Union Pacific Corporation · NYSE:UNP
Union Pacific — Q3 2024 Earnings Presentation
10 slides from Union Pacific's earnings presentation, Oct 24, 2024
Slide 1: Third Quarter 2024 Earnings
UNION PACIFIC CORPORATION THIRD QUARTER 2024 EARNINGS OCTOBER 24, 2024 1 EXECUTIVE SUMMARY THIRD QUARTER 2024 Jim Vena Chief Executive Officer 2 2
Slide 2: Third Quarter Highlights & Executive Summary
Third Quarter Highlights & Executive Summary Highlights Executive Summary $2.75 Earnings per Share • Quarterly results demonstrate strategic success $6.1B Operating Revenue • Financial performance driven by increased revenue and improved $2.4B Operating Income operational efficiency 60.3% Operating
Slide 3: Third Quarter Income Statement; Driving Strong Cash & Returns to Shareholders
Third Quarter Income Statement Freight Revenue Drivers: 2024 2023 Variance Volume 5.50% Freight Revenue Ex. Fuel $ 5,133) $ 4,908) 5) Fuel Surcharge 635) 637) -) Price/Mix (0.75%) Freight Revenue 5,768) 5,545) 4) Fuel Surcharge (0.75%) Other Revenue 323) 396) (18) Operating Revenue 6,091) 5,941) 3)
Slide 4: Current 2024 Outlook
Current 2024 Outlook Updated • Fourth Quarter Results Expected to be Consistent Sequentially From Third Quarter While Improving Year-Over- Year Versus the Fourth Quarter 2023 Affirmed • Profitability Outlook Continues Positive Momentum With Strong Service Product, Improving Network Efficiency, and S
Slide 5: Third Quarter Commodity Review; 2024 Fourth Quarter Volume Outlook
Third Quarter Commodity Review Commodity Revenue Volume ARC Quarterly Drivers (Millions) (Thousands) • High Coal Inventories and Natural Gas Competition Bulk $1,805 496 $3,641 • Strong Grain Products Market Demand & New Business Wins vs. 3Q’23 2% 3% 5% • Heavy Export Grain Shipments • Strong Core Pr
Slide 6: Key Performance Metrics
OPERATIONS REVIEW THIRD QUARTER 2024 Eric Gehringer Executive Vice President – Operations 11 11 THIRD QUARTER 2024 Key Performance Metrics YTD Reportable Personal Injury and Derailment Rates Improved Freight Car Intermodal Service Manifest/Auto Service Velocity Performance Index Performance Index 21
Slide 7: Key Efficiency Metrics
THIRD QUARTER 2024 Key Efficiency Metrics Locomotive Workforce Train Productivity Productivity Length 135 1,102 9,580 5% 12% Flat Quarterly Drivers Reduced Locomotive Lower Workforce Optimizing Dwell Levels Transportation Plan 13 Year-over-year change in metrics. 13 HOW WE WIN THIRD QUARTER 2024 Jim
Slide 8: Safety, Service and Operational Excellence = Growth; Cautionary Information
Safety, Service and Operational Excellence = Growth SAFETY Be the best at safety. PEOPLE SERVICE Engage our teams and Deliver the service we stakeholders. sold our customers. COST CONTROL ASSET UTILIZATION Spend resources wisely, with Drive decision-making to a buffer for the unexpected. those close
Slide 9: Question & Answer
UNION PACIFIC CORPORATION QUESTION & ANSWER OCTOBER 24, 2024 17 APPENDIX 18 18
Slide 10: 2024 Operating Ratio and EPS; Operating Expenses
Third Quarter 2024 Operating Ratio and EPS Favorable / (Unfavorable) Operating Ratio EPS Third Quarter 2023 63.4% $2.51 Fuel Price (net) (1.2 pts ($0.05 2023 Write-offs (0.5 pts ($0.04 2023 State Income Tax Benefit - ($0.07) Core Results (1.4 pts ($0.22 Third Quarter 2024 60.3% $2.75 19 19 Productiv