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SECOND QUARTER 2025 EARNINGSSECOND QUARTER 2025 EARNINGS JULY 24, 2025JULY 24, 2025 UNION PACIFIC CORPORATIONUNION PACIFIC CORPORATION 2 Jim VenaJim Vena Chief Executive OfficerChief Executive Officer EXECUTIVE SUMMARY SECOND QUARTER 2025
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SECOND QUARTER 2025 EARNINGSSECOND QUARTER 2025 EARNINGS JULY 24, 2025JULY 24, 2025 UNION PACIFIC CORPORATIONUNION PACIFIC CORPORATION 2 Jim VenaJim Vena Chief Executive OfficerChief Executive Officer EXECUTIVE SUMMARY SECOND QUARTER 2025
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3 Second Quarter Highlights & Executive Summary SAFETY + SERVICE & OPERATIONAL EXCELLENCE • Adjusted Earnings Per Share* of $3.03, up 12% • Adjusted Operating Ratio* of 58.1%, an improvement of 230 basis points • Record Second Quarter financial results driven by core pricing gains, 4% volume growth, and productivity • Business development and robust service supports growth in Coal, Intermodal, Grain & Grain Products, and Industrial Chemicals • Improved network fluidity generates solid efficiency gains and enhanced service product while handling continued volume growth YoY %2QReported: 15%$3.15Earnings per Share 5%$2.5BOperating Income 12%$1.9BNet Income (1.0)59.0%Operating Ratio 10%221Freight Car Velocity 9%1,124Workforce Productivity Second Quarter Executive Summary: *See Union Pacific website under Investors for a reconciliation to GAAP. 4 FINANCIAL REVIEW SECOND QUARTER 2025 Jennifer HamannJennifer Hamann Executive Vice President & Chief Financial OfficerExecutive Vice President & Chief Financial Officer
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3 Second Quarter Highlights & Executive Summary SAFETY + SERVICE & OPERATIONAL EXCELLENCE • Adjusted Earnings Per Share* of $3.03, up 12% • Adjusted Operating Ratio* of 58.1%, an improvement of 230 basis points • Record Second Quarter financial results driven by core pricing gains, 4% volume growth, and productivity • Business development and robust service supports growth in Coal, Intermodal, Grain & Grain Products, and Industrial Chemicals • Improved network fluidity generates solid efficiency gains and enhanced service product while handling continued volume growth YoY %2QReported: 15%$3.15Earnings per Share 5%$2.5BOperating Income 12%$1.9BNet Income (1.0)59.0%Operating Ratio 10%221Freight Car Velocity 9%1,124Workforce Productivity Second Quarter Executive Summary: *See Union Pacific website under Investors for a reconciliation to GAAP. 4 FINANCIAL REVIEW SECOND QUARTER 2025 Jennifer HamannJennifer Hamann Executive Vice President & Chief Financial OfficerExecutive Vice President & Chief Financial Officer
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5 Second Quarter Income Statement Volume 3.75% Price/Mix 2.00% Fuel Surcharge (2.25%) Freight Revenue Drivers: Volume-Related Costs Inflationary Pressure Crew Staffing Ratification Charge Productivity Lower Fuel Prices Operating Expense Drivers: 20242025 6)$ 4,969)$ 5,274)Freight Revenue Ex. Fuel (15)669)569)Fuel Surcharge 4)5,638)5,843)Freight Revenue (16)369)311)Other Revenue (2)6,007)6,154)Operating Revenue (1)3,607)3,629)Operating Expenses 5)$ 2,400)$ 2,525)Operating Income 19)103)123)Other Income 5)(319)(335)Interest Expense ((14)(511)(437)Income Taxes 12)$ 1,673)$ 1,876)Net Income (3)610.3)594.8)Weight Average Diluted Shares 15)$ 2.74)$ 3.15)Diluted EPS ((1.0)60.0%59.0%Operating Ratio Variance % % pts Reported 6 Delivering Strong Cash Returns to Shareholders Cash From Operations ($ in millions) Cash Flow Conversion* Cash Returns to Shareholders ($ in millions) *See Union Pacific website under Investors for a reconciliation to GAAP. • Generated $4.5 Billion in Cash From Operations • Returned $4.3 Billion to Shareholders • Free Cash Flow* of $1.1 Billon • Adjusted Debt / EBITDA* of 2.8x – “A” rated by Moody’s, S&P, and Fitch Year to Date Results 70% 77% YTD 2024 YTD 2025 $4,543 $4,033 YTD 2024 YTD 2025 $2,679 $1,599 Share Repurchases Dividends $4,278 +153% +13% $1,688
