Thank you for accessing Union Pacific Corporation's 2026 First Quarter Earnings Conference Call held at 8.45 a.m. Eastern Time on April 23, 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 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.

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

Well, good morning, everyone. Thanks for joining us. You know, it's a wonderful morning here in Omaha Railroad and a little bit of rain coming down, but nothing that wouldn't stop the men and women of Union Pacific from going out there and delivering. So real excited to be here and excited to review our first quarter and then take your questions. So, of course, I'm joined here by the regular crew. We have the chief financial officer with me, Jennifer Heyman. Got Eric. Eric Railroad looks pretty good this morning. so excellent job our executive vice president of operations and of course executive vice president of marketing sales kenny rocker now why don't we just go through the highlights real quick before i turn it over to jennifer if we go over to slide four 2026 started strong as we delivered record first quarter results again we showed who we are executing on new opportunities and raising the bar on what's possible for ourselves and the industry and it's real important that we see that strength reflected on our bottom line as we reported first quarter records of operating income and net income. For the quarter, reported net income of $1.7 billion grew 5%, earnings per share of $2.87 increased 6%, and we improved our operating ratio. Excluding merger costs, our adjusted net income was up 7%, EPS of $2.93 increased 9%, and our operating ratio improved 80 basis points to 59.9. These are strong results that reflect what's possible when the team consistently executes at a high level. Now, I'll let the team walk you through the quarter in more detail and then come back and wrap it up before we go to Q&A. Jennifer, why don't we do the first

quarter financials, please? All right. Thank you, Jim, and good morning, everyone. Let me begin with a walkdown of our first quarter income statement on slide six, where our operating revenue of $6.2 billion dollars increased three percent versus last year as freight revenue of 5.9 billion grew four percent on one percent lower volume digging into the drivers lower volume reduced freight revenue 75 basis points fuel surcharge revenue of 608 million increased 43 million reflecting the impact of higher year-over-year fuel prices and adding 100 basis points to freight revenue core pricing combined with business mix to drive 325 basis points to freight revenue improvement As we committed, our quarterly pricing dollars exceeded inflation dollars. Specifically, coal pricing remained positive, but at a lower rate than last year for business indexed to natural gas prices. And, as we noted in January, we continue to see impacts from the competitive and global environment in select agricultural markets. Fortunately, we are well positioned to compete as our strong operating performance and productivity initiatives enable us to continue to win new business at good margins. Our first quarter business mix was positive, although not as favorable as we might have expected due to the higher volume in our lower average revenue per car businesses, such as coal and rock, combined with lower volume on some of the higher ARC businesses, such as food and refrigerated and forest products. Wrapping up the top line, other revenue declined 4% to $324 million, driven by lower subsidiary revenue as we have now lapped the metro transfer completed in the first quarter of 2025. Turning to expenses, our appendix slides provide more detail, but let me discuss the key drivers as total operating expense increased 3% to $3.8 billion. Compensation and benefits expense increased 1% as we almost entirely offset the impact of inflation with record first quarter workforce productivity that enabled a 5% smaller workforce. First quarter cost per employee increased 6.5 percent, driven by higher wages and benefits, along with increased incentive compensation. We continue to expect full-year compensation per employee to increase between 4 and 5 percent, as we will work to offset cost inflation with process and technology improvements. Fuel expense grew 7 percent on a 7 percent increase in average fuel price from $2.51 cents to $2.69 per gallon. Purchase services and materials expense increased 7 percent as a result of merger-related costs, while equipment and other rents declined 9 percent with record first quarter cycle times. Reported first quarter 2026 net income totaled $1.7 billion and was a first quarter record with earnings per share of $2.87. Adjusted for the merger costs, our earnings per totaled $2.93, and operating ratio came in at 59.9%. Overall, we delivered strong quarterly results to start the year, and we are confident in the ability to continue delivering for all of our stakeholders by successfully executing on the fundamentals of our business. Turning then to cash returns in the balance sheet on slide seven, first quarter cash from operations totaled $2.4 billion, up 10% versus last year, and we generated free cash flow of $630 million after making significant investments in the network and returning an industry-leading dividend to our shareholders. Net debt decreased $1.2 billion as we repaid our long-term debt. We ended the quarter with an adjusted debt-to-EBITDA ratio of 2.5 times while we continued to be A-rated by our three credit rating agencies. Looking ahead, we are affirming our 2026 outlook. This includes our expectations for reported earnings per share of mid-single-digit growth and operating ratio improvement. Our original diesel fuel estimate of $2.35 per gallon established in January is now much harder to predict as we have seen quite a bit of volatility recently. And although fuel prices seem to be coming down for the month of April, we will likely average over $4 per gallon. Beyond 2026, we remain committed to attaining our three-year CAGR target of high single-digit to low double-digit EPS growth throughout 2027. I'll now turn it over to Kenny to provide an update on the business demand. Kenny? Thank you, Jennifer, and good morning. In the first quarter,

freight revenue grew 4%, and if you exclude the impact from fuel surcharge, freight revenue increased 3%. Both core pricing gains, higher fuel surcharge revenue, and favorable business mix more than offset the 1% lower volume in the quarter. Let's walk through the key drivers. Revenue for the quarter was up 10% compared to last year, driven by a 12% increase in volume. Strength in coal was driven by sustained strong service execution, as well as new business with LCRA, which started in April of last year. In grain, first quarter delivered record volume, driven by strong export demand, including a rebound in shipments to China, such as Bartlett's new facility in Monterey. Grain products, continuous development tied to renewable fuels and associated feed stocks. Into industrial for the quarter on a 4% increase in volume, delivering a record first quarter and outperforming the market. Strong core pricing, we continue to see strength driven by new LNG terminals coupled with our intent also perform well this quarter, reflecting new business buying 5% on a 9% decrease in volume and a 4% increase in average revenue per car, reflecting business mix and higher fuel surcharges, buying 28% versus last year. But domestic intermodal delivered its third consecutive record quarter driven by outstanding softening vehicle sales pressured automotive volumes, though having won incremental volume with BMWs offset some of the market softness looking ahead on side 11 we remain optimistic about coal's potential despite current natural gas pricing we expect four-year coal results to be positive ingrained improving export demand to china along with continued momentum into mexico business well to support grain products we expect continued strength driven by business development and B-stocks markets with a clear renewable fuels policy, providing more stable demand. Moving to industrial, despite a soft housing environment and tepid end-market fundamentals, we remain firmly focused on outperforming industrial production. We expect a strong volume in construction and customer wins. A great example is the Golden Triangle Polymers Company joint venture with CPChem, where we are encouraged by the upcoming startup of this new world-scale facility in the third quarter. Wrapping up with premium, international intermodal volumes will remain subdued, although we lapped some of the shifts with domestic intermodal and able and diverse market reach. While softer vehicle sales are expected to pressure automotive volumes, we expect business development wins will offset reflect the team's relentless focus we provide investing for growth and driving business development. And with that.

