Union Pacific Corporation · NYSE:UNP
Union Pacific — Q4 2024 Earnings Presentation
13 slides from Union Pacific's earnings presentation, Jan 23, 2025
Slide 1: Fourth Quarter 2024 Earnings
UNION PACIFIC CORPORATION FOURTH QUARTER 2024 EARNINGS JANUARY 23, 2025 1 EXECUTIVE SUMMARY FOURTH QUARTER 2024 Jim Vena Chief Executive Officer 2 2
Slide 2: Fourth Quarter Highlights & Executive Summary
Fourth Quarter Highlights & Executive Summary Highlights Executive Summary $2.91 Earnings per Share • Quarterly results represent a strong finish to very successful year $2.5B Operating Income • Financial performance supported by 5% volume growth and $1.8B Net Income operational efficiency gains 58.
Slide 3: Fourth Quarter Income Statement; 2024 Full Year Reported Results
Fourth Quarter Income Statement 2024 2023 Variance Freight Revenue Drivers: Freight Revenue Ex. Fuel $ 5,201) $ 5,006) 4) Fuel Surcharge 588) 795) (26) Volume 5.25% Freight Revenue 5,789) 5,801) -) Fuel Surcharge (4.50%) Other Revenue 332) 358) (7) Operating Revenue 6,121) 6,159) (1) Price/Mix (1.00
Slide 4: 2024 Full Year Cash Generation, Debt, & Returns to Shareholders
2024 Full Year Cash Generation, Debt, & Returns to Shareholders Cash From Operations Cash Returns to Shareholders $4,718 $9,346 $8,379 $3,878 Share $1,505 Cash Flow 87% $705 Repurchases Conversion* 75% $3,173 $3,213 Dividends 2023 2024 2023 2024 Free Cash Flow* Adjusted Debt* $2,808 $34,179 $32,463
Slide 5: Fourth Quarter Commodity Review; 2025 Economic Indicators
Fourth Quarter Commodity Review Commodity Revenue Volume ARC Quarterly Drivers (Millions) (Thousands) • High Coal Inventories and Natural Gas Competition Bulk $ 1,864 500 $ 3,723 • Strength in Mexico Grain & Solid UP Service vs. 4Q’23 4% 4% Flat • High Demand for Grain Products & New UP Facilities •
Slide 6: 2025 Volume Outlook
2025 Volume Outlook Bulk Industrial Premium Coal Metals + Domestic Intermodal + Grain + Industrial Chemicals Automotive + Grain Products + Plastics International Intermodal 11 11 OPERATIONS REVIEW FOURTH QUARTER 2024 Eric Gehringer Executive Vice President – Operations 12 12
Slide 7: Key Performance Metrics; Key Efficiency Metrics
FOURTH QUARTER 2024 Key Performance Metrics YTD Reportable Personal Injury and Derailment Rates Improved Freight Car Intermodal Service Manifest Service Velocity Performance Index Performance Index 219 89 96 1% 7 pts 5 pts Quarterly Drivers Lower Freight Balancing International Reduced Car Dwell Int
Slide 8: Investing in Our Franchise: 2025 Capital Plan of $3.4 Billion
Investing in Our Franchise Union Pacific 2025 Capital Plan of $3.4 Billion $1.9 B Infrastructure Replacement Rail, Ties, & Ballast $0.6 B Capacity & Commercial Facilities Intermodal and Manifest Terminals & Siding Extensions Capital Program $3.7 $3.4 $3.4 $0.5 B Locomotive & Equipment Locomotive Mod
Slide 9: Expect Strong Performance Amid Uncertain Environment
Expect Strong Performance Amid Uncertain Environment 2025 Outlook – On Track with Investor Day Targets • Volume Impacted by Mixed Economic Backdrop, Coal Demand, and Challenging Year-over-Year International Intermodal Comparisons • Pricing Dollars Accretive to Operating Ratio • EPS Growth Consistent
Slide 10: Safety, Service & Operational Excellence = Growth; Cautionary Information
UNION PACIFIC STRATEGY Safety, Service & Operational Excellence = Growth ASSET SAFETY SERVICE COST CONTROL PEOPLE UTILIZATION Spend resources wisely, Be the best Deliver the service we sold Drive decision-making to Engage our teams and with a buffer for the at safety. our customers. those closest to
Slide 11: Question & Answer
UNION PACIFIC CORPORATION QUESTION & ANSWER JANUARY 23, 2025 21 APPENDIX 22 22
Slide 12: Fourth Quarter and Full Year 2024 Operating Ratio and EPS
Fourth Quarter 2024 Operating Ratio and EPS Favorable / (Unfavorable) Operating Ratio EPS Fourth Quarter 2023 60.9% $2.71 Fuel Price (net) (0.2) pts ($0.12) Brakeperson Buyout Agreement (0.7) pts ($0.05) Core Results (2.7) pts ($0.37) Fourth Quarter 2024 58.7% $2.91 23 23 Full Year 2024 Operating Ra
Slide 13: Lower Fuel Prices & Productivity Offset Volume-Related Expenses & Inflation
Lower Fuel Prices & Productivity More Than Offset Volume-Related Expenses & Inflation Operating Expenses $ in Millions $92 ($26) ($178) $3,752 $17 $19 ($80) (4%) $3,596 +8% (23%) +3% +8% (22%) Drivers: ‒ Wage Inflation + Lower + Fuel Price ‒ Inflation + Decreased Maintenance & Casualty Costs ‒ Brake