Union Pacific (UP) reported nearly $1.8 billion in profits for the fourth quarter of 2024, marking an increase of 7% over the previous quarter, despite having to spend $40 million on buyouts related to a new staffing agreement.

According to a release from the railroad, UP saw $6.7 billion in profits for all of 2024 — up slightly from 2023's total of $6.4 billion — and increased its operating revenue for the year by 1%, thanks in part to increased volumes. That was despite the fact that operating revenue in Q4 ticked down by 1% from Q3, with UP blaming the decrease on a dip in revenue from fuel surcharges, as well as an "unfavorable business mix."

“Our strong fourth quarter results represent a great capstone to a very successful year for Union Pacific,” UP CEO Jim Vena said. “The team has fully embraced our strategy to lead the industry in safety, service, and operational excellence."

Headed into 2025, UP expects its volumes to be impacted by what it describes as a "mixed economic backdrop," although Vena noted in a statement to the Associated Press that he has "never entered a year without some economic question mark." The railroad also said that it remains on track to hit its goal to deliver high single-digit to low-double digit earnings per share growth over the next three years.