Summary
Union Pacific Corporation (UNP) reported a foundational year in 2022, marked by record earnings per share of $11.21, a 13% increase over 2021, driven by a 2% rise in total volumes and a 14% increase in freight revenues to $23.2 billion. This growth was primarily fueled by strength in industrial and bulk markets, offsetting continued supply chain challenges in premium segments. However, the company experienced a deterioration in its operating ratio to 60.1%, a 290-basis point increase from 2021, attributed to higher fuel prices, inflationary pressures, and operational inefficiencies, including a $92 million one-time charge for new labor agreements. Despite operational headwinds impacting service product reliability, Union Pacific returned $9.4 billion to shareholders through dividends and share repurchases, underscoring a commitment to shareholder value.
Financial Highlights
49 data points| Revenue | $24.88B |
| Operating Expenses | $14.96B |
| Operating Income | $9.92B |
| Interest Expense | $1.27B |
| Net Income | $7.00B |
| EPS (Basic) | $11.24 |
| EPS (Diluted) | $11.21 |
| Shares Outstanding (Basic) | 622.70M |
| Shares Outstanding (Diluted) | 624.00M |
Key Highlights
- 1Record Earnings Per Share (EPS) of $11.21, up 13% year-over-year.
- 2Total freight revenues increased 14% to $23.2 billion, driven by higher fuel surcharges, core pricing gains, and a 2% volume increase.
- 3Operating Ratio deteriorated to 60.1%, a 2.9-point increase from 2021, due to increased fuel costs, inflation, and operational inefficiencies.
- 4Invested $3.4 billion in capital expenditures, focusing on infrastructure modernization, network capacity, and operational efficiency.
- 5Returned $9.4 billion to shareholders through dividends ($3.2 billion) and share repurchases ($6.3 billion).
- 6Made progress on safety, with a personal injury rate improving 18% to a five-year low, though derailment incident rates saw an 8% increase.
- 7Navigated labor negotiations successfully, concluding a new agreement in December 2022.