10-KPeriod: FY2024

UNION PACIFIC CORP Annual Report, Year Ended Dec 31, 2024

Filed February 7, 2025For Securities:UNP

Summary

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 billion, 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.

Financial Highlights

47 data points
Beta

Revenue

$24.25B

Net Income

$6.75B

27.8% Net Margin

EPS (Diluted)

$11.09

Total Assets

$67.72B

Cash & Equivalents

$1.02B

Free Cash Flow

$5.89B

Financial Statements
Beta
Revenue$24.25B
Operating Expenses$14.54B
Operating Income$9.71B
Net Income$6.75B
EPS (Basic)$11.10
EPS (Diluted)$11.09
Shares Outstanding (Basic)607.60M
Shares Outstanding (Diluted)608.60M

Key Highlights

  • 1Total operating revenues increased by 1% to $24.25 billion in 2024.
  • 2Operating income grew by 7% to $9.7 billion, with an improved operating ratio of 59.9%.
  • 3Diluted earnings per share increased by 6% to $11.09.
  • 4Significant safety improvements were achieved with a 23% reduction in personal injury rate and a 20% reduction in derailment incident rate compared to 2023.
  • 5Freight car velocity increased by 2%, and terminal dwell time reached record levels, indicating improved operational efficiency.
  • 6Capital expenditures for 2025 are planned at $3.4 billion, consistent with 2024, focusing on safety, efficiency, and growth.
  • 7The company generated $9.3 billion in cash from operating activities and $2.8 billion in free cash flow.

Frequently Asked Questions

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.

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.

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.

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.