Group 1 - The article emphasizes the importance of in-depth research on various income alternatives such as REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1] - It suggests that the financial publications have been focusing on two prominent words over the past two months, indicating a significant trend in the market [1] Group 2 - There is a mention of a beneficial long position in the shares of UNP, indicating a positive outlook on the stock [2] - The article expresses personal opinions of the author without any compensation from companies mentioned, highlighting an independent analysis [2] Group 3 - The article clarifies that past performance does not guarantee future results, which is a common disclaimer in financial analysis [3] - It notes that the views expressed may not reflect those of the entire platform, indicating a diversity of opinions among analysts [3]

Financial Performance - The company reported earnings of $2.70 per diluted share on net income of $1.6 billion for Q1 2025, unchanged from Q1 2024[86]. - Total operating revenues slightly decreased to $6.027 billion in Q1 2025 from $6.031 billion in Q1 2024[89]. - Other income decreased by 15% in Q1 2025 to $78 million compared to $92 million in Q1 2024[111]. - Free cash flow decreased to $468 million in Q1 2025 from $525 million in Q1 2024[136]. Revenue and Volume - Freight revenues increased by 1% to $5.691 billion in Q1 2025, driven by a 7% volume increase, offset by unfavorable business mix and lower fuel surcharge revenues[86][91]. - The company experienced a 33% increase in international intermodal business volume compared to Q1 2024[87]. - Revenues from shipments to and from Mexico decreased by 9% to $719 million in Q1 2025, driven by a 5% volume decline[102]. Operating Metrics - Operating ratio remained stable at 60.7% for both Q1 2025 and Q1 2024, with operating income also unchanged at $2.4 billion[86][88]. - Average revenue per car decreased by 5% to $2,714 in Q1 2025 compared to $2,855 in Q1 2024[97]. - Operating expenses decreased slightly to $3.656 billion in Q1 2025, driven by productivity and lower fuel prices[103]. - Gross ton-miles increased by 3% in Q1 2025 to 212.8 billion, while revenue ton-miles also increased by 3% to 104.0 billion[115]. - Freight car velocity improved by 6% in Q1 2025, reaching an average of 215 daily miles per car[117]. - Average terminal dwell time decreased by 6% in Q1 2025 to 22.1 hours[115]. Cash Flow and Investments - Cash provided by operating activities increased to $2,210 million in Q1 2025 from $2,122 million in Q1 2024[126]. - Total cash capital investments rose to $906 million in Q1 2025, up from $797 million in Q1 2024[129]. - In Q1 2025, the company generated $2.2 billion in cash from operating activities and repurchased $1.4 billion in shares[138]. Debt and Obligations - Interest expense decreased by 1% in Q1 2025 to $322 million, with a weighted-average debt level of $31.9 billion compared to $32.3 billion in Q1 2024[112]. - Total contractual obligations as of March 31, 2025, amounted to $64.768 billion, with $2.676 billion due in 2025[141]. - The company has $61.298 billion in debt obligations, with $1.874 billion due in 2025[141]. - Purchase obligations total $1.790 billion, with $568 million due in 2025[141]. - Operating leases total $1.176 billion, with $182 million due in 2025[141]. - The company expects to remain in compliance with its debt covenants[138]. Future Outlook - The capital plan for 2025 is expected to be approximately $3.4 billion, consistent with 2024, focusing on growth and infrastructure improvements[131]. - There are no known trends or uncertainties that are likely to materially affect the company's financial condition as of the filing date[140].

Company Participants Call Start: 08:45 January 1, 0000 9:58 AM ET Union Pacific Corporation (NYSE:UNP) Q1 2025 Earnings Conference Call April 24, 2025, 8:45 AM ET Jim Vena - Chief Executive Officer Jennifer Hamann - Chief Financial Officer Kenny Rocker - Executive Vice President, Marketing and Sales Eric Gehringer - Executive Vice President, Operations Wes Hutcherson - Former Executive Vice President, Marketing and Sales Conference Call Participants Chris Wetherbee - Wells Fargo Tom Wadewitz - UBS Fadi Cham ...

