Financial Performance - In 2024, the company generated total freight revenues of $22.8 billion, with Bulk shipments accounting for 32%, Industrial shipments for 37%, and Premium shipments for 31% of total revenues[37][39][40][42]. - Total operating revenues for 2024 were $24,250 million, a slight increase from $24,119 million in 2023[257]. - Freight revenues accounted for $22,811 million in 2024, compared to $22,571 million in 2023, reflecting a growth of 1.06%[257]. - Net income for 2024 was $6,747 million, up from $6,379 million in 2023, representing an increase of 5.78%[257]. - Operating income increased to $9,713 million in 2024 from $9,082 million in 2023, marking a growth of 6.95%[257]. - Total operating expenses decreased to $14,537 million in 2024 from $15,037 million in 2023, a reduction of 3.32%[257]. - Earnings per share (diluted) rose to $11.09 in 2024, compared to $10.45 in 2023, an increase of 6.14%[257]. - The company reported a comprehensive income of $6,638 million for 2024, compared to $6,347 million in 2023, an increase of 4.58%[258]. - Cash provided by operating activities increased to $9,346 million in 2024, compared to $8,379 million in 2023, marking a rise of 11.5%[261]. - Total assets as of December 31, 2024, were $67,715 million, a slight increase from $67,132 million in 2023[260]. - Total liabilities decreased to $50,825 million in 2024 from $52,344 million in 2023, representing a reduction of 2.9%[260]. - Retained earnings rose to $65,628 million in 2024, up from $62,093 million in 2023, indicating a growth of 8.1%[263]. - The company declared cash dividends of $3,212 million in 2024, compared to $3,173 million in 2023, reflecting an increase of 1.2%[263]. - Other income for 2024 totals $350 million, down from $491 million in 2023, primarily due to a one-time transaction in 2023[351]. - Total income tax expense for 2024 is $2,047 million, an increase from $1,854 million in 2023[353]. - The effective tax rate for 2024 is 23.3%, compared to 22.5% in 2023[354]. Workforce and Diversity - The workforce as of December 31, 2024, consisted of 32,439 employees, with a representation of 34.3% people of color and 5.2% females[46][52]. - The company aims to double female representation to 11% and reach 40% people of color in its workforce by 2030[52]. Environmental Commitment - The company is committed to reducing greenhouse gas emissions, with rail transport reducing emissions by up to 75% compared to trucking[67]. - The company performs environmental assessments on properties with identified environmental issues and expenses the cost of assessments as incurred[300]. - The beginning balance of environmental liability for 2024 was $245 million, compared to $253 million in 2023 and $243 million in 2022[402]. - Accruals for environmental liability increased to $129 million in 2024 from $99 million in 2023 and $84 million in 2022[402]. - Payments made towards environmental liability were $106 million in 2024, slightly down from $107 million in 2023 and up from $74 million in 2022[402]. - The ending balance of environmental liability at December 31, 2024, was $268 million, an increase from $245 million in 2023 and $253 million in 2022[402]. - Environmental liability includes future costs for remediation and restoration, excluding anticipated recoveries from third parties[402]. - Estimates of liability may vary over time due to changes in environmental laws and regulations[403]. - Current obligations are not expected to materially affect the company's consolidated results of operations, financial condition, or liquidity[403]. Operational Metrics - The company operates 32,880 route miles, connecting key U.S. ports and facilitating freight movement across North America[37]. - The company is the largest automotive carrier west of the Mississippi River, operating or accessing 39 vehicle distribution centers[43]. - The company’s rail network supports the transportation of coal shipments, with the Powder River Basin being the largest source of coal business[39]. - The company maintains a comprehensive security plan and has not experienced any material disruption due to cyber threats[61]. - The company continues to face regulatory scrutiny from various federal and state agencies, impacting operational costs and compliance[71]. Stock and Compensation - The company recognizes freight revenues over time as freight moves from origin to destination, with expenses recognized as incurred[283]. - As of December 31, 2024, 1,203,484 stock options and 1,218,529 retention shares were outstanding under the 2021 Stock Incentive Plan[309]. - The company has several stock-based compensation plans with 31,063,392 shares authorized and available for grant as of December 31, 2024[311]. - Total stock-based compensation before tax for 2024 was $118 million, an increase of 10.3% from $107 million in 2023[312]. - The weighted-average grant-date fair value of options granted in 2024 was $61.75, up from $48.31 in 2023, representing a 27.8% increase[313]. - The intrinsic value of stock options exercised in 2024 was $35 million, an increase of 52.2% from $23 million in 2023[315]. - The total unrecognized compensation expense related to nonvested retention awards at the end of 2024 was $70 million, expected to be recognized over 1.1 years[316]. Debt and Liabilities - Total debt decreased to $31.192 billion in 2024 from $32.579 billion in 2023, a reduction of approximately 4.25%[385]. - The fair value of total debt was estimated at $25.3 billion as of December 31, 2024, which is approximately $5.9 billion less than the carrying value[383]. - The company had $20 million in short-term investments as of December 31, 2024, up from $16 million in 2023, marking a 25% increase[382]. - The total lease liabilities decreased to $1.380 billion in 2024 from $1.758 billion in 2023, a decline of approximately 21.5%[394]. - The company recorded a personal injury liability of $379 million at the end of 2024, down from $383 million in 2023, a decrease of 1.04%[401]. - The total principal of debt maturities as of December 31, 2024, is $32.885 billion, with significant maturities occurring in 2025 and 2026[386]. - The company had $2.0 billion of credit available under its revolving credit facility as of December 31, 2024[386]. Pension and Benefits - The projected benefit obligation (PBO) at the end of 2024 was $3.513 billion, down from $3.880 billion at the end of 2023, a decrease of 9.5%[324]. - The fair value of plan assets at the end of 2024 was $4.068 billion, down from $4.400 billion at the end of 2023, a decrease of 7.5%[324]. - The net periodic pension cost for 2024 was $(3) million, compared to $0 million in 2023, indicating a shift to a net benefit[330]. - The accumulated benefit obligation (ABO) for all defined benefit pension plans was $3.3 billion at the end of 2024, down from $3.6 billion in 2023[327]. - The discount rate for benefit obligations increased to 5.61% in 2024 from 5.00% in 2023[328]. - Expected benefit payments for 2025 are projected at $231 million, with a total of $1,177 million for the years 2030-2034[333]. - The pension plan's target asset allocation for 2025 includes 20% to 30% in equity securities and 70% to 80% in debt securities, aiming for a long-term return of 5.25%[334]. - The average credit rating of the debt portfolio remains at AA- with a weighted-average maturity of 22 years[335].

