UNP Union Pacific Corp

• Fourth quarter earnings per diluted share of $2.91, up 7%
• Fourth quarter operating ratio of 58.7%
• Full year earnings per diluted share of $11.09, up 6%
• Full year operating ratio of 59.9%
• Full year return on invested capital of 15.8%

Union Pacific Corporation (NYSE: UNP) today reported 2024 fourth quarter net income of $1.8 billion, or $2.91 per diluted share. These results include $40 million of labor expense related to the ratification of a crew staffing agreement. This compares to 2023 fourth quarter net income of $1.7 billion, or $2.71 per diluted share.

Reported net income for full year 2024 was $6.7 billion, or $11.09 per diluted share. These full year results compare to full year 2023 net income of $6.4 billion, or $10.45 per diluted share.

“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 was down 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 was up 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 was up 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 was up 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 to $4.5 billion

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 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 future 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 (including those in response to increased traffic); 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 planned capital investments ; proposed new products and services; estimates of costs relating to environmental remediation and restoration; estimates and expectations regarding tax matters; estimates and expectations regarding potential tariffs; 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

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, 2024

Dec. 31, 2023

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 $143 million in 2024 and $57 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.

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 3.8% and 3.6%, respectively. Pension and OPEB were funded at December 31, 2024 and 2023.

 

** 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 3.8% and 3.6%, respectively.

 

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