First look: Union Pacific earnings

Union Pacific Corp. on Thursday said first quarter revenue and earnings were unchanged from a year ago as better volumes and pricing were offset by the mix of freight moving on its rails.

The Omaha, Nebraska-based carrier (NYSE: UNP) said net income for the quarter ended March 31 was $1.6 billion, or $2.70 per diluted share, from net income of $1.6 billion, or $2.69 per diluted share, in the year-ago quarter.

“The team delivered a solid start to the year as we worked closely with our customers to meet their needs in an uncertain environment,” said Jim Vena, Union Pacific chief executive, in a release.

Operating revenue of $6 billion was flat on 7% volume growth and solid core pricing gains offset by business mix, reduced fuel surcharge revenue and the impact from leap year in 2024.

Freight revenue grew 1%, while freight revenue excluding fuel surcharge grew 4%. Core pricing dollars net of inflation were accretive to operating ratio of 60.7% — flat from a year ago.

Operating expenses were flat as productivity improvements and lower fuel costs offset volume-related costs and inflation.

The company affirmed its 2025 outlook of freight volume impacted by a mixed economic backdrop, coal demand and challenging year-over-year international intermodal comparisons. Earnings-per-share growth is expected to be consistent with the three-year compound annual growth rate of high single to low double digits.

The company did not change this year’s planned capital spending of $3.4 billion, or share repurchases of $4 billion to $4.5 billion.

Find more articles by Stuart Chirls here.

Related coverage:

Cost savings boost Norfolk Southern profits despite impact of winter storms
Supreme Court turns down CSX antitrust suit against Norfolk Southern

Congestion nicks CSX’s earnings, volume and revenue

The post First look: Union Pacific earnings appeared first on FreightWaves.