Union Pacific Corporation (UNP) Bundle
A Brief History of Union Pacific Corporation
Union Pacific Corporation (UNP) has been a major player in the transportation industry since its inception in 1862. It operates one of the largest freight rail networks in the United States, spanning over 32,000 miles across 23 states. The company has continually evolved to adapt to changing economic and technological landscapes.
Financial Performance Overview
As of September 30, 2024, Union Pacific reported a net income of $4.985 billion for the year, compared to $4.727 billion for the same period in 2023. The company's diluted earnings per share (EPS) for the nine months ended September 30, 2024, was $8.18, up from $7.75 in 2023.
| Financial Metrics | 2024 (9-months) | 2023 (9-months) |
|---|---|---|
| Net Income (in millions) | $4,985 | $4,727 |
| Earnings per Share (diluted) | $8.18 | $7.75 |
| Operating Revenue (in millions) | $12,366 | $11,891 |
| Operating Expenses (in millions) | $10,941 | $11,285 |
Stock Performance
Union Pacific has seen fluctuations in its stock price over the years. As of September 30, 2024, the company had a market capitalization of approximately $140 billion. The stock's performance reflects its resilience and adaptability in a competitive market.
Capital Investments and Shareholder Returns
For the nine months ended September 30, 2024, Union Pacific's cash capital investments amounted to $2.530 billion, compared to $2.582 billion in 2023. The company also returned $2.401 billion to shareholders through dividends, with a quarterly dividend of $1.34 per share declared in September 2024.
| Capital Investments (in millions) | 2024 (9-months) | 2023 (9-months) |
|---|---|---|
| Rail and Other Track Material | $373 | $448 |
| Locomotives and Freight Cars | $643 | $483 |
| Total Cash Capital Investments | $2,530 | $2,582 |
Debt and Liquidity
As of September 30, 2024, Union Pacific's total debt was reported at $31.413 billion, down from $32.579 billion at the end of 2023. The company maintained a strong liquidity position with cash and cash equivalents of $947 million, along with $2.0 billion available under its revolving credit facility.
| Debt Metrics (in millions) | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Debt | $31,413 | $32,579 |
| Net Income | $6,637 | $6,379 |
| Debt/Net Income Ratio | 4.7 | 5.1 |
Service and Operational Efficiency
Union Pacific has focused on enhancing its service performance and operational efficiency. The company's Operating Ratio improved to 60.3% in the third quarter of 2024, a significant improvement compared to previous periods, driven by productivity initiatives and lower fuel prices.
Future Outlook
Looking ahead, Union Pacific aims to continue its investment strategy to support growth and improve operational efficiency. The capital plan for 2024 is estimated at approximately $3.4 billion, reflecting a commitment to infrastructure improvements and modernization of its fleet.
A Who Owns Union Pacific Corporation (UNP)
Major Shareholders
As of 2024, Union Pacific Corporation (UNP) has a diverse shareholder base comprising institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.4% |
| Institutional Investor | BlackRock, Inc. | 8.3% |
| Institutional Investor | State Street Corporation | 4.5% |
| Mutual Fund | T. Rowe Price Associates, Inc. | 4.0% |
| Individual Shareholder | Warren Buffett (Berkshire Hathaway) | 2.2% |
Insider Ownership
Insider ownership at Union Pacific Corporation is limited but significant. The following table outlines the top insiders and their shareholdings:
| Name | Position | Shares Owned |
|---|---|---|
| Jim Vena | CEO | 150,000 |
| Jennifer Hamann | CFO | 75,000 |
| Laura M. Wright | Director | 50,000 |
Stock Performance and Trends
Union Pacific Corporation's stock has shown resilience with a current price of approximately $245 per share as of January 2024, reflecting a year-to-date increase of 10%. The company's market capitalization stands at around $155 billion. The stock has a 52-week range of $205 to $260, indicating volatility but also strong investor interest.
Dividend History
Union Pacific has a strong dividend history, with the latest dividend declared being $3.94 per share for the fiscal year 2024. The company has a consistent record of increasing its dividends, with a compound annual growth rate (CAGR) of 10% over the past five years.
| Year | Dividend per Share |
|---|---|
| 2024 | $3.94 |
| 2023 | $3.90 |
| 2022 | $3.60 |
| 2021 | $3.30 |
Recent Financial Performance
For the nine months ended September 30, 2024, Union Pacific reported net income of $4.985 billion, an increase from $4.727 billion in the same period of 2023. The company's earnings per share (EPS) for 2024 stands at $8.19, up from $7.76 in the previous year.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Income | $4.985 billion | $4.727 billion |
| Earnings per Share | $8.19 | $7.76 |
| Operating Revenue | $18.129 billion | $17.960 billion |
Market Trends
Union Pacific operates in a competitive market influenced by various economic factors. The company's growth is supported by an increase in intermodal shipments, which rose by 19% year-over-year, contributing significantly to revenue growth. The freight revenues for the third quarter of 2024 reached $6.091 billion, an increase from $5.941 billion in the same quarter of 2023.
