Union Pacific's third-quarter profit rises on pricing strength

Union Pacific reported a jump in third-quarter adjusted profit on Thursday, helped by higher fuel surcharge revenue and core pricing strength, which more than offset cost pressures.

The Middle East conflict has pushed energy prices higher, increasing fuel costs for transportation companies and putting pressure on margins across sectors, including trucking, logistics and aviation.

US railroads, however, have relied on pricing discipline and operational efficiencies to support profitability, while improvements in service reliability and network fluidity have helped attract new freight volumes and retain customers.


Union Pacific said higher fuel prices hurt its operating ratio by 140 basis points during the quarter, pushing it down to 59.1%.

The railroad's total operating revenue for the quarter ended September 30 came in at $7.2 billion, compared with $6.24 billion from a year earlier.