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5 Second Quarter Income Statement Volume 3.75% Price/Mix 2.00% Fuel Surcharge (2.25%) Freight Revenue Drivers: Volume-Related Costs Inflationary Pressure Crew Staffing Ratification Charge Productivity Lower Fuel Prices Operating Expense Drivers: 20242025 6)$ 4,969)$ 5,274)Freight Revenue Ex. Fuel (15)669)569)Fuel Surcharge 4)5,638)5,843)Freight Revenue (16)369)311)Other Revenue (2)6,007)6,154)Operating Revenue (1)3,607)3,629)Operating Expenses 5)$ 2,400)$ 2,525)Operating Income 19)103)123)Other Income 5)(319)(335)Interest Expense ((14)(511)(437)Income Taxes 12)$ 1,673)$ 1,876)Net Income (3)610.3)594.8)Weight Average Diluted Shares 15)$ 2.74)$ 3.15)Diluted EPS ((1.0)60.0%59.0%Operating Ratio Variance % % pts Reported 6 Delivering Strong Cash Returns to Shareholders Cash From Operations ($ in millions) Cash Flow Conversion* Cash Returns to Shareholders ($ in millions) *See Union Pacific website under Investors for a reconciliation to GAAP. • Generated $4.5 Billion in Cash From Operations • Returned $4.3 Billion to Shareholders • Free Cash Flow* of $1.1 Billon • Adjusted Debt / EBITDA* of 2.8x – “A” rated by Moody’s, S&P, and Fitch Year to Date Results 70% 77% YTD 2024 YTD 2025 $4,543 $4,033 YTD 2024 YTD 2025 $2,679 $1,599 Share Repurchases Dividends $4,278 +153% +13% $1,688
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On Track With Investor Day Targets 7 Affirming 2025 Outlook: • Well-Positioned to Meet Cust omer Demand; Challenging International Intermodal Comparison • Pricing Dollars Accretive to Operating Ratio • EPS Growth Consistent with Attaining the 3-Year CAGR Target of High-Single to Low-Double Digit • Industry-Leading Operating Ratio and Return on Invested Capital • No Change to Long-Term Capital Allocation Strategy ‒ Capital Plan of $3.4 Billion ‒ Share Repurchases of $4.0 to $4.5 Billion ‒ Third Quarter 2025 Dividend Increase of 3% 8 MARKETING & SALES REVIEW SECOND QUARTER 2025 Kenny RockerKenny Rocker Executive Vice President – Marketing & SalesExecutive Vice President – Marketing & Sales
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On Track With Investor Day Targets 7 Affirming 2025 Outlook: • Well-Positioned to Meet Cust omer Demand; Challenging International Intermodal Comparison • Pricing Dollars Accretive to Operating Ratio • EPS Growth Consistent with Attaining the 3-Year CAGR Target of High-Single to Low-Double Digit • Industry-Leading Operating Ratio and Return on Invested Capital • No Change to Long-Term Capital Allocation Strategy ‒ Capital Plan of $3.4 Billion ‒ Share Repurchases of $4.0 to $4.5 Billion ‒ Third Quarter 2025 Dividend Increase of 3% 8 MARKETING & SALES REVIEW SECOND QUARTER 2025 Kenny RockerKenny Rocker Executive Vice President – Marketing & SalesExecutive Vice President – Marketing & Sales
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ARCVolume (Thousands) Revenue (Millions) Commodity $ 3,659 1% 519 11% $ 1,901 10% Bulk vs. 2Q’24 $ 3,885 2% 569 3% $ 2,212 4% Industrial vs. 2Q’24 $ 1,688 4% 1,026 1% $ 1,730 4% Premium vs. 2Q’24 $ 2,764 Flat 2,114 4% $ 5,843 4% Total vs. 2Q’24 9 Second Quarter Commodity Review 10 Second Half 2025 Volume Outlook OutlookBusiness LineCommodity Natural Gas Prices; New Contract WinCoal & Renewables Bulk Q4 Grain Export Risk; New & Expanding Grain Products FacilitiesGrain & Grain Products Business Development Wins; Plant ExpansionsIndustrial Chemicals & Plastics Industrial Construction Strength in the South; Tariff-Driven Impacts on Metal Shipments Metals & Minerals Petroleum Business ShiftsEnergy & Specialized Markets Strong 2 nd Half Comparisons; Shifts from West Coast PortsIntermodal Premium Softer Vehicle SalesAutomotive + +
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ARCVolume (Thousands) Revenue (Millions) Commodity $ 3,659 1% 519 11% $ 1,901 10% Bulk vs. 2Q’24 $ 3,885 2% 569 3% $ 2,212 4% Industrial vs. 2Q’24 $ 1,688 4% 1,026 1% $ 1,730 4% Premium vs. 2Q’24 $ 2,764 Flat 2,114 4% $ 5,843 4% Total vs. 2Q’24 9 Second Quarter Commodity Review 10 Second Half 2025 Volume Outlook OutlookBusiness LineCommodity Natural Gas Prices; New Contract WinCoal & Renewables Bulk Q4 Grain Export Risk; New & Expanding Grain Products FacilitiesGrain & Grain Products Business Development Wins; Plant ExpansionsIndustrial Chemicals & Plastics Industrial Construction Strength in the South; Tariff-Driven Impacts on Metal Shipments Metals & Minerals Petroleum Business ShiftsEnergy & Specialized Markets Strong 2 nd Half Comparisons; Shifts from West Coast PortsIntermodal Premium Softer Vehicle SalesAutomotive + +
