Union Pacific raised its financial outlook Thursday after reporting higher second-quarter volume, revenue and profit, with executives saying the railroad set records across several financial measures.

The Omaha-based carrier is one of two major freight railroads serving the western United States and a key barometer for goods movement across the economy, moving everything from consumer imports and auto parts to grain and coal.

“Strong execution and volume growth enabled another successful quarter and record financial results,” Chief Executive Jim Vena said.

Operating income at the railroad rose 9% to $2.8 billion, while revenue increased 12% to $6.86 billion. Earnings per share, adjusted for one-time items, climbed 13% to $3.41.

“Put it all together, we had a record quarter,” Union Pacific (NYSE: UNP) Chief Financial Officer Jennifer Hamann said on the company’s earnings call. Hamann said the Omaha-based railroad reached new highs for revenue, operating income and net income.

Union Pacific’s operating ratio was 59.7%, up 0.7 percentage points from a year earlier. Operating expenses increased 13%, reflecting inflation, higher traffic volume and costs tied to the proposed merger with Norfolk Southern (NYSE: NSC), a deal that would create the first transcontinental freight railroad spanning both coasts if it clears regulatory review.

Total volume increased 2% during the quarter. Premium business, which includes intermodal and automotive traffic, rose 4%, with the gain coming almost entirely from intermodal. Industrial products volume was up 3%. Bulk business declined 1%, as a 12% increase in grain traffic was not enough to offset a 14% drop in coal volume.

“Domestic intermodal delivered its fourth consecutive record quarter in both volume and revenue. It’s evident our outstanding service set the foundation to grow the business, and that’s exactly what we’re doing,” said Kenny Rocker, executive vice president of marketing and sales. “In the second quarter, private asset, rail asset, and parcel volumes were all up double digits, benefiting from constrained truck capacity and share gains.”

Union Pacific now expects high single-digit percentage growth in earnings per share, compared with its previous outlook for mid-single-digit growth. The company said its economic forecast improved to mixed from muted.

The railroad said it has a positive outlook for all of its major traffic segments except coal. Coal faces pressure from elevated power plant stockpiles and lower natural gas prices, a trend that reflects the broader long-term shift in U.S. electricity generation away from coal toward cheaper natural gas and renewables.

Union Pacific also reported improvement in key operating measures during the quarter. Average car miles per day increased 5% to 231, terminal dwell declined 7% to 19.7 hours, and average train speed rose 3% to 24.7 mph.

“We delivered record second quarter operating performance, ran a fluid network, and improved safety all while handling 2% more volume,” said Eric Gehringer, executive vice president of operations.

The company said workforce productivity reached a record as train and engine crew headcount declined 2%. Union Pacific also set records for train length and fuel consumption, while terminal dwell matched a company record. The operating gains are consistent with the railroad industry’s broader adoption of operating models designed to run longer, fewer trains with leaner crews.

Union Pacific said safety performance improved as well, but it did not provide specific figures for employee injury rates or train accident rates. Safety remains a closely watched metric for the freight rail sector, which faced national scrutiny after the 2023 derailment in East Palestine, Ohio.