Union Pacific Q1 Revenue $6.2B, Operating Income Up 4% to $2.45B
Union Pacific's Q1 operating income rose 4% to a record $2.45B on 3% revenue growth to $6.2B, with adjusted EPS up 9%. Freight car velocity jumped 9% to 235 miles per day, bulk and industrial outlook improved, but diesel costs above $4 per gallon pose margin headwinds.
1. Financial Results
Union Pacific reported Q1 operating income rose 4% to a record $2.45 billion on revenue growth of 3% to $6.2 billion, with adjusted EPS up 9% and an adjusted operating ratio of 59.9%.
2. Volume and Segment Performance
Total volume dipped 1% as premium traffic fell 9%, yet domestic intermodal hit a third consecutive record quarter, while industrial products and bulk volumes increased 4% and 12% respectively, driven by higher grain and coal shipments.
3. Operational Metrics Improvements
Freight car velocity climbed 9% to 235 miles per day and terminal dwell hit a best-ever 19.7 hours, while locomotive and workforce productivity reached record levels and the active locomotive fleet was reduced by 4% despite a 4% rise in gross ton-miles.
4. Outlook and Fuel Headwinds
Management now expects stronger bulk and industrial products performance for the rest of the year, maintains a neutral view on automotive, and lowers intermodal expectations, cautioning that diesel fuel costs above $4 per gallon will pressure margins in Q2.