Union Pacific Reports Fourth Quarter and Full Year 2024 Results
Union Pacific (UNP) reported strong fourth quarter and full year 2024 results. Q4 net income reached $1.8 billion, or $2.91 per diluted share, up 7% from 2023, despite including $40 million in labor expenses from a crew staffing agreement. Full-year 2024 net income was $6.7 billion ($11.09 per share), up from $6.4 billion in 2023.
Q4 operating revenue decreased 1% to $6.1 billion, affected by lower fuel surcharge revenue and unfavorable mix, though revenue carloads increased 5%. The operating ratio improved to 58.7%, while operating income grew 5% to $2.5 billion.
For full-year 2024, operating revenue increased 1% to $24.3 billion, with a 3% increase in carloads. The company achieved a 59.9% operating ratio and $9.7 billion in operating income. UNP repurchased 6.3 million shares for $1.5 billion and maintained a $3.4 billion capital program.
Union Pacific (UNP) ha riportato risultati solidi per il quarto trimestre e per l'intero anno 2024. Nel Q4, l'utile netto ha raggiunto i 1,8 miliardi di dollari, ovvero 2,91 dollari per azione diluita, in aumento del 7% rispetto al 2023, nonostante l'inclusione di 40 milioni di dollari in spese lavorative dovute a un accordo di assunzione. L'utile netto per l'intero anno 2024 è stato di 6,7 miliardi di dollari (11,09 dollari per azione), rispetto ai 6,4 miliardi di dollari del 2023.
Le entrate operative nel Q4 sono diminuite dell'1% a 6,1 miliardi di dollari, influenzate da un calo delle entrate da sovrattassa sui carburanti e da una combinazione sfavorevole, sebbene i carichi di reddito siano aumentati del 5%. Il rapporto operativo è migliorato al 58,7%, mentre l'utile operativo è cresciuto del 5% a 2,5 miliardi di dollari.
Per l'intero anno 2024, le entrate operative sono aumentate dell'1% a 24,3 miliardi di dollari, con un incremento del 3% nei carichi. L'azienda ha raggiunto un rapporto operativo del 59,9% e 9,7 miliardi di dollari di utile operativo. UNP ha riacquistato 6,3 milioni di azioni per 1,5 miliardi di dollari e ha mantenuto un programma di capitale di 3,4 miliardi di dollari.
Union Pacific (UNP) reportó resultados sólidos en el cuarto trimestre y para el año completo 2024. En el Q4, el ingreso neto alcanzó los 1,8 mil millones de dólares, o 2,91 dólares por acción diluida, un aumento del 7% en comparación con 2023, a pesar de incluir 40 millones de dólares en gastos laborales de un acuerdo de personal. El ingreso neto del año completo 2024 fue de 6,7 mil millones de dólares (11,09 dólares por acción), frente a 6,4 mil millones de dólares en 2023.
Los ingresos operativos del Q4 disminuyeron un 1% a 6,1 mil millones de dólares, afectados por menores ingresos por recargos de combustible y una mezcla desfavorable, aunque las cargas de ingresos aumentaron un 5%. El índice operativo mejoró al 58,7%, mientras que el ingreso operativo creció un 5% a 2,5 mil millones de dólares.
Para el año completo 2024, los ingresos operativos aumentaron un 1% a 24,3 mil millones de dólares, con un aumento del 3% en las cargas. La empresa logró un índice operativo del 59,9% y 9,7 mil millones de dólares en ingreso operativo. UNP recompró 6,3 millones de acciones por 1,5 mil millones de dólares y mantuvo un programa de capital de 3,4 mil millones de dólares.
유니온 퍼시픽 (UNP)이 2024년 4분기 및 연간 실적을 발표했습니다. Q4 순이익은 18억 달러, 즉 희석 주당 2.91달러에 달하며, 2023년 대비 7% 증가했습니다. 이는 인력 배치 계약에 따른 4천만 달러의 인건비를 포함하고 있습니다. 2024년 전체 연간 순이익은 67억 달러(주당 11.09달러)로, 2023년의 64억 달러에서 증가했습니다.
Q4 운영 수익은 61억 달러로 1% 줄어들었으며, 이는 연료 할증료 수익 감소와 불리한 믹스에 의해 영향을 받았습니다. 하지만 수익 화물량은 5% 증가했습니다. 운영 비율은 58.7%로 개선되었고, 운영 이익은 25억 달러로 5% 증가했습니다.
2024년 전체 연간 운영 수익은 243억 달러로 1% 증가했으며, 화물량은 3% 증가했습니다. 회사는 59.9%의 운영 비율과 97억 달러의 운영 이익을 기록했습니다. UNP는 630만 주를 15억 달러에 재매입하고 34억 달러의 자본 프로그램을 유지했습니다.
Union Pacific (UNP) a rapporté des résultats solides pour le quatrième trimestre et l'année complète 2024. Au Q4, le bénéfice net a atteint 1,8 milliard de dollars, soit 2,91 dollars par action diluée, en hausse de 7% par rapport à 2023, malgré l'inclusion de 40 millions de dollars de frais de personnel d'un accord de dotation. Le bénéfice net pour l'année complète 2024 s'élevait à 6,7 milliards de dollars (11,09 dollars par action), contre 6,4 milliards de dollars en 2023.
Les revenus d'exploitation du Q4 ont diminué de 1% à 6,1 milliards de dollars, affectés par une baisse des revenus de surtaxe de carburant et un mélange défavorable, bien que le nombre de chargements ait augmenté de 5%. Le ratio opérationnel s'est amélioré à 58,7%, tandis que le bénéfice d'exploitation a augmenté de 5% à 2,5 milliards de dollars.
Pour l'année complète 2024, les revenus d'exploitation ont augmenté de 1% à 24,3 milliards de dollars, avec une augmentation de 3% des chargements. L'entreprise a atteint un ratio opérationnel de 59,9% et un bénéfice d'exploitation de 9,7 milliards de dollars. UNP a racheté 6,3 millions d'actions pour 1,5 milliard de dollars et a maintenu un programme d'investissement de 3,4 milliards de dollars.
