Union Pacific Reports Third Quarter 2024 Results

Third quarter earnings per diluted share of $2.75, up 10%

Third quarter operating income up 11%

Third quarter net income up 9%

Union Pacific Corporation 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

For full results click here.

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.

Contact:

Clarissa Beyah – Media Contact – cbeyah@up.com – (402) 957-4793

Source: Union Pacific Corporation