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Yahoo
12-05-2025
- Business
- Yahoo
UNP Q1 Earnings Call: Volumes Grow, Pricing Power Holds Amid Market Uncertainty
Freight transportation company Union Pacific (NYSE:UNP) fell short of the market's revenue expectations in Q1 CY2025, with sales flat year on year at $6.03 billion. Its non-GAAP profit of $2.70 per share was 1.1% below analysts' consensus estimates. Is now the time to buy UNP? Find out in our full research report (it's free). Revenue: $6.03 billion vs analyst estimates of $6.07 billion (flat year on year, 0.8% miss) Adjusted EPS: $2.70 vs analyst expectations of $2.73 (1.1% miss) Adjusted EBITDA: $2.98 billion vs analyst estimates of $3.05 billion (49.5% margin, 2.2% miss) Operating Margin: 39.3%, in line with the same quarter last year Free Cash Flow Margin: 7.8%, similar to the same quarter last year Sales Volumes rose 6.6% year on year (-0.5% in the same quarter last year) Market Capitalization: $129.2 billion Union Pacific's first quarter performance reflected meaningful operational improvements and volume growth despite missing Wall Street's revenue and non-GAAP earnings expectations. Management attributed the quarter's flat top-line result to higher freight volumes and strong core pricing, partially offset by unfavorable business mix and lower fuel surcharge revenue. Executive Vice President Kenny Rocker highlighted that intermodal and bulk segments led volume gains, while CFO Jennifer Hamann noted productivity initiatives and cost management helped maintain margins even as external headwinds persisted. Looking ahead, Union Pacific's leadership signaled ongoing caution due to tariff uncertainty, volatile fuel prices, and shifting customer demand patterns. CEO Jim Vena stated, 'There's a lot of things—tariffs, economy, consumer behavior, interest rates—that are up in the air.' Management reiterated commitment to its three-year growth and margin targets but acknowledged the need for agility and scenario planning as conditions evolve. The company expects to adjust hiring, capital allocation, and operational levers based on how these external factors develop through the remainder of the year. Union Pacific's management pointed to a mix of operational gains, pricing strength, and external pressures as the main themes of the quarter. Despite flat revenues, leadership emphasized record service and productivity metrics. Volume Growth Led by Intermodal: Management cited a 13% increase in premium segment volume, particularly in intermodal shipments linked to West Coast imports, as a key driver, though this mix carried lower average revenue per car. Strong Core Pricing Execution: Core pricing reached its highest quarterly level in a decade, supported by improved service reliability and proactive customer engagement, which management believes will be sustainable. Business Mix and Fuel Headwinds: A shift toward lower-margin business lines, such as intermodal and coal, along with reduced fuel surcharge revenue, offset gains from higher volumes and pricing, holding margins flat. Cost Discipline and Productivity Initiatives: Workforce productivity and asset utilization improved, with management highlighting technology investments—like energy management systems and adaptive planning tools—that enabled operations to scale efficiently with volume. Tariff and Trade Policy Uncertainty: Executives noted that ongoing changes in tariffs, especially related to China and Mexico, have injected significant uncertainty into demand forecasting, prompting close coordination with customers and flexible network planning. Management's outlook for the remainder of the year centers on maintaining operational agility and disciplined pricing, while preparing for potential shifts in trade policy and consumer demand. Tariff and Policy Volatility: The company is monitoring evolving trade policies and tariffs, particularly those affecting international intermodal and automotive shipments, as these could materially impact volume and network flows. Pricing and Service Reliability: Leadership believes continued pricing discipline, underpinned by service consistency and network investments, will be critical for sustaining margins if volumes become more volatile. Cost Flexibility and Technology: Management emphasized its ability to flex costs, adjust workforce levels, and deploy digital tools to maintain operating leverage in both growth and contraction scenarios, noting that hiring and capital spending will be calibrated to demand trends. Chris Wetherbee (Wells Fargo): Asked for clarity on how management frames its earnings and margin outlook amid heightened uncertainty. CEO Jim Vena reiterated commitment to three-year