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Union Pacific Reports Third Quarter 2024 Results

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Union Pacific (UNP) reported strong third quarter 2024 results with net income of $1.7 billion, or $2.75 per diluted share, up 10% from the previous year. Operating revenue grew 3% to $6.1 billion, driven by increased volume and core pricing gains. The company achieved an improved operating ratio of 60.3%, representing a 310 basis point enhancement. Operating income increased 11% to $2.4 billion. Notable operational improvements include a 5% increase in freight car velocity, 5% improvement in locomotive productivity, and a 12% boost in workforce productivity. The company maintains its $3.4 billion capital plan and expects fourth quarter results to be consistent sequentially while improving year-over-year.

Union Pacific (UNP) ha riportato forti risultati nel terzo trimestre del 2024, con un reddito netto di 1,7 miliardi di dollari, ovvero 2,75 dollari per azione diluita, in aumento del 10% rispetto all'anno precedente. I ricavi operativi sono cresciuti del 3% raggiungendo 6,1 miliardi di dollari, sostenuti da un aumento dei volumi e miglioramenti nei prezzi di base. L'azienda ha ottenuto un miglioramento del rapporto operativo al 60,3%, rappresentando un incremento di 310 punti base. Il reddito operativo è aumentato dell'11%, raggiungendo 2,4 miliardi di dollari. Le notevoli migliorie operative includono un incremento del 5% nella velocità dei vagoni merci, un miglioramento del 5% nella produttività delle locomotive e un aumento del 12% nella produttività della forza lavoro. L'azienda mantiene il suo piano di investimenti da 3,4 miliardi di dollari e si aspetta che i risultati del quarto trimestre siano coerenti in sequenza, mentre miglioreranno rispetto all'anno precedente.

Union Pacific (UNP) informó resultados sólidos para el tercer trimestre de 2024, con una ganancia neta de 1.7 mil millones de dólares, o 2.75 dólares por acción diluida, un aumento del 10% respecto al año anterior. Los ingresos operativos crecieron un 3%, alcanzando 6.1 mil millones de dólares, impulsados por un aumento en el volumen y mejoras en la fijación de precios. La compañía logró un ratio operativo mejorado del 60.3%, lo que representa una mejora de 310 puntos básicos. El ingreso operativo aumentó un 11%, alcanzando 2.4 mil millones de dólares. Las mejoras operativas notables incluyen un aumento del 5% en la velocidad de los vagones de carga, una mejora del 5% en la productividad de locomotoras y un incremento del 12% en la productividad de la fuerza laboral. La compañía mantiene su plan de capital de 3.4 mil millones de dólares y espera que los resultados del cuarto trimestre sean consistentes en secuencia, mientras que mejoran año tras año.

유니온퍼시픽 (UNP)는 2024년 3분기 강력한 실적을 보고했습니다. 순이익은 17억 달러로, 희석주당 2.75달러로 전년 대비 10% 증가했습니다. 운영 수익은 3% 증가하여 61억 달러에 달했으며, 이는 물량 증가와 주요 가격 인상에 의해 추진되었습니다. 회사는 60.3%의 개선된 운영 비율을 달성하여 310 베이시스 포인트의 향상을 나타냈습니다. 운영 소득은 11% 증가하여 24억 달러에 이르렀습니다. 주요 운영 개선으로는 화물차 속도 5% 증가, 기관차 생산성 5% 개선, 인력 생산성 12% 향상이 있습니다. 회사는 34억 달러의 자본 계획을 유지하며, 4분기 실적은 순차적으로 일관될 것으로 기대하고 있으며, 전년 대비 개선될 것으로 예상하고 있습니다.

Union Pacific (UNP) a annoncé de solides résultats pour le troisième trimestre 2024 avec un revenu net de 1,7 milliard de dollars, soit 2,75 dollars par action diluée, en hausse de 10 % par rapport à l'année précédente. Le chiffre d'affaires opérationnel a augmenté de 3 % pour atteindre 6,1 milliards de dollars, grâce à une augmentation du volume et des gains de prix de base. L'entreprise a réalisé un ratio opérationnel amélioré de 60,3 %, représentant une amélioration de 310 points de base. Le revenu opérationnel a augmenté de 11 % pour atteindre 2,4 milliards de dollars. Les améliorations opérationnelles notables incluent une augmentation de 5 % de la vitesse des wagons de fret, une amélioration de 5 % de la productivité des locomotives et une augmentation de 12 % de la productivité de la main-d'œuvre. L'entreprise maintient son plan d'investissement de 3,4 milliards de dollars et s'attend à ce que les résultats du quatrième trimestre soient cohérents dans la séquence tout en s'améliorant d'une année sur l'autre.

