Union Pacific (UNP) Financials

Union Pacific (NYSE: UNP) has demonstrated stable financial performance over the past year with trends that retail investors should watch. Here are the key highlights and trends from the last four years focussing on the most recent quarterly results through Q1 2025:

• Consistent Revenue: Operating revenue for Q1 2025 was $6.03 billion, staying close to the $6.1 billion+ range seen in recent quarters, indicating solid demand and operational consistency.
• Strong Net Income: The company reported a Q1 2025 net income of $1.63 billion, reflecting continued profitability and efficient cost management.
• Operating Income Stability: Operating income was $2.37 billion in Q1 2025, maintaining levels near the $2.3-$2.5 billion range observed in recent quarters.
• Robust Cash Flow from Operations: Net cash from operating activities in Q1 2025 stood at $2.21 billion, supporting the company’s ability to fund capital expenditures, dividends, and debt reduction without strain.
• Substantial Capital Investments: Capital expenditures remain high, with approximately $906 million spent on property, plant, and equipment in Q1 2025, underscoring commitment to infrastructure and capacity expansion.
• Shareholder Returns: Consistent dividends of around $1.30 to $1.34 per share have been paid, and the company repurchased $1.42 billion of common equity in Q1 2025, reflecting strong cash deployment to shareholders.
• Leverage and Debt Levels: Total liabilities are sizeable at about $52.5 billion, with long-term debt around $30.6 billion as of Q1 2025. While leverage is significant, the stable interest expenses ($322 million in Q1 2025) suggest manageable borrowing costs.
• Inventory and Working Capital: Inventories and other current assets have modest increases, while accounts payable and current liabilities have also grown, portraying balanced working capital management but warrant ongoing monitoring.
• Operating Costs Pressure: Operating costs have risen to about $1.48 billion in Q1 2025, with selling, general & administrative expenses near $1.57 billion, putting a slight squeeze on margins compared to prior quarters.
• Other Income/Expense Variability: Net other expenses of $244 million in Q1 2025 signal some volatility outside core operations that could impact bottom-line results.

Summary: Union Pacific continues to exhibit strong revenue, profitability, and cash flow generation, which supports its investment in operations and returns to shareholders. The company maintains a healthy balance sheet despite significant debt levels, and steady operating income suggests effective cost control. Investors should watch for any increases in operating costs and fluctuations in non-operating items that could affect future earnings. Overall, Union Pacific’s financial trends remain positive with a foundation of stability and shareholder value creation.