Union Pacific (UNP) berichtete über starke Ergebnisse im vierten Quartal und für das gesamte Jahr 2024. Im Q4 erreichte der Nettogewinn 1,8 Milliarden Dollar, was 2,91 Dollar pro verwässerter Aktie entspricht, eine Steigerung von 7% im Vergleich zu 2023, obwohl 40 Millionen Dollar an Arbeitskosten aus einer Mitarbeitervereinbarung enthalten sind. Der Nettogewinn für das gesamte Jahr 2024 belief sich auf 6,7 Milliarden Dollar (11,09 Dollar pro Aktie), im Vergleich zu 6,4 Milliarden Dollar im Jahr 2023.
Die operativen Einnahmen im Q4 sanken um 1% auf 6,1 Milliarden Dollar, beeinflusst durch niedrigere Einnahmen aus Treibstoffzuschlägen und eine ungünstige Mischung, obwohl die Einnahmelast um 5% zunahm. Das Betriebsergebnis verbesserte sich auf 58,7%, während das operative Ergebnis um 5% auf 2,5 Milliarden Dollar wuchs.
Für das Gesamtjahr 2024 stiegen die operativen Einnahmen um 1% auf 24,3 Milliarden Dollar, wobei die Lasten um 3% zunahmen. Das Unternehmen erreichte einen operativen Verhältnis von 59,9% und ein operatives Ergebnis von 9,7 Milliarden Dollar. UNP kaufte 6,3 Millionen Aktien für 1,5 Milliarden Dollar zurück und behielt ein Investitionsprogramm von 3,4 Milliarden Dollar bei.
- Q4 earnings per share increased 7% to $2.91
- Full-year net income grew to $6.7 billion, up from $6.4 billion
- Operating ratio improved 220 basis points to 58.7% in Q4
- Q4 revenue carloads increased 5%
- Workforce productivity improved 6% to 1,118 car miles per employee
- Announced $4.0-$4.5 billion share repurchase plan for 2025
- Q4 operating revenue declined 1% to $6.1 billion
- Q4 locomotive productivity declined 3%
- Additional $40 million labor expense from crew staffing agreement
Insights
Union Pacific's Q4 2024 results showcase exceptional operational efficiency and financial discipline. The standout 220 basis point improvement in operating ratio to 58.7% (even with a 70bps headwind from crew agreements) demonstrates remarkable cost management and operational excellence. This places UNP among the industry's most efficient operators.
Key performance metrics tell a compelling story:
- Volume growth of
5% despite challenging economic conditions, indicating market share gains and strong commercial execution - Workforce productivity increase of
6% to 1,118 car miles per employee reflects successful implementation of precision scheduled railroading principles - Operating income growth of
5% to$2.5 billion despite revenue headwinds shows strong cost discipline
The company's capital allocation strategy remains shareholder-friendly, with
Looking ahead to 2025, management's guidance for high-single to low-double digit EPS CAGR appears achievable given: 1) Demonstrated pricing power in a competitive market 2) Continued operational efficiency improvements 3) Robust share repurchase program. However, headwinds from coal demand decline and international intermodal comparisons warrant monitoring.
The
-
Fourth quarter earnings per diluted share of
$2.91 7% -
Fourth quarter operating ratio of
58.7% -
Full year earnings per diluted share of
$11.09 6% -
Full year operating ratio of
59.9% -
Full year return on invested capital of
15.8%
Reported net income for full year 2024 was
“Our strong fourth quarter results represent a great capstone to a very successful year for Union Pacific,” said Jim Vena, Union Pacific Chief Executive Officer. “The team has fully embraced our strategy to lead the industry in safety, service, and operational excellence. That commitment has produced industry leading financial results in 2024, punctuated by our strong finish to the year. We will carry this momentum into 2025 as we seek to unlock the full potential of the UP franchise.”
Fourth Quarter Summary: 2024 vs. 2023
Financial Results: Strong Service and Efficient Performance Enabled Volume Growth; Fourth Quarter Records for Operating Income and Net Income
-
Operating revenue of
$6.1 billion 1% driven by lower fuel surcharge revenue, unfavorable business mix, and lower other revenue, partially offset by increased volume and core pricing gains. -
Revenue carloads were up
5% . -
Operating ratio was
58.7% , an improvement of 220 basis points. This includes an unfavorable 70 basis point impact from the ratification of a crew staffing agreement. -
Operating income of
$2.5 billion 5% .
Operating Performance: Improved Network Fluidity Amid Volume Growth; Fourth Quarter Record for Workforce Productivity
-
Quarterly freight car velocity improved
1% to 219 daily miles per car. -
Quarterly locomotive productivity declined
3% to 136 gross ton-miles (GTMs) per horsepower day. -
Quarterly workforce productivity increased
6% to 1,118 car miles per employee. -
Fuel consumption rate improved
1% to 1.078, measured in gallons of fuel per thousand GTMs.
Full Year Summary: 2024 vs. 2023
Financial Results: Higher Operating Revenue Driven by Volume and Core Pricing Gains
-
Operating revenue of
$24.3 billion 1% driven by increased volume and core pricing gains, partially offset by lower fuel surcharge revenue, unfavorable business mix, and lower other revenue. -
Revenue carloads increased
3% . -
Operating ratio of
59.9% improved 240 basis points. -
Operating Income of
$9.7 billion 7% . -
Union Pacific’s 2024 capital program totaled
$3.4 billion -
The company repurchased 6.3 million shares in 2024 at an aggregate cost of
$1.5 billion
Operating Performance: Strong Improvement Across Safety, Service, and Operational Excellence; Full Year Record for Workforce Productivity
- Union Pacific’s reportable personal injury and reportable derailment rates both improved.
