BNSF cranks up income, drives down operating ratio in Q2

BNSF Railway Co. recently reported second-quarter revenue of $5.7 billion, which was flat compared with second-quarter 2024’s mark. 

The Class I’s operating income and net income in the quarter climbed 19% to nearly $1.5 billion and 10% to $2 billion, respectively, but its operating expenses increased 5% to $3.7 billion, according to a Q2 financial performance summary posted on the railroad’s website. BNSF’s Q2 operating ratio improved 3.4 points to 64.8 and volume inched up 1% year over year to 2.3 million units. 

Revenue from coal shot up 18% while revenue from agricultural and energy products rose 3%, but revenue from consumer products and industrial products declined 7% and 1%, respectively.

In terms of volume performance in each major commodity group: 

• consumer products volume increased 1% and 5% in the second quarter and first six months, respectively, primarily due to higher intermodal shipments resulting from increased West Coast imports, along with an increase in automotive traffic from higher vehicle production; 

• agricultural and energy products volume rose slightly in both the quarter and first half mostly because of slightly higher grain exports, partially offset by lower domestic grain, feed and renewable fuel loads; 

• industrial products volume declined 4% and 5% in the quarter and first half, respectively, as demand softened for construction products and petroleum products; and 

• coal volume climbed 14% and 7% in the quarter and first half, respectively, primarily due to the competitive effects of higher natural gas prices.