Union Pacific Corporation · NYSE:UNP
Union Pacific — Q2 2024 Earnings Presentation
10 slides from Union Pacific's earnings presentation, Jul 25, 2024
Slide 1: Second Quarter 2024 Earnings
UNION PACIFIC CORPORATION SECOND QUARTER 2024 EARNINGS JULY 25, 2024 1 EXECUTIVE SUMMARY SECOND QUARTER 2024 Jim Vena Chief Executive Officer 2 2
Slide 2: Second Quarter Highlights & Executive Summary
Second Quarter Highlights & Executive Summary Highlights Executive Summary $2.74 Earnings per Share • Quarterly results provide another proof point that multi-year $6.0B Operating Revenue strategy is driving success $2.4B Operating Income • Financial performance driven by core pricing gains, improve
Slide 3: Second Quarter Income Statement; Cash & Returns to Shareholders
Second Quarter Income Statement Freight Revenue Drivers: 2024 2023 Variance Price/Mix 1.50% Freight Revenue Ex. Fuel $4,969) $4,862) 2) Volume 0.50% Fuel Surcharge 669) 707) (5) Fuel Surcharge (0.75%) Freight Revenue 5,638) 5,569) 1) Other Revenue 369) 394) (6) Operating Revenue 6,007) 5,963) 1) Ope
Slide 4: Current 2024 Outlook
Current 2024 Outlook Updated • Second Half Volume Outlook Remains Uncertain Based on Economic Indicators and Coal Demand • Profitability Outlook Continues Positive Momentum With Strong Service Product, Improving Network Efficiency, and Solid Pricing • Share Repurchases of ~$1.5 Billion in 2024 Affir
Slide 5: Second Quarter Commodity Review; 2024 Volume Outlook
Second Quarter Commodity Review Commodity Revenue Volume ARC Quarterly Drivers (Millions) (Thousands) • Coal Down 23% Due to High Inventories & Natural Gas Bulk $1,721 466 $3,692 Competition • Record Export Potash vs. 2Q’23 2% 5% 3% • Strong Grain Products Market Demand & New Business Wins • Strong
Slide 6: Key Performance Metrics
OPERATIONS REVIEW SECOND QUARTER 2024 Eric Gehringer Executive Vice President – Operations 11 11 SECOND 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
Slide 7: Key Efficiency Metrics
SECOND QUARTER 2024 Key Efficiency Metrics Locomotive Workforce Train Productivity Productivity Length 134 1,031 9,544 6% 5% 2% Quarterly Drivers Improving Asset Lower Workforce Optimizing Utilization Levels Transportation Plan 13 Year-over-year change in metrics. 13 HOW WE WIN SECOND QUARTER 2024 J
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 JULY 25, 2024 17 APPENDIX 18 18
Slide 10: Second Quarter 2024 Operating Ratio and EPS
Second Quarter 2024 Operating Ratio and EPS Favorable / (Unfavorable) Operating Ratio EPS Second Quarter 2023 63.0% $2.57 2023 Brakeperson Buyout (1.1 pts ($0.09 Gain on Sale of Intermodal Equipment (0.7 pts ($0.06 Environmental Remediation at Legacy Site (0.3) pts ($0.03) Fuel Price (net) (0.1) pts