Union Pacific: Setting More Records Before Supplemental Merger Filings

Research evidence excerpt

Union Pacific: Setting More Records Before Supplemental Merger Filings

Brian P. Ossenbeck, CFA AC North America Equity Research

(1-212) 622-1023 24 July 2026 J P M O R G A N

brian.p.ossenbeck@jpmorgan.com

transactions in the recently updated market share study, although it will likely create some

additional noise in an already complicated process.

• Implications of the recent publications from the STB. It was a busy week for merger-

related news, including three documents from the STB which we cover in more detail as

part of our Weekly Fast Track (details here). In a decision that requires the public

disclosure of jobs impacted by the merger, the Board remains focused on maintaining a

full and transparent record. The STB reiterated in the same decision that retaliation will

not be tolerated and echoed that stance to Senator Baldwin after she expressed concern

over pricing comments made by CEO Vena, which the railroad has said were taken out

of context. Lastly, the Board settled two long-running disputes with BNSF and UP,

denying BNSF access to serve quarries on UP while finalizing trackage rights in the Lake

Charles region that originated with the UP/SP merger. Overall, we believe the

implications are modestly negative for UP/NS given the significant delay and effort

needed to settle a dispute over an old merger condition could be a cautionary tale to the

Board when considering a wide range of potential conditions for UP/NS.

• Record setting operating metrics at UP. The network delivered record performance

across virtually every key metric during the quarter while absorbing greater than

anticipated volume growth. Workforce productivity hit a record for the eighth

consecutive quarter, with the active TE&Y headcount declining -2% as there were no