-
Freight car velocity improved
2% to 208 daily miles per car. -
Locomotive productivity improved
5% to 135 GTMs per horsepower day. -
Workforce productivity improved
6% to 1,062 car miles per employee. -
Fuel consumption rate improved
1% to 1.082, measured in gallons of fuel per thousand GTMs.
2025 Outlook: On Track with Investor Day Targets
- Volume impacted by mixed economic backdrop, coal demand, and challenging year-over-year international intermodal comparisons
- Pricing dollars accretive to operating ratio
- Earnings per share growth consistent with attaining the 3-year CAGR target of high-single to low-double digit
- Industry-leading operating ratio and return on invested capital
-
No change to long-term capital allocation strategy
-
Capital plan of
$3.4 billion -
Share repurchases of
$4.0 $4.5 billion
-
Capital plan of
Fourth Quarter 2024 Earnings Conference Call
Union Pacific will provide a webcast for its fourth quarter 2024 earnings release presentation live at https://investor.unionpacific.com and via teleconference on Thursday, January 23, 2025, at 8:45 a.m. Eastern Time. Participants may join the conference call by dialing 877-407-8293 (or for international participants, 201-689-8349).
ABOUT UNION PACIFIC
Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable, and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.
Supplemental financial information is attached.
This news release and related materials contain statements about the Company’s future that are not statements of historical fact, including specifically the statements regarding the potential impacts of public health crises, including pandemics, epidemics and the outbreak of other contagious diseases, such as the coronavirus and its variant strains (COVID); the
Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times that, or by which, such performance or results will be achieved. Forward-looking information, including expectations regarding operational and financial improvements and the Company’s future performance or results are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statement. Important factors, including risk factors, could affect the Company’s and its subsidiaries’ future results and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements. Information regarding risk factors and other cautionary information are available in the Company’s Annual Report on Form 10-K for 2023, which was filed with the SEC on February 9, 2024. The Company updates information regarding risk factors if circumstances require such updates in its periodic reports on Form 10-Q and its subsequent Annual Reports on Form 10-K (or such other reports that may be filed with the SEC).
Forward-looking statements speak only as of, and are based only upon information available on, the date the statements were made. The Company assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References to the Company’s website are provided for convenience and, therefore, information on or available through the website is not, and should not be deemed to be, incorporated by reference herein.
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Condensed Consolidated Statements of Income (unaudited) |
|||||||||||||||||
Millions, Except Per Share Amounts and Percentages, For the Periods Ended December 31, |
4th Quarter |
|
Full Year |
||||||||||||||
|
2024 |
|
|
2023 |
|
% |
|
|
2024 |
|
|
2023 |
|
% |
|||
Operating Revenues |
|
|
|
|
|
|
|
||||||||||
Freight revenues |
$ |
5,789 |
|
$ |
5,801 |
|
- |
% |
|
$ |
22,811 |
|
$ |
22,571 |
|
1 |
% |
Other revenues |
|
332 |
|
|
358 |
|
(7 |
) |
|
|
1,439 |
|
|
1,548 |
|
(7 |
) |
Total operating revenues |
|
6,121 |
|
|
6,159 |
|
(1 |
) |
|
|
24,250 |
|
|
24,119 |
|
1 |
|
Operating Expenses |
|
|
|
|
|
|
|
||||||||||
Compensation and benefits |
|
1,261 |
|
|
1,169 |
|
8 |
|
|
|
4,899 |
|
|
4,818 |
|
2 |
|
Purchased services and materials |
|
619 |
|
|
645 |
|
(4 |
) |
|
|
2,520 |
|
|
2,616 |
|
(4 |
) |
Fuel |
|
581 |
|
|
759 |
|
(23 |
) |
|
|
2,474 |
|
|
2,891 |
|
(14 |
) |
Depreciation |
|
606 |
|
|
589 |
|
3 |
|
|
|
2,398 |
|
|
2,318 |
|
3 |
|
Equipment and other rents |
|
248 |
|
|
229 |
|
8 |
|
|
|
920 |
|
|
947 |
|
(3 |
) |
Other |
|
281 |
|
|
361 |
|
(22 |
) |
|
|
1,326 |
|
|
1,447 |
|
(8 |
) |
Total operating expenses |
|
3,596 |
|
|
