UP posts Q2 growth in revenue, income

Union Pacific Corp. today reported 2024 second-quarter net income of $1.7 billion, or $2.74 per diluted share, compared with 2023 second-quarter net income of $1.6 billion, or $2.57 per diluted share.

The Class I’s Q2 operating revenue rose 1% to $6 billion, driven by core pricing gains and increased volume partially offset by business mix and reduced fuel surcharge. Operating income climbed 9% to $2.4 billion. Freight revenue, excluding fuel surcharge revenue, grew 2% as revenue carloads grew slightly, UP officials said in a press release.

UP posted a Q2 operating ratio of 60%, down from 63% a year ago.

“Our second-quarter performance demonstrates the team's ability to deliver strong results,” said UP CEO Jim Vena. “This provides further proof that our strategy to be the best in safety, service, and operational excellence will drive success.”

Also for the quarter, UP reported improvement in its year-to-date reportable personal injury and derailment rates; a flat quarterly freight-car velocity of 201 daily miles; a 6% improvement to 134 gross ton-miles per horsepower in locomotive productivity; and a 2% increase to 9,544 feet in average maximum train length.

In addition, UP said its quarterly workforce productivity improved 5% to 1,031 car miles per employee; and posted a fuel consumption rate of 1.080, measured in gallons of fuel per thousand GTMs, a 1% improvement.

In a 2024 update, company officials said the second-half volume outlook remains uncertain based on economic indicators and coal demand; and the profitability outlook continues positive momentum with strong service product, improving network efficiency and solid pricing.

UP affirmed no change to its long-term capital allocation strategy, with a capital plan of $3.4 billion.