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) |
|---|---|---|
| Bulk | $1.805 billion | $1.766 billion |
| Industrial | $2.121 billion | $2.057 billion |
| Premium | $1.842 billion | $1.722 billion |
Overall, Union Pacific Corporation's ownership structure reflects a strong institutional presence, significant insider holdings, and a solid financial performance that continues to attract investors in the competitive transportation sector.
Union Pacific Corporation (UNP) Mission Statement
Mission Statement Overview
Union Pacific Corporation (UNP) aims to provide superior transportation services by delivering safe, reliable, and efficient rail operations. The company emphasizes delivering value to its customers, employees, and shareholders while maintaining a commitment to sustainability and community engagement.
Financial Performance
As of the third quarter of 2024, Union Pacific reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Operating Revenues | $6,091 million | $5,941 million | 3% |
| Net Income | $1,671 million | $1,528 million | 9% |
| Earnings per Share (Basic) | $2.75 | $2.51 | 10% |
| Operating Expenses | $3,675 million | $3,764 million | (2%) |
| Operating Income | $2,416 million | $2,177 million | 11% |
| Operating Ratio | 60.3% | 63.4% | (3.1 pts) |
Key Performance Indicators
Union Pacific tracks several key performance indicators to assess operational efficiency:
| Performance Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Gross Ton-Miles (Billions) | 216.0 | 208.7 | 4% |
| Revenue Ton-Miles (Billions) | 104.0 | 103.0 | 1% |
| Freight Car Velocity (Daily Miles per Car) | 210 | 200 | 5% |
| Average Train Speed (Miles per Hour) | 23.3 | 23.6 | (1%) |
| Average Terminal Dwell Time (Hours) | 22.4 | 23.5 | (5%) |
| Locomotive Productivity (GTMs per Horsepower Day) | 135 | 129 | 5% |
Capital Investments and Future Plans
Union Pacific has committed to a capital plan of approximately $3.4 billion for 2024, focusing on infrastructure improvements and asset modernization:
| Investment Category | Amount (Millions) |
|---|---|
| Rail and Other Track Material | $373 |
| Ties | $369 |
| Ballast | $145 |
| Locomotives and Freight Cars | $643 |
| Technology and Other | $187 |
| Total Capital Investments | $2,530 |
Shareholder Returns
Union Pacific continues to focus on returning value to shareholders through dividends and share repurchase programs. As of September 30, 2024, the company declared dividends of:
| Dividend Amount per Share | Q3 2024 |
|---|---|
| Dividends Declared | $1.34 |
Sustainability Commitment
Union Pacific is dedicated to sustainability, aiming to reduce its carbon footprint and enhance operational efficiency while delivering value to stakeholders.
How Union Pacific Corporation (UNP) Works
Company Overview
Union Pacific Corporation (UNP) operates one of the largest freight rail networks in the United States, primarily focusing on the transportation of goods across 23 states in the western two-thirds of the country. The company’s operations are segmented into three primary commodity groups: Bulk, Industrial, and Premium.
Financial Performance
As of September 30, 2024, Union Pacific reported a net income of $4.985 billion for the nine months ended September 30, 2024, compared to $4.727 billion for the same period in 2023. The operating income for the third quarter of 2024 was $2.4 billion, reflecting an 11% increase year-over-year. The operating ratio improved to 60.3%, down from 63.4% in the third quarter of 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income (Millions) | $1,671 | $1,528 | 9.3% |
| Operating Income (Millions) | $2,400 | $2,157 | 11.3% |
| Operating Ratio (%) | 60.3 | 63.4 | (3.1) |
| Total Revenues (Millions) | $6,091 | $5,941 | 2.5% |
Revenue Composition
Union Pacific's revenue is primarily derived from freight, which includes various commodities. For the third quarter of 2024, total freight revenues reached $5.768 billion, a 4% increase from $5.545 billion in Q3 2023. The revenue breakdown by commodity group is as follows:
| Commodity Group | Q3 2024 (Millions) | Q3 2023 (Millions) | Change (%) |
|---|---|---|---|
| Bulk | $1,805 | $1,766 | 2% |
| Industrial | $2,121 | $2,057 | 3% |
| Premium | $1,842 | $1,722 | 7% |
Operational Efficiency
Union Pacific continuously monitors key operational metrics to enhance efficiency. As of September 30, 2024, the company reported the following operational statistics:
| Operational Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Gross Ton-Miles (Billions) | 216.0 | 208.7 | 4% |
| Revenue Ton-Miles (Billions) | 104.0 | 103.0 | 1% |
| Freight Car Velocity (Daily Miles per Car) | 210 | 200 | 5% |
| Average Train Speed (Miles per Hour) | 23.3 | 23.6 | (1%) |
Capital Investments
Union Pacific's capital investments for the nine months ended September 30, 2024, totaled $2.530 billion, with significant allocations to rail infrastructure and equipment. The breakdown of cash capital investments is as follows:
| Investment Category | 2024 (Millions) | 2023 (Millions) |
|---|---|---|
| Rail and Other Track Material | $373 | $448 |
| Locomotives and Freight Cars | $643 | $483 |
| Technology and Other | $187 | $227 |
Debt and Liquidity
As of September 30, 2024, Union Pacific had total debt of $33.1 billion, with a weighted-average interest rate of 4.0%. The company maintained a strong liquidity position with cash and cash equivalents of $957 million.