3,752 |
|
(4 |
) |
|
|
14,537 |
|
|
15,037 |
|
(3 |
) |
Operating Income |
|
2,525 |
|
|
2,407 |
|
5 |
|
|
|
9,713 |
|
|
9,082 |
|
7 |
|
Other income, net |
|
68 |
|
|
108 |
|
(37 |
) |
|
|
350 |
|
|
491 |
|
(29 |
) |
Interest expense |
|
(312 |
) |
|
(331 |
) |
(6 |
) |
|
|
(1,269 |
) |
|
(1,340 |
) |
(5 |
) |
Income before income taxes |
|
2,281 |
|
|
2,184 |
|
4 |
|
|
|
8,794 |
|
|
8,233 |
|
7 |
|
Income tax expense |
|
(519 |
) |
|
(532 |
) |
(2 |
) |
|
|
(2,047 |
) |
|
(1,854 |
) |
10 |
|
Net Income |
$ |
1,762 |
|
$ |
1,652 |
|
7 |
% |
|
$ |
6,747 |
|
$ |
6,379 |
|
6 |
% |
|
|
|
|
|
|
|
|
||||||||||
Share and Per Share |
|
|
|
|
|
|
|
||||||||||
Earnings per share - basic |
$ |
2.92 |
|
$ |
2.71 |
|
8 |
% |
|
$ |
11.10 |
|
$ |
10.47 |
|
6 |
% |
Earnings per share - diluted |
$ |
2.91 |
|
$ |
2.71 |
|
7 |
|
|
$ |
11.09 |
|
$ |
10.45 |
|
6 |
|
Weighted average number of shares - basic |
|
604.2 |
|
|
608.9 |
|
(1 |
) |
|
|
607.6 |
|
|
609.2 |
|
- |
|
Weighted average number of shares - diluted |
|
605.2 |
|
|
609.9 |
|
(1 |
) |
|
|
608.6 |
|
|
610.2 |
|
- |
|
Dividends declared per share |
$ |
1.34 |
|
$ |
1.30 |
|
3 |
|
|
$ |
5.28 |
|
$ |
5.20 |
|
2 |
|
|
|
|
|
|
|
|
|
||||||||||
Operating Ratio |
|
58.7 |
% |
|
60.9 |
% |
(2.2) pts |
|
|
59.9 |
% |
|
62.3 |
% |
(2.4) pts |
||
Effective Tax Rate |
|
22.8 |
% |
|
24.4 |
% |
(1.6) pts |
|
|
23.3 |
% |
|
22.5 |
% |
0.8 pts |
||
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Freight Revenues Statistics (unaudited) |
|||||||||||||
For the Periods Ended December 31, |
4th Quarter |
|
Full Year |
||||||||||
|
2024 |
|
2023 |
% |
|
|
2024 |
|
2023 |
% |
|||
Freight Revenues (Millions) |
|
|
|
|
|
|
|
||||||
Grain & grain products |
$ |
1,061 |
$ |
986 |
8 |
% |
|
$ |
3,828 |
$ |
3,644 |
5 |
% |
Fertilizer |
|
199 |
|
194 |
3 |
|
|
|
811 |
|
757 |
7 |
|
Food & refrigerated |
|
253 |
|
264 |
(4 |
) |
|
|
1,085 |
|
1,041 |
4 |
|
Coal & renewables |
|
351 |
|
494 |
(29 |
) |
|
|
1,483 |
|
1,916 |
(23 |
) |
Bulk |
|
1,864 |
|
1,938 |
(4 |
) |
|
|
7,207 |
|
7,358 |
(2 |
) |
Industrial chemicals & plastics |
|
582 |
|
538 |
8 |
|
|
|
2,345 |
|
2,176 |
8 |
|
Metals & minerals |
|
507 |
|
540 |
(6 |
) |
|
|
2,081 |
|
2,194 |
(5 |
) |
Forest products |
|
324 |
|
335 |
(3 |
) |
|
|
1,326 |
|
1,347 |
(2 |
) |
Energy & specialized markets |
|
679 |
|
665 |
2 |
|
|
|
2,688 |
|
2,521 |
7 |
|
Industrial |
|
2,092 |
|
2,078 |
1 |
|
|
|
8,440 |
|
8,238 |
2 |
|
Automotive |
|
581 |
|
600 |
(3 |
) |
|
|
2,452 |
|
2,421 |
1 |
|
Intermodal |
|
1,252 |
|
1,185 |
6 |
|
|
|
4,712 |
|
4,554 |
3 |
|
Premium |
|
1,833 |
|
1,785 |
3 |
|
|
|
7,164 |
|
6,975 |
3 |
|
Total |
$ |
5,789 |
$ |
5,801 |
- |
% |
|
$ |
22,811 |
$ |
22,571 |
1 |
% |
Revenue Carloads (Thousands) |
|
|
|
|
|
|
|
||||||
Grain & grain products |
|
234 |
|
216 |
8 |
% |
|
|
850 |
|
798 |
7 |
% |
Fertilizer |
|
51 |
|
47 |
9 |
|
|
|
213 |
|
191 |
12 |
|
Food & refrigerated |
|
40 |
|
42 |
(5 |
) |
|
|
177 |
|
175 |
1 |
|
Coal & renewables |
|
175 |
|
217 |
(19 |
) |
|
|
702 |
|
867 |
(19 |
) |
Bulk |
|
500 |
|
522 |
(4 |
) |
|
|
1,942 |
|
2,031 |
(4 |
) |
Industrial chemicals & plastics |
|
170 |
|
161 |
6 |
|
|
|
672 |
|
645 |
4 |
|
Metals & minerals |
|
179 |
|
189 |
(5 |
) |
|
|
719 |
|
793 |
(9 |
) |
Forest products |
|
52 |
|
52 |
- |
|
|
|
213 |
|
213 |
- |
|
Energy & specialized markets |
|
154 |
|
153 |
1 |
|
|
|
607 |
|
582 |
4 |
|
Industrial |
|
555 |
|
555 |
- |
|
|
|
2,211 |
|
2,233 |
(1 |
) |
Automotive |
|
197 |
|
197 |
- |
|
|
|
824 |
|
820 |
- |
|
Intermodal [a] |
|
911 |
|
782 |
16 |
|
|
|
3,357 |
|
3,028 |
11 |
|
Premium |
|
1,108 |
|
979 |
13 |
|
|
|
4,181 |
|
3,848 |
9 |
|
Total |
|
2,163 |
|
2,056 |
5 |
% |
|
|
8,334 |
|
8,112 |
3 |
% |
Average Revenue per Car |
|
|
|
|
|
|
|
||||||
Grain & grain products |
$ |
4,532 |
$ |
4,580 |
(1 |
)% |
|
$ |
4,505 |
$ |
4,567 |
(1 |
)% |
Fertilizer |
|
3,918 |
|
4,085 |
(4 |
) |
|
|
3,809 |
|
3,962 |
(4 |
) |
Food & refrigerated |
|
6,152 |
|
6,174 |
- |
|
|
|
6,104 |
|
5,929 |
3 |
|
Coal & renewables |
|
2,012 |
|
2,281 |
(12 |
) |
|
|
2,113 |
|
2,211 |
(4 |
) |
Bulk |
|
3,723 |
|
3,712 |
- |
|
|
|
3,710 |
|
3,623 |
2 |
|
Industrial chemicals & plastics |
|
3,445 |
|
3,353 |
3 |
|
|
|
3,493 |
|
3,374 |
4 |
|
Metals & minerals |
|
2,820 |
|
2,860 |
(1 |
) |
|
|
2,893 |
|
2,765 |
5 |
|
