UNION PACIFIC CORPORATION

Red flags

• Total debt increased to $31.8 billion from $31.2 billion, with $1.52 billion of current maturities in 2026 and $27.4 billion of principal due thereafter.
• Free cash flow declined to $2.29 billion from $2.81 billion, despite $9.29 billion of operating cash flow, and was below the $3.24 billion paid in dividends under the company’s stated calculation.
• The company recorded $413 million of personal injury liabilities at year-end, including $93 million current, and hazardous-material incidents could generate claims exceeding insurance coverage.
• Mexico-related freight revenue was $2.9 billion in 2025, and broader international trade exposure leaves results vulnerable to tariffs, trade interruptions, and geopolitical disruption.