Core Insights - Union Pacific Corporation (UNP) reported first-quarter 2025 earnings of $2.70 per share, slightly missing the Zacks Consensus Estimate of $2.73, but showing a year-over-year improvement of 0.4% due to strong operational efficiency and favorable pricing [1] - Operating revenues were $6.03 billion, falling short of the Zacks Consensus Estimate of $6.09 billion, and reflecting a 0.07% decline year-over-year attributed to lower fuel surcharge revenues and an unfavorable business mix [2] - Freight revenues, which constitute 94.4% of total revenues, increased by 1% to $5.7 billion, supported by a 7% growth in overall volume [3] Financial Performance - Total operating expenses remained flat year-over-year at $3.7 billion, with fuel expenses decreasing by 8% and compensation and benefits expenses falling by 1% [4] - The operating income was stable at $2.4 billion year-over-year, while the operating ratio held steady at 60.7%, although it was negatively impacted by lower fuel prices and a leap year effect [4] Segment Analysis - Bulk freight revenues rose by 1% year-over-year to $1.84 billion, contrary to expectations of a 1.2% decline, with segmental revenue carloads improving by 2% [5] - Industrial freight revenues decreased by 1% year-over-year to $2.08 billion, with revenue carloads also declining by 1% [5] - Premium freight revenues increased by 5% year-over-year to $1.77 billion, surpassing expectations of a 0.6% decrease, with revenue carloads improving by 13% [6] Liquidity and Debt - Union Pacific ended the first quarter of 2025 with cash and cash equivalents of $1.41 billion, up from $925 million in the same quarter of 2024, while debt due after one year decreased to $30.6 billion from $31.2 billion [8] Future Outlook - The company anticipates that volumes will be influenced by a mixed economic environment, fluctuations in coal demand, and challenging year-over-year international intermodal comparisons, while pricing gains are expected to positively impact the operating ratio [10] - Earnings per share growth is aligned with the company's three-year compound annual growth rate (CAGR) target of high-single to low-double digits, with a commitment to maintaining an industry-leading operating ratio and return on invested capital [10] - The long-term capital allocation strategy remains unchanged, with a capital plan of $3.4 billion and share repurchases projected between $4 billion and $4.5 billion [11]

Union Pacific (UNP) came out with quarterly earnings of $2.70 per share, missing the Zacks Consensus Estimate of $2.73 per share. This compares to earnings of $2.69 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.10%. A quarter ago, it was expected that this railroad would post earnings of $2.78 per share when it actually produced earnings of $2.91, delivering a surprise of 4.68%.Over the last four quarters, the company has ...

UNION PACIFIC CORPORATION FIRST QUARTER 2025 EARNINGS APRIL 24, 2025 EXECUTIVE SUMMARY FIRST QUARTER 2025 Jim Vena Chief Executive Officer 2 First Quarter Highlights & Executive Summary Highlights Executive Summary SAFETY + SERVICE & OPERATIONAL EXCELLENCE FINANCIAL REVIEW FIRST QUARTER 2025 Jennifer Hamann Executive Vice President & Chief Financial Officer 3 4 $2.70 Earnings per Share $2.4B Operating Income $1.6B Net Income 60.7% Operating Ratio Freight Car Velocity up 6% Workforce Productivity up 9% • Qua ...