Forest products |
|
6,210 |
|
6,326 |
(2 |
) |
|
|
6,229 |
|
6,310 |
(1 |
) |
Energy & specialized markets |
|
4,412 |
|
4,347 |
1 |
|
|
|
4,426 |
|
4,335 |
2 |
|
Industrial |
|
3,771 |
|
3,742 |
1 |
|
|
|
3,818 |
|
3,689 |
3 |
|
Automotive |
|
2,952 |
|
3,061 |
(4 |
) |
|
|
2,976 |
|
2,955 |
1 |
|
Intermodal [a] |
|
1,376 |
|
1,515 |
(9 |
) |
|
|
1,404 |
|
1,504 |
(7 |
) |
Premium |
|
1,656 |
|
1,824 |
(9 |
) |
|
|
1,714 |
|
1,813 |
(5 |
) |
Average |
$ |
2,677 |
$ |
2,822 |
(5 |
)% |
|
$ |
2,737 |
$ |
2,782 |
(2 |
)% |
[a] For intermodal shipments each container or trailer equals one carload. |
|||||||||||||
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Condensed Consolidated Statements of Financial Position (unaudited) |
||||
Millions, Except Percentages |
Dec. 31,
|
Dec. 31,
|
||
Assets |
|
|
||
Cash and cash equivalents |
$ |
1,016 |
$ |
1,055 |
Short-term investments |
|
20 |
|
16 |
Other current assets |
|
2,985 |
|
3,077 |
Investments |
|
2,664 |
|
2,605 |
Properties, net |
|
58,343 |
|
57,398 |
Operating lease assets |
|
1,297 |
|
1,643 |
Other assets |
|
1,390 |
|
1,338 |
Total assets |
$ |
67,715 |
$ |
67,132 |
|
|
|
||
Liabilities and Common Shareholders' Equity |
|
|
||
Debt due within one year |
$ |
1,425 |
$ |
1,423 |
Other current liabilities |
|
3,829 |
|
3,683 |
Debt due after one year |
|
29,767 |
|
31,156 |
Operating lease liabilities |
|
925 |
|
1,245 |
Deferred income taxes |
|
13,151 |
|
13,123 |
Other long-term liabilities |
|
1,728 |
|
1,714 |
Total liabilities |
|
50,825 |
|
52,344 |
Total common shareholders' equity |
|
16,890 |
|
14,788 |
Total liabilities and common shareholders' equity |
$ |
67,715 |
$ |
67,132 |
Return on Average Common Shareholders' Equity |
42.6 % |
47.3 % |
Return on Invested Capital as Adjusted (ROIC)* |
15.8 % |
15.5 % |
* ROIC is a non-GAAP measure; however, management believes that it is an important measure in evaluating efficiency and effectiveness of our long-term capital investments. See page 9 for a reconciliation to GAAP. |
||
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Condensed Consolidated Statements of Cash Flows (unaudited) |
||||||
|
Full Year |
|||||
Millions, for the Periods Ended December 31, |
|
2024 |
|
|
2023 |
|
Operating Activities |
|
|
||||
Net income |
$ |
6,747 |
|
$ |
6,379 |
|
Depreciation |
|
2,398 |
|
|
2,318 |
|
Deferred and other income taxes |
|
28 |
|
|
117 |
|
Other - net |
|
173 |
|
|
(435 |
) |
Cash provided by operating activities |
|
9,346 |
|
|
8,379 |
|
Investing Activities |
|
|
||||
Capital investments* |
|
(3,452 |
) |
|
(3,606 |
) |
Other - net |
|
127 |
|
|
(61 |
) |
Cash used in investing activities |
|
(3,325 |
) |
|
(3,667 |
) |
Financing Activities |
|
|
||||
Dividends paid |
|
(3,213 |
) |
|
(3,173 |
) |
Debt repaid |
|
(2,226 |
) |
|
(2,190 |
) |
Share repurchase programs |
|
(1,505 |
) |
|
(705 |
) |
Debt Issued |
|
800 |
|
|
1,599 |
|
Other - net |
|
77 |
|
|
(156 |
) |
Cash used in financing activities |
|
(6,067 |
) |
|
(4,625 |
) |
Net change in cash, cash equivalents, and restricted cash |
|
(46 |
) |
|
87 |
|
Cash, cash equivalents, and restricted cash at beginning of year |
|
1,074 |
|
|
987 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
1,028 |
|
$ |
1,074 |
|
Free Cash Flow** |
|
|
||||
Cash provided by operating activities |
$ |
9,346 |
|
$ |
8,379 |
|
Cash used in investing activities |
|
(3,325 |
) |
|
(3,667 |
) |
Dividends paid |
|
(3,213 |
) |
|
(3,173 |
) |
Free cash flow |
$ |
2,808 |
|
$ |
1,539 |
|
* Capital investments include locomotive and freight car early lease buyouts of
** Free cash flow is a non-GAAP measure; however, we believe this measure is important to management and investors in evaluating our financial performance and measures our ability to generate cash without additional external financing. |
||||||
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Operating and Performance Statistics (unaudited) |
|||||||||||||
For the Periods Ended December 31, |
4th Quarter |
|
Full Year |
||||||||||
|
2024 |
|
2023 |
% |
|
|
2024 |
|
2023 |
% |
|||
Operating/Performance Statistics |
|
|
|
|
|
|
|
||||||
Freight car velocity (daily miles per car)* |
|
219 |
|
217 |
1 |
% |
|
|
208 |
|
204 |
2 |
% |
Average train speed (miles per hour)* |
|
23.9 |
|
24.9 |
(4 |
) |
|
|
23.6 |
|
24.2 |
