Properties

12 Months Ended

Dec. 31, 2025

Property, Plant and Equipment [Abstract]


			Accumulated		Net Book		Depreciation
December 31, 2025	Cost		Depreciation		Value		Rate (1)
	($ in millions)

Land	$	4,172	$	—	$	4,172	—

Roadway:
Rail and other track material	8,702		(2,169)		6,533		2.48	%
Ties	6,694		(1,956)		4,738		3.33	%
Ballast	3,452		(1,069)		2,383		2.70	%
Construction in process	823		—		823		—
Other roadway	15,526		(4,934)		10,592		2.72	%
Total roadway	35,197		(10,128)		25,069

Equipment:
Locomotives	6,408		(2,348)		4,060		3.67	%
Freight cars	2,724		(1,018)		1,706		2.31	%
Computers and software	1,085		(491)		594		9.89	%
Construction in process	158		—		158		—
Other equipment	1,262		(554)		708		4.70	%
Total equipment	11,637		(4,411)		7,226

Other property	90		(78)		12		2.53	%

Total properties	$	51,096	$	(14,617)	$	36,479


			Accumulated		Net Book		Depreciation
December 31, 2024	Cost		Depreciation		Value		Rate (1)
	($ in millions)

Land	$	4,125	$	—	$	4,125	—

Roadway:
Rail and other track material	8,402		(2,098)		6,304		2.44	%
Ties	6,450		(1,860)		4,590		3.35	%
Ballast	3,339		(1,005)		2,334		2.73	%
Construction in process	680		—		680		—
Other roadway	15,038		(4,589)		10,449		2.73	%
Total roadway	33,909		(9,552)		24,357

Equipment:
Locomotives	6,242		(2,180)		4,062		3.66	%
Freight cars	2,733		(1,021)		1,712		2.45	%
Computers and software	1,149		(570)		579		9.88	%
Construction in process	236		—		236		—
Other equipment	1,304		(558)		746		4.60	%
Total equipment	11,664		(4,329)		7,335

Other property	90		(76)		14		2.48	%

Total properties	$	49,788	$	(13,957)	$	35,831

(1)Composite annual depreciation rate for the underlying assets, excluding the effects of the amortization of any deficiency (or excess) that resulted from our depreciation studies.

Gains from operating property sales, inclusive of the railway line sales, amounted to $253 million, $490 million, and $43 million in 2025, 2024, and 2023, respectively. “Other current assets” includes $185 million pertaining to sales of property in 2025 in which the cash proceeds will be received in 2026.

Acquisition of Assets of Cincinnati Southern Railway

On March 15, 2024, we completed the acquisition of a 337 mile railway line that extends from Cincinnati, Ohio to Chattanooga, Tennessee from the CSR for $1.7 billion. We previously operated this line subject to an operating lease agreement, which was terminated upon the close of the transaction. Lease expense associated with the prior operating lease agreement totaled $5 million and $26 million in 2024 and 2023, respectively. The purchase price was allocated to the assets acquired in the transaction. The asset purchase is reflected in “Properties less accumulated depreciation” on the Consolidated Balance Sheet and is distinctly identified in the “Cash flows from investing activities” section of the Consolidated Statement of Cash Flows.

Sales of Railway Lines

On September 5, 2024, we consummated a transaction with the VPRA to sell a railway line (“Manassas Line”) to support the expansion of passenger rail service in the Commonwealth of Virginia. The total purchase price to be paid by the VPRA is $357 million and we received $315 million in cash proceeds at closing. The remainder of the proceeds are expected to be received by the end of 2027. The total gain recognized as a result of the transaction was $323 million. Additionally, the VPRA also agreed to exchange a railway line (“V-Line”) in consideration for the

land and above ground assets described as the “Seminary Passage.” This transaction closed in November 2024 and the gain recognized as a result of the transaction was $53 million.

On September 6, 2024, we consummated an agreement with the City of Charlotte to sell a railway line between Charlotte and Mecklenburg County, NC in exchange for $74 million. The cash proceeds from the transaction were received at closing and the transaction resulted in a gain of $57 million.

The gains from these transactions are reflected in “Gains and losses on properties” and cash proceeds are included in “Property sales and other transactions” on the Consolidated Statement of Cash Flows.

Capitalized Interest

Total interest cost incurred on debt was $821 million, $833 million, and $743 million during 2025, 2024, and 2023, respectively, of which $29 million, $26 million, and $21 million was capitalized during 2025, 2024, and 2023, respectively.