targets but cautioned that 'everything is so fluid' and the company is prepared to react quickly to changes. Fadi Chamoun (BMO Capital Markets): Inquired about the sustainability and drivers of strong core pricing. CFO Jennifer Hamann pointed to contract repricing opportunities and catch-up from prior inflation, while Kenny Rocker emphasized pricing to service quality. Brandon Oglenski (Barclays): Questioned the impact of rising tariffs and potential demand shocks on West Coast intermodal flows. Management detailed frequent customer engagement and highlighted adaptive planning tools to scale resources up or down rapidly. Scott Group (Wolfe Research): Probed why robust volume and pricing did not translate into higher margins. Leadership attributed this to negative business mix and fuel headwinds, with expectations that mix could improve in the back half of the year. Jonathan Chappell (Evercore ISI): Asked about resource planning for possible intermodal volatility. Operations EVP Eric Gehringer described maintaining a "buffer of resources" and using network technology to adjust train capacity and routing as demand shifts. In the coming quarters, our analysts will be tracking (1) the trajectory of intermodal and automotive volumes as trade policies and tariffs evolve, (2) the company's ability to sustain pricing power and margin discipline even as business mix fluctuates, and (3) the operational impact of ongoing technology and productivity initiatives. The company's response to changes in customer demand and external macroeconomic pressures will remain key signposts for execution. Union Pacific currently trades at a forward P/E ratio of 18×. At this valuation, is it a buy or sell post earnings? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
28-04-2025
- Business
- Business Wire
Union Pacific Celebrates Record Number of Companies for Safely Transporting Chemicals
OMAHA, Neb.--(BUSINESS WIRE)--Union Pacific Railroad recognized 147 companies with the 2024 Pinnacle Award for their dedication and commitment to safely transporting chemicals by rail. The annual award honors customers who implement release prevention protocols, corrective action plans and have zero non-accident releases of regulated hazardous materials shipments. 'Union Pacific congratulates this year's Pinnacle Award winners for their outstanding commitment to safety,' said Kenny Rocker, executive vice president – Marketing and Sales. 'At Union Pacific, safety is at the core of everything we do, and we are proud to partner with customers who prioritize the safe transportation of chemicals to protect the environment and the communities we serve.' Union Pacific shares the same objective as its customers to safely deliver every tank car every day. The railroad's Hazardous Materials Safety team supports customers with joint rail safety training programs and rail car inspections. Hazmat teams are located regionally across Union Pacific's 23-state network with a four-prong mission: Prevention, Preparedness, Response and Recovery. More information about these efforts is available at The 2024 Pinnacle Award winners are: Aeropres Corporation Afton Chemical ALTIVIA Petrochemicals, LLC Americas Styrenics LLC AmeriGas Propane LP Arcanum Infrastructure, LLC Archer Daniels Midland Co. Arclin Arkalon Ethanol Arkema Inc. Ascend Performance Materials Aux Sable Liquid Products Badger State Ethanol, LLC Bayer CropScience Berryman Chemical Inc. Bluewing Midstream, LLC BP Buckeye Pipeline Company Cardinal Colwich Cargill Inc Celanese International Corp Cenovus Energy Centennial Energy LLC Foremark Performance Chemicals Formosa Plastics Corporation, U.S.A. Freeport-McMoRan Inc. Gantrade Corporation Genesis Alkali Glacial Lakes Energy LLC Golden Triangle Energy LLC Grain Processing Corporation HELM U.S. Corporation Heron Lake BioEnergy Hexion Inc HF Sinclair Corporation Huntsman International LLC Indorama Ventures Ineos KOH INEOS Oligomers USA LLC INEOS Phenol INEOS US Chemicals Co Inter Pipeline US Marketing LTD INVISTA Nylon Chemicals Americas LLC Irving Oil Ltd Itafos Conda LLC JR Simplot Co Kemira Water Solutions, Inc. Kern Oil & Refining Co (dba Kern Energy) Keyera Kiros Energy Marketing ULC Koch Fertilizer LLC Koch Methanol LLC Koppers Inc. LACC, LLC LBC Houston LP Lotte Chemical Louisiana LLC Louis Dreyfus Company Luxemborg Trading LLC Manly Terminal LLC MEGlobal Americas Inc Messer LLC Methanex Methanol Company, LLC Mexichem Fluor SA de CV Midstream Energy Partners Midwest Renewable Energy Midwest Terminals MITSUBISHI CHEMICAL AMERICA HEADQUARTERS MMTX, INC Monument Chemical Houston LLC Nan Ya Plastics Corporation America Viridis Chemical Company Wanhua Chemical (America) Co., Ltd. Watco Companies