Union Pacific (UNP) veröffentlichte starke Ergebnisse für das dritte Quartal 2024 mit einem Nettogewinn von 1,7 Milliarden Dollar, oder 2,75 Dollar pro verwässerter Aktie, was einem Anstieg von 10% im Vergleich zum Vorjahr entspricht. Der Betriebsumsatz wuchs um 3% auf 6,1 Milliarden Dollar, angetrieben durch erhöhtes Volumen und Preiserhöhungen im Kernbereich. Das Unternehmen erzielte ein verbessertes Betriebsergebnis von 60,3%, was eine Verbesserung um 310 Basispunkte darstellt. Das Betriebseinkommen stieg um 11% auf 2,4 Milliarden Dollar. Zu den bemerkenswerten betrieblichen Verbesserungen gehören ein Anstieg der Geschwindigkeit von Güterwagen um 5%, eine Verbesserung der Lokomotivproduktivität um 5% und eine Steigerung der Arbeitsproduktivität um 12%. Das Unternehmen hält an seinem Investitionsplan von 3,4 Milliarden Dollar fest und erwartet, dass die Ergebnisse des vierten Quartals in der Sequenz konsistent bleiben und im Vergleich zum Vorjahr verbessert werden.

Positive
  • Net income increased 9% to $1.7 billion
  • Operating income grew 11% to $2.4 billion
  • Earnings per share rose 10% to $2.75
  • Operating ratio improved by 310 basis points to 60.3%
  • Freight revenue excluding fuel surcharge grew 5%
  • Revenue carloads increased 6%
  • Workforce productivity improved 12%
Negative
  • Fuel consumption rate increased 1%
  • Business mix and reduced fuel surcharge revenue partially offset revenue growth

Insights

Union Pacific delivered a strong third quarter with notable financial improvements. $2.75 earnings per share represents a 10% year-over-year increase, while operating income grew 11% to $2.4 billion. The company's operating ratio improved significantly by 3.1% to 60.3%, indicating enhanced operational efficiency.

Key performance metrics show robust operational execution: freight revenue excluding fuel surcharge grew 5%, carload volume increased 6% and workforce productivity improved 12%. The $3.4 billion capital plan and planned $1.5 billion in share repurchases demonstrate commitment to growth and shareholder returns. The positive outlook for Q4 and pricing power above inflation suggest sustained momentum in profitability.

  • Third quarter earnings per diluted share of $2.75, up 10%
  • Third quarter operating income up 11%
  • Third quarter net income up 9%

OMAHA, Neb.--(BUSINESS WIRE)-- Union Pacific Corporation (NYSE: UNP) today reported 2024 third quarter net income of $1.7 billion, or $2.75 per diluted share. This compares to 2023 third quarter net income of $1.5 billion, or $2.51 per diluted share.

“Our third quarter results demonstrate the success of our strategy,” said Union Pacific Chief Executive Officer Jim Vena. “Improved safety and service performance supported solid revenue growth that we converted into double-digit improvement in third quarter operating income and earnings per share. The entire Union Pacific team is focused on delivering for our customers and shareholders; and is energized to build on these accomplishments to drive sustainable long-term success.”

Third Quarter Summary: 2024 vs. 2023

Financial Results: Strong Operating Income Growth Driven by Increased Revenue, Volume, Core Pricing Gains, and Operating Efficiency

  • Operating revenue of $6.1 billion grew 3% driven by increased volume and core pricing gains, partially offset by business mix and reduced fuel surcharge revenue.
  • Freight revenue excluding fuel surcharge revenue grew 5% as revenue carloads grew 6%.
  • Operating ratio was 60.3%, an improvement of 310 basis points. Lower quarterly fuel prices positively impacted the operating ratio 120 basis points.
  • Operating income of $2.4 billion increased 11%.

Operating Performance: Solid Service and Operational Efficiency Gains While Handling Volume Growth; Quarterly Record for Workforce Productivity

  • Union Pacific’s year-to-date reportable personal injury and reportable derailment rates both improved.
  • Quarterly freight car velocity improved 5% to 210 daily miles per car.
  • Quarterly locomotive productivity improved 5% to 135 gross ton-miles (GTMs) per horsepower day.
  • Quarterly workforce productivity improved 12% to 1,102 car miles per employee.
  • Fuel consumption rate increased 1% to 1.058, measured in gallons of fuel per thousand GTMs.

2024 Outlook

Updated

  • Fourth quarter results expected to be consistent sequentially from third quarter while improving year-over-year versus the fourth quarter 2023.

Affirmed

  • Profitability outlook continues positive momentum with strong service product, improving network efficiency, and solid pricing
  • Share repurchases of ~$1.5 billion in 2024
  • Pricing dollars in excess of inflation dollars
  • No change to long-term capital allocation strategy
    • Capital plan of $3.4 billion