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11 OPERATIONS REVIEW SECOND QUARTER 2025 Eric GehringerEric Gehringer Executive Vice President – OperationsExecutive Vice President – Operations 12 Key Performance Metrics SECOND QUARTER 2025 Year-over-year change in metrics. Freight Car Velocity Intermodal Service Performance Index Manifest Service Performance Index 221 99 97 6 pts Quarterly Drivers Supporting International Intermodal Growth Lower Freight Car Dwell Reduced Car Touches 13 pts10%
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11 OPERATIONS REVIEW SECOND QUARTER 2025 Eric GehringerEric Gehringer Executive Vice President – OperationsExecutive Vice President – Operations 12 Key Performance Metrics SECOND QUARTER 2025 Year-over-year change in metrics. Freight Car Velocity Intermodal Service Performance Index Manifest Service Performance Index 221 99 97 6 pts Quarterly Drivers Supporting International Intermodal Growth Lower Freight Car Dwell Reduced Car Touches 13 pts10%
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13 Key Efficiency Metrics SECOND QUARTER 2025 Locomotive Productivity Workforce Productivity Train Length 1,124 141 5% 9,689 Quarterly Drivers Improved Network Fluidity Lower Workforce Levels Optimizing Transportation Plan Year-over-year change in metrics. 9% 2% 14 Jim VenaJim Vena Chief Executive OfficerChief Executive Officer HOW WE WIN SECOND QUARTER 2025
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13 Key Efficiency Metrics SECOND QUARTER 2025 Locomotive Productivity Workforce Productivity Train Length 1,124 141 5% 9,689 Quarterly Drivers Improved Network Fluidity Lower Workforce Levels Optimizing Transportation Plan Year-over-year change in metrics. 9% 2% 14 Jim VenaJim Vena Chief Executive OfficerChief Executive Officer HOW WE WIN SECOND QUARTER 2025
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15 Safety, Service & Operational Excellence = Growth UNION PACIFIC STRATEGY PEOPLECOST CONTROLASSET UTILIZATIONSERVICESAFETY Engage our teams and stakeholders. Spend resources wisely, with a buffer for the unexpected. Drive decision-making to those closest to the work. Deliver the service we sold our customers. Be the best at safety. 16 Cautionary Information This presentation and related materials contain statements about the Company’s future that are not statements of historical fact, including specifically the statements regarding the Company’s expectations with respect to economic conditions and demand levels, its ability to improve network performance (including those in response to increased traffic), its results of operations, and potential impact s of public health crises, including pandemics, epidemics or the outbreak of other contagious diseases, such as coronavirus and its variant s (COVID), and the Russia-Ukraine and Israel-Hamas wars and other geopolitical tensions in the Middle East. These statements are, or will b e, forward- looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Ac t of 1934. Forward-looking statements also generally include, without limitation, information or statements regarding: projections, predic tions, expectations, estimates or forecasts as to the Company’s and its subsidiaries’ business, financial, and operational results, and future economic performance; and management’s beliefs, expectations, goals, and objectives and other similar expressions concerning matters that are not historical facts. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accu rate indications of the times that, or by which, such performance or results will be achieved. Forward-looking information, includin g expectations regarding operational and financial improvements and the Company’s future performance or results are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statement. Import ant factors, including risk factors, could affect the Company’s and its subsidiaries’ future results and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements. Information regarding risk factors and oth er cautionary information are available in the Company’s Annual Report on Form 10-K for 2024, which was filed with the SEC on February 7, 2025. The Company updates information regarding risk factors if circumstances require such updates in its periodic reports on Form 10-Q a nd its subsequent Annual Reports on Form 10-K (or such other reports that may be filed with the SEC). Forward-looking statements speak only as of, and are based only upon information available on, the date the statements were mad e. The Company assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or change si n other factors affecting forward-looking information. If the Company does update one or more forward-looking statements, no infe rence should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking sta tements. References to our website are provided for convenience and, therefore, information on or available through the website is not, and should not be deemed to be, incorporated by reference herein.
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15 Safety, Service & Operational Excellence = Growth UNION PACIFIC STRATEGY PEOPLECOST CONTROLASSET UTILIZATIONSERVICESAFETY Engage our teams and stakeholders. Spend resources wisely, with a buffer for the unexpected. Drive decision-making to those closest to the work. Deliver the service we sold our customers. Be the best at safety. 16 Cautionary Information This presentation and related materials contain statements about the Company’s future that are not statements of historical fact, including specifically the statements regarding the Company’s expectations with respect to economic conditions and demand levels, its ability to improve network performance (including those in response to increased traffic), its results of operations, and potential impact s of public health crises, including pandemics, epidemics or the outbreak of other contagious diseases, such as coronavirus and its variant s (COVID), and the Russia-Ukraine and Israel-Hamas wars and other geopolitical tensions in the Middle East. These statements are, or will b e, forward- looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Ac t of 1934. Forward-looking statements also generally include, without limitation, information or statements regarding: projections, predic tions, expectations, estimates or forecasts as to the Company’s and its subsidiaries’ business, financial, and operational results, and future economic performance; and management’s beliefs, expectations, goals, and objectives and other similar expressions concerning matters that are not historical facts. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accu rate indications of the times that, or by which, such performance or results will be achieved. Forward-looking information, includin g expectations regarding operational and financial improvements and the Company’s future performance or results are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statement. Import ant factors, including risk factors, could affect the Company’s and its subsidiaries’ future results and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements. Information regarding risk factors and oth er cautionary information are available in the Company’s Annual Report on Form 10-K for 2024, which was filed with the SEC on February 7, 2025. The Company updates information regarding risk factors if circumstances require such updates in its periodic reports on Form 10-Q a nd its subsequent Annual Reports on Form 10-K (or such other reports that may be filed with the SEC). Forward-looking statements speak only as of, and are based only upon information available on, the date the statements were mad e. The Company assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or change si n other factors affecting forward-looking information. If the Company does update one or more forward-looking statements, no infe rence should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking sta tements. References to our website are provided for convenience and, therefore, information on or available through the website is not, and should not be deemed to be, incorporated by reference herein.
