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Maintenance vs. growth capex

Replacement spending versus expansion spending, how 10-Ks describe the mix, and Union Pacific's capital program.

The short answer

Maintenance capex, sometimes called replacement or sustaining capex, is the spending needed to keep existing assets in working order. Growth capex, sometimes called expansion or capacity spending, is the spending that adds new assets or new capacity. Many 10-Ks describe both kinds of work without using those labels, and they often do not split the year's total into two clean numbers.

The labels and the filings

The cash spent on property, plant and equipment in a period is capital expenditure, shown in the investing section of the cash flow statement. That total mixes replacements (a worn rail, a worn roof) with expansions (a new line, a new plant). Readers sometimes split the total into maintenance capex and growth capex when they try to judge how much spending is required just to hold the operation together. US GAAP does not require that split, so a 10-K may discuss both kinds of work in words without putting two amounts on the cash flow statement.

How one 10-K describes the split

Union Pacific's 10-K for 2025 does not use the phrases maintenance capex or growth capex. It does describe both ideas. Each year, it says, the company develops a capital program for the replacement of assets and for the acquisition or construction of assets that enable it to enhance operations or provide new service offerings to customers. Later it states that a large portion of its capital expenditures is for replacement of existing track assets and other road properties, typically performed by its employees, and for track line expansion and other capacity projects. In fiscal 2025, those purchases of property and equipment were $3.8B. The cash figure is the combined program. The note tells you that replacement and expansion are both in it; it does not, in these sentences, isolate a maintenance amount.

Source: Union Pacific 10-K for fiscal 2025, filed Feb 6, 2026

What this does not tell you

The 10-K may not publish two numbers. When a company only describes the mix, any split you see in a presentation or a model is someone's estimate, not a GAAP line.
Replacement is not always 'just upkeep.' Replacing track or equipment can include newer technology. Expansion can include projects that take years to generate cash.
Related pages. Capital expenditures covers the cash total. Property, plant and equipment is the stock of assets on the balance sheet. Capex vs. operating expenses is a different cut: capitalized spending versus costs expensed as incurred.

Common questions

What is maintenance capex?

Spending to replace or keep existing assets in service. Filings often say replacement rather than maintenance.

What is growth capex?

Spending that adds new assets or new capacity, such as a line expansion. Union Pacific's 10-K groups this with acquisition or construction that enhances operations or adds service offerings.

Does every 10-K split the two?

No. US GAAP requires a capital-expenditure figure, not a maintenance-versus-growth split. Union Pacific describes both kinds of work and reports one cash total.

Is replacement capex the same as depreciation?

No. Depreciation spreads past purchases over useful lives. Replacement capex is cash spent this period. The two amounts are often different.

Where do I look?

In the cash flow statement's investing section for the total, and in the MD&A or a capital-spending note for any discussion of replacement versus expansion.

Disclosures

Editor holdings: The editor holds no position in any company named on this page. As of Nov 11, 2026.
Compensation: Nobody paid for this page. No affiliate links on this page.
Sources: Each company's own SEC filings, linked next to each number.
Last updated: Nov 10, 2026

General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn't consider your situation.

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