Third Quarter 2024 Earnings Conference Call

Union Pacific will provide a webcast for its third quarter 2024 earnings release presentation live at https://investor.unionpacific.com and via teleconference on Thursday, October 24, 2024, 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 Russia-Ukraine and Israel-Hamas wars and other geopolitical tensions in the middle east, and any impacts on our business operations, financial results, liquidity, and financial position, and on the world economy (including customers, employees, and supply chains), including as a result of fluctuations in volume and carloadings; expectations as to general macroeconomic conditions, including slowdowns and recessions, domestically or internationally, and volatility in interest rates and fuel prices; closing of customer manufacturing, distribution, or production facilities; expectations as to operational or service improvements; expectations as to hiring challenges; availability of employees; expectations regarding the effectiveness of steps taken or to be taken to improve operations, service, infrastructure improvements, and transportation plan modifications; expectations as to cost savings, revenue growth, and earnings; the time by which goals, targets, or objectives will be achieved; projections, predictions, expectations, estimates, or forecasts as to business, financial, and operational results, future economic performance, and general economic conditions; proposed new products and services; estimates of costs relating to environmental remediation and restoration; estimates and expectations regarding tax matters; expectations that claims, litigation, environmental costs, commitments, contingent liabilities, labor negotiations or agreements, cyberattacks or other matters. These statements are, or will be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements also generally include, without limitation, information, or statements regarding: projections, predictions, expectations, estimates, or forecasts as to the Company’s and its subsidiaries’ business, financial, and operational results, and future economic performance; and management’s beliefs, expectations, goals, and objectives and other similar expressions concerning matters that are not historical facts.

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

 

3rd Quarter

 

 

 

Year-to-Date

 

 

Percentages, For the Periods Ended September 30,

2024

 

 

2023

 

 

%

 

 

2024

 

 

2023

 

 

 

%

 

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Freight revenues

$

5,768

 

 

$

5,545

 

 

 

4

%

 

 

$

17,022

 

 

$

16,770

 

 

 

2

%

 

Other revenues

 

323

 

 

 

396

 

 

 

(18

)

 

 

 

1,107

 

 

 

1,190

 

 

 

(7

)

 

Total operating revenues

 

6,091

 

 

 

5,941

 

 

 

3

 

 

 

 

18,129

 

 

 

17,960

 

 

 

1

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

1,228

 

 

 

1,201

 

 

 

2

 

 

 

 

3,638

 

 

 

3,649

 

 

 

-

 

 

Purchased services and materials

 

 

644

 

 

 

668

 

 

 

(4

)

 

 

 

1,901

 

 

 

1,971

 

 

 

(4

)

 

Fuel

 

 

610

 

 

 

702

 

 

 

(13

)

 

 

 

1,893

 

 

 

2,132

 

 

 

(11

)

 

Depreciation

 

602

 

 

 

580

 

 

 

4

 

 

 

 

1,792

 

 

 

1,729

 

 

 

4

 

 

Equipment and other rents

 

237

 

 

 

235

 

 

 

1

 

 

 

 

672

 

 

 

718

 

 

 

(6

)

 

Other

 

 

354

 

 

 

378

 

 

 

(6

)

 

 

 

1,045

 

 

 

1,086

 

 

 

(4

)

 

Total operating expenses

 

 

3,675

 

 

 

3,764

 

 

 

(2

)

 

 

 

10,941

 

 

 

11,285

 

 

 

(3

)

 

Operating Income

 

 

2,416

 

 

 

2,177

 

 

 

11

 

 

 

 

7,188

 

 

 

6,675

 

 

 

8

 

 

Other income, net

 

 

87

 

 

 

106

 

 

 

(18

)

 

 

 

282

 

 

 

383

 

 

 

(26

)

 

Interest expense

 

 

(314

)

 

 

(334

)

 

 

(6

)

 

 

 

(957

)

 

 

(1,009

)

 

 

(5

)

 

Income before income taxes

 

 

2,189

 

 

 

1,949

 

 

 

12

 

 

 

 

6,513

 

 

 

6,049

 

 

 

8

 

 

Income tax expense

 

 

(518

)

 

 

(421

)

 

 

23

 

 

 

 

(1,528

)

 

 

(1,322

)

 

 

16

 

 

Net Income

 

$

1,671

 

 

$

1,528

 

 

 

9

%

 

 

$

4,985

 

 

$

4,727

 

 

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share and Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic

 

$

2.75

 

 

$

2.51

 

 

 

10

%

 

 

$

8.19

 

 

$

7.76

 

 

 

6

%

 

Earnings per share - diluted

 

$

2.75

 

 

$

2.51

 

 

 

10

 

 

 

$

8.18

 

 

$

7.75

 

 

 

6

 

 

Weighted average number of shares - basic

607.6

 

 

 

608.7

 

 

 

-

 

 

 

 

608.7

 

 

 

609.3

 

 

 

-

 

 

Weighted average number of shares - diluted

608.6

 

 

 

609.8

 

 

 

-

 

 

 

 

609.7

 

 

 

610.3

 

 

 

-

 

 

Dividends declared per share

 

$

1.34

 

 

$

1.30

 

 

 

3

 

 

 

$

3.94

 

 

$

3.90

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Ratio

 

 

60.3

%

 

 

63.4

%

 

 

(3.1

)

pts

 

 

60.4

%

 

 

62.8

%

 

 

(2.4

)

pts

Effective Tax Rate

 

 

23.7

%

 

 

21.6

%

 

 

2.1

 

pts

 

 

23.5

%

 

 

21.9

%

 

 

1.6

 

pts

 

1

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Freight Revenues Statistics (unaudited)

 

 

 

3rd Quarter

 

 

Year-to-Date

 

For the Periods Ended September 30,

 

2024

 

 

2023

 

 

%

 

 

2024

 

 

2023

 

 

%

 

Freight Revenues (Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grain & grain products

 

$

923

 

