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UNP Q2: record operating revenue $6.9B (+12%), adj EPS $3.41, OR 59.2%, FY guide raised to high-single-digit EPS growth; on the Norfolk Southern merger — STB supplemental filing (expanded gateway pricing + voluntary commitments) due Monday, and a CN merger-settlement resolving Kansas City / Mexico overlaps.

Summary

UNP printed record Q2 results (operating revenue $6.9B +12%, adj EPS $3.41, operating ratio 59.2%) and raised FY2026 guidance to high-single-digit EPS growth — but the thesis-load-bearing content is on the Norfolk Southern merger (up-nsc-transcontinental-merger-to-pricing-power): a supplemental STB filing with "expanded gateway pricing and additional voluntary commitments" was due the following Monday, and UNP reached a CN merger-settlement agreement resolving 2-to-1 / 3-to-2 competitive overlaps (Kansas City terminal access, Mexico routing via Memphis to Eagle Pass, reciprocal Chicago corridor access). Vena reaffirmed the one-year statutory STB review commenced on the 2026-05-28 completeness acceptance. Pricing power intact (core pricing +175 bps, ahead of inflation). This is the primary-source actuals behind the timeline reaffirmation ingested 07-23.

Fetch note: Benzinga returned a structured extraction (speakers + figures + merger detail), not the fully verbatim transcript. Treat as partial; source URL is the citable record.

Transcript

(Attributed extraction — speaker-labeled key statements and figures. Not the complete verbatim transcript.)

Headline figures

Jennifer Hamann (CFO): Operating revenue $6.9B (+12% YoY); freight revenue $6.5B (+12%); net income $2.0B; adjusted EPS $3.41; operating ratio 59.2%. Cash from operations $5.5B (+21% YoY); $1.5B debt paid in H1; adjusted debt-to-EBITDA 2.5x.

Volume / operations (Eric Gehringer, Ops): volume +2%; freight car velocity +5% to 231 miles/day; train length +2%; terminal dwell 19.7 hours (record); workforce productivity +5%; record Q2 safety metrics.

2026 outlook

Jim Vena (CEO): raised full-year guidance to "high single-digit EPS growth" from prior, citing strong first-half execution, operational efficiency, and expected continued volume growth. Industrial development pipeline ~200 RFIs.

Norfolk Southern merger status

Vena: STB application accepted as complete 2026-05-28; the one-year statutory review period commenced on acceptance. A supplemental filing with "expanded gateway pricing" and additional voluntary commitments to be completed "Monday." Regulatory comment period and hearings to follow.

CN merger-settlement agreement (Vena): resolves overlaps — Kansas City Terminal access (2-to-1: 3–4 customers; 3-to-2: low-30s customers); Mexico access (CN gains routing through Memphis to Eagle Pass; UP receives enhanced Chicago east-west corridor access). Vena described it as a "win-win" enhancing competitive positioning against trucking and Canadian Pacific KC.

Pricing power & revenue drivers

Kenny Rocker (Marketing & Sales): fuel surcharge revenue +750 bps (+$460M); core pricing gains +175 bps; pricing exceeded inflation, quarterly pricing dollars outpacing cost increases. Domestic intermodal: fourth consecutive record quarter despite mix headwinds.

Admitted risk

Vena: fuel expense grew 63% on a 60% average price increase; recent purchases exceeded $4/gallon, creating margin pressure despite the surcharge benefit.