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QUESTION & ANSWERQUESTION & ANSWER JULY 24, 2025JULY 24, 2025 UNION PACIFIC CORPORATIONUNION PACIFIC CORPORATION 18 APPENDIX
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QUESTION & ANSWERQUESTION & ANSWER JULY 24, 2025JULY 24, 2025 UNION PACIFIC CORPORATIONUNION PACIFIC CORPORATION 18 APPENDIX
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19 Second Quarter 2025 Operating Ratio and EPS EPSOperating Ratio $2.7460.0%Reported Second Quarter 2024 ($0.07)-Fuel Price (net) ($0.03)(0.4) pts2024 Adjustments ($0.12)(0.9) pts2025 Adjustments ($0.39)(2.3) ptsCore Results $3.1559.0%Reported Second Quarter 2025 Favorable / (Unfavorable) ‒ Lower Equity Income ‒ Increased Use of Freight Cars Owned by Others ‒ Inflation + Lower Lease Expense + Fuel Price + Consumption Rate ‒ Crew Staffing Agreement Ratification Charge ‒ Wage Inflation + Lower Employee Levels + Decreased Drayage Cost ‒ Inflation ‒ Volume-Related Costs 2Q 2024 Reported Operating Expenses $ in Millions Volume-Related Expenses, Inflation & Ratification Charge Partially Offset by Productivity & Lower Fuel Prices 20 Compensation & Benefits Fuel +5% (8%) Purchased Services & Materials Equipment & Other Rents Depreciation Other Flat +5%+3% (5%) 2Q 2025 $62 ($49)($2) $17 $11 ($17)$3,607 $3,629 Drivers: + Lower Environmental Remediation Costs + Lower Casualty Costs ‒ 2024 Sale of Intermodal Equipment
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19 Second Quarter 2025 Operating Ratio and EPS EPSOperating Ratio $2.7460.0%Reported Second Quarter 2024 ($0.07)-Fuel Price (net) ($0.03)(0.4) pts2024 Adjustments ($0.12)(0.9) pts2025 Adjustments ($0.39)(2.3) ptsCore Results $3.1559.0%Reported Second Quarter 2025 Favorable / (Unfavorable) ‒ Lower Equity Income ‒ Increased Use of Freight Cars Owned by Others ‒ Inflation + Lower Lease Expense + Fuel Price + Consumption Rate ‒ Crew Staffing Agreement Ratification Charge ‒ Wage Inflation + Lower Employee Levels + Decreased Drayage Cost ‒ Inflation ‒ Volume-Related Costs 2Q 2024 Reported Operating Expenses $ in Millions Volume-Related Expenses, Inflation & Ratification Charge Partially Offset by Productivity & Lower Fuel Prices 20 Compensation & Benefits Fuel +5% (8%) Purchased Services & Materials Equipment & Other Rents Depreciation Other Flat +5%+3% (5%) 2Q 2025 $62 ($49)($2) $17 $11 ($17)$3,607 $3,629 Drivers: + Lower Environmental Remediation Costs + Lower Casualty Costs ‒ 2024 Sale of Intermodal Equipment