Union Pacific(US:UNP)2025-04-24 19:14Financial 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].