Union Pacific Corporation Conference Call Summary Company Overview - **Company**: Union Pacific Corporation (NYSE: UNP) - **Participants**: Jennifer Hamann (CFO), Rahul Jalali (CIO), Garrett Holland (Robert W. Baird & Co.) Key Points Financial Performance - **Q3 Performance**: Achieved 11% growth in operating income and 10% growth in earnings per share (EPS) [5][10] - **Volume Growth**: Reported a 6% increase in volume, primarily driven by a 33% increase in international intermodal volumes [7][12] - **Revenue Growth**: Freight revenue growth, excluding fuel, was 5% [7] - **Operating Ratio**: Improved by 310 basis points to 60.3%, marking the third consecutive quarter of industry-leading performance [10][11] Strategic Focus - **Core Strategy**: Emphasizes safety, service, and operational excellence as fundamental components of the business [6] - **Service Improvement**: Noted improvements in freight car dwell and freight velocity, indicating enhanced service delivery [13][14] - **Workforce Productivity**: Achieved all-time best productivity metrics in September and Q3 [14] Growth Opportunities - **Revenue Pipeline**: Identified a pipeline of $1.6 billion in revenue opportunities from approximately 200 track construction projects [19] - **Market Segments**: Focus on truckload conversion, access to Mexico, petrochemicals, and grain products as key growth areas [20][22][23] - **Long-term Contracts**: 75% of long-term contracts have been repriced since 2022, with expectations for further adjustments [25][26] Pricing Strategy - **Pricing Dynamics**: Core pricing continues to exceed inflation, with expectations for pricing to become accretive to margins starting in 2025 [30][52] - **Customer Engagement**: Emphasizes the importance of providing value to customers to facilitate pricing discussions and increase market share [52] Technology and Innovation - **Tech Investments**: Implemented advanced technology systems, including AI and machine learning, to enhance operational efficiency [42][44] - **Customer Visibility**: Launched a pilot program for a visibility solution called "Customer Vision" to improve customer experience [48][49] Market Outlook - **2025 Guidance**: Anticipates moderate growth in volumes and revenue, with a focus on maintaining industry leadership in operating ratio [29][31][61] - **Economic Indicators**: Current outlook suggests incremental growth rather than dramatic shifts in the market [61] Capital Allocation - **Shareholder Returns**: Plans to return $4 billion to $5 billion in shares to shareholders annually over the next three years, alongside consistent annual dividend increases [32] Regulatory Environment - **Regulatory Impact**: Acknowledges the potential for regulatory changes to positively impact the business, though specifics remain uncertain [39] Conclusion - **Overall Sentiment**: The company expresses optimism about future growth and the execution of its strategic initiatives, positioning itself well for sustained performance in the industry [33][66]

Core Viewpoint - The article discusses the author's investment strategy focusing on dividend stocks, specifically highlighting Union Pacific (NYSE: UNP) as a significant investment choice made in 2020 [1]. Group 1: Investment Strategy - The company has committed to investing all available funds and future cash flows into dividend stocks since 2020 [1]. - Union Pacific was one of the first stocks purchased under this investment strategy, indicating its perceived value and potential for returns [1]. Group 2: Analyst's Position - The author holds a beneficial long position in Union Pacific shares, which may include stock ownership, options, or other derivatives [1]. - The article reflects the author's personal opinions and is not influenced by external compensation, emphasizing an independent analysis [1].

Core Viewpoint - Union Pacific is considered a valuable investment opportunity despite recent stock price declines and earnings misses, primarily due to its strong infrastructure assets and consistent dividend payments [1][11]. Financial Performance - Union Pacific's stock has decreased by over 8% in the last three years, reflecting challenges in its financial performance [3]. - Operating revenue for Q1-Q3 2024 was reported at $18.1 billion, with total operating expenses at $10.9 billion, resulting in an operating income of $7.19 billion and an operating margin of 39.7% [9][10]. - Revenue growth has been modest, while operating margins have declined due to inflationary pressures affecting costs, including fuel and labor [4][6]. Dividend and Shareholder Returns - The company has a dividend yield of 2.3%, with a projected dividend payment of $5.28 per share for 2024, up from $5.20 in 2023, marking a 3% increase [2][11]. - Union Pacific has a strong track record of dividend payments, having raised its dividend annually since 2008 and maintained a payout ratio just under 50%, indicating affordability even in the face of declining earnings [11][12]. - Over the past decade, the company has increased its dividend by 168% and reduced its outstanding share count by 31.4%, contributing to faster growth in earnings per share (EPS) compared to net income [12]. Capital Investments - Union Pacific plans to invest $3.4 billion in capital expenditures in 2024, focusing on infrastructure upgrades and equipment, which is consistent with its previous investment levels [7][8]. Market Position and Industry Context - The railroad industry is characterized by high operational efficiency, and Union Pacific benefits from a diverse revenue mix, transporting various bulk and industrial products [5][6]. - Despite cyclical demand fluctuations tied to macroeconomic conditions, railroads generally maintain high operating margins, which supports Union Pacific's profitability [6][7]. Valuation - Union Pacific's current price-to-earnings (P/E) ratio is 21.2, which is within its historical range of 20.3 to 22.1, suggesting it is fairly valued relative to its historical performance [13].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ____________ Commission File Number 1-6075 UNION PACIFIC CORPORATION (Exact name of registrant as specified in its charter ...

