UP posts higher net income, flat operating revenue in Q4

Union Pacific Railroad today reported fourth-quarter 2023 net income of $1.7 billion, or $2.71 per diluted share, up from Q4 2022 net income of $1.6 billion, or $2.67 per diluted share.

Total operating revenue of $6.2 billion was flat driven by increased volume and core pricing gains offset by reduced fuel surcharge revenue and business mix, UP officials said in a press release.

Operating performance in Q4 2023 compared to Q4 2022 resulted in the following: Revenue carloads rose 3%; operating income of $2.4 billion was flat; freight-car velocity was 217 daily miles per car, a 14% improvement; locomotive productivity was 140 gross ton-miles per horsepower day, a 14% improvement; average train length was 9,413 feet, a 2% increase; and quarterly workforce productivity improved 4% to 1,051 car miles per employee, a record. Also, the Class I posted a fuel consumption rate of 1.091, measured in gallons of fuel per thousand GTMs, deteriorated 3%.

The Class I posted a Q4 operating ratio of 60.9%, down from 61% in Q4 2022.

"Our fourth-quarter results show much of what’s possible at Union Pacific and that we’re on the right path to reaching our goals," said CEO Jim Vena. "Service and operational metrics showed great improvement in the quarter. Those improvements propel us toward a service product that supports growth with our customers."

UP's net income for full-year 2023 was $6.4 billion, or $10.45 per diluted share. These full-year results compare to full year 2022 net income of $7 billion, or $11.21 per diluted share.

"We enter 2024 with strong momentum, recognizing we have plenty of opportunity to improve,” Vena said. "We're excited to show our stakeholders what our great team can accomplish."