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Union Pacific: Poor Return Outlook For The Next 5 Years

Sep 5, 2023

Summary
UNP’s EPS growth masks flat revenue and debt risks, worsened by paused share buybacks.
UNP’s high debt and interest expense, used for overvalued share buybacks, pose financial risks.
UNP faces inflation and labor cost pressures, with pricing above inflation offering limited financial relief.
UNP faces weakening demand across sectors and minimal industrial growth in 2023.
Buying UNP at $221.03 projects a 5-year CAGR of 1%, with a $224.22 target.

AAR files brief in BNSF lawsuit against STB

Sep 5, 2023

AAR files brief in BNSF lawsuit against STB The Association of American Railroads (AAR) has filed an amicus brief in BNSF Railway Co.’s lawsuit against the Surface Transportation Board over its order that the Class I transport more coal for Navajo Transitional...

AAR Statement on Joining Confidential Close Call Reporting System

Aug 30, 2023

Railroads Remain Committed to Joining FRA’s Confidential Close Call Reporting System The primary objective of the close call reporting system is to encourage employees to report safety incidents so that employers can take proactive steps, like additional training, to...

PHMSA to suspend LNG-by-rail rule for further study

Aug 29, 2023

The Pipeline and Hazardous Materials Safety Administration (PHMSA), in coordination with the Federal Railroad Administration, has issued a final rule that suspends a Trump administration rule that would have allowed liquefied natural gas (LNG) transportation by rail.