Thank you, Kenny, and good morning. Moving to slide 13. Our first quarter operating results highlight our focus on safety, service, and operational excellence. Last year, we led the industry in employee safety. We carried that momentum into the first quarter as we improved both employee safety and derailments versus their respective three-year rolling averages. We set first quarter records in all six of our key performance and efficiency metrics on slides 13 and 14. Freight car velocity increased 9% to 235 miles per day. This performance was driven by best ever terminal dwell of 19.7 hours, 11% better than last year, and our second quarter below 20 hours. Every day, we continue to challenge ourselves to find new and innovative opportunities to reduce car touches, leverage existing technology in our terminals, and implement new technologies. For service, both intermodal and manifest SPI finished at 98%, a four- and five-point improvement, respectively. These results compare to our best service months, which were achieved in 2025, as we continue to raise the bar for success. We also demonstrated that maintaining a buffer of resources is critical to recovering from weather and incidents as customers trust us to provide consistent, reliable service. Moving to slide 14, locomotive productivity improved 6% and was a best-ever quarter. Notably, our average active locomotive fleet decreased 4% with higher gross ton miles, highlighting efficiency gains from our combined efforts related to locomotive dwell, train length, and capital investments that increased locomotive pulling power. Workforce productivity, which includes all employees, increased 7%. Our active train, engine, and yard workforce decreased 4% on a 1% reduction in car load levels, demonstrating our discipline as we remain more than volume variable. Looking ahead, we continue to hire for attrition and to support our service. Train link grew 3% compared to last year. Proprietary technologies such as Physics Train Builder, combined with mainline investments and solid execution of the fundamentals enabled us to safely grow Trainly. In closing, we had a very successful first quarter. We operated safely, efficiently managed our resources, and consistently served our customers. As we progressed throughout the year, we will remain nimble and continue to build on our strong momentum. With that, I'll turn it back over to Jim. Thank you very much, Eric.

Fantastic results. If we can turn to slide 16, please. Before we get to your questions, I'd like to quickly summarize what you've heard so far. We had a strong first quarter and start to the year. Our network is running well, and we are delivering on commitments to our customers. When you put it all together, we are doing what we said we would, leading the industry in safety, service, and operational excellence. And that further translates into affirming our long-term guidance of high single-digit to low double-digit CAGR through 2027 with best-in-class operating ratio and return on invested capital. Before we turn to your questions, just a quick merger update. We are 100% on track with filing the revised application on April 30th. We are confident the additional information we are providing meets the SDV's expectations, and we look forward to moving toward approval and the real exciting part of operating America's first transcontinental railroad. With that, we're now ready to take your questions.

Thank you, Mr. Venna. We'll now be conducting the question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad and the confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Due to the number of analysts joining us on the call today, we'll be limiting everyone to one question to accommodate as many participants as possible. Thank you and the first question is from the line of Scott Group of Wolf Research. It's just you with your question.

Hey, thanks. Good morning, guys. So, Jim, I wanted to ask on the merger, you know, we were supposed to be six months or whatever into this process, and I guess we're about to restart the clock. Does the fact that we are taking this long, does this give you any more or less confidence in your ability sort of to get this approved? And, I don't know, just maybe confirming, you know, we're – yeah. So I guess that's the crux of the question.

Listen, Scott, great question, and I appreciate it. It's a good way to start off. I thought for sure you'd start with, geez, Jim and team, pretty good quarter. but I think a top of mind for a lot of people is the merger. So let's talk about the merger. We were not, we were disappointed, but we were not surprised with looking at historical events of how the process works to put the railroads together, that we were gonna get some things that we foresaw and what we thought was gonna happen didn't happen in the timeline we liked. But we knew that this was not going to be a process that was going to happen as quick as I would like, okay, to be done. I was hoping it was going to be done for my birthday this year, so we're going to miss that date in August. But at the end of it, when we look at the fundamental, we look at the facts of what this combination will deliver for both the country in being able to expedite, take trucks off of the highway, be able to move products in a much more seamless, open up new markets for customers, be able to provide service to some underserved markets that today, optionally, they end up going with trucks instead of going by rail. We are more convicted now than we ever have been when you take a look at what's in the merger application and all the detail that we're putting forward. So at this point, we are much more convicted. I'd be concerned, leading this company, if we had lost our way in how we operate and what we do every day because of the merger. And as you can see, we've been very clear. Our time is spent on operating the railroad every day, finding ways to grow our business, finding new markets, finding new customers, adding to the customers we have. And you can see that even with all the economic uncertainty with everything that's going on in the world and with tariffs that we had to go through and our customers did, we delivered, again, a quarter that moves us ahead. So because of that, let's turn to the merger itself and what we are going to put forward in the application and why it's such a compelling case and a much more compelling case now. The experts that we've hired are clearly going to show where their opportunity is. We know that on a service level, a seamless railroad is able to move products at less cost. Therefore, even the pricing is going to be beneficial for our customers because of our less cost. And we're going to be able to serve our customers with a product that allows them to save on their own costs internally, whether it's rail car inventory, and be able to move to their end product and end user faster. For our employees, we were real clear, and we've been clear right from the start, that our employees, our unionized employees, they should be part of the win of a new railroad that goes across the country. and we've guaranteed a job for everyone and that commitment is ironclad and we're very happy to make that with agreements or without agreements even though we have a number of agreements so service is going to be better we provide more opportunity we take trucks off of the highway and our employees are guaranteed jobs i think we're more convicted now that this is good for the country and good for Union Pacific. And financially, it is good for our, we see a lot of growth opportunity there, lower cost movements, much more fluidity. So I'm more convicted today than I was when we put the application in the first time. Scott.