Core Viewpoint - Union Pacific's stock surged 5.2% following strong fourth-quarter and full-year 2024 earnings, along with positive guidance for 2025, indicating a solid position in the railroad shipping industry with limited competition and valuable infrastructure [1][2]. Financial Performance - In 2024, Union Pacific's operating revenue reached $24.25 billion, a 1% increase from $24.12 billion in 2023, while operating income rose by 7% to $9.71 billion, and net income increased by 6% to $6.75 billion [4][3]. - The company improved efficiency by moving 5% more cargo with 3% fewer employees, benefiting from lower operating costs due to reduced fuel prices [3][4]. - Operating margin improved to 40% from 37.7%, and profit margin increased to 27.8% from 26.5%, reflecting the advantages of the railroad business model [4][3]. Cost Structure - Major operating costs include labor, fuel, and rail network maintenance, with capital investments relatively low at $3.45 billion in 2024 for infrastructure upgrades [5][6]. - Total operating expenses decreased by 3% to $14.54 billion, driven by a 14% reduction in fuel expenses [4][6]. Revenue Diversification - Union Pacific's freight revenue from coal and renewables fell by 23% in 2024, but growth in other categories helped offset this decline, with total freight revenue increasing by 1% to $22.81 billion [8][9]. - The company has diverse exposure to various end markets, which cushions impacts from category-specific downturns [7][8]. Future Outlook - Management predicts modest growth in industrial production and GDP for 2025, with expectations of slightly fewer U.S. housing starts and higher light vehicle sales [12][13]. - Union Pacific aims for a compound annual growth rate for earnings per share in the high single digits to low double digits from 2025 to 2027, alongside significant capital investments and stock buybacks [18][19]. Dividend and Shareholder Returns - Union Pacific has a strong dividend history, having paid dividends for 125 consecutive years and raised payouts annually since 2008, with a 144% increase over the last decade [15][20]. - The company plans to maintain a payout ratio around 45%, indicating a sustainable dividend yield of 2.3% [20][21]. Valuation - Despite recent stock price increases, Union Pacific's price-to-earnings (P/E) ratio stands at 22.9, with a forward P/E of 20.6, suggesting it remains a reasonable investment [16][21]. - The company is positioned to continue improving efficiency and growing earnings, making it an attractive option for income-oriented investors [21][22].

Core Insights - The article discusses the Union Pacific Corporation (NYSE: UNP), highlighting its long-term presence in the author's investment portfolio and frequent coverage over nearly nine years [1]. Company Overview - Union Pacific Corporation is a significant player in the transportation sector, particularly in railroads, and has been a consistent focus for investment analysis [1]. Investment Position - The author holds a beneficial long position in Union Pacific shares, indicating confidence in the company's future performance [1].

