that were sold, or has a pattern of managing private equity-backed companies.

Eric Gehringer Executive Vice President, Operations

Eric Gehringer has served as Executive Vice President-Operations since 2021, overseeing all aspects of Union Pacific's operations. He joined the company in 2006 as a management trainee and has held various roles, including senior vice president-Transportation, Operating's chief mechanical officer, and chief engineer. Prior to joining Union Pacific, Gehringer held positions at Northwest Airlines and Daimler Chrysler.

Rahul Jalali Executive Vice President, Chief Information Officer

Rahul Jalali was appointed senior vice president and chief information officer in November 2020, and was promoted to Executive Vice President in June 2023. He leads the company's technology strategy, focusing on innovation, speed-to-market, and optimizing business models through technology. Before Union Pacific, Jalali spent 23 years at Walmart Inc., where he held increasing leadership roles, most recently as corporate vice president in the technology division for Walmart International. He specialized in developing global technology solutions and leveraging data, automation, and machine learning. Jalali is also an active member of the advisory committee of the U.S. Cybersecurity and Infrastructure Security Agency (CISA).

Kenny Rocker Executive Vice President, Marketing and Sales

Kenny Rocker was appointed Executive Vice President-Marketing and Sales in August 2018. He is responsible for Union Pacific's three main business units: Bulk, Industrial, and Premium, as well as Marketing and Sales Operations, Commercial Strategy, and the company's Mexico business. Rocker also oversees the Loup Logistics subsidiary. He joined Union Pacific in 1994 and has held various positions within Marketing and Sales, including vice president-Industrial.

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The key risks to Union Pacific (UNP) primarily stem from its susceptibility to broader economic conditions and shifts in market demand, significant operational challenges including labor relations and safety, and evolving regulatory and environmental landscapes.

1. Economic Conditions and Market Demand Fluctuations: Union Pacific's revenue and freight volumes are highly sensitive to the overall economic environment, including slowdowns, inflation, and interest rate changes, which can lead to reduced demand for transportation services. A significant risk is the ongoing decline in coal transportation demand due to high inventory levels and competition from natural gas, as well as the long-term transition away from coal in the energy mix. Furthermore, volatility in international intermodal volumes, driven by changing consumer preferences, logistics trends, and international trade uncertainties, presents a considerable challenge to top-line growth.
2. Operational Risks and Cost Pressures: The rail industry, and Union Pacific specifically, faces recurring operational challenges and cost pressures. Labor relations are a critical risk, with the potential for strikes, labor shortages, and costly contract negotiations impacting service quality, operational performance, and profitability, given that a significant portion of Union Pacific's workforce is unionized. Additionally, rising costs for labor, materials, and fuel can significantly affect operational efficiency and profitability. Maintaining safety is also paramount, as personal injuries and derailment incidents, despite ongoing efforts, can lead to disruptions and increased expenditures.
3. Regulatory and Environmental Changes: Union Pacific is exposed to risks associated with evolving regulatory and environmental factors. Changes in transportation regulations, taxes, or environmental policies, particularly those related to carbon emissions and greenhouse gas (GHG) reductions, could substantially increase operating costs due to the company's reliance on diesel fuel. Geopolitical tensions and shifts in trade policies also introduce uncertainties that can disrupt global supply chains and affect freight volumes, especially for commodities tied to international markets. The long-term transition risk away from fossil fuels, while being addressed by the company through investments in renewable diesel and wind infrastructure, remains a structural headwind.

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• Shift in Global Supply Chains and Nearshoring/Reshoring: Growing geopolitical tensions, a desire for supply chain resilience following disruptions (such as COVID-19), and government incentives are prompting companies to relocate manufacturing and sourcing closer to end markets (e.g., from Asia to North America or Mexico). This trend could reduce the volume of long-haul intermodal traffic originating from West Coast ports, which is a significant component of Union Pacific's freight business, as goods would require less extensive domestic rail transport if produced closer to consumption.
• Advancements in Autonomous and Electric Trucking: Significant investment and technological progress in autonomous driving and heavy-duty electric vehicle technology for long-haul trucking present an emerging threat. If these technologies mature and achieve widespread adoption, they could substantially reduce operating costs (primarily labor and fuel) and increase efficiency for trucking companies, potentially making truck transport more competitive against rail for certain freight segments that currently rely on rail for cost-effectiveness over long distances.

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Union Pacific Corporation (UNP) primarily provides freight transportation services across 23 states in the western two-thirds of the United States, with connections to Canadian and Mexican rail systems. The addressable markets for its main products and services are primarily within North America.

Addressable Markets for Union Pacific's Main Products or Services:

• North American Rail Freight Market: The North America rail freight transportation market is forecast to increase by USD 37.53 billion at a Compound Annual Growth Rate (CAGR) of 7.3% between 2024 and 2029. Another estimate valued the North America Rail Transport Market at USD 84.82 billion in 2024, projected to reach USD 128.11 billion by 2031, with a CAGR of 4.31%. The North America railroad market is expected to reach a projected revenue of US$129,684.6 million by 2030, growing at a CAGR of 5.3% from 2025 to 2030.
• U.S. Rail Freight Transport Market: The United States rail freight transport market size is estimated at USD 71.77 billion in 2025 and is forecast to expand at a 3.39% CAGR from 2025 to 2030. In 2024, the U.S. railroad market generated a revenue of USD 64,538.0 million and is expected to reach USD 89,352.7 million by 2030, with a CAGR of 5.5% from 2025 to 2030. Freight rail contributed over 95% of the USD 113 billion in total rail transportation revenues in the U.S. in 2022.
• North American Intermodal Freight Market: The North American intermodal freight market is the largest in the world, with an estimated value of USD 51 billion. The global intermodal freight transportation market size was estimated at USD 42.9 billion in 2023 and is projected to reach USD 93.51 billion by 2030, growing at a CAGR of 12.1% from 2024 to 2030. North America held the largest share of 35.6% in this market in 2023.
• Industrial Freight: null
• Bulk Freight: null

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Share Repurchases

• In February 2022, Union Pacific authorized a new share repurchase program to buy back up to 100 million shares of its common stock by March 31, 2025.
• The company repurchased $6.282 billion in shares in 2022, $705 million in 2023, and $1.5 billion in 2024.
• In February 2025, Union Pacific initiated an accelerated share repurchase program worth $1.5 billion and expects total share repurchases of $4.0 billion to $4.5 billion for 2025. Share repurchases were paused in October 2025 due to the Norfolk Southern merger.

Share Issuance

No significant share issuances by Union Pacific have been reported over the last 3-5 years.

Inbound Investments

No large inbound investments by third-parties in Union Pacific have been reported over the last 3-5 years.

Outbound Investments

No strategic outbound investments in other companies by Union Pacific have been reported over the last 3-5 years.

Capital Expenditures

• Union Pacific's capital expenditures were $2.9 billion in 2021, $3.6 billion in 2022, $3.7 billion in 2023, and $3.4 billion in 2024.
• The company's planned capital expenditure for 2025 is $3.4 billion, with an expectation to invest between $3.4 billion and $3.7 billion annually over the next three years (2025-2027).
• Primary focus areas for capital expenditures include approximately $1.9 billion for infrastructure replacement (rail, ties, ballast), $0.6 billion for locomotives and equipment (modernization, freight car acquisitions), and $0.6 billion for capacity and commercial facilities (siding extensions, intermodal expansion) in 2024.