Our next question is from the line of Chris Weatherby with Wells Fargo. Please receive your question.

Morning, Chris.

Morning, Jim. Hope everyone's doing well. Yeah, I guess maybe to sort of think about the guidance. So that was helpful on the merger, and I think it gives us a good sense of how you're thinking about it. As you think about the outlook for this year, particularly the operating ratio improvement, obviously a good first quarter, but fuel is going to be a headwind for you. Fuel surcharges will be a headwind from an operating ratio perspective. So I guess if you could maybe give us a little bit of color, are there incremental productivity sort of opportunities that are becoming more apparent to you as you guys have been operating so far through the year? Can you just sort of talk a little bit about that? Because I do think that there's a headwind there, but Maybe there's been some incremental positive offsets.

Jennifer, why don't you talk about the fuel and everything that we're doing on that piece?

Yeah, sure. Thanks for the question, Chris. So you're right. Fuel will definitely be a headwind, particularly here in the second quarter with, again, I mentioned on the call in the prepared remarks, you know, we're paying a little north of $4 a gallon right now here in April. So that will certainly pressure margins, particularly here in the second quarter. But we have a lot of opportunities to drive efficiency in our railroad. We have opportunities in the Kenny and his team are driving in terms of business development. With that great service product, we also are being very consistent in terms of pricing for the value of that service. So when you put all those things together, we are still confident for a full year that we will be able to improve our operating ratio. And we reiterated that to make sure that everyone understood we have that confidence and we have line of sight to be able to do that. Fuel, again, pressure here in second quarter, and we feel good about the rest of the year, though.

Our next question comes from the line of Jonathan Trapel with Evercore. Please receive your question.

Good morning, Jonathan.

Good morning, Jim. Jim and team, pretty good quarter. So my question is really for Kenny or Eric, whoever wants to answer it. We look at the numbers that Eric's team is putting up on slides 13 and 14, and then we understand there's obviously a lot of macro headwinds that you're facing across different end markets. Is there an estimate for spare capacity, or maybe another way to ask it is, what kind of volume growth can the current system handle without needing to add extra resources if some of those macro headwinds turn to tailwinds?

Yeah, Jonathan, thank you for that question, and certainly a topic that we review on a consistent basis. You know, we've always said from the railroad's perspective, you know, you have five critical resources, mainline capacity, terminal capacity, crews, locomotives, and cars, and you're obviously hitting on one of those five. Now, as we look at the railroad today, we have latent capacity. Now, we've driven that through a couple different ways. Number one, and I reported this morning, on top of all the improvements we've made in train length, we did it again, 3% improvement, best quarter ever. That train length is generating lane capacity. After a number of other reasons why we do train length, it's right up there at the very top for being able to generate that capacity. In addition to that, we still invest between $500 and $700 million a year in capacity projects, and you've heard us talk about those in the past. They're siting extensions, they're siting constructions, they're the expansion of terminals. So the Union Pacific is positioned and will remain positioned with that capacity to bring growth that Kenny and the team are working on every single day to bring to this railroad.

The only thing I'll add, Eric, is two tangible ways that I see that capacity. One is on the equipment side, more equipment, and to a first bottom at 100% or more business. But then more importantly, on the capacity, and I've talked about this before, these are geographic areas, so the Gulf to the southeast or from the Midwest, a shift down to the Gulf or Mexico. That's the kind of capacity benefits that we've seen.

And that's a really good example, too, when we think about the grain this year. So, you know, last year, if you recall, when we were talking about volume opportunities, Kenny and I were talking about the shift of grain into Mexico. Well, we've seen some of that shift. back to the Pacific Northwest as China has become more open to receiving American commodities. And we didn't have to go in and build five more sidings. We went in with the capacity we had and took advantage of it and very successfully delivering on it.

And nor was that clearly forecasted. You know, so we had to be agile.

So, Jonathan, if I can just add what the team already said was, is we build the railroad, both capacity-wise and with asset-wise, with a buffer. But what's really important for us is today, with the business level that we have, and I looked at that in detail every morning, we're operating with over 100 locomotives on the main line less just because of our speed and what we've been able to improve. So we park them. So they give us a nice buffer of locomotives and assets. On the people side, we've figured out both by technology, by investments, by how we operate the yards, by how fluid we try to stay, we've been able to get more cars switched per employee, real important, and we see line of sight to be better at that. On the capacity of the railroad to add 10% more business, let me say this. We've invested hundreds of millions of dollars, especially in our terminals, to make them more resilient and be able to recover faster and have a higher level of capacity, both by the speed that we're moving the rail cars through and the way we're handling them and touching them less, moving less touches. The overall network, and this is key of who we are and what we do. So if you turn the clock back, and I hate to look back too far, but in 2019, if we were operating this railroad the way we were in early 2019, we would have 25% more trains out there running this morning than we are today. So we did not remove capacity. So this railroad is operating at the higher volume, but let's say it's not less volume. It's higher volume than we were in 2019, and we're operating 24% less trains to be able to move that volume. The touches are faster, less touches. The way we operate our terminals is faster. So I'm very comfortable that we have the capacity to add a lot of business without the huge incremental costs that you normally would have to, both capital and operating costs. Because what happens is if you're running up against your capacity, it costs you more operating dollars to be able to try to operate it through because you cause congestion. So I'm very comfortable. We do not sleep until we're comfortable that the railroad is running with the system it has. Now, Eric will tell you that we're not done. You go back again to when I came back and joined the company again after my sabbatical. Some people were asking me the question, what's left? And I think you could see what was left. There was lots of opportunity, and we see lots of opportunity as we move ahead over the next few years. So thanks for the question, Jonathan.

Next question comes from the line of Jason Seidel with TD Cowan. Please receive your questions.

Thanks, operator. Morning, Jim. Obviously a good quarter, and it's nice to see the railroad operating so strongly. This is probably on Kenny's side. I wanted to sort of dive deeper into your commentary on business development. You know, one of your fellow railroads yesterday talked about their success. They're seeing, you know, new projects grow in excess of 15%, and we're talking about adding maybe 1% to 2% in terms of car loading growth for next year. Could you give us some more color on UP's efforts right now, and where do you think that could go and add your car loadings into the future?