| Debt Metrics | Value |
|---|---|
| Total Debt (Millions) | $33,100 |
| Weighted-Average Interest Rate (%) | 4.0 |
| Cash and Cash Equivalents (Millions) | $957 |
Stock Performance
Union Pacific's share repurchase program continues to support its stock price, with 3.5 million shares repurchased in 2024. The average price paid per share was approximately $242.70.
| Share Repurchase Details | 2024 |
|---|---|
| Total Shares Purchased | 3,498,381 |
| Average Price Paid ($) | 242.70 |
How Union Pacific Corporation (UNP) Makes Money
Revenue Sources
Union Pacific Corporation (UNP) primarily generates revenue through freight transportation, which consists of three main commodity groups: Bulk, Industrial, and Premium. As of the third quarter of 2024, total operating revenues were reported at $6.1 billion, reflecting a 3% increase from $5.9 billion in the same quarter of 2023.
| Revenue Source | Q3 2024 (Millions) | Q3 2023 (Millions) | Change (%) |
|---|---|---|---|
| Freight Revenues | $5,768 | $5,545 | 4% |
| Other Subsidiary Revenues | $179 | $226 | (21%) |
| Accessorial Revenues | $122 | $142 | (14%) |
| Other Revenues | $22 | $28 | (21%) |
| Total Revenue | $6,091 | $5,941 | 3% |
Freight Revenue Breakdown
Freight revenues are further categorized into specific commodity groups:
| Commodity Type | Q3 2024 (Millions) | Q3 2023 (Millions) | Change (%) |
|---|---|---|---|
| Grain & Grain Products | $923 | $825 | 12% |
| Fertilizer | $208 | $194 | 7% |
| Food & Refrigerated | $269 | $259 | 4% |
| Coal & Renewables | $405 | $488 | (17%) |
| Industrial Chemicals & Plastics | $598 | $557 | 7% |
| Metals & Minerals | $529 | $556 | (5%) |
| Forest Products | $322 | $333 | (3%) |
| Energy & Specialized Markets | $672 | $611 | 10% |
| Automotive | $601 | $609 | (1%) |
| Intermodal | $1,241 | $1,113 | 12% |
| Total Freight Revenue | $5,768 | $5,545 | 4% |
Operating Expenses
In Q3 2024, Union Pacific reported total operating expenses of $3.675 billion, a decrease of 2% from $3.764 billion in Q3 2023. Key components of operating expenses include:
| Expense Type | Q3 2024 (Millions) | Q3 2023 (Millions) | Change (%) |
|---|---|---|---|
| Compensation and Benefits | $1,228 | $1,201 | 2% |
| Purchased Services and Materials | $644 | $668 | (4%) |
| Fuel | $610 | $702 | (13%) |
| Depreciation | $602 | $580 | 4% |
| Equipment and Other Rents | $237 | $235 | 1% |
| Other | $354 | $378 | (6%) |
| Total Operating Expenses | $3,675 | $3,764 | (2%) |
Net Income and Earnings Per Share
For the third quarter of 2024, Union Pacific's net income was $1.671 billion, compared to $1.528 billion in Q3 2023, reflecting a growth of 9%. The earnings per share (EPS) were reported at $2.75, an increase from $2.51 a year earlier.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (Millions) | $1,671 | $1,528 |
| Earnings Per Share (EPS) | $2.75 | $2.51 |
Cash Flow and Capital Investments
For the nine months ended September 30, 2024, Union Pacific generated cash provided by operating activities of $6.684 billion, up from $5.984 billion in the same period of 2023. Cash used in investing activities was $2.426 billion, while dividends paid totaled $2.403 billion. Free cash flow for the period was $1.855 billion.
| Cash Flow Metric | 2024 (Millions) | 2023 (Millions) |
|---|---|---|
| Cash Provided by Operating Activities | $6,684 | $5,984 |
| Cash Used in Investing Activities | ($2,426) | ($2,650) |
| Dividends Paid | ($2,403) | ($2,380) |
| Free Cash Flow | $1,855 | $954 |
Outlook and Strategic Investments
Union Pacific's capital investment plan for 2024 is expected to be approximately $3.4 billion, focusing on growth-related projects, infrastructure modernization, and operational efficiency improvements.
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Article updated on 8 Nov 2024
Resources:
- Union Pacific Corporation (UNP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Union Pacific Corporation (UNP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Union Pacific Corporation (UNP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.