Jan 23, 2025

Union Pacific Reports Fourth Quarter and Full Year 2024 Results

Posted Jan 23, 2025 3:12 PM

Union Pacific

Omaha, Neb. - 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

  1. 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.
  2. Revenue carloads were up 5%.
  3. 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.
  4. Operating income of $2.5 billion was up 5%.  

Operating Performance: Improved Network Fluidity Amid Volume Growth; Fourth Quarter Record for Workforce Productivity

  1. Quarterly freight car velocity improved 1% to 219 daily miles per car.
  2. Quarterly locomotive productivity declined 3% to 136 gross ton-miles (GTMs) per horsepower day.
  3. Quarterly workforce productivity increased 6% to 1,118 car miles per employee.
  4. 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

  1. 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.
  2. Revenue carloads increased 3%.
  3. Operating ratio of 59.9% improved 240 basis points.
  4. Operating Income of $9.7 billion was up 7%.
  5. Union Pacific’s 2024 capital program totaled $3.4 billion.
  6. 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

  1. Union Pacific’s reportable personal injury and reportable derailment rates both improved.
  2. Freight car velocity improved 2% to 208 daily miles per car.
  3. Locomotive productivity improved 5% to 135 GTMs per horsepower day.
  4. Workforce productivity improved 6% to 1,062 car miles per employee.
  5. Fuel consumption rate improved 1% to 1.082, measured in gallons of fuel per thousand GTMs.

2025 Outlook: On Track with Investor Day Targets

  1. Volume impacted by mixed economic backdrop, coal demand, and challenging year-over-year international intermodal comparisons
  2. Pricing dollars accretive to operating ratio
  3. Earnings per share growth consistent with attaining the 3-year CAGR target of high-single to low-double digit
  4. Industry-leading operating ratio and return on invested capital
  5. No change to long-term capital allocation strategyCapital plan of $3.4 billionShare repurchases of $4.0 to $4.5 billion
  6. Capital plan of $3.4 billion
  7. 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.

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