Yeah, I won't give any guidance on the volume, but we are very bullish, optimistic about the new pieces of business that are coming online. I think you're talking about the industrial development aspect of it. We feel good about the numbers we closed for the quarter. We closed about 20 new construction projects in the first quarter. We feel good about where we're headed second quarter. And I tell you, we've got a strong pipeline, construction projects that are coming on. Most of those are on the Carlos side. And you've heard me say in the past that we've really taken a focus on adding the origin, expanding that capacity about where we are.

The next question comes from the line of Ken Hexter with Bank of America. Pleased to see you through your question.

Hey, great. Good morning, Jim and team. Great job on the expenses. And I thought that was an impressive stat on the train starts, something I don't think we've heard before. But looking at the way that the stock is trading, I want to return to the M&A. It seems to suggest the market's building in maybe larger concessions that might be somewhat destructive to market value, just, again, given where you're trading and the peer. Does that make sense? Is there anything in the detailed request for deal terms or discussions parties are having through the process on where you'll come out on concessions? And then, Jen, any reason you switched the language to reported outlook from adjusted since you're calling out merger costs? Or does that mean your long-term target still includes the merger costs? I just want to understand a clarification there.

Let me hit that last one. Ken, actually we added that as a clarification from last time because we didn't have reported and it generated a lot of questions. And so we wanted to be clear that when we talk about the EPS growth, that's off of our reported. So that includes the headwind, to your point, that we do have from the merger costs that we didn't originally anticipate, as well as the fact that we're not buying back shares right now. So it is unreported.

Jim? Unreported, you betcha. Jennifer thought she was helping, and I love it, Ken, that you caught the change in words, so that was perfect. Listen, as far as the stock and conviction on that, the market is the market, okay? I can't control the market. I wish I could, but I can't. But I'll tell you, fundamentally, as a business, we see growth in opportunity with customers, whether we're building in on some customers, and those will be new products that we add, or the amount of investment that our customers are making in different parts of the country to grow their business and be able to export and to move within the U.S. economy. So we're real comfortable with that. On the merger and concessions, this is truly an end-to-end merger with a small little piece of overlap that we'll take care of as we go through in the application and say how we're going to handle that to make sure that no customer. In fact, the number of customers that are going to go from two to one is like a handful out of all the thousands of customers we have. So it's a very small piece end-to-end. It's pretty hard to come up with concessions that make sense. Now, some of our competitors are out there very, very loudly talking about what this business is. And let's put the framework of where we are today and what our competition is. CSX reported yesterday, great results. I was impressed. They did a great job. And they are going to compete hard, and they will still be a competitor in the eastern part of our network. They will compete every day against everything we try to do as a seamless railroad. And they'll do that through price. They'll do that through innovation. They'll do that through being able to be more efficient. And that's what they need to do to compete against us. But if anybody thinks they're not going to compete, and you can see what they've done to try to compete already just with the announcement that we had on the merger and what they've done. In the West, people get this wrong. We are not competing against Burlington Northern Santa Fe. They're owned by Berkshire. This morning is over a $1 trillion company. Berkshire has the monetary capability with $300-plus billion in cash, plus they have the capability to invest in the railroad, and they're going to be a strong competitor for us after. So if you take a look at the two biggest pieces of competition that we have in the U.S., We're very comfortable that they will compete hard against us, but we are going to be able to provide a level of service with less touches that speed up products moving across the U.S. That's why it's so compelling. So, Ken, I'm not sure, and I don't see a big change in the amount of concessions. Are we talking to people? Yes, we are. We're talking to customers. We're talking to competitors. across the spectrum to see that we could come up with something reasonable. But we're not prepared to really give concessions to the level that basically just opens up our railroad for no reason at all other than they want to gain something through this process. That's not the way America works. America works in that if it's truly detrimental to customers, the railroad combination, then you need to do something about it. But when you speed up things, give more opportunity, it's pretty hard for us to see any major concessions that we have to give.

Thanks for the question. The next question comes from the line of Brandon Naglinski with Barclays. Please receive your questions.

Hey, good morning. Yeah, good morning, Jim. And maybe I'll just follow up on that because I think your more skeptical competitors and maybe even some investors would say yes, but this combination at a very high level is going to drive more than 40% market share to your network relative to now much smaller competitors and regional competitors. I mean, how do you push back on that criticism of a transaction of this size?

Well, I think what you have to look at is the entire market that's out there. People want to look at the railroads and say a combined Union Pacific and Norfolk Southern is going to have a combined of 38% or 39% actually is the number of GTMs. but we're not going to be that much bigger than our western competitor at that level with gross tons that we're both going to be moving as far as the local market listen i think short lines do a great job and an excellent job of handling that first mile last mile and i see us strengthening them we'll be able to drive more business to them with this combination so they're not going to lose in the long run. There's always some that are going to be affected because if we don't stop cars or hand them off somewhere we can take them to a longer route or a different route. That'll help. But at the end of the day, listen, the 40% or actually the 39% number, when you take a look at the entire market, railroads are in the low double digit capture of the true market that moves by land or by water here in the United States of America. So that opportunity is huge for all of us to be able to swing that a little bit, and I think that's a better way to take a look at it, Brandon.

Next question comes from the line of Stephanie Moore with Jeffries. Please receive your question.

Hi, good morning. I think I'm going to ask maybe a different question theme here, but, you know, Jim, I wanted to get your opinion in terms of how you think about just the value of union pacific's physical network at a time where you know look investors are increasingly focused on ai driven disruption so what do you think the market is missing about just the intrinsic value of the network especially post deal and then also maybe talk a little bit about what you're doing in this world of just a lot more technology opportunities ai enabled efficiencies and what you're already doing in the yards and operations to drive better results thanks Thanks.

Great. Thank you. Thanks for the question. Listen, Eric, why don't you start about how we're using information, AI, technology, to operate the railroad and what we see coming down the pike?

