Union Pacific Posts Mixed Q4 Results With Strong EPS Growth And Improved Efficiency Metrics; Stock Gains

Union Pacific Corporation UNP shares are trading higher after the company reported mixed fourth-quarter results.

Union Pacific reported operating revenue decline of 1% year-over-year to $6.121 billion, missing the consensus of $6.143 billion.

Lower fuel surcharges, an unfavorable business mix, and reduced other revenue impacted operating revenue, partially offset by higher volume and pricing gains.

Freight revenue was $5.789 billion, with Bulk -4% YoY, Industrial +1%, and Premium +3%. Revenue carloads were up 5%.

Earnings per share were $2.91 (+7% year-over-year), above the consensus of $2.78.

The operating ratio improved 220 bps to 58.7%, despite a 70 bps impact from a crew staffing agreement, while operating income increased 5% to $2.5 billion.

Union Pacific reported fourth-quarter freight car velocity of 219 daily miles per car, +1% YoY, and locomotive productivity of 136 gross ton-miles (GTMs) per horsepower day, a 3% decline.

The average fuel price per gallon consumed declined by 24% year over year to $2.41. Union Pacific’s quarterly workforce productivity improved by 6% to 1,118 car miles per employee.

Union Pacific’s operating cash flow for the fiscal 2024 totaled $9.346 billion, up from $8.379 billion a year ago. Free cash flow was $2.808 billion.

2025 Outlook: Union Pacific anticipates that volume will be impacted by mixed economic conditions, fluctuating coal demand, and challenging year-over-year comparisons in international intermodal.

Pricing is expected to drive improvements in the operating ratio, with earnings per share growth projected to reach high-single to low-double digits over the next three years.

The company reaffirms its long-term strategy with a $3.4 billion capital plan, $4.0–$4.5 billion in share repurchases, and a focus on industry-leading efficiency and returns.

Price Action: Union Pacific shares are trading higher by 4.6% at $246.69 at the last check Thursday.

Image: Courtesy of Union Pacific Corporation