Union Pacific and Norfolk Southern have enhanced their joint merger application with expanded customer protections, aiming to create the first single-line transcontinental network. The new terms include doubling Committed Gateway Pricing eligibility, extending protections for 3-to-2 rail connections, granting temporary access to alternative rail lines during integration disruptions, and establishing a formal rate-relief process. The companies target a mid-2027 closing. Union Pacific reported Q2 2026 net income of $2.0 billion and adjusted EPS of $3.41, up 13%, with an adjusted operating ratio of 59.2%. Norfolk Southern posted record revenues of $3.5 billion, up 11%, but adjusted EPS rose only 7% to $3.52, with an adjusted operating ratio of 65.5%, reflecting merger costs and fuel expenses. Union Pacific remains the more profitable operator, but the merger could help Norfolk Southern close the margin gap.
Norfolk Southern CorporationMerger bid enhanced with customer protections; record revenues but EPS growth modest due to merger costs.
Union Pacific CorporationEnhanced merger bid with customer protections; strong Q2 earnings with adjusted EPS up 13%.