Absolutely. So our conversations inside UP, when we talk about AI or equivalent tools, really focus first on making sure that we're not doing it just to do it. We're instead focused on what is the actual thing we're trying to solve and what's the value, whether that's removing car touches, dropping dollars to the bottom line, improving our service. And I think it's important that you all hear us say that because you see in other cases where that's not it. They treat it as a hobby. We're not in the business of hobbies here. We're in the business of delivering value. Now, if you think about how we're using that, some of the ones that are most important because they're foundations to our service and they're foundations to our productivity, which allows us to grow, is how we think about using AI inside of our dispatching center. We have an automated movement planner, is a program that we call, that's informed by AI, and it's continually evolving. Automated movement planner really focuses on driving an even more consistent and reliable service by providing support to our dispatchers in real time and looking out 12 hours in advance to lay out their railroad. You know, if you just even look at 200 miles of railroad, there's a lot that happens in a day, not just the movement of trains. We have to have people go out and maintain the track, and then we also have variability events, unfortunately, some days. We have to plan for all that, and AI has been a great resource for us to do that. Now, when we think about inside our terminals, and we've talked in the past about technologies like MobileNX that allow us to automate part of that, there's some AI components to that, and there's certainly value in that. Even more valuable is the tools that we've provided, like Terminal Command Center, to our teams that are actually on the ground operating those terminals, that provides them an even higher level of intelligence on being able to not only forecast what's coming at them, but for what they have in their yard, how do they see problems, right? If you're going to go out and you're switching a bunch of cars and now you've got a trim, but you accidentally have the wrong car in one of those cuts, okay, well, that's a big hit to the productivity and thus, you know, impacts our service product. If we can see that ahead of time, well, then we can plan that even two hours ahead that says, well, I'm going to be in that track. Let me grab that car then. So even in the case of mistakes, which we work tirelessly to avoid, you can even be more efficient in how you're able to address those if you can see that risk ahead of time and that AI tool allows us to do it. And I'd say in total for the whole company, I mean, there's at least eight or ten really major projects that we're using. I've given you two examples, but they really represent how we're using it

to one improve our service product and true drive efficiency the nice part about technology and how fast it's changing with ai and what it really drives for us is is we always talk about the big things you know trains assets you know big locomotive weigh in 434 000 pounds and how we we we move it but fundamentally across the company whether it's uh how we're going to be able to communicate with customers how were the number of people you need to be able to communicate with customers and how you get information better we're working hard on that using ai tools and information tools to be able to do that even in the finance department how do we get better being able to get information out so it's across the board that we're doing that you know stay tuned we're going to be implementing and have the capability implement our locomotives to make them even more autonomous than they are today so that they can operate to give us more fuel conservation. Those tools are driven by technology in the background that allows the locomotives to operate in a smarter, much more fuel efficient manner. And, you know, we're getting pretty close to be able to roll that out. Not yet today. Eric will get real excited if I start to announce things a little bit ahead of him. But those are the things. Big things. How fast we can change with the difference flow of of business you know i talked about at the very start this morning about the railroad being a little bit of rain coming down in omaha you know it's rather cool in green river this morning it's below freezing so we got a whole bunch of snow up at the top of the donner pass we have uh rather freaking warm weather in other parts of the railroad the nice part about it is we get a little bit of everything but so how you react to the weather and how you react to be able to change the network and be able to change the way we operate every rail car in a faster manner we use tools to be able to get to the point where we're going to be able to react much quicker we're talking about trying to get to the point where we can do that in days instead of weeks the way it takes us right now the way we manifest and use employees to make sure that we optimize the entire system so you know it does touch a lot you know we're a simple old business with big hardware but at the end of the day we've got a whole team and Rahul leads that for us and is doing a spectacular job for us to look at opportunities to embed the latest in information manipulation and and get us an answer quicker and be able to be able to automate as much of this railroad as we can so good question love it hopefully i answered your

question thank you the next question is from the line of brian awesome pick with jp morgan

please receive your question brian brian how many pounds do you have in your back now lots

uh we're up to 65 and climbing so i'm just trying to trying to keep up son of a good impressive brian maybe i'll put a copy of the next merger document in there as well

Oh, that's more than 60 pounds. You'll need a trailer behind you.

I just might. Well, in terms of just two quick follow-ups on that, Jim, and this question on integration technology kind of dovetailing on that last discussion. So are you still assuming first half of 27 approval? And it doesn't sound like it, but just wanted to confirm that you're not really expecting to address some of these concerns from your peers, just more so addressing what the STB has asked for in the new application out next week. And then just would love to hear more about maybe from Eric and you, Jim, about clear his concern about integration based on prior issues that the industry had quite a long time ago. Clearly things have changed, some of that you just mentioned, with technology. So what can you give us in terms of new ways, new processes, new abilities to really get ahead of what's been a huge concern, you know, in the industry. But, you know, we would assume it should go a little bit better this time around. So I know you can only do so much in that part right now, but we'd love to hear how you're planning for that this time around with some new tools.

Brian, you are on it this morning. There was about five questions in there. I love it. But let's start with the timing. Yes, you know, we're working off of the timing that we know of that the STB has put out. So it'll be, you know, second quarter next year. We would expect to be able to be at the place where they approve it and we can move ahead. So that's the timing. Now, it's not finalized. We're hoping that they can speed it up and get through the process. I think they should be able to. Again, it's Jim Benna. You know, the way I do things, we make decisions pretty quick. But I understand they want to look at it. They want to do a thorough examination. and we're ready for it because we're operating the railroad the way it should be operating and it's not affecting what we're doing for the Union Pacific standalone today. I'm going to pass it over to Eric here in a minute on integration. Our competitors, what we're doing with the application is we are answering and giving information that the STB asked for. They were very specific on the information that they required from us And we're answering those questions, whether it's the TRRA, whether it's market share and the amount of business that we've built in. So we've done that, and we're absolutely sure that we've answered the questions and how we're going to handle it. We've decided to release 5.8. Really, at the end of the day, I never thought that our competitors should know exactly what that document held. But when we looked at it, listen, at the end of the day, it's not going to make a big difference. So that's going to come out. So we will answer the three key points plus the other point that they, in general, wanted some more information. So that's what we're answering. As far as our competitors, you're a smart guy, Brian, and everybody on this call are smart people. Competitors are always looking to get an advantage that they can't get or they don't want to spend the money to be able to get. If a railroad wants to build in, which we are building into customers, they have every right to do that. They have every right to go through their own merger, small and large, which they have. So at the end of the day, if we built this transaction against satisfying what the other railroads, Absolutely, Canadian Pacific would love to get access to the west coast of the U.S. Well, I'd love to get to Toronto. If they want to give up Toronto in the markets in eastern Canada and into the Canadian prairies, I would love to do that too, but it would be pretty hard for me to ask for that. So it's really some of the stuff that they've asked for is not fundamentally about competition. it's about trying to gain for their own railroads and we're not going to answer that we don't need to answer that but we're more than willing to sit down and talk like i would be more than willing to trade toronto for access to denver if somebody wants it tomorrow so anybody who's listening in that wants to do that give me a call and i'm i'm ready to do that i'll run to toronto you can run to denver okay and we'll we'll match that up so some of the stuff that they're saying is just not fact-based, and I find it hard to believe. If you step back, though, let's talk about competition. I was just in Canada visiting my family, went out to one of the ports and terminals in Vancouver, and we talked through with one of the largest world operators of terminals. And you know what? Canada is spending money to compete against the U.S. ports. In Prince Rupert, there's a plan to expand and double. In Vancouver, there's a plan to expand and double. At ContraCours, there's a plan to expand and double the capacity for imports. That's who we're competing against. We sometimes have a narrow view of what competition is without looking at really what's happening in the marketplace. Our intermodal product, our international and domestic product, is in competition with product. The size of the investment that's being made by the Canadian government to expand the ports in Canada. The Canadian economy cannot and does not need that much. It's purely to compete against U.S. ports and U.S. movement of goods in the U.S. That's the real competition and sometimes we're too narrow the way we look at it. Eric, on integration? Perfect. So, Brian, on the

