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A 630-basis-point spread in adjusted operating ratio, Union Pacific Corporation (NYSE: UNP) at 59.2% and Norfolk Southern Corporation (NYSE: NSC) at 65.5% in Q2 2026, is the efficiency gap the proposed transcontinental merger must close.
On July 27, both railroads filed an enhanced joint merger application with the Surface Transportation Board (STB), offering expanded shipper protections and targeting a mid-2027 closing that would create the first single-line transcontinental freight network in the United States.
Q2 2026: the operating gap in numbers UNP delivered a firm quarter. Net income reached $2.0 billion, adjusted diluted EPS grew 13% year-over-year to $3.41, and freight revenue rose 12%.
The adjusted operating ratio tightened 110 basis points to 59.2%, as workforce productivity climbed 5% and locomotive productivity 1%. Union Pacific subsequently raised its full-year earnings outlook.
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