Union Pacific(UNP) - 2025 Q1 - Quarterly Results

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].