Union Pacific reports flat operating revenue, net income in Q1

Union Pacific Corp. today reported first-quarter 2025 net income of $1.6 billion, or $2.70 per diluted share, compared to net income of $1.6 billion, or $2.69 per diluted share, in the same period a year ago.

The Class I posted operating revenue of $6 billion for the quarter, which was flat on 7% volume growth and solid core pricing offset by the business mix, reduced fuel surcharge and other revenue. Operating income for the quarter came in at $2.4 billion, which was flat compared to the same period a year ago.

UP posted a Q1 2025 operating ratio of 60.7%, flat compared to Q1 2024.

The railroad's Q1 freight car velocity was 215 daily miles per car, a 6% improvement from 2024, while locomotive productivity was 136 gross ton-miles per horsepower day, a 1% improvement. Average train lengths were 9,490 feet, a 2% increase from train lengths in 2024 Q1.

“The team delivered a solid start to the year as we worked closely with our customers to meet their needs in an uncertain environment,” said CEO Jim Vena in a press release.

UP officials affirmed its 2025 outlook, with volume to be impacted by the mixed economic backdrop, coal demand and challenging year-over-year international intermodal comparisons. It also forecasts that EPS will grow consistently while attaining the three-year compound annual growth rate target of high-single to double-digit. 

The company's capital budget for the year is $3.4 billion.

“We achieved record first quarter operating results despite facing unexpected external dynamics thrown at us,” Vena said about the quarter in a post on UP's website. “We focused on what we can control, and our results prove we have what it takes to look the unexpected in the eye — and deliver.”

The impact of President Trump's tariffs are “top of mind” Vena said, but he is confident the end result will be success for American businesses and the economy.

"At any given moment, products from Canada, Mexico and hundreds of countries are safely in motion on our network," said Vena. "From beer, grain and fertilizer to autos, steel and lumber, we move the goods Americans use every day. We’ve proven we know how to manage the unexpected with confidence and consistency, which puts us in a strong position."