 

$

825

 

 

 

12

%

 

$

2,767

 

 

$

2,658

 

 

 

4

%

Fertilizer

 

 

208

 

 

 

194

 

 

 

7

 

 

 

612

 

 

 

563

 

 

 

9

 

Food & refrigerated

 

 

269

 

 

 

259

 

 

 

4

 

 

 

832

 

 

 

777

 

 

 

7

 

Coal & renewables

 

 

405

 

 

 

488

 

 

 

(17

)

 

 

1,132

 

 

 

1,422

 

 

 

(20

)

Bulk

 

 

1,805

 

 

 

1,766

 

 

 

2

 

 

 

5,343

 

 

 

5,420

 

 

 

(1

)

Industrial chemicals & plastics

 

 

598

 

 

 

557

 

 

 

7

 

 

 

1,763

 

 

 

1,638

 

 

 

8

 

Metals & minerals

 

 

529

 

 

 

556

 

 

 

(5

)

 

 

1,574

 

 

 

1,654

 

 

 

(5

)

Forest products

 

 

322

 

 

 

333

 

 

 

(3

)

 

 

1,002

 

 

 

1,012

 

 

 

(1

)

Energy & specialized markets

 

 

672

 

 

 

611

 

 

 

10

 

 

 

2,009

 

 

 

1,856

 

 

 

8

 

Industrial

 

 

2,121

 

 

 

2,057

 

 

 

3

 

 

 

6,348

 

 

 

6,160

 

 

 

3

 

Automotive

 

 

601

 

 

 

609

 

 

 

(1

)

 

 

1,871

 

 

 

1,821

 

 

 

3

 

Intermodal

 

 

1,241

 

 

 

1,113

 

 

 

12

 

 

 

3,460

 

 

 

3,369

 

 

 

3

 

Premium

 

 

1,842

 

 

 

1,722

 

 

 

7

 

 

 

5,331

 

 

 

5,190

 

 

 

3

 

Total

 

$

5,768

 

 

$

5,545

 

 

 

4

%

 

$

17,022

 

 

 

16,770

 

 

 

2

%

Revenue Carloads (Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grain & grain products

 

 

206

 

 

 

183

 

 

 

13

%

 

 

616

 

 

 

582

 

 

 

6

%

Fertilizer

 

 

53

 

 

 

51

 

 

 

4

 

 

 

162

 

 

 

144

 

 

 

13

 

Food & refrigerated

 

 

45

 

 

 

45

 

 

 

-

 

 

 

137

 

 

 

133

 

 

 

3

 

Coal & renewables

 

 

192

 

 

 

231

 

 

 

(17

)

 

 

527

 

 

 

650

 

 

 

(19

)

Bulk

 

 

496

 

 

 

510

 

 

 

(3

)

 

 

1,442

 

 

 

1,509

 

 

 

(4

)

Industrial chemicals & plastics

 

 

169

 

 

 

163

 

 

 

4

 

 

 

502

 

 

 

484

 

 

 

4

 

Metals & minerals

 

 

186

 

 

 

206

 

 

 

(10

)

 

 

540

 

 

 

604

 

 

 

(11

)

Forest products

 

 

53

 

 

 

54

 

 

 

(2

)

 

 

161

 

 

 

161

 

 

 

-

 

Energy & specialized markets

 

 

152

 

 

 

146

 

 

 

4

 

 

 

453

 

 

 

429

 

 

 

6

 

Industrial

 

 

560

 

 

 

569

 

 

 

(2

)

 

 

1,656

 

 

 

1,678

 

 

 

(1

)

Automotive

 

 

202

 

 

 

210

 

 

 

(4

)

 

 

627

 

 

 

623

 

 

 

1

 

Intermodal [a]

 

 

909

 

 

 

763

 

 

 

19

 

 

 

2,446

 

 

 

2,246

 

 

 

9

 

Premium

 

 

1,111

 

 

 

973

 

 

 

14

 

 

 

3,073

 

 

 

2,869

 

 

 

7

 

Total

 

 

2,167

 

 

 

2,052

 

 

 

6

%

 

 

6,171

 

 

 

6,056

 

 

 

2

%

Average Revenue per Car

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grain & grain products

 

$

4,498

 

 

$

4,486

 

 

 

-

%

 

$

4,495

 

 

$

4,563

 

 

 

(1

)%

Fertilizer

 

 

3,872

 

 

 

3,818

 

 

 

1

 

 

 

3,775

 

 

 

3,921

 

 

 

(4

)

Food & refrigerated

 

 

6,099

 

 

 

5,847

 

 

 

4

 

 

 

6,090

 

 

 

5,850

 

 

 

4

 

Coal & renewables

 

 

2,101

 

 

 

2,114

 

 

 

(1

)

 

 

2,147

 

 

 

2,187

 

 

 

(2

)

Bulk

 

 

3,641

 

 

 

3,465

 

 

 

5

 

 

 

3,706

 

 

 

3,592

 

 

 

3

 

Industrial chemicals & plastics

 

 

3,534

 

 

 

3,406

 

 

 

4

 

 

 

3,509

 

 

 

3,381

 

 

 

4

 

