Union Pacific Q1 2025 Earnings Summary

Financial Overview

• Earnings Per Share (EPS):
  • Q1 earnings per diluted share remained flat at $2.70.
  • 7% headwind from fuel and leap year.
• Operating Income:
  • Flat at $2.4 billion.
• Revenue:
  • Revenue carloads up 7%.
  • Freight revenue (excluding fuel surcharge) up 4%.

Comparative Results (2025 vs. 2024)

• Net Income:
  • $1.6 billion, consistent with 2024.
• Operating Revenue:
  • $6.0 billion, flat with 7% volume growth but offset by business mix, reduced fuel surcharge revenue, and leap year impact.
• Operating Ratio:
  • 60.7%, flat with 2024, affected by lower fuel prices and leap year (90 basis points impact).
• Operating Expenses:
  • Flat due to productivity improvements and lower fuel costs balancing volume-related costs and inflation.

Operational Performance

• Safety and Efficiency Improvements:
  • Reportable personal injury rate improved, matching best-ever performance.
  • Freight car velocity increased by 6% (215 daily miles per car).
  • Locomotive productivity up by 1% (136 GTMs per horsepower day).
  • Average train length increased by 2% (9,490 feet).
  • Workforce productivity improved by 9% (1,091 car miles per employee).
  • Fuel consumption rate improved by 1% (1.107 gallons per thousand GTMs).

Strategic Focus and Outlook

• 2025 Outlook:
  • Focus on safety, service, and operational excellence.
  • Volume affected by economic conditions, coal demand, and international intermodal comparisons.
  • Continued pricing power contributing positively to operating ratio.
  • EPS growth aligned with a high-single to low-double digit 3-year CAGR target.
  • Industry-leading operating ratio and return on invested capital.
  • No change to long-term capital allocation:
    • Capital plan of $3.4 billion.
    • Share repurchases between $4.0 to $4.5 billion.

Conference Call Information

• Event: Union Pacific Q1 2025 earnings release presentation.
• Date & Time: April 24, 2025, at 8:45 a.m. Eastern Time.
• Webcast & Call: Available at www.up.com/investor, dial 877-407-8293 (International: 201-689-8349).

Additional Information

• Union Pacific:
  • Operates in 23 western states, connecting customers to the global economy.
  • Known for safe, reliable, and efficient service.
  • Environmentally responsible freight transportation.
• Investor Contact:
  • Diana Prauner: 402-544-4227, [email protected]

Forward-Looking Statements

• Contains predictions about the company's future not based on historical fact.
• Includes potential impacts of global events, macroeconomic conditions, and operational strategies.
• Forward-looking statements are subject to risks, uncertainties, and assumptions as outlined in the company’s reports and filings.

These notes summarize Union Pacific's financial and operational performance for Q1 2025, providing insights into their strategic direction and future outlook.