10-QPeriod: Q1 FY2025

UNION PACIFIC CORP Quarterly Report for Q1 Ended Mar 31, 2025

Filed April 24, 2025For Securities:UNP

Summary

Union Pacific Corporation (UNP) reported relatively flat total operating revenues for the first quarter of 2025 compared to the prior year, standing at $6.027 billion versus $6.031 billion. Net income also saw a slight decrease to $1.626 billion from $1.641 billion, resulting in diluted earnings per share of $2.70, marginally up from $2.69 in the prior year. The company demonstrated strong operational execution, with a 7% increase in freight volumes driven by international intermodal and coal shipments, while managing operating expenses effectively, which remained largely unchanged year-over-year due to productivity gains and lower fuel prices, despite inflationary pressures and higher depreciation. Key financial maneuvers in the quarter included significant share repurchases totaling $1.4 billion, including accelerated share repurchase programs, alongside dividend payments. The company also issued $2.0 billion in new debt, contributing to an increase in cash and cash equivalents to $1.422 billion. Despite these activities, Union Pacific maintained its operational focus, evidenced by improvements in freight car velocity and workforce productivity. The company reiterates its 2025 capital plan of approximately $3.4 billion, reflecting ongoing investments in network modernization, safety, and growth initiatives.

Financial Highlights

46 data points
Beta

Revenue

$6.03B

Net Income

$1.63B

27.0% Net Margin

EPS (Diluted)

$2.70

Total Assets

$68.49B

Cash & Equivalents

$1.41B

Free Cash Flow

$1.30B

Financial Statements
Beta
Revenue$6.03B
Operating Expenses$3.66B
Operating Income$2.37B
Net Income$1.63B
EPS (Basic)$2.71
EPS (Diluted)$2.70
Shares Outstanding (Basic)601.00M
Shares Outstanding (Diluted)601.90M

Key Highlights

  • 1Total operating revenues remained stable at $6.027 billion for Q1 2025.
  • 2Net income slightly decreased to $1.626 billion, with diluted EPS at $2.70.
  • 3Freight volumes increased by 7%, driven by international intermodal and coal segments.
  • 4Operating expenses were flat year-over-year due to productivity gains and lower fuel costs.
  • 5Significant share repurchases of $1.4 billion were completed, including ASR programs.
  • 6Cash and cash equivalents increased to $1.422 billion.
  • 7The company reaffirmed its 2025 capital expenditure plan of approximately $3.4 billion.

Frequently Asked Questions

Union Pacific's total operating revenues remained essentially flat, reporting $6.027 billion in Q1 2025 compared to $6.031 billion in Q1 2024. While freight revenues saw a 1% increase driven by higher volumes and core pricing gains, this was offset by an unfavorable business mix, lower fuel surcharge revenues, and one less operational day in 2025.

The 7% increase in freight volumes was primarily driven by higher demand in international intermodal shipments (up 33%) and coal shipments, influenced by colder weather and higher natural gas prices. Automotive and petroleum product shipments, however, saw declines.

Operating expenses remained flat year-over-year at $3.656 billion. This stability was achieved through productivity improvements and lower fuel prices, which offset increases related to volume-driven costs, inflation, and higher depreciation expenses.

Union Pacific engaged in substantial share repurchases totaling $1.4 billion during the first quarter of 2025, which included entering into accelerated share repurchase (ASR) programs. The company also continued to pay dividends to shareholders.