(2 |
) |
Average terminal dwell time (hours)* |
|
21.8 |
|
22.7 |
(4 |
) |
|
|
22.6 |
|
23.4 |
(3 |
) |
Locomotive productivity (GTMs per horsepower day) |
|
136 |
|
140 |
(3 |
) |
|
|
135 |
|
129 |
5 |
|
Gross ton-miles (GTMs) (millions) |
|
218,558 |
|
214,570 |
2 |
|
|
|
847,386 |
|
837,502 |
1 |
|
Train length (feet) |
|
9,462 |
|
9,413 |
1 |
|
|
|
9,469 |
|
9,356 |
1 |
|
Intermodal service performance index (%) |
|
89 |
|
96 |
(7) pts |
|
|
90 |
|
88 |
2 pts |
||
Manifest service performance index (%) |
|
96 |
|
91 |
5 pts |
|
|
89 |
|
85 |
4 pts |
||
Intermodal car trip plan compliance (%)** |
|
79 |
|
85 |
(6) pts |
|
|
80 |
|
78 |
2 pts |
||
Manifest car trip plan compliance (%)** |
|
73 |
|
70 |
3 pts |
|
|
68 |
|
65 |
3 pts |
||
Workforce productivity (car miles per employee) |
|
1,118 |
|
1,051 |
6 |
|
|
|
1,062 |
|
1,000 |
6 |
|
Total employees (average) |
|
29,789 |
|
30,559 |
(3 |
) |
|
|
30,336 |
|
31,490 |
(4 |
) |
|
|
|
|
|
|
|
|
||||||
Locomotive Fuel Statistics |
|
|
|
|
|
|
|
||||||
Average fuel price per gallon consumed |
$ |
2.41 |
$ |
3.16 |
(24 |
)% |
|
$ |
2.64 |
$ |
3.09 |
(15 |
)% |
Fuel consumed in gallons (millions) |
|
236 |
|
234 |
1 |
|
|
|
917 |
|
911 |
1 |
|
Fuel consumption rate*** |
|
1.078 |
|
1.091 |
(1 |
) |
|
|
1.082 |
|
1.088 |
(1 |
) |
|
|
|
|
|
|
|
|
||||||
Revenue Ton-Miles (Millions) |
|
|
|
|
|
|
|
||||||
Grain & grain products |
|
23,207 |
|
21,166 |
10 |
% |
|
|
84,302 |
|
77,717 |
8 |
% |
Fertilizer |
|
3,291 |
|
2,960 |
11 |
|
|
|
13,204 |
|
12,031 |
10 |
|
Food & refrigerated |
|
4,313 |
|
4,586 |
(6 |
) |
|
|
18,547 |
|
18,286 |
1 |
|
Coal & renewables |
|
17,126 |
|
21,876 |
(22 |
) |
|
|
72,106 |
|
88,604 |
(19 |
) |
Bulk |
|
47,937 |
|
50,588 |
(5 |
) |
|
|
188,159 |
|
196,638 |
(4 |
) |
Industrial chemicals & plastics |
|
7,457 |
|
7,040 |
6 |
|
|
|
30,436 |
|
28,837 |
6 |
|
Metals & minerals |
|
8,013 |
|
8,712 |
(8 |
) |
|
|
32,793 |
|
36,121 |
(9 |
) |
Forest products |
|
5,369 |
|
5,447 |
(1 |
) |
|
|
21,967 |
|
22,447 |
(2 |
) |
Energy & specialized markets |
|
10,690 |
|
10,349 |
3 |
|
|
|
41,925 |
|
39,286 |
7 |
|
Industrial |
|
31,529 |
|
31,548 |
- |
|
|
|
127,121 |
|
126,691 |
- |
|
Automotive |
|
4,452 |
|
4,369 |
2 |
|
|
|
18,425 |
|
18,080 |
2 |
|
Intermodal |
|
20,506 |
|
18,438 |
11 |
|
|
|
76,011 |
|
71,890 |
6 |
|
Premium |
|
24,958 |
|
22,807 |
9 |
|
|
|
94,436 |
|
89,970 |
5 |
|
Total |
|
104,424 |
|
104,943 |
- |
% |
|
|
409,716 |
|
413,299 |
(1 |
)% |
* Surface Transportation Board (STB) reported performance measures.
** Methodology used to report is not comparable with the reporting to the STB under docket number EP 770.
*** Fuel consumption is computed as follows: gallons of fuel consumed divided by gross ton-miles in thousands. |
|||||||||||||
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Condensed Consolidated Statements of Income (unaudited) |
|||||||||||||||
Millions, Except Per Share Amounts and Percentages, |
2024 |
||||||||||||||
1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
Full Year |
|||||||||||
Operating Revenues |
|
|
|
|
|
||||||||||
Freight revenues |
$ |
5,616 |
|
$ |
5,638 |
|
$ |
5,768 |
|
$ |
5,789 |
|
$ |
22,811 |
|
Other revenues |
|
415 |
|
|
369 |
|
|
323 |
|
|
332 |
|
|
1,439 |
|
Total operating revenues |
|
6,031 |
|
|
6,007 |
|
|
6,091 |
|
|
6,121 |
|
|
24,250 |
|
Operating Expenses |
|
|
|
|
|
||||||||||
Compensation and benefits |
|
1,223 |
|
|
1,187 |
|
|
1,228 |
|
|
1,261 |
|
|
4,899 |
|
Purchased services and materials |
|
613 |
|
|
644 |
|
|
644 |
|
|
619 |
|
|
2,520 |
|
Fuel |
|
658 |
|
|
625 |
|
|
610 |
|
|
581 |
|
|
2,474 |
|
Depreciation |
|
594 |
|
|
596 |
|
|
602 |
|
|
606 |
|
|
2,398 |
|
Equipment and other rents |
|
216 |
|
|
219 |
|
|
237 |
|
|
248 |
|
|
920 |
|
Other |
|
355 |
|
|
336 |
|
|
354 |
|
|
281 |
|
|
1,326 |
|
Total operating expenses |
|
3,659 |
|
|
3,607 |
|
|
3,675 |
|
|
3,596 |
|
|
14,537 |
|
Operating Income |
|
2,372 |
|
|
2,400 |
|
|
2,416 |
|
|
2,525 |
|
|
9,713 |
|
Other income, net |
|
92 |
|
|
103 |
|
|
87 |
|
|
68 |
|
|
350 |
|
Interest expense |
|
(324 |
) |
|
(319 |
) |
|
(314 |
) |
|
(312 |
) |
|
(1,269 |
) |
Income before income taxes |
|
2,140 |
|
|
2,184 |
|
|
2,189 |
|
|
2,281 |
|
|
8,794 |
|
Income tax expense |
|
(499 |
) |
|
(511 |
) |
|
(518 |
) |
|
(519 |
) |
|
(2,047 |