Metals & minerals

 

 

2,847

 

 

 

2,688

 

 

 

6

 

 

 

2,918

 

 

 

2,736

 

 

 

7

 

Forest products

 

 

6,157

 

 

 

6,197

 

 

 

(1

)

 

 

6,235

 

 

 

6,305

 

 

 

(1

)

Energy & specialized markets

 

 

4,415

 

 

 

4,201

 

 

 

5

 

 

 

4,431

 

 

 

4,331

 

 

 

2

 

Industrial

 

 

3,791

 

 

 

3,612

 

 

 

5

 

 

 

3,833

 

 

 

3,671

 

 

 

4

 

Automotive

 

 

2,968

 

 

 

2,894

 

 

 

3

 

 

 

2,983

 

 

 

2,921

 

 

 

2

 

Intermodal [a]

 

 

1,365

 

 

 

1,459

 

 

 

(6

)

 

 

1,414

 

 

 

1,500

 

 

 

(6

)

Premium

 

 

1,657

 

 

 

1,769

 

 

 

(6

)

 

 

1,735

 

 

 

1,809

 

 

 

(4

)

Average

 

$

2,662

 

 

$

2,702

 

 

 

(1

)%

 

$

2,758

 

 

$

2,769

 

 

 

-

%

[a]

For intermodal shipments each container or trailer equals one carload.

2

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Financial Position (unaudited)

 

 

 

 

Sep. 30,

Dec. 31,

 

Millions, Except Percentages

 

2024

 

 

2023

 

Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

947

 

 

$

1,055

 

Short-term investments

 

 

20

 

 

 

16

 

Other current assets

 

 

3,182

 

 

 

3,077

 

Investments

 

 

2,649

 

 

 

2,605

 

Properties, net

 

 

58,036

 

 

 

57,398

 

Operating lease assets

 

 

1,345

 

 

 

1,643

 

Other assets

 

 

1,391

 

 

 

1,338

 

Total assets

 

$

67,570

 

 

$

67,132

 

 

 

 

 

 

 

 

 

 

Liabilities and Common Shareholders' Equity

 

 

 

 

 

 

 

 

Debt due within one year

 

$

1,652

 

 

$

1,423

 

Other current liabilities

 

 

3,714

 

 

 

3,683

 

Debt due after one year

 

 

29,761

 

 

 

31,156

 

Operating lease liabilities

 

 

934

 

 

 

1,245

 

Deferred income taxes

 

 

13,199

 

 

 

13,123

 

Other long-term liabilities

 

 

1,726

 

 

 

1,714

 

Total liabilities

 

 

50,986

 

 

 

52,344

 

Total common shareholders' equity

 

 

16,584

 

 

 

14,788

 

Total liabilities and common shareholders' equity

 

$

67,570

 

 

$

67,132

 

 

3

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Cash Flows (unaudited)

 

 

 

 

Year-to-Date

 

Millions, for the Periods Ended September 30,

2024

 

2023

 

Operating Activities

 

 

 

 

 

 

Net income

$

4,985

 

$

4,727

 

Depreciation

 

1,792

 

 

1,729

 

Deferred and other income taxes

 

77

 

 

59

 

Other - net

 

(170

)

 

(531

)

Cash provided by operating activities

 

6,684

 

 

5,984

 

Investing Activities

 

 

 

 

 

 

Capital investments*

 

(2,530

)

 

(2,582

)

Other - net

 

104

 

 

(68

)

Cash used in investing activities

 

(2,426

)

 

(2,650

)

Financing Activities

 

 

 

 

 

 

Dividends paid

 

(2,403

)

 

(2,380

)

Debt repaid

 

(2,220

)

 

(2,179

)

Share repurchase programs

 

(831

)

 

(705

)

Debt issued

 

800

 

 

1,599

 

Other - net

 

279

 

 

125

 

Cash used in financing activities

 

(4,375

)

 

(3,540

)

Net change in cash, cash equivalents, and restricted cash

 

(117

)

 

(206

)

Cash, cash equivalents, and restricted cash at beginning of year

 

1,074

 

 

987

 

Cash, cash equivalents, and restricted cash at end of period

$

957

 

$

781

 

Free Cash Flow**

 

 

 

 

 

 

Cash provided by operating activities

$

6,684

 

$

5,984

 

Cash used in investing activities

 

(2,426

)

 

(2,650

)

Dividends paid

 

(2,403

)

 

(2,380

)

Free cash flow

$

1,855

 

$

954

 

*

Capital investments include locomotive and freight car early lease buyouts of $96 million in 2024 and $14 million in 2023.

 

 

**

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.

