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(Source: Union Pacific press release, October 24, 2024)

Union Pacific Corporation 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.

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

Full story: Union Pacific