UNP · 10-Q · 2026Q2 · Full report

Interest Rate Exposure

UNION PACIFIC CORP · 2026-07-23 · Importance 42 · Surprise 14

Union Pacific’s effective interest rate increased to 4.2% in both the second quarter and first six months of 2026 from 4.1% in the comparable 2025 periods. Lower weighted-average debt levels of $30.5 billion in the quarter and $31.0 billion year to date reduced interest expense despite the higher rates. The Company’s June 30, 2026 incremental borrowing rate on operating leases was 4.1%, compared with 4.0% at December 31, 2025.

Key facts

• Interest expense decreased in Q2 2026 versus Q2 2025; effective interest rate was 4.2% in both Q2 and year-to-date 2026 versus 4.1% in the same periods of 2025. Weighted-average debt levels were $30.5 billion in Q2 2026 and $32.8 billion in Q2 2025; $31.0 billion year-to-date 2026 and $32.3 billion year-to-date 2025. source