4

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Operating and Performance Statistics (unaudited)

 

 

 

3rd Quarter

 

 

Year-to-Date

 

For the Periods Ended September 30,

 

2024

 

 

2023

 

 

 

%

 

 

2024

 

 

2023

 

 

 

%

 

Operating/Performance Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Freight car velocity (daily miles per car)*

 

 

210

 

 

 

200

 

 

 

5

%

 

 

 

205

 

 

 

199

 

 

 

3

%

 

Average train speed (miles per hour)*

 

 

23.3

 

 

 

23.6

 

 

 

(1

)

 

 

 

23.5

 

 

 

23.9

 

 

 

(2

)

 

Average terminal dwell time (hours)*

 

 

22.4

 

 

 

23.5

 

 

 

(5

)

 

 

 

22.8

 

 

 

23.6

 

 

 

(3

)

 

Locomotive productivity (GTMs per horsepower day)

135

 

 

 

129

 

 

 

5

 

 

 

 

135

 

 

 

126

 

 

 

7

 

 

Gross ton-miles (GTMs) (millions)

 

 

215,993

 

 

 

208,678

 

 

 

4

 

 

 

 

628,828

 

 

 

622,932

 

 

 

1

 

 

Train length (feet)

 

 

9,580

 

 

 

9,537

 

 

 

-

 

 

 

 

9,472

 

 

 

9,337

 

 

 

1

 

 

Intermodal service performance index (%)

 

86

 

 

 

85

 

 

 

1

 

pts

 

90

 

 

 

85

 

 

 

5

 

pts

Manifest/Automotive service performance index (%)

89

 

 

 

84

 

 

 

5

 

pts

 

87

 

 

 

83

 

 

 

4

 

pts

Intermodal car trip plan compliance (%)**

 

 

76

 

 

 

75

 

 

 

1

 

pts

 

80

 

 

 

75

 

 

 

5

 

pts

Manifest/Automotive car trip plan compliance (%)**

 

68

 

 

 

64

 

 

 

4

 

pts

 

66

 

 

 

63

 

 

 

3

 

pts

Workforce productivity (car miles per employee)

 

 

1,102

 

 

 

985

 

 

 

12

 

 

 

 

1,044

 

 

 

984

 

 

 

6

 

 

Total employees (average)

 

 

29,946

 

 

 

31,624

 

 

 

(5

)

 

 

 

30,518

 

 

 

31,800

 

 

 

(4

)

 

Locomotive Fuel Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average fuel price per gallon consumed

 

$

2.60

 

 

$

3.12

 

 

(17

)%

 

$

2.71

 

 

$

3.07

 

 

 

(12

)%

Fuel consumed in gallons (millions)

 

 

229

 

 

 

219

 

 

 

5

 

 

 

681

 

 

 

677

 

 

 

1

 

Fuel consumption rate***

 

 

1.058

 

 

 

1.052

 

 

 

1

 

 

 

1.084

 

 

 

1.087

 

 

 

-

 

Revenue Ton-Miles (Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grain & grain products

 

 

20,451

 

 

 

17,649

 

 

 

16

%

 

 

61,095

 

 

 

56,551

 

 

 

8

%

Fertilizer

 

 

3,056

 

 

 

2,982

 

 

 

2

 

 

 

9,913

 

 

 

9,071

 

 

 

9

 

Food & refrigerated

 

 

4,624

 

 

 

4,643

 

 

 

-

 

 

 

14,234

 

 

 

13,700

 

 

 

4

 

Coal & renewables

 

 

19,746

 

 

 

23,367

 

 

 

(15

)

 

 

54,980

 

 

 

66,728

 

 

 

(18

)

Bulk

 

 

47,877

 

 

 

48,641

 

 

 

(2

)

 

 

140,222

 

 

 

146,050

 

 

 

(4

)

Industrial chemicals & plastics

 

 

7,483

 

 

 

7,492

 

 

 

-

 

 

 

22,979

 

 

 

21,797

 

 

 

5

 

Metals & minerals

 

 

8,414

 

 

 

9,253

 

 

 

(9

)

 

 

24,780

 

 

 

27,409

 

 

 

(10

)

Forest products

 

 

5,355

 

 

 

5,636

 

 

 

(5

)

 

 

16,598

 

 

 

17,000

 

 

 

(2

)

Energy & specialized markets

 

 

10,420

 

 

 

9,621

 

 

 

8

 

 

 

31,235

 

 

 

28,937

 

 

 

8

 

Industrial

 

 

31,672

 

 

 

32,002

 

 

 

(1

)

 

 

95,592

 

 

 

95,143

 

 

 

-

 

Automotive

 

 

4,558

 

 

 

4,624

 

 

 

(1

)

 

 

13,973

 

 

 

13,711

 

 

 

2

 

Intermodal

 

 

19,928

 

 

 

17,765

 

 

 

12

 

 

 

55,505

 

 

 

53,452

 

 

 

4

 

Premium

 

 

24,486

 

 

 

22,389

 

 

 

9

 

 

 

69,478

 

 

 

67,163

 

 

 

3

 

Total

 

 

104,035

 

 

 

103,032

 

 

 

1

%

 

 

305,292

 

 

 

308,356

 

 

 

(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.

