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- What is Union Pacific's (UNP) Economic Moat, and is it Widening or Narrowing?
Union Pacific (UNP) closed at $282.36 on October 13 and has returned 12.3% over six months, trailing both the Insider Monkey Billionaire Index (21.5%) and the State Street SPDR S&P 500 ETF (14.0%). The article argues its rail network is nearly impossible to rebuild, which helps it keep 40.98% of revenue as operating profit. However, revenue grew 11.5% last quarter while earnings grew only 6.2%, and the company carries $31.17 billion in debt. The $85 billion Norfolk Southern deal was filed twice and rejected once as incomplete, with regulatory review potentially running into 2027 amid opposition from unions and rival railroads. The stock trades at 19.34 times next year's expected earnings, which the author sees as fairly priced for the current business and cheap only if the merger goes through.
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- Norfolk Southern Corporation Q3 2026 Earnings Call Summary
- Norfolk Southern ( NSC ) Q3 2026 Earnings Call Transcript
Norfolk Southern (NSC) reported Q3 revenue of $3.5 billion, up 14% on 3% higher volume and fuel surcharges, and adjusted diluted EPS of $3.62, up 10%. The adjusted operating ratio rose 210 basis points to 65.4% under fuel-cost pressure, while revenue less fuel hit a quarterly record and adjusted operating income grew 7% to $1.2 billion. Management raised its capital expenditure guidance to $2.1 billion from $1.9 billion and cited a company-best train accident rate of 1.74. It warned that some highway-to-rail volume gains could revert if fuel prices fall, and that war and trade uncertainty will keep weighing on international volumes.
- Greg Abel Says Every Point of BNSF Profit Margin Adds About $230 Million of Cash Flow for Berkshire Hathaway
BNSF, Berkshire Hathaway's railroad, accounts for more than 10% of the conglomerate's operating income, and CEO Greg Abel expects that share to grow. In his first shareholder letter, Abel said each one-percentage-point gain in operating margin generates about $230 million of incremental operating cash flow. On BNSF's 2025 revenue of $23.5 billion and 34.5% operating margin, the article estimates roughly $8.1 billion of operating cash flow. Citing rivals Union Pacific (about 40%) and CSX (about 38%), it says a three-point margin gain to CSX's level would add roughly $700 million in pretax income a year. With 3% annual revenue growth as well, BNSF's contribution could roughly double within five years to around $10 billion per year.
- CSX : 3 Key Takeaways for Long - Term Investors
On its third-quarter 2026 earnings call on Oct. 21, 2026, CSX reported EPS up 30% from last year's adjusted result. Management cut nonfuel costs by 3% while handling 5% more volume, expanding operating margin by over four percentage points. Tight truck capacity and high diesel prices pushed freight to rail, lifting intermodal volume 7% year over year to an all-time record. CEO Stephen F. Angel expects full-year operating margin expansion of more than 350 basis points, while the company watches conductor trainee staffing.
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