BNSF reports revenue dip, adjusted net income growth in Q4

BNSF Railway Co. reported fourth-quarter 2024 revenue fell 1% to $6.1 billion and net income slipped 6% to $1.3 billion compared with the same quarter in 2023.

When adjusted to include a $290 million charge related to an agreement that BNSF finalized with the SMART-TD labor union in December 2024, the Class I's net income increased 11% to $1.5 billion in Q4 2024 compared to the same period a year ago, according to a financial report posted on the company's website. Adjusted, total revenue in Q4 remained the same.

The railroad logged an adjusted operating ratio of 64.6% in Q4 2024 compared to 68.7% in Q4 2023.

Average revenue per car/unit declined 7% in both Q4 and the full year, resulting from lower fuel surcharge revenue and business mix changes, BNSF officials said. Volumes increased 7% in both Q4 and full-year 2024 compared with the same periods in 2023.

Revenue changes also resulted from the following:

• Consumer products volumes climbed 14% and 16%, respectively, for Q4 and full-year 2024. The volume increases were primarily due to higher intermodal shipments from west coast imports and volumes from a new intermodal customer;

• Industrial products volumes increased 2% and decreased 1% for the fourth quarter and full year 2024, respectively. The full year decrease was primarily due to lower aggregates, taconite, minerals and waste shipments, partially offset by higher volumes in plastics and petroleum products. The Q4 increase was primarily due to higher plastics, aggregates, and petroleum products, partially offset by lower volumes of taconite and minerals;

• Agricultural products volumes rose 2% and 7%, respectively, for Q4 and full-year 2024. The full year increase was primarily due to higher grain shipments, renewable fuels and fertilizer shipments. The volume increase during Q4 was primarily due to soybean shipments and oilseeds and meals, partially offset by lower volumes of non-soybean related grains; and

• Coal volumes fell 10% and 18%, respectively, for Q4 and the full-year 2024 primarily because of lower natural gas prices.

BNSF's 2024 capital expenses came in at $3.7 billion; the Class I previously announced this year that it has budgeted $3.8 billion for capital expenditures in 2025.