Company Overview - Union Pacific (UNP) is based in Omaha and operates in the Transportation sector, with a year-to-date share price change of 8.77% [3] - The company currently pays a dividend of $1.34 per share, resulting in a dividend yield of 2.16%, which is higher than the Transportation - Rail industry's yield of 1.47% and the S&P 500's yield of 1.49% [3] Dividend Performance - Union Pacific's annualized dividend of $5.36 has increased by 1.5% from the previous year, with an average annual increase of 8.44% over the last five years [4] - The company's current payout ratio is 49%, indicating that it pays out 49% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - The Zacks Consensus Estimate for Union Pacific's earnings in 2025 is projected at $12.03 per share, reflecting a year-over-year earnings growth rate of 8.48% [5] Investment Considerations - Union Pacific is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]

Financial Data and Key Metrics - The company experienced winter weather challenges, particularly in the Southeast, but the operating team managed to recover effectively, showcasing strong operational resilience [3] Business Line Data and Key Metrics - No specific data or metrics related to individual business lines were provided in the content Market Data and Key Metrics - No specific data or metrics related to individual markets were provided in the content Company Strategy and Industry Competition - No specific details on company strategy or industry competition were provided in the content Management Commentary on Operating Environment and Future Outlook - The CEO highlighted the operational challenges posed by winter weather but praised the team's recovery efforts, indicating a positive outlook on operational resilience [3] Other Important Information - The earnings call was hosted by CEO Jim Vena, with CFO Jennifer Hamann, EVP of Marketing and Sales Kenny Rocker, and EVP of Operations Eric Gehringer also present [4] Q&A Session Summary - No Q&A session details were provided in the content

Core Insights - Union Pacific (UNP) shares surged after the company reported better-than-expected earnings due to declining fuel costs [1][4] - The company’s fourth-quarter earnings per share (EPS) increased by 7% year-over-year to $2.91, surpassing analysts' expectations, while operating revenue slightly decreased by 1% to $6.12 billion [1][2] Financial Performance - Fuel costs dropped significantly by 23% to $581 million, with the average fuel price per gallon falling 24% to $2.41, marking the fourth consecutive quarter of fuel cost declines [2] - Union Pacific's freight car velocity improved by 1% to 219 daily miles per car, and workforce productivity increased by 6% to 1,118 car miles per employee [3] Future Outlook - The company projected that full-year EPS would align with its three-year compound annual growth rate (CAGR) in the range of high-single-digit to low-double-digit percentages [3] - However, Union Pacific cautioned that volumes could be affected by a mixed economic backdrop, coal demand, and challenging year-over-year international intermodal comparisons [3]

Core Viewpoint - Union Pacific Corporation (UNP) reported strong fourth-quarter 2024 earnings, with earnings per share of $2.91, exceeding the Zacks Consensus Estimate of $2.78, reflecting a year-over-year improvement of 7.4% driven by operational efficiency and favorable pricing [1][2]. Financial Performance - Operating revenues for the fourth quarter were $6.12 billion, slightly below the Zacks Consensus Estimate of $6.15 billion, marking a year-over-year decline of 0.6% due to lower fuel surcharge revenues and an unfavorable business mix [2]. - Freight revenues, which constitute 94.6% of total revenues, decreased by 0.2% to $5.79 billion, surpassing the estimate of $5.71 billion, while other revenues fell by 7% to $332 million [3]. - Total operating expenses decreased by 4% year over year to $3.6 billion, with fuel expenses dropping by 23% and other cost items declining by 22% [4]. Segment Performance - Bulk freight revenues were $1.86 billion, down 4% year over year, but better than the projected decline of 8.5%, with segmental revenue carloads also declining by 4% [5]. - Industrial freight revenues increased by 1% year over year to $2.09 billion, with segmental revenue carloads remaining flat [5]. - Premium division freight revenues rose by 3% year over year to $1.83 billion, with revenue carloads improving by 13% [6]. Liquidity and Debt - At the end of the fourth quarter, Union Pacific had cash and cash equivalents of $1.02 billion, down from $1.06 billion a year earlier, while debt decreased to $29.77 billion from $31.16 billion [7]. Outlook - For full-year 2025, Union Pacific anticipates that volume will be affected by mixed economic conditions and fluctuations in coal demand, but expects pricing gains to positively influence the operating ratio [8]. - The company aims for earnings per share growth aligned with a three-year CAGR target of high-single to low-double digits, while maintaining an industry-leading operating ratio and return on invested capital [8]. Capital Allocation - Union Pacific's long-term capital allocation strategy includes a capital plan of $3.4 billion and share repurchases between $4 billion and $4.5 billion [9].

Union Pacific (UNP) reported $6.12 billion in revenue for the quarter ended December 2024, representing a year-over-year decline of 0.6%. EPS of $2.91 for the same period compares to $2.71 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $6.15 billion, representing a surprise of -0.43%. The company delivered an EPS surprise of +4.68%, with the consensus EPS estimate being $2.78.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Union Pacific beats earnings expectations despite revenue challenges in Q4 2024.Major freight rail system operator Union Pacific (UNP 5.04%) reported mixed fourth-quarter and full-year 2024 earnings on Thursday, Jan. 23. The company reported EPS of $2.91, surpassing the market's consensus estimate of $2.79. However, revenue for the quarter came in slightly under expectations, reaching $6.1 billion against an anticipated $6.15 billion. Despite revenue setbacks linked to fuel surcharges and business mix, the ...

Union Pacific (UNP) came out with quarterly earnings of $2.91 per share, beating the Zacks Consensus Estimate of $2.78 per share. This compares to earnings of $2.71 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.68%. A quarter ago, it was expected that this railroad would post earnings of $2.76 per share when it actually produced earnings of $2.75, delivering a surprise of -0.36%.Over the last four quarters, the company has ...