01—Abstract
Summary
Summary of the 10-K filed February 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Union Pacific Corporation (UNP) reported solid financial and operational performance for the fiscal year ending December 30, 2024.
The company achieved a 1% increase in total operating revenues to $24.25 billiona, driven by a 3% rise in freight volumes and core pricing gains, partially offset by lower fuel surcharge revenues. Operating income saw a significant 7% increase to $9.7 billion, resulting in an improved operating ratio of 59.9% and a 6% increase in diluted earnings per share to $11.09. Safety remains a paramount focus, with notable improvements in both personal injury rates (down 23%) and derailment incident rates (down 20%) compared to the previous year, attributed to strategic initiatives and technological leverage.
The company also reported enhanced service performance, with improved Service Performance Index scores for both intermodal and manifest products, alongside increased freight car velocity and record terminal dwell times, underscoring operational efficiencies. Looking ahead to 2025, Union Pacific anticipates continued focus on safety and service, alongside operational excellence, while acknowledging potential macroeconomic uncertainties that could impact business volumes.
02—Key points
Key Highlights
- Total operating revenues increased by 1% to $24.25 billion in 2024.
- Operating income grew by 7% to $9.7 billion, with an improved operating ratio of 59.9%.
- Diluted earnings per share increased by 6% to $11.09.
- Significant safety improvements were achieved with a 23% reduction in personal injury rate and a 20% reduction in derailment incident rate compared to 2023.
- Freight car velocity increased by 2%, and terminal dwell time reached record levels, indicating improved operational efficiency.
- Capital expenditures for 2025 are planned at $3.4 billion, consistent with 2024, focusing on safety, efficiency, and growth.
- The company generated $9.3 billion in cash from operating activities and $2.8 billion in free cash flow.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 7, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $24.25B$24.12B | +0.5% |
| Operating Expenses | $14.54B$15.04B | −3.3% |
| Operating Income | $9.71B$9.08B | +6.9% |
| Net Income | $6.75B$6.38B | +5.8% |
| EPS (Basic) | $11.10$10.47 | +6.0% |
| EPS (Diluted) | $11.09$10.45 | +6.1% |
| Shares Outstanding (Basic) | 607.60M609.20M | −0.3% |
| Shares Outstanding (Diluted) | 608.60M610.20M | −0.3% |
05—Questions
Frequently Asked Questions
What were Union Pacific's key financial performance indicators for the fiscal year ending December 30, 2024?
For the fiscal year ended December 30, 2024, Union Pacific reported total operating revenues of $24.25 billion, a 1% increase year-over-year. Operating income rose by 7% to $9.7 billion, leading to an improved operating ratio of 59.9%. Diluted earnings per share increased by 6% to $11.09.
How did Union Pacific perform in terms of safety and operations during 2024?
Safety saw significant improvements, with a 23% decrease in the personal injury rate and a 20% decrease in the derailment incident rate compared to 2023. Operationally, freight car velocity increased by 2%, and terminal dwell time reached record levels, indicating enhanced network fluidity and efficiency.
What is Union Pacific's outlook for capital expenditures and business volumes in 2025?
Union Pacific plans to maintain its capital expenditure program at $3.4 billion for 2025, consistent with 2024, focusing on safety, network resilience, operational efficiency, and growth projects. While anticipating some macroeconomic uncertainties, the company expects industrial production to show a slight increase and is focused on operating a safe railroad, delivering customer service, and optimizing asset utilization.
What are the primary revenue-generating commodity groups for Union Pacific, and how did they perform in 2024?
Union Pacific's freight revenues are generated from three commodity groups: Bulk (32% of freight revenue), Industrial (37% of freight revenue), and Premium (31% of freight revenue). In 2024, Bulk freight revenue decreased due to lower coal shipments, while Industrial revenue saw an increase driven by core pricing gains and positive traffic mix. Premium revenue also increased, primarily due to higher volumes in international intermodal shipments and domestic intermodal growth.
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