OMAHA, Neb. — Union Pacific reported 7% more fourth-quarter profit as it managed to deliver more shipments with fewer employees and continued to make the railroad more efficient.
The Omaha, Nebraska-based railroad reported $1.76 billion profit Thursday, or $2.91 per share, to easily top Wall Street expectations. That’s up from $1.65 billion, or $2.71 per share a year ago. The railroad improved its bottom line even though it had an additional one-time cost related to some buyouts of some brake persons that added $40 million in costs.
Wall Street expected Union Pacific to report earnings per share of $2.80 on average, according to the survey of analysts FactSet Research did.
“It was a very successful year for the Union Pacific team, and we really finished the year on a high note in the fourth quarter,” CEO Jim Vena said.
Revenue slipped 1% to $6.12 billion in the quarter even though volume was up 5% because much of the additional shipments were intermodal carloads that are less profitable than coal and other categories. Analysts expected the railroad’s revenue to be $6.15 billion.
Union Pacific said it is on track to achieve its long-term goals to deliver high single-digit to low double-digit earnings per share growth over the next three years.
CSX, one of the four other major freight railroads, will release its results Thursday afternoon. Analysts expect CSX to earn 42 cents per share on $3.5578 billion revenue.
CSX started the quarter by dealing with the aftermath of Hurricanes Helene and Milton in the Southeast, but officials said in October when the railroad reported third-quarter results that it was able to quickly get its trains moving again after those storms.
CSX and Union Pacific are two of the nation’s largest railroads with CSX serving the Eastern United States while UP operates in the West.
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