LLC Western Plains Energy, LLC CF Industries ChampionX LLC Chevron Phillips Chemical Company CHS INC CIE Norfolk GNS, LLC Citgo Petroleum Coffeyville Resources Nitrogen Fertilizers LLC Concord Energy LLC Corteva Agriscience Covestro LLC Crystal Clean, LLC Cyanco Company LLC Deer Park Refining LP/Pemex Dover Chemical DuPont Dyno Nobel Eastman Chemical Company Elite Octane LLC EnLink Midstream Enterprise Products Operating LLC ERCO Worldwide (USA) Inc Ergon Asphalt & Emulsions Evonik Corp Nexpera LLC NGL Supply Co Ltd Nouryon Chemicals LLC NOVA Chemicals Corporation NOVUS International Inc Nutrien Olin Corporation OQ Chemicals Corp OxyChem Parkland Corporation PCI Nitrogen LLC Pembina Pipeline Corp Phillips 66 CO Phoenix Park Energy Marketing LLC Pilot Travel Centers LLC Plains Marketing, LP Port of Tucson Rail Logix Holdings, LLC Reagent Chemical Rio Tinto Kennecott Utah Copper Roehm America LLC RPMG Inc Sabic Saconix Sasol Chemicals (USA) LLC Savage Infrastructure Sawtooth Caverns SI Group SNF Holding Company Solvay Chemicals Inc. Southern Ionics Incorporated Southwest Iowa Renewable Energy, LLC Sterling Ethanol, LLC Sulphuric Acid Trading Company, Inc. Suncor Energy (USA) Inc Synthomer Adhesive Technologies Tauber Oil Company Tessenderlo Kerley Inc. The Andersons Inc The Chemours Company The Dow Chemical Company The Plaza Group TotalEnergies Petrochemicals and Refining Usa Inc Twin Eagle Terminals & Logistics, LLC. United Energy Trading LLC US Oil & Refining Co. Veolia North America Westlake Corporation Wildcat Midstream Limited Partnership Williams Companies Inc. Expand 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
Yahoo
04-04-2025
- Business
- Yahoo
Tariffs Are Weighing Down the Transportation Industry, but This Dividend-Paying Value Stock Is Built to Last
The transportation industry moves goods, freight, and people -- consisting of package delivery companies like FedEx and United Parcel Service, logistics and freight companies, long-haul trucking, railroads, airlines, and more. The industry can be a good barometer for economic growth. When the economy is booming, the movement of goods can increase, and folks may be more willing to travel. But when the economy is contracting, consumption can slow -- impacting volumes. Union Pacific (NYSE: UNP) is one of the largest railroads in North America -- dominating railroad shipping lines west of the Mississippi River. But Union Pacific also connects to Canada's rail systems and serves all six major Mexico gateways. Union Pacific could be vulnerable to tariffs between the U.S. and its North American neighbors, but that doesn't mean that tariffs would derail its investment thesis. Here's why Union Pacific remains a solid dividend-paying value stock to buy now. Since tariffs essentially tax cross-border trade, they could lead to lower exchange volumes between the U.S. and Mexico. However, tariffs could also lead to higher U.S. manufacturing, boosting domestic volumes and ultimately benefiting U.S. railroads. Union Pacific hosted its latest earnings call in late January -- before the recent increase in trade tensions and tariff talk. But even then, management expressed confidence in its ability to navigate tariffs, explaining that it prepares for a worst-case scenario. CEO Jim Vena said on the fourth-quarter 2024 earnings call: We have the capability at Union Pacific to react to anything that's thrown at us. Good strong balance sheet, real good, focused marketing team operations that's looking to be more efficient. And I look at the entire package, if we get tariffs but we also get the regulatory changes and we get the tax changes that we're talking about by the President with how depreciation is going to work on capital and how our corporate tax rate works that could be a lot of positive. In other words, Union Pacific is looking at changes in economic policy as a whole, not just focusing on tariffs in a vacuum. Kenny Rocker, Executive Vice President of Marketing and Sales, added on the earnings call: We've seen this before; it's really about being prepared. And what generally happens is maybe the origin location shifts from Asia to Mexico or Canada and that commodity is priced in, that tariff is priced in. But being prepared is a critical thing. A decrease in trade between the U.S., Mexico, and Canada could increase trade with other countries. As long as transportation demand remains strong, the origin location could change, and Union Pacific could still do well. The company is positioned differently than, say, package delivery companies. FedEx and United Parcel Service have seen their stock prices plummet to 52-week lows because tariffs and an economic slowdown could reduce package delivery