Union Pacific Corporation

Thank you for accessing Union Pacific Corporation's 2026 Third Quarter Earnings Conference Call held at 8.45 a.m. Eastern Time on October 22, 2026 in Omaha, Nebraska. This presentation and the accompanying materials include statements that contain estimates, projections, or expectations regarding the company's financial results and operations and future economic conditions. These statements are forward-looking statements as defined by the federal securities laws. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. The materials accompanying this presentation include more detailed information regarding forward-looking information and these risks and uncertainties. In addition, please refer to the company's website and SEC filings for additional information about our risk factors. Holtzman. Thank you. Holtz. Holtzman,

Greetings and welcome to Union Pacific's third quarter 2026 earnings call. At this time all participants are in listen only mode. A brief question and answer session will follow the formal presentation. If anyone today should require operator assistance during the conference, please press star zero from your telephone keypad. As a reminder, this conference is being recorded and the slides for today's presentation are available on Union Pacific's website. It is now my pleasure to introduce your host, Mr. Jim Vena, Chief Executive Officer for Union Pacific. Thank you, Mr. Vena. You may begin.

Thanks, Rob. Sorry, I'm rather fast this morning. I'm ready to go. I overstepped you, so hopefully I don't do that to everybody today. No, I hope I am. We're ready to go here. So why don't we take a step back and think about where we are as a company and what we're doing. So this morning, my wife, for whatever reason, got me up a little early, okay? So I had a little more time to look at the railroad real close, and the first thing I look at is what's happening to the railroad weather-wise. and bottom line is this is my favorite time of the year to railroad. And Eric will tell you the same thing. You know, engineering programs are in a different place. The railroad is well set up. You don't have the extremes, too much of an extreme of weather. And it is a beautiful morning here in Omaha, absolutely gorgeous. I'll tell you, it's a great place to live and a wonderful spot. But so the railroad's good. Now the range of temperature we have is from the low 30s to the high 80s. but that's who we are and we have thousands of employees out there right now. Yesterday we had 2.31 billion GTMs of product that we moved in this railroad and all the people out there and I got to congratulate them on the quarter that we had. So very excited to share with all of you who we are, what we're doing and one thing we're not changing is the key pillars that we have. Safety for us is the foundation and Eric will take you through some of the detail. But where we are this year on an injury rate improvement from last year, where we are in the derailment rate, significant improvement from last year that continues all the work we've done is very exciting as a foundation of everything that we do. And listen, safety for us is more than just a number. It's about people going home. Exactly the same way as they showed up when they came to work. And it's the movement of the goods that we have for America. We are moving products across the western states and pretty soon across the entire country that just helps the economy and helps businesses move ahead. So I love where we are safety and I know Eric's got some more detail on that as we move ahead. And service. Absolutely, I love where our service is. We're delivering what we sold the customer and what we agreed to. And operational excellence, I see numbers in detail that I had a chance this morning to spend probably a half an hour, usually it's five minutes on, that show me that the number of cars that missed their plan, that we call 32-hour cars, is like 15% lower with business up. The number of locomotives we have out there running and operating don't match the amount of business increase, meaning we have way less locomotives operating, so much more efficient with them. The way the cars are turning, the car velocity is exactly the same as it was last year at this time with increase in business to show the resiliency of our buffer and how we handle traffic. So I guess if I don't stop there, I might as well just tell everybody to keep quiet. and we'll just go to question and answers. But let me real quick tell you who's here with me. Our Chief Financial Officer, of course, Jennifer's with me every quarter. Love having her here. She's next to me. Kenny Rocker, Executive VP of Marketing and Sales, always in the right spot right there to my right. And across the table, Eric Gehringer, our Executive Vice President of Operations. And I can't be prouder of what the team has done. If we can turn to slide four and quickly review So this morning, Union Pacific reported record financial results as net income total $2.1 billion, and our adjusted earnings per share grew 15% to $3.53. Union Pacific's third quarter results demonstrate our ability to safely deliver the service we sold our customers while efficiently handling 6% volume growth. Higher fuel prices were a big cost driver, but when we take out the impact of fuel price and merger costs, Our core operating ratio improved 110 basis points from last year. Now, I'll let the team walk you through the results in more detail, and then I'll come back to talk about the Q&A and maybe a quick wrap-up before we finish the call. And Jennifer, all yours with some of the details on the financials, please.