5

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Income (unaudited)

 

 

 

 

 

 

2024

 

Millions, Except Per Share Amounts and Percentages,

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

Year-to-Date

 

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Freight revenues

 

$

5,616

 

 

$

5,638

 

 

$

5,768

 

 

$

17,022

 

Other revenues

 

 

415

 

 

 

369

 

 

 

323

 

 

 

1,107

 

Total operating revenues

 

 

6,031

 

 

 

6,007

 

 

 

6,091

 

 

 

18,129

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

1,223

 

 

 

1,187

 

 

 

1,228

 

 

 

3,638

 

Purchased services and materials

 

 

613

 

 

 

644

 

 

 

644

 

 

 

1,901

 

Fuel

 

 

658

 

 

 

625

 

 

 

610

 

 

 

1,893

 

Depreciation

 

 

594

 

 

 

596

 

 

 

602

 

 

 

1,792

 

Equipment and other rents

 

 

216

 

 

 

219

 

 

 

237

 

 

 

672

 

Other

 

 

355

 

 

 

336

 

 

 

354

 

 

 

1,045

 

Total operating expenses

 

 

3,659

 

 

 

3,607

 

 

 

3,675

 

 

 

10,941

 

Operating Income

 

 

2,372

 

 

 

2,400

 

 

 

2,416

 

 

 

7,188

 

Other income, net

 

 

92

 

 

 

103

 

 

 

87

 

 

 

282

 

Interest expense

 

 

(324

)

 

 

(319

)

 

 

(314

)

 

 

(957

)

Income before income taxes

 

 

2,140

 

 

 

2,184

 

 

 

2,189

 

 

 

6,513

 

Income tax expense

 

 

(499

)

 

 

(511

)

 

 

(518

)

 

 

(1,528

)

Net Income

 

$

1,641

 

 

$

1,673

 

 

$

1,671

 

 

$

4,985

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share and Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic

 

$

2.69

 

 

$

2.75

 

 

$

2.75

 

 

$

8.19

 

Earnings per share - diluted

 

$

2.69

 

 

$

2.74

 

 

$

2.75

 

 

$

8.18

 

Weighted average number of shares - basic

 

 

609.2

 

 

 

609.4

 

 

 

607.6

 

 

 

608.7

 

Weighted average number of shares - diluted

 

 

610.2

 

 

 

610.3

 

 

 

608.6

 

 

 

609.7

 

Dividends declared per share

 

$

1.30

 

 

$

1.30

 

 

$

1.34

 

 

$

3.94

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Ratio

 

 

60.7

%

 

 

60.0

%

 

 

60.3

%

 

 

60.4

%

Effective Tax Rate

 

 

23.3

%

 

 

23.4

%

 

 

23.7

%

 

 

23.5

%

 

6

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Freight Revenue Statistics (unaudited)

 

 

 

2024

 

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

Year-to-Date

 

Freight Revenues (Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grain & grain products

 

$

943

 

 

$

901

 

 

$

923

 

 

$

2,767

 

Fertilizer

 

 

201

 

 

 

203

 

 

 

208

 

 

 

612

 

Food & refrigerated

 

 

285

 

 

 

278

 

 

 

269

 

 

 

832

 

Coal & renewables

 

 

388

 

 

 

339

 

 

 

405

 

 

 

1,132

 

Bulk

 

 

1,817

 

 

 

1,721

 

 

 

1,805

 

 

 

5,343

 

Industrial chemicals & plastics

 

 

572

 

 

 

593

 

 

 

598

 

 

 

1,763

 

Metals & minerals

 

 

515

 

 

 

530

 

 

 

529

 

 

 

1,574

 

Forest products

 

 

338

 

 

 

342

 

 

 

322

 

 

 

1,002

 

Energy & specialized markets

 

 

679

 

 

 

658

 

 

 

672

 

 

 

2,009

 

Industrial

 

 

2,104

 

 

 

2,123

 

 

 

2,121

 

 

 

6,348

 

Automotive

 

 

611

 

 

 

659

 

 

 

601

 

 

 

1,871

 

Intermodal

 

 

1,084

 

 

 

1,135

 

 

 

1,241

 

 

 

3,460

 

Premium

 

 

1,695

 

 

 

1,794

 

 

 

1,842

 

 

 

5,331

 

Total

 

$

5,616

 

 

$

5,638

 

 

$

5,768

 

 

$

17,022

 

Revenue Carloads (Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grain & grain products

 

 

210

 

 

 

200

 

 

 

206

 

 

 

616

 

Fertilizer

 

 

47

 

 

 

62

 

 

 

53

 

 

 

162

 

Food & refrigerated

 

 

46

 

 

 

46

 

 

 

45

 

 

 

137

 

Coal & renewables

 

 

177

 

 

 

158

 

 

 

192

 

 

 

527

 

Bulk

 

 

480

 

 

 

466

 

 

 

496

 

 

 

1,442

 

Industrial chemicals & plastics

 

 

164

 

 

 

169

 

 

 

169

 

 

 

502

 

Metals & minerals

 

 

170

 

 

 

184

 

 

 

186

 

 

 

540

 

Forest products

 

 

53

 

 

 

55

 

 

 

53

 

 

 

161

 

Energy & specialized markets

 

 

154

 

 

 

147

 

 

 

152

 

 

 

453

 

Industrial

 

 

541

 

 

 

555

 

 

 

560

 

 

 

1,656

 

Automotive

 

 

207

 

 

 

218

 

 

 

202

 

 

 

627

 

Intermodal [a]

 

 

739

 

 

 

798

 

 

 

909

 

 

 

2,446

 