volumes and weigh on consumers. An economic slowdown wouldn't be great for Union Pacific either, but it isn't as directly exposed to consumers as package delivery companies. Union Pacific has a cost structure that is different from other transportation companies. The rail network is already set up, so costs mainly come from servicing the network, fuel, labor, and other operating costs. The business model leaves Union Pacific with a manageable cost structure that leads to strong free cash flow (FCF) and high margins no matter what the economy is doing. Over the past 15 years, Union Pacific has steadily grown its revenue, operating income, and FCF while never reporting a year of negative operating income or FCF. In that 15-year period, Union Pacific has increased its dividend by over 700% and reduced its share count by over 40% through stock buybacks, making it a solid dividend stock and a good value. Union Pacific's payout ratio is 48% -- meaning the dividend takes up less than half of earnings. A payout ratio of 50% to 75% is generally considered healthy. Union Pacific currently has a dividend yield of 2.3%. Union Pacific's price-to-earnings (P/E) ratio is just 20.9, which is right around its 10-year median P/E of 20.4. All told, the stock remains well-balanced between potential growth, income, and value. Union Pacific is a coiled spring for economic growth. However, unlike other cyclical companies in the industrial sector, its earnings have historically not been volatile. Rail is the most efficient form of transporting goods long distances on land. So, even if costs go up, Union Pacific should have pricing power. Its business model ensures it generates strong margins even when there are economic slowdowns. Add it all up, and Union Pacific stands out as an excellent value stock to buy now. Before you buy stock in Union Pacific, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Union Pacific wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $675,119!* Now, it's worth noting Stock Advisor's total average return is 817% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 1, 2025 Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends FedEx and Union Pacific. The Motley Fool recommends United Parcel Service. The Motley Fool has a disclosure policy. Tariffs Are Weighing Down the Transportation Industry, but This Dividend-Paying Value Stock Is Built to Last was originally published by The Motley Fool
Yahoo
27-03-2025
- Business
- Yahoo
Union Pacific and Jaguar Transport Holding LLC Primed for Growth in Kansas City
New lease agreement supports regional business growth OMAHA, Neb., March 27, 2025--(BUSINESS WIRE)--Union Pacific Railroad announced today it has entered into an agreement with Jaguar Transport Holdings LLC to provide short line rail service in the Central Industrial District in Kansas City, a move that will enhance customer service and support regional economic growth. Union Pacific will lease about 12 acres of land and four miles of track in central Kansas City to Jaguar Transport, a leading transportation logistics company with experience in short line rail, warehousing and transload services. "Jaguar has a proven track record of providing premier customer service and we believe this operating change will be a win for both railroads, our mutual customers and the local economy," said Kenny Rocker, executive vice president – Marketing and Sales, for Union Pacific. "Both parties have high expectations for growth under this exciting new deal." The change allows Union Pacific to focus on fast, reliable long-haul service from the site in central Kansas City, while Jaguar will offer five-day-a-week short-haul services via its new short line railroad: the Kansas City West Bottoms Railroad. "Our new business partnership with Union Pacific will create operational efficiencies and unique economic opportunities for the region, allowing local businesses in the greater Kansas City area faster and easier access to Union Pacific's leading rail network," said Tim Enayati, senior vice president of commercial development for Jaguar Transport Holdings. "We're thrilled this opportunity is happening in Missouri and Kansas, two states that have been great partners and longtime supporters of the rail industry." In addition to its short-line services, Jaguar owns a cold and dry storage warehouse adjacent to the property and it is finalizing construction of a new transload facility on the site that will begin accepting train cars sometime this month. ABOUT UNION PACIFICUnion 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 View source version on Contacts Union Pacific Media Contact: Robynn Tysver, 402-544-5034 or media@ Sign in to access your portfolio