) |
Net Income |
$ |
1,641 |
|
$ |
1,673 |
|
$ |
1,671 |
|
$ |
1,762 |
|
$ |
6,747 |
|
|
|
|
|
|
|
||||||||||
Share and Per Share |
|
|
|
|
|
||||||||||
Earnings per share - basic |
$ |
2.69 |
|
$ |
2.75 |
|
$ |
2.75 |
|
$ |
2.92 |
|
$ |
11.10 |
|
Earnings per share - diluted |
$ |
2.69 |
|
$ |
2.74 |
|
$ |
2.75 |
|
$ |
2.91 |
|
$ |
11.09 |
|
Weighted average number of shares - basic |
|
609.2 |
|
|
609.4 |
|
|
607.6 |
|
|
604.2 |
|
|
607.6 |
|
Weighted average number of shares - diluted |
|
610.2 |
|
|
610.3 |
|
|
608.6 |
|
|
605.2 |
|
|
608.6 |
|
Dividends declared per share |
$ |
1.30 |
|
$ |
1.30 |
|
$ |
1.34 |
|
$ |
1.34 |
|
$ |
5.28 |
|
|
|
|
|
|
|
||||||||||
Operating Ratio |
|
60.7 |
% |
|
60.0 |
% |
|
60.3 |
% |
|
58.7 |
% |
|
59.9 |
% |
Effective Tax Rate |
|
23.3 |
% |
|
23.4 |
% |
|
23.7 |
% |
|
22.8 |
% |
|
23.3 |
% |
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Freight Revenue Statistics (unaudited) |
||||||||||
|
2024 |
|||||||||
|
1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
Full Year |
|||||
Freight Revenues (Millions) |
|
|
|
|
|
|||||
Grain & grain products |
$ |
943 |
$ |
901 |
$ |
923 |
$ |
1,061 |
$ |
3,828 |
Fertilizer |
|
201 |
|
203 |
|
208 |
|
199 |
|
811 |
Food & refrigerated |
|
285 |
|
278 |
|
269 |
|
253 |
|
1,085 |
Coal & renewables |
|
388 |
|
339 |
|
405 |
|
351 |
|
1,483 |
Bulk |
|
1,817 |
|
1,721 |
|
1,805 |
|
1,864 |
|
7,207 |
Industrial chemicals & plastics |
|
572 |
|
593 |
|
598 |
|
582 |
|
2,345 |
Metals & minerals |
|
515 |
|
530 |
|
529 |
|
507 |
|
2,081 |
Forest products |
|
338 |
|
342 |
|
322 |
|
324 |
|
1,326 |
Energy & specialized markets |
|
679 |
|
658 |
|
672 |
|
679 |
|
2,688 |
Industrial |
|
2,104 |
|
2,123 |
|
2,121 |
|
2,092 |
|
8,440 |
Automotive |
|
611 |
|
659 |
|
601 |
|
581 |
|
2,452 |
Intermodal |
|
1,084 |
|
1,135 |
|
1,241 |
|
1,252 |
|
4,712 |
Premium |
|
1,695 |
|
1,794 |
|
1,842 |
|
1,833 |
|
7,164 |
Total |
$ |
5,616 |
$ |
5,638 |
$ |
5,768 |
$ |
5,789 |
$ |
22,811 |
Revenue Carloads (Thousands) |
|
|
|
|
|
|||||
Grain & grain products |
|
210 |
|
200 |
|
206 |
|
234 |
|
850 |
Fertilizer |
|
47 |
|
62 |
|
53 |
|
51 |
|
213 |
Food & refrigerated |
|
46 |
|
46 |
|
45 |
|
40 |
|
177 |
Coal & renewables |
|
177 |
|
158 |
|
192 |
|
175 |
|
702 |
Bulk |
|
480 |
|
466 |
|
496 |
|
500 |
|
1,942 |
Industrial chemicals & plastics |
|
164 |
|
169 |
|
169 |
|
170 |
|
672 |
Metals & minerals |
|
170 |
|
184 |
|
186 |
|
179 |
|
719 |
Forest products |
|
53 |
|
55 |
|
53 |
|
52 |
|
213 |
Energy & specialized markets |
|
154 |
|
147 |
|
152 |
|
154 |
|
607 |
Industrial |
|
541 |
|
555 |
|
560 |
|
555 |
|
2,211 |
Automotive |
|
207 |
|
218 |
|
202 |
|
197 |
|
824 |
Intermodal [a] |
|
739 |
|
798 |
|
909 |
|
911 |
|
3,357 |
Premium |
|
946 |
|
1,016 |
|
1,111 |
|
1,108 |
|
4,181 |
Total |
|
1,967 |
|
2,037 |
|
2,167 |
|
2,163 |
|
8,334 |
Average Revenue per Car |
|
|
|
|
|
|||||
Grain & grain products |
$ |
4,494 |
$ |
4,493 |
$ |
4,498 |
$ |
4,532 |
$ |
4,505 |
Fertilizer |
|
4,271 |
|
3,311 |
|
3,872 |
|
3,918 |
|
3,809 |
Food & refrigerated |
|
6,231 |
|
5,943 |
|
6,099 |
|
6,152 |
|
6,104 |
Coal & renewables |
|
2,189 |
|
2,156 |
|
2,101 |
|
2,012 |
|
2,113 |
Bulk |
|
3,787 |
|
3,692 |
|
3,641 |
|
3,723 |
|
3,710 |
Industrial chemicals & plastics |
|
3,486 |
|
3,507 |
|
3,534 |
|
3,445 |
|
3,493 |
Metals & minerals |
|
3,030 |
|
2,885 |
|
2,847 |
|
2,820 |
|
2,893 |
Forest products |
|
6,297 |
|
6,249 |
|
6,157 |
|
6,210 |
|
6,229 |
Energy & specialized markets |
|
4,416 |
|
4,462 |
|
4,415 |
|
4,412 |
|
4,426 |
Industrial |
|
3,886 |
|
3,825 |
|
3,791 |
|
3,771 |
|
3,818 |
Automotive |
|
2,947 |
|
3,033 |
|
2,968 |
|
2,952 |
|
2,976 |
Intermodal [a] |
|
1,468 |
|
1,421 |
|
1,365 |
|
1,376 |
|
1,404 |
Premium |
|
1,792 |
|
1,766 |
|
1,657 |
|
1,656 |
|
1,714 |
Average |
$ |
2,855 |
$ |
2,768 |
$ |
2,662 |
$ |
2,677 |
$ |
2,737 |
[a] For intermodal shipments each container or trailer equals one carload. |
||||||||||
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Non-GAAP Measures Reconciliation to GAAP (unaudited) |
||||
Debt / Net Income |
|
|
||
Millions, Except Ratios |
|
2024 |
|
2023 |
Debt |
$ |
31,192 |
$ |
32,579 |
Net income |
|
6,747 |
|
6,379 |
Debt / net income |
|
4.6 |
|
5.1 |
Adjusted Debt / Adjusted EBITDA* |
|
|
||||
Millions, Except Ratios |