integration side, you're right. You certainly want to learn from the learnings of past mergers. Now, we've got to be a little careful there, right? You hear some people go back and reference challenges from mergers 30 years ago. And to your point, right in your question, you said it, a lot has changed in 30 years. But let's hit the most important three items when you look back in time and then think about how we already are planning to do it differently. So one of the things that certainly caused challenges in the past was technology. when you had two railroads merging together with two different transportation systems, it wasn't the technology itself that caused the problem. It was the pace at which the integration occurred. In other words, there wasn't intentional thought and change management around what is the pace you cut that over. Well, we've got a huge advantage. We, Union Pacific, have already demonstrated a very strong ability to change over systems, including our full transportation system called NetControl just a little less than two years ago very successfully, not a blip. No customer was impacted. It was seamless. It was very effective. So we've got that experience. In addition, when you move past the technology and you think about timing, you've seen in the past with some mergers where a KPI right out of the gate is the pace of implementation. Now look, we're not in the business of going slow. We're in the business of understanding exactly what we have to do on day one day 90 day 180 and I'll tell you on day one you're not going to see a lot of difference right we will operate these two railroads largely independently at least for the first few months and then we'll thoughtfully because of all the planning that we're doing implement one action once that action is implemented we'll make sure that it worked effectively and then we'll move to the next and then I saved the most important one for last. If you look at past mergers, often the premium railroad was buying a railroad that was operating very poorly. That's not the case here. The Norfolk Southern is a good railroad. They're good in how they think about their infrastructure. They're good in how they think about technology. Together, we're going to be even stronger, but we're not buying some railroad that's been in disarray for a decade. We're buying a really good railroad, combining it with another really good railroad, and obviously, as Jim's pointed out today, the net outcome is a positive for all of our stakeholders. So that work is all underway. It's being done very intentionally, and we're going to be the most comprehensive integration of any two railroads that this

country's ever seen. Well, I appreciate the question. Thank you very much. The next question

is from the line of Walter Spranklin with RBC. Please receive your question. Good morning, Walter.

I'd just like to go back to Kenny's slide, I guess it's slide 11, and when I compare that outlook slide to the same slide the quarter before, it looks like you've added three new positives. You've added construction as being a plus, you deleted forestry as a negative, and you improved auto from negative to neutral. So three positive inflections there. inflections there. And then we're hearing from trucking peers that it sounds like the freight recession might be overall together. So my question is that and your Q1 results and volume are pretty good. Your railroads were operating well. If the volume is indeed looking better compared to where it was in the fourth quarter, why wouldn't your EPS guide be up as well? And I don't think your team would have an issue getting operating leverage but that doesn't, you know, that logic kind of implies you are Just love to get some clarity there on those topics.

Walter, I love the question. I'm going to pass it over to Kenny because I'll tell you, you must have been listening in because we have had that same discussion. So I can hardly wait to hear his answer. Go ahead, Kenny.

Yeah, so first of all, you heard my comment, a lumber steel challenge. It's just a smaller volume that we're talking about there. And, yes, we're looking at autos. And I'll tell you, we highlighted the fact that we have won some incremental pieces of volume. The SAR for lumber is still negative, call it 3%. The SAR for autos is still negative, call it 2% or 3%. So we're winning our way here to get to a point that we can feel a little bit better about those markets. There was a second question I believe you had more on the intermodal side, and you're right. But we've seen the jump up in the fuel here. Now, that happened all at mid-March, and we'd like to see that sustain a little bit more from a timing perspective. We'd like to see the sustain tightening of the truck market. We're looking at the DAT prices just like everyone else. And as we progress throughout the year, if those sustain, we should see a little bit more uplift on the volume there. So it all begins with the service product. Eric and his team have done a fabulous job. and you're seeing us win and again our size is uh our our goal is to increase the size of the

the so walter no advance or but you gave the same answer to me as you gave to you this morning but the next thing i said to him was pretty clear is is if you have a railroad running at a high level of service and you're delivering for customers and the economy is still you know it's not being as impacted as i as some people would say because of all the uh ins and outs that are out there at this point that it's his job and our job and his job and his team specifically to go sell that service level that we have look for opportunity to grow the business and i like it that he's got more positive than negatives on there so i'm real comfortable with that so walter i know fellow canadian okay spent you spend your time in canada and i go back every so often i'm not sure what the heck's going on with the canadian teams and hockey but most of you are probably in bed but but I stayed up to watch the Oilers last night, and they lost. So tough times. Hopefully your team's winning.

Thank you. Our next question comes from the line of David Vernon with Bernstein. Please receive their question.

Good morning. So thanks for taking the question. So Jim or Kenny, I'm wondering, you know, how you guys are thinking about tackling this issue of proving that this merger enhances competition. you've been out in the market for a couple months now with this concept of committed gateway pricing. I'm just wondering, you know, how or what kind of feedback have you gotten from customers? Obviously, we've heard the other railroads, but, you know, how are you thinking about that idea and its ability to kind of help meet this fairly ambiguous notion of how the merger enhances competition?