Core Insights - Union Pacific Corporation (UNP) reported third-quarter 2024 earnings of $2.75 per share, slightly missing the Zacks Consensus Estimate of $2.76 per share, but showing a year-over-year improvement of 9.6% due to strong operational efficiency and favorable pricing [1] - Operating revenues reached $6.09 billion, falling short of the Zacks Consensus Estimate of $6.19 billion, yet reflecting a 2.5% year-over-year increase driven by core pricing gains and higher volumes [2] - Freight revenues, which constitute 94.7% of total revenues, increased by 4% to $5.77 billion, surpassing the estimate of $5.72 billion, while other revenues decreased by 18% to $323 million [2] Financial Performance - The operating income rose by 11% year over year to $2.4 billion, with total operating expenses declining by 2% to $3.68 billion [2] - Fuel expenses decreased by 13%, and expenses on purchased services and materials fell by 4%, contributing to the overall reduction in operating expenses [2] - The operating ratio improved by 310 basis points year over year to 60.3%, aided by lower quarterly fuel prices which positively impacted the ratio by 120 basis points [3] Segment Performance - Bulk freight revenues amounted to $1.80 billion, a 2% increase year over year, despite a projected decline of 0.3% [4] - Industrial freight revenues totaled $2.12 billion, up 3% year over year, while Premium division freight revenues increased by 7% to $1.84 billion, with Premium revenue carloads improving by 14% year over year [4] Liquidity and Outlook - Union Pacific ended the third quarter of 2024 with cash and cash equivalents of $947 million, down from $1.06 billion at the end of 2023, while debt decreased to $29.76 billion from $31.16 billion [5] - The company anticipates fourth-quarter results to be consistent with the third quarter, with expectations for year-over-year improvement compared to the fourth quarter of 2023 [6] - Management plans to repurchase approximately $1.5 billion in shares in 2024 and forecasts capital expenditures of $3.4 billion for the year [6]

Union Pacific (UNP) reported $6.09 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 2.5%. EPS of $2.75 for the same period compares to $2.51 a year ago.The reported revenue represents a surprise of -1.58% over the Zacks Consensus Estimate of $6.19 billion. With the consensus EPS estimate being $2.76, the EPS surprise was -0.36%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determi ...

Union Pacific Corporation (NYSE:UNP) Q3 2024 Results Conference Call October 24, 2024 8:45 AM ET Company Participants Jim Vena - CEO Jennifer Hamann - EVP and CFO Kenny Rocker - EVP, Marketing and Sales Eric Gehringer - EVP, Operations Conference Call Participants Ken Hoexter - Bank of America Chris Wetherbee - Wells Fargo Walter Spracklin - RBC Capital Markets David Vernon - Bernstein Mike Triano - UBS Daniel Imbro - Stephens Jon Chappell - Evercore ISI Brian Ossenbeck - JPMorgan Ben Nolan - Stifel Eric Mo ...

The railroad's results fell short of expectations. Union Pacific (UNP -5.21%) results fell short of expectations as the railroad works to reduce costs in a tough operating environment. Investors took the news hard, sending UNP shares down 5% as of 10:30 a.m. ET. Operational improvements in a tough environment Union Pacific is one of two primary railroads serving the western half of the United States, with more than 32,000 miles of track and access to key Pacific ports. But demand for shipping services has b ...

Union Pacific (UNP) came out with quarterly earnings of $2.75 per share, missing the Zacks Consensus Estimate of $2.76 per share. This compares to earnings of $2.51 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -0.36%. A quarter ago, it was expected that this railroad would post earnings of $2.70 per share when it actually produced earnings of $2.74, delivering a surprise of 1.48%.Over the last four quarters, the company has ...

Exhibit 99.1 Union Pacific Reports Third Quarter 2024 Results ● Third quarter earnings per diluted share of $2.75, up 10% ● Third quarter operating income up 11% ● Third quarter net income up 9% Omaha, Neb., October 24, 2024 – Union Pacific Corporation (NYSE: UNP) today reported 2024 third quarter net income of $1.7 billion, or $2.75 per diluted share. This compares to 2023 third quarter net income of $1.5 billion, or $2.51 per diluted share. "Our third quarter results demonstrate the success of our strateg ...