Union Pacific (UNP) Q4 2024 earnings summary

Executive summary

• Delivered record fourth quarter and full-year results, with net income of $1.8 billion in Q4 (up 7%) and $6.7 billion for the year (up 6%), driven by operational execution, productivity gains, and improved safety metrics.

• Achieved significant improvements in network efficiency, workforce productivity, and service, with notable gains in intermodal, grain, and industrial chemicals.

• Maintained focus on industry-leading operating ratio, pricing discipline, and shareholder returns.

Financial highlights

• Q4 operating income rose 5% to $2.5 billion; Q4 EPS was $2.91 (up 7%); Q4 operating revenue was $6.1 billion, down 1% year-over-year.

• Full-year 2024 operating revenue was $24.3 billion (+1%), operating income $9.7 billion (+7%), and EPS $11.09 (+6%).

• Free cash flow increased to $2.8 billion, and $4.7 billion was returned to shareholders via dividends and buybacks.

• Dividends declared per share for 2024 totaled $5.28, up 2% year-over-year.

Outlook and guidance

• 2025 guidance targets high single-digit to low double-digit EPS growth, consistent with three-year investor day targets.

• Expect continued volume growth in grain, industrial chemicals, and domestic intermodal, but face headwinds in coal and international intermodal.

• Capital spending planned at $3.4 billion, flat year-over-year; share repurchases projected at $4.0–$4.5 billion.

• Dividend payout ratio to remain around 45% of earnings.