Premium

 

 

946

 

 

 

1,016

 

 

 

1,111

 

 

 

3,073

 

Total

 

 

1,967

 

 

 

2,037

 

 

 

2,167

 

 

 

6,171

 

Average Revenue per Car

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grain & grain products

 

$

4,494

 

 

$

4,493

 

 

$

4,498

 

 

$

4,495

 

Fertilizer

 

 

4,271

 

 

 

3,311

 

 

 

3,872

 

 

 

3,775

 

Food & refrigerated

 

 

6,231

 

 

 

5,943

 

 

 

6,099

 

 

 

6,090

 

Coal & renewables

 

 

2,189

 

 

 

2,156

 

 

 

2,101

 

 

 

2,147

 

Bulk

 

 

3,787

 

 

 

3,692

 

 

 

3,641

 

 

 

3,706

 

Industrial chemicals & plastics

 

 

3,486

 

 

 

3,507

 

 

 

3,534

 

 

 

3,509

 

Metals & minerals

 

 

3,030

 

 

 

2,885

 

 

 

2,847

 

 

 

2,918

 

Forest products

 

 

6,297

 

 

 

6,249

 

 

 

6,157

 

 

 

6,235

 

Energy & specialized markets

 

 

4,416

 

 

 

4,462

 

 

 

4,415

 

 

 

4,431

 

Industrial

 

 

3,886

 

 

 

3,825

 

 

 

3,791

 

 

 

3,833

 

Automotive

 

 

2,947

 

 

 

3,033

 

 

 

2,968

 

 

 

2,983

 

Intermodal [a]

 

 

1,468

 

 

 

1,421

 

 

 

1,365

 

 

 

1,414

 

Premium

 

 

1,792

 

 

 

1,766

 

 

 

1,657

 

 

 

1,735

 

Average

 

$

2,855

 

 

$

2,768

 

 

$

2,662

 

 

$

2,758

 

[a]

For intermodal shipments each container or trailer equals one carload.

7

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Non-GAAP Measures Reconciliation to GAAP (unaudited)

 

Debt / Net Income

 

 

 

 

 

 

 

 

Millions, Except Ratios

 

Sep. 30,

 

 

Dec. 31,

 

for the Trailing Twelve Months Ended [a]

 

2024

 

 

2023

 

Debt

 

$

31,413

 

 

$

32,579

 

Net income

 

 

6,637

 

 

 

6,379

 

Debt / net income

 

 

4.7

 

 

 

5.1

 

Adjusted Debt / Adjusted EBITDA*

 

 

 

 

 

 

 

 

Millions, Except Ratios

 

Sep. 30,

 

 

Dec. 31,

 

for the Trailing Twelve Months Ended [a]

 

2024

 

 

2023

 

Net income

 

$

6,637

 

 

$

6,379

 

Add:

 

 

 

 

 

 

 

 

Income tax expense

 

 

2,060

 

 

 

1,854

 

Depreciation

 

 

2,381

 

 

 

2,318

 

Interest expense

 

 

1,288

 

 

 

1,340

 

EBITDA

 

$

12,366

 

 

$

11,891

 

Adjustments:

 

 

 

 

 

 

 

 

Other income, net

 

 

(390

)

 

 

(491

)

Interest on operating lease liabilities [b]

 

 

47

 

 

 

58

 

Adjusted EBITDA

 

$

12,023

 

 

$

11,458

 

Debt

 

$

31,413

 

 

$

32,579

 

Operating lease liabilities

 

 

1,283

 

 

 

1,600

 

Adjusted debt

 

$

32,696

 

 

$

34,179

 

Adjusted debt / adjusted EBITDA

 

 

2.7

 

 

 

3.0

 

[a]

The trailing twelve months income statement information ended September 30, 2024, is recalculated by taking the twelve months ended December 31, 2023, subtracting the nine months ended September 30, 2023, and adding the nine months ended September 30, 2024.

 

 

[b]

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.

 

 

*

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 September 30, 2024, and December 31, 2023, the incremental borrowing rate on operating leases was 3.7% and 3.6%, respectively. Pension and OPEB were funded at September 30, 2024, and December 31, 2023.

8

 

Union Pacific Investor contact: Brad Stock at 402-544-4227 or bkstock@up.com

Union Pacific Media contact: Clarissa Beyah at 402-957-4793 or cbeyah@up.com

Source: Union Pacific Corporation

FAQ

What was Union Pacific's (UNP) earnings per share in Q3 2024?

Union Pacific reported earnings of $2.75 per diluted share in Q3 2024, representing a 10% increase from $2.51 in Q3 2023.

How much did Union Pacific's (UNP) operating revenue grow in Q3 2024?

Union Pacific's operating revenue grew 3% to $6.1 billion in Q3 2024, driven by increased volume and core pricing gains.

What was Union Pacific's (UNP) operating ratio in Q3 2024?

Union Pacific's operating ratio improved to 60.3% in Q3 2024, representing a 310 basis point improvement from the previous year.

What is Union Pacific's (UNP) capital plan for 2024?

Union Pacific maintains a capital plan of $3.4 billion for 2024.

Union Pacific Corp.

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