Well, let me start. We're not ambiguous. I think how do we have competition and how do we enhance competition? Pretty straightforward. we're going to be able to move products across the country faster than anybody with less touch points if people want to compete against that okay they're going to have to either be able to enhance their service and be able to move it with less touch points with whichever way they can do that or they're going to have to do it in price that's what they're worried about this is on some some lanes they're only going to be able to do it with price we're going to enhance competition to be able to have products that move right now that are consumed mostly in the east it's going to be able to move across the country in a much more seamless manner to open up more markets for it it enhances their capability to sell in markets and move the way products are supposed to move we're going to enhance so that we can compete better against like I mentioned with the intermodal but I could do that with the carload business I could do that with soybeans we're going to be able to move their product in a in a faster much more efficient manner that allows them to open up markets again our competitors whether it's trucks because a large piece of the growth that we see is intermodal is is we're going to be able to remove and give our customers optionality to look at do they want to go intermodal with the railroads or do they want to go by truck the committed gateway gives the railroads both the western and eastern railroad the optionality to have a set price that they can offer to go up to customers and those products that we've identified we've said that we're going to keep every gateway open if somebody wants to get to the southeast through the csx at new orleans they can have that it is the faster road in some markets why would we ever limit that capability so the base is the base and we are enhancing the movement kenny why don't you talk about the conversation with the customers or?

Jennifer, if you want to jump in. I see you trying to jump in, Jennifer. So let me just kind of remind everyone, you know, 520 customers that have signed a letter of support, 700 commercial partners signed a letter of support, 2,000 in total that have signed a letter of support. And together, going out and seeing customers, here's what's undisputed. The customers see the value on the trend. They see the benefits of an interchange going away. They are excited about the fact that their supply chains, I'm talking those that invest in equipment and those that use our system equipment, that that will become more valuable to them and will increase the cycle times there. The things that, as we move throughout the journey, we do know they want to see what we're going to be following. They want to see this with the STB and other stakeholders. But we are staying close to them throughout this whole journey. Let me double down real quick on something that Jim said, though. You know, that's how we're able to win today. Now, I didn't mention this in Jim's last comments about domestic and remodel, but we've got three consecutive quarters where we wreck a quarter, and we've done that, Eric, through a single-line service from this merger, and then a lower cost structure allows us to open up new markets. The margins look a lot better for new pieces of business. Customers see that. Customers appreciate that.

The only thing I was going to add to what you both have said is with committed gateway pricing, we're actually extending the benefit of the merger to customers that would otherwise not be impacted. And so that absolutely enhances competition.

Good point there, Jennifer. Listen, great question. Thank you very much. Oh, go ahead.

Our next question is from the line of Tom Wadavitz from UBS. Please receive your question.

Morning, Tom. Yeah, good morning, Jim. I wanted to ask you about just how you think about the key things you need to execute on. You said, you know, kind of you're looking at like maybe 2Q27 for approval. So you've got some runway ahead you want to execute well, and your service is strong. Your rail network operation is very good, which I think would be supportive in the case you can make it all work, right? How do you think about volume growth? Is that also important for you to deliver volume growth as you continue to build your case that you can handle what's a heavy lift of integrating two large railroads? So I think that's just like, is that an important piece, too? And then I guess related to that, how do you think about volume versus price? I mean, you are more, you know, you've got efficient operation, low-cost structure. Do you intentionally say, hey, we just want to do a little more volume? I think you may be intermodal and grain markets where I think there's been some, you know, question about price versus volume. Thank you.

Listen, we want to increase volume, no if, answer, but. That's a goal. So don't have to espouse or talk about that for too long. We want to increase revenue. So we do that by having more business, being able to move more products on our railroad, drive more business to our railroad but also be very diligent on on price and making sure that we price in the right way they increase revenue and you could see that again this quarter we've done a great job of it in the last few quarters of where we are on revenue so that is key and remember i separate what we're doing for the merger versus what we're doing for the railroad today the railroad today's job is is to run at a real high level and i give eric and the entire operating team a lot of credit you know i look at i look at it and i'm an old operating guy okay spent a lot of time in this 48 years i've been railroading to be able to look at railroads and what we can do and i'm very impressed and i see more runway there to be able to make ourselves more efficient and be able to move the products and that way then kenny can go sell for rep sell our customers and what we can do better so for us absolutely we need to increase revenue which we've done and we have good line of sight on it and we have to price at the right level for the for the service that we're providing for the value we're providing and i think there's a lot of runway left in there that we can show what we're delivering for our customers with better speed better flexibility better timing that they can win in the marketplace and we can grow together there's certain markets we react and we have to react we've had to react on on the movement of some grain products okay just because of where the market is we've done it with soda ash so it is a you know if it was easy my mother would be here running the railroad so it's not easy but our key goal is is increase volume and increase revenue drive it to the bottom line high level of service for our customers and operate as efficiently as possible you think that's a good summary of the

way we are jennifer that's an excellent summary and even with some of the high truck competition We've seen in the last couple of years that have compressed it. Truck pricing is still a more expensive option than rail. And so what we're doing to be more efficient and get into new markets and offer new services to our customers just positions us very well to grow going forward.

Kenny, anything you want to add or you're good? No, I think you covered it all. Son of a gun. I was trying to pass it over to you. But next question.

Next question is from the line of Rika Harain with Deutsche Bank. Please assist you with your question. Good morning.

Hey, good morning. Thanks for squeezing me in. So I wanted to ask about headcount. You know, I think you made this comment, record one to workforce productivity, and this is indeed the lowest quarter one headcount levels we've ever seen, and that's as a growing top line. So maybe you can just update us. Is this the new normal, or could it be better? I think, Jim, you made a comment that you have line of sight to be better than that, and Eric's holding us to that. So maybe talk about that and drill into effectively how this is possible, how are you achieving these productivity initiatives, what are you doing differently, and as you think about maybe the pending merger with NS, do you think these productivity gains are transferable, or do you think there's something unique about the UNP network allowing you to achieve these levels of productivity more easily than maybe alternative networks?

