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Union Pacific Reports Third Quarter 2022 Results

General News
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Union Pacific Corporation today reported 2022 third quarter net income of $1.9 billion, or $3.05 per diluted share. These results include a $114 million charge for a change to prior period accounting estimates related to new, tentative and ratified labor agreements.  Excluding the effects of that charge, adjusted third quarter net income was $2.0 billion, or $3.19 per diluted share. This compares to 2021 third quarter net income of $1.7 billion, or $2.57 per diluted share.

“We made positive strides in the third quarter to increase network fluidity and better meet customer demand,” said Lance Fritz, Union Pacific chairman, president, and chief executive officer. “Inflationary pressures and operational inefficiencies continued to challenge us. We reported strong revenue and operating income growth in the quarter through increased fuel surcharge revenue, volume gains, and solid core pricing. As we close out 2022, we will maintain strong price discipline while improving efficiency and service to capitalize on the available demand.”

Financial Results: Topline Growth Produces Quarterly Records for Operating Revenue, Operating Income, Net Income, and Earnings Per Share

Third Quarter 2022 Compared to Third Quarter 2021

  • Operating revenue of $6.6 billion was up 18% driven by higher fuel surcharge revenue, volume growth, and core pricing gains.
  • Business volumes, as measured by total revenue carloads, were up 3%.
  • Union Pacific’s reported operating ratio was 59.9%. Excluding the charge, the adjusted operating ratio of 58.2% deteriorated by 190 basis points. Lower fuel prices positively impacted the operating ratio by 70 basis points.
  • Adjusted operating income of $2.7 billion was up 13%.
  • The company repurchased 9.5 million shares in third quarter 2022 at an aggregate cost of $2.1 billion.

Operating Performance: Service and Efficiency Measures Improve Sequentially but Lag Prior Year Results; Quarterly Record for Fuel Consumption Rate

Third Quarter 2022 Compared to Third Quarter 2021

  • Quarterly freight car velocity was 191 daily miles per car, a 2% decline.
  • Quarterly locomotive productivity was 124 gross ton-miles (GTMs) per horsepower day, a 2% decline.
  • Average maximum train length increased 1% to 9,483 feet.
  • Quarterly workforce productivity of 1,045 car miles per employee was flat.
  • Fuel consumption rate of 1.056, measured in gallons of fuel per thousand GTMs, improved 1%.
  • Union Pacific’s year-to-date reportable personal injury rate improved 20% to 0.80 per 200,000 employee-hours compared to 1.00 for year-to-date 2021.

2022 Guidance: Update Reflects Challenging Year


  • Full year carload growth ~3%
  • Full year reported operating ratio around 60%
  • Capital spending of $3.4 billion
  • Full year share repurchases of $6.5 billion


  • Pricing gains in excess of inflation dollars
  • Long term dividend payout target of 45% of earnings

For the full press release, click here.

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


Brad Stock – Investor Relations – – (402) 544-4227

Source:  Union Pacific Corporation