|
2024 |
|
|
2023 |
|
Net income |
$ |
6,747 |
|
$ |
6,379 |
|
Add: |
|
|
||||
Income tax expense |
|
2,047 |
|
|
1,854 |
|
Depreciation |
|
2,398 |
|
|
2,318 |
|
Interest expense |
|
1,269 |
|
|
1,340 |
|
EBITDA |
$ |
12,461 |
|
$ |
11,891 |
|
Adjustments: |
|
|
||||
Other income, net |
|
(350 |
) |
|
(491 |
) |
Interest on operating lease liabilities** |
|
48 |
|
|
58 |
|
Adjusted EBITDA (a) |
$ |
12,159 |
|
$ |
11,458 |
|
Debt |
$ |
31,192 |
|
$ |
32,579 |
|
Operating lease liabilities |
|
1,271 |
|
|
1,600 |
|
Adjusted debt (b) |
$ |
32,463 |
|
$ |
34,179 |
|
Adjusted debt / adjusted EBITDA (b/a) |
|
2.7 |
|
|
3.0 |
|
* Adjusted debt (total debt plus operating lease liabilities plus after-tax unfunded pension and OPEB (other post-retirement benefit) obligations) to adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and adjustments for other income and interest on present value of operating leases) is considered a non-GAAP financial measure by SEC Regulation G and Item 10 of SEC Regulation S-K and may not be defined and calculated by other companies in the same manner. We believe this measure is important to management and investors in evaluating the Company’s ability to sustain given debt levels (including leases) with the cash generated from operations. In addition, a comparable measure is used by rating agencies when reviewing the Company’s credit rating. Adjusted debt to adjusted EBITDA should be considered in addition to, rather than as a substitute for, other information provided in accordance with GAAP. The most comparable GAAP measure is debt to net income ratio. The tables above provide reconciliations from net income to adjusted EBITDA, debt to adjusted debt, and debt to net income to adjusted debt to adjusted EBITDA. At December 31, 2024 and 2023, the incremental borrowing rate on operating leases was
** Represents the hypothetical interest expense we would incur (using the incremental borrowing rate) if the property under our operating leases were owned or accounted for as finance leases. |
||||||
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Non-GAAP Measures Reconciliation to GAAP (unaudited) |
||||||
Return on Average Common Shareholders' Equity |
|
|
||||
Millions, Except Percentages |
|
2024 |
|
|
2023 |
|
Net income |
$ |
6,747 |
|
$ |
6,379 |
|
Average equity |
$ |
15,839 |
|
$ |
13,476 |
|
Return on average common shareholders' equity |
|
42.6 |
% |
|
47.3 |
% |
|
|
|
||||
Return on Invested Capital as Adjusted (ROIC) |
|
|
||||
Millions, Except Percentages |
|
2024 |
|
|
2023 |
|
Net income |
$ |
6,747 |
|
$ |
6,379 |
|
Interest expense |
|
1,269 |
|
|
1,340 |
|
Interest on average operating lease liabilities |
|
55 |
|
|
58 |
|
Taxes on interest |
|
(308 |
) |
|
(315 |
) |
Net operating profit after taxes as adjusted |
$ |
7,763 |
|
$ |
7,462 |
|
Average equity |
$ |
15,839 |
|
$ |
13,476 |
|
Average debt |
|
31,886 |
|
|
32,953 |
|
Average operating lease liabilities |
|
1,436 |
|
|
1,616 |
|
Average invested capital as adjusted |
$ |
49,161 |
|
$ |
48,045 |
|
Return on invested capital as adjusted |
|
15.8 |
% |
|
15.5 |
% |
* ROIC is considered a non-GAAP financial measure by SEC Regulation G and Item 10 of SEC Regulation S-K and may not be defined and calculated by other companies in the same manner. We believe this measure is important to management and investors in evaluating the efficiency and effectiveness of our long-term capital investments. In addition, we currently use ROIC as a performance criterion in determining certain elements of equity compensation for our executives. ROIC should be considered in addition to, rather than as a substitute for, other information provided in accordance with GAAP. The most comparable GAAP measure is return on average common shareholders’ equity. The tables above provide reconciliations from return on average common shareholders’ equity to ROIC. At December 31, 2024 and 2023, the incremental borrowing rate on operating lease liabilities was |
||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250123512350/en/
Union Pacific Investor contact: Diana Prauner at 402-544-4227 or dprauner@up.com
Union Pacific Media contact: Clarissa Beyah at 402-957-4793 or cbeyah@up.com
Source: Union Pacific Corporation
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