You know, I'm going to pass it over to Eric here in just one second, because he has the largest amount of employees. Of course, we look at everything we're doing on our management and how we operate the railroad from a management side, and we've done a good job of being able to be more efficient and through attrition be able to size it the right way, and we see more benefit on there. As far as the combination, absolutely. I don't have to talk about it a lot. We do see substantial improvement in how productive we can be when the two railroads are combined. You know, you only need one chief marketing officer, and you only need one CEO. So some of those things are real easy. So I'm just joking, Kenny, don't worry about it. But at the end of the day, yes, we see a lot of that. And, Eric, on the day-to-day operating the railroad, what do you see moving forward?

Yeah, and Jim got it exactly right, that they absolutely are transferable. So 7% improved workforce productivity. When you think about how we did that, and then you think about tomorrow and a week from now and a month from now, it's the same thing. You know, really one of the greatest strengths of Union Pacific, yes, it's all the initiatives that we execute successfully, but it's more our mindset. Because when you have a mindset that says productivity drives growth, well, then you can drive alignment within the whole company of why do we work every day to be productive. And we have that. We have that. We do that exceptionally well. And then you combine that with operating this kind of mindset of perpetual dissatisfaction. And you can look at it every single day. Like it doesn't matter. I can look at any scorecard, and the team can look at any scorecard, and they can have lots of conversations just like I do, and you see things. Now, sometimes those things are big, and they take a while because maybe you have to make a bunch of changes. But when you look at our productivity over the last handful of years, a lot of them have come just straight from the fundamentals. Why is one terminal at 19 hours of dwell, but another terminal is at 15 hours of dwell? Why can't 19 be 15? And so we go and we grind on that, and we grind and we grind until we can get that terminal as good as the other one. Now that's what I mean by fundamentals, and it expands across our entire network. layer on top of that the technology that Jim had mentioned and Jennifer had mentioned and I mentioned in a previous question that was asked, well, now you've got a multiplying factor, right? Now you're actually getting even more out of those initiatives. And that's what we do. I could not be more proud of what the team has accomplished in productivity because, again, we do it to position Kenny and the team in the best possible position to win in the marketplace, and there's no finish line to that.

Thanks for the question.

The next question is from the line of Ari Rosa with Citigroup. Please receive your question. Good morning, Ari.

Hey, good morning, everyone, and nice quarter here, and thank you for squeezing me in. I actually wanted to stay on the headcount point because it is truly impressive what the efficiency gains that you're able to achieve here. But, Jim, you've made this commitment to the unions that all the union jobs are going to be protected. I'm wondering, given the kind of productivity gains that you're seeing, is there any dimension in you worry that that could slow down actually some of that progress? Or how are you thinking about that commitment weighed against the very impressive productivity gains that you're achieving? And then just kind of broadening out, is there anything that you think you would be doing differently in terms of how you're operating the railroad currently if the merger process were not going on?

Let me answer that last question. We operate the railroad the best we can today and always look for improvement. So we're not changing. And I'm telling you, I've sort of tried to tell everybody this real clear. And people will tell you at Union Pacific, there's people that are dealing with the merger, dealing with the application, dealing with how we look at putting it together when it gets approved, because it's going to get approved. It's such a compelling case. But bottom line is, most of the people at Union Pacific, their job is to operate the railroad. If anybody thinks I'm going to let people get lost in traveling to some place to go talk about the merger, okay, that's not going to happen. We're talking, we're railroading the Union Pacific the way we are today, okay? No ifs, ands, or buts. So I'm very comfortable that we're doing the right thing. The commitment with the unions, I thought about this. I didn't wake up one morning, have my cup of coffee, sitting out in the balcony looking at 6 o'clock in the morning at the metrics and said, you know, maybe I should just protect every employee. When we make big decisions like that, we looked at attrition numbers, normal attrition numbers for both railroads. We looked at how fast we think that we can put this together and optimize it so that the service is not impacted for the customers on both railroads. And we're very comfortable that the commitment that we gave will not limit our capability to move ahead and be productive, but it also guarantees people a job. We're very comfortable with that, with just the attrition numbers. And remember, this is a growth story. We see the opportunity to grow the business in intermodal, for example. There's areas in the country where we just don't move intermodal. it gets trucked that we know we can we can give the optionality and if our service stays high we can win more business and bring it on the railroad so i'm very comfortable with the attrition numbers plus what we do for uh growing the business that uh that commitment is strong it's set in stone but we're very comfortable when we made that commitment that it was made with a thoughtful process so i don't see any issue with that commitment at all impacting us as we move ahead

Thank you. Our final question is from the line of Ravi Shankar with Morgan Stanley. Please proceed with your question.

Ravi, good morning.

Hi, good morning. It's actually Madison on for Ravi. Thanks for taking the question.

Good morning, Madison. Nice to have you on.

Thank you. Just one more to kind of end the call. Just wondering, given your current network utilization and service levels and kind of current levels of inflation. I was wondering what does operating leverage and incremental margins look like in the upcycle?

Well, listen, we love upcycle, you know, and Jennifer would scold me if I got into too much detail, but, Madison, that's exactly the way we're thinking about it, is there's so many things that are going on that are sort of holding back all the railroads, you know, truck pricing, all those things that would be helpful. So, you know, higher natural gas, we love it. Now, anybody who heats a pool like I do in Phoenix, Arizona, I don't like it. But at the end of the day, for the railroad, I like it. So I think we're in a good place. We operate in a good manner. And in Madison, I see an upcycle would be very beneficial. And if everything in the world settled down and we had the economy growing, it would really help us because we grow with America and the businesses in America. So thank you very much for the question.

Thank you, Mr. Vena. There are no additional questions at this time. I'd like to turn to you for closing comments.

Well, listen, thank you very much. I know there's lots going on. There's many companies reporting, and I'd like to thank you all for joining us this morning. As far as our shareholders, our owners, you can be rest assured that we look at this railroad every day to make sure we operate it in the best way possible to move ahead. I'm very comfortable that we're doing that, have the right team. You know, I joke around with Kenny about only needing one chief marketing officer, but at the end of the day, you know, him and his team are doing a good job. I can't be prouder of Eric and the team the way they're leading, and Jennifer and her whole team that keeps our feet to the fire and making sure that we're doing the right thing. So with that, looking forward to putting the application in on the 30th, getting it accepted, and moving ahead with this transaction that will just build on the results of Union Pacific and make us a stronger railroad and a strong competitor to move the products that Americans use every day. Thank you very much. Appreciate everybody joining us.

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may now disconnect your lines at this time, and have a wonderful day.