Union Pacific Reports First Quarter 2025 Results

• First quarter earnings per diluted share flat at $2.70, reflecting a 7% headwind from fuel and leap year
• First quarter operating income flat at $2.4 billion
• First quarter revenue carloads up 7%
• First quarter freight revenue excluding fuel surcharge up 4%

Union Pacific Corporation (NYSE:UNP) today reported 2025 first quarter net income of $1.6 billion, or $2.70 per diluted share. This compares to 2024 first quarter net income of $1.6 billion, or $2.69 per diluted share.

"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 Jim Vena, Union Pacific Chief Executive Officer. "Looking to the rest of 2025, we will continue to execute our strategy that emphasizes safety, service, and operational excellence. Building on a strong foundation with our record First Quarter operating performance, we are positioned to deliver."

First Quarter Summary: 2025 vs. 2024

Financial Results: Volume Growth and Robust Core Pricing Gains Offset by Business Mix and Fuel Headwinds; First Quarter Records for Freight Revenue

• Operating revenue of $6.0 billion was flat on 7% volume growth and solid core pricing gains offset by business mix, reduced fuel surcharge revenue, lower other revenue, and impact from leap year.
• Freight revenue grew 1%. Freight revenue excluding fuel surcharge grew 4%.
• Core pricing dollars net of inflation were accretive to operating ratio.
• Operating ratio was 60.7%, flat compared to 2024. Lower fuel prices and leap year unfavorably impacted the operating ratio 90 basis points.
• Operating expenses were flat as productivity improvements and lower fuel costs offset volume-related costs and inflation.

Operating Performance: Continued Improvement in Service and Operational Excellence; First Quarter Records for Personal Injury Rate, Fuel Consumption Rate, Freight Car Velocity, and Workforce Productivity

• Union Pacific's reportable personal injury rate improved, matching our best-ever quarterly performance.
• Quarterly freight car velocity was 215 daily miles per car, a 6% improvement.
• Quarterly locomotive productivity was 136 gross ton-miles (GTMs) per horsepower day, a 1% improvement.
• Average maximum train length was 9,490 feet, a 2% increase.
• Quarterly workforce productivity improved 9% to 1,091 car miles per employee.
• Fuel consumption rate improved 1% to 1.107, measured in gallons of fuel per thousand GTMs.

On Track With Investor Day Targets

• Focused on Our Strategy Amid Uncertain Macro Environment
• Affirming 2025 Outlook:
  • Volume impacted by mixed economic backdrop, coal demand, and challenging year-over-year international intermodal comparisons
  • Pricing dollars accretive to operating ratio
  • Earnings per share 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

First Quarter 2025 Earnings Conference Call

Union Pacific will webcast its first quarter 2025 earnings release presentation live at www.up.com/investor and via teleconference on Thursday, April 24, 2025, at 8:45 a.m. Eastern Time. Participants may join the conference call by dialing 877-407-8293 (or for international participants, 201-689-8349).

ABOUT UNION PACIFIC

Union Pacific (NYSE:UNP) delivers the goods families and businesses use every day with safe, reliable, and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.

Supplemental financial information is attached.

This news release and related materials contain statements about the Company's future that are not statements of historical fact, including specifically the statements regarding the potential impacts of public health crises, including pandemics, epidemics and the outbreak of other contagious diseases, such as the coronavirus and its variant strains (COVID); the Russia-Ukraine and Israel-Hamas wars and other geopolitical tensions in the Middle East, and any impacts on our business operations, financial results, liquidity, and financial position, and on the world economy (including customers, employees, and supply chains), including as a result of fluctuations in volume and carloadings; expectations as to general macroeconomic conditions, including slowdowns and recessions, domestically or internationally, and future volatility in interest rates and fuel prices; closing of customer manufacturing, distribution, or production facilities; expectations as to operational or service improvements; expectations as to hiring challenges; availability of employees; expectations regarding the effectiveness of steps taken or to be taken to improve operations, service, infrastructure improvements, and transportation plan modifications (including those in response to increased traffic); expectations as to cost savings, revenue growth, and earnings; the time by which goals, targets, or objectives will be achieved; projections, predictions, expectations, estimates, or forecasts as to business, financial, and operational results, future economic performance, and planned capital investments; proposed new products and services; estimates of costs relating to environmental remediation and restoration; estimates and expectations regarding tax matters; estimates and expectations regarding current or potential tariffs; expectations that claims, litigation, environmental costs, commitments, contingent liabilities, labor negotiations or agreements, cyberattacks or other matters. These statements are, or will be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements also generally include, without limitation, information, or statements regarding: projections, predictions, 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 accurate indications of the times that, or by which, such performance or results will be achieved. Forward-looking information, including 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. Important 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 other 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 and 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 made. The Company assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References to the Company's 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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Union Pacific Investor contact: Diana Prauner at 402-544-4227 or [email protected]

Union Pacific Media contact: Clarissa Beyah at 402-957-4793 or [email protected]