Financial Performance - Union Pacific reported Q1 2025 net income of $1.6 billion, or $2.70 per diluted share, compared to $1.6 billion, or $2.69 per diluted share in Q1 2024[2]. - Net income for Q1 2025 was $1,626 million, a slight decrease of 0.9% from $1,641 million in Q1 2024[19]. - Cash provided by operating activities increased to $2,210 million in Q1 2025, up 4.1% from $2,122 million in Q1 2024[19]. - Free cash flow for Q1 2025 was $468 million, down 11% from $525 million in Q1 2024[19]. Revenue and Expenses - Operating revenue for Q1 2025 was $6.0 billion, flat year-over-year, with a 7% increase in revenue carloads and a 4% increase in freight revenue excluding fuel surcharge[5]. - Total operating expenses were flat at $3.7 billion, with productivity improvements offsetting volume-related costs and inflation[15]. - Freight revenue from intermodal shipments increased by 10% to $1.2 billion, while automotive freight revenue decreased by 5% to $581 million[16]. Operational Metrics - The operating ratio remained flat at 60.7%, impacted by lower fuel prices and a leap year, with a 90 basis point unfavorable effect[6]. - Quarterly freight car velocity improved by 6% to 215 daily miles per car, while workforce productivity increased by 9% to 1,091 car miles per employee[11]. - Average train speed decreased by 2% to 23.7 miles per hour in Q1 2025, down from 24.1 miles per hour in Q1 2024[21]. - Total revenue ton-miles increased by 3% to 104,011 million in Q1 2025, up from 101,265 million in Q1 2024[21]. - Average fuel price per gallon consumed decreased by 11% to $2.51 in Q1 2025, down from $2.81 in Q1 2024[21]. Capital and Investments - The capital plan for 2025 is set at $3.4 billion, with share repurchases expected to be between $4.0 billion and $4.5 billion[11]. - Capital investments rose to $906 million in Q1 2025, compared to $797 million in Q1 2024, reflecting a 13.7% increase[19]. Balance Sheet - Cash and cash equivalents increased to $1.4 billion as of March 31, 2025, up from $1.0 billion at the end of 2024[18]. - Total assets rose to $68.5 billion, compared to $67.7 billion at the end of 2024, with total liabilities increasing to $52.5 billion[18]. - Debt increased to $32,842 million as of March 31, 2025, from $31,192 million at the end of 2024[23]. - Adjusted debt to adjusted EBITDA ratio improved to 2.8 in Q1 2025, compared to 2.7 in Q4 2024[24]. Outlook - Union Pacific affirmed its 2025 outlook, targeting earnings per share growth consistent with a 3-year CAGR target of high-single to low-double digits[11].

Core Viewpoint - Union Pacific Corporation (UNP) is expected to report first-quarter 2025 results on April 24, with earnings estimates showing a slight decline compared to previous forecasts, indicating potential challenges in the freight market and consumer demand [1][3]. Earnings Estimates - The Zacks Consensus Estimate for first-quarter 2025 earnings is $2.73 per share, reflecting a 2.15% downward revision over the past 60 days, but a 1.5% increase from the previous year [1][2]. - Revenue estimates for the same period are projected at $6.09 billion, which is a 0.9% increase year-over-year [1]. Revenue Insights - Freight revenues are estimated at $5.7 billion, indicating a decline from fourth-quarter 2024 figures, while other revenues are expected to rise by 5.5% to $350.4 million [3]. Cost Management - The company’s cost-cutting measures are anticipated to positively impact its bottom line, with operating expenses expected to decrease by 0.4% year-over-year [4]. - The operating ratio is projected to improve by 60 basis points to 60.6%, suggesting enhanced operational efficiency [4]. Earnings Prediction Model - The current Earnings ESP for UNP is -0.05%, and it holds a Zacks Rank of 3, indicating that the model does not predict a definitive earnings beat for this quarter [5]. Previous Quarter Performance - In the fourth quarter of 2024, UNP reported earnings of $2.91 per share, surpassing the Zacks Consensus Estimate of $2.78, with a year-over-year improvement of 7.4% due to operational efficiency and favorable pricing [7]. - Operating revenues for the fourth quarter were $6.12 billion, slightly below the consensus estimate, with a year-over-year decline of 0.6% attributed to lower fuel surcharge revenues and an unfavorable business mix [7].

In its upcoming report, Union Pacific (UNP) is predicted by Wall Street analysts to post quarterly earnings of $2.73 per share, reflecting an increase of 1.5% compared to the same period last year. Revenues are forecasted to be $6.09 billion, representing a year-over-year increase of 0.9%.Over the last 30 days, there has been a downward revision of 1.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initi ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Union Pacific (UNP) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on April 24, 2025, might help the stock move higher if these key numbers are better than expe ...