Thu, Apr 24, 7:16 PM (24 days ago)
**Union Pacific Corporation (UNP) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total operating revenues were $6,027 million, slightly down from $6,031 million in Q1 2024. Freight revenues increased by 1% due to a 7% volume increase and core pricing gains, offset by unfavorable business mix and lower fuel surcharge revenues. - **Profit Margins:** Operating income remained stable at $2,371 million, with an operating ratio of 60.7%. Net income was $1,626 million, down slightly from $1,641 million in Q1 2024. - **Earnings:** Earnings per share (EPS) were $2.70 (diluted) and $2.71 (basic), compared to $2.69 (diluted) and $2.69 (basic) in Q1 2024. - **Cash Flow:** Cash provided by operating activities was $2,210 million, up from $2,122 million in Q1 2024. Cash used in investing activities increased to $938 million from $802 million, and cash used in financing activities decreased to $878 million from $1,451 million. **Key Performance Metrics:** - **Volume and Revenue:** Freight revenues increased due to higher volumes in international intermodal and coal, offset by weaker demand in automotive and petroleum products. - **Operational Efficiency:** Freight car velocity and terminal dwell time improved by 6%, indicating better network fluidity. Locomotive productivity increased by 1%, and workforce productivity improved by 9%. - **Debt and Liquidity:** Debt-to-net income ratio was 4.9, and adjusted debt-to-adjusted EBITDA was 2.8. The company had $1.4 billion in cash and cash equivalents and $2.0 billion of credit available under its revolving credit facility. **Trends and Uncertainties:** - **Volume Growth:** The company handled 7% more volume in Q1 2025, driven by international intermodal and coal shipments. - **Operational Improvements:** Continued focus on productivity and network fluidity led to improvements in key performance metrics. - **Future Operations:** The company plans to invest $3.4 billion in its capital plan for 2025, focusing on growth, safety, and operational efficiency. **Impact on Future Operations:** - **Capital Investments:** The company will continue to invest in infrastructure, technology, and growth-related projects to support long-term growth and operational efficiency. - **Share Repurchase:** The board authorized the repurchase of up to 100 million shares by March 31, 2028, indicating confidence in the company's financial health and future prospects. **Conclusion:** Union Pacific Corporation demonstrated stable financial performance in Q1 2025, with a focus on operational efficiency and strategic investments. The company's strong liquidity position and share repurchase program reflect its commitment to shareholder value and long-term growth.