Union Pacific posts solid growth in Q3

Union Pacific Corp. today reported 2024 third-quarter net income of $1.7 billion, or $2.75 per diluted share, compared to 2023 third-quarter net income of $1.5 billion, or $2.51 per diluted share.

Operating revenue of $6.1 billion grew 3% driven by increased volume and core pricing gains, partially offset by business mix and reduced fuel surcharge revenue. Operating income of $2.4 billion increased 11% year over year.

Freight revenue, excluding fuel surcharge revenue, grew 5% as revenue carloads grew 6%. UP posted an operating ratio of 60.3% for the quarter, compared to 63.4% a year ago.

Also during UP's third quarter: 

• Quarterly freight car velocity improved 5% to 210 daily miles per car; 
• Quarterly locomotive productivity improved 5% to 135 gross ton-miles (GTMs) per horsepower day;
• Quarterly workforce productivity improved 12% to 1,102 car miles per employee;
• Fuel consumption rate increased 1% to 1.058, measured in gallons of fuel per thousand GTMs; and
• Year-to-date reportable personal injury and reportable derailment rates both improved.

The Q3 results demonstrate the company's strategy is working, said UP CEO Jim Vena.

“Improved safety and service performance supported solid revenue growth that we converted into double-digit improvement in third quarter operating income and earnings per share," he said.

Also today, UP updated its Q4 outlook, with results expected to be consistent sequentially from Q3 while improving year over year.