Executive Summary

Operating earnings were $9.64B, down 14.1% year over year; net earnings were $4.60B as large unrealized equity losses (-$7.4B) and FX losses (~$713M) weighed on GAAP results .
Insurance investment income rose to $2.89B (+11% YoY), while BNSF ($1.21B) and Berkshire Hathaway Energy ($1.10B) improved year over year; insurance underwriting earnings fell to $1.34B from $2.60B .
Wall Street consensus (S&P Global) showed Q1 revenue beating estimates ($89.73B vs $81.59B; +9.9%) while Primary EPS missed ($6,703 vs $7,149; -6.2%); coverage was sparse (EPS n=2; Revenue n=1). Values retrieved from S&P Global.
Governance catalyst: the Board appointed Greg Abel to become President and CEO effective January 1, 2026; Warren Buffett will remain Chairman, reinforcing succession clarity .

What Went Well and What Went Wrong

What Went Well

Insurance investment income increased to $2.89B from $2.60B YoY, reflecting higher short-term rates and larger invested balances .
BNSF operating earnings rose to $1.21B from $1.14B YoY, and Berkshire Hathaway Energy rose to $1.10B from $717M YoY, indicating broad-based improvement in rail and energy .
Management emphasized that unrealized investment gains/losses can be “extremely misleading,” reaffirming focus on operating earnings quality: “The amount of investment gains (losses) in any given quarter is usually meaningless…” .

What Went Wrong

Insurance underwriting earnings fell to $1.34B from $2.60B YoY; FX losses (~$713M) in “Other” also pressured results .
Net earnings dropped to $4.60B from $12.70B YoY, driven by ~$7.4B decline in unrealized equity gains and lower realized gains versus the prior year quarter .
Operating earnings declined to $9.64B from $11.22B YoY as underwriting normalization and FX headwinds offset investment income strength .

Financial Results

Consolidated Results (GAAP and Operating)

Metric (USD)	Q3 2024	Q4 2024	Q1 2025
Net earnings attributable to shareholders ($MM)	26,251	19,694	4,603
Investment gains (losses) ($MM)	16,161	5,167	(5,038)
Operating earnings ($MM)	10,090	14,527	9,641
EPS per avg Class A share ($)	18,272	13,695	3,200
EPS per avg Class B share ($)	12.18	9.13	2.13
Avg Class A shares outstanding	1,436,706	1,438,022	1,438,223
Avg Class B shares outstanding	2,155,058,383	2,157,034,121	2,157,335,139

Operating Earnings by Segment (After-Tax)

Segment ($MM)	Q3 2024	Q4 2024	Q1 2025
Insurance – underwriting	750	3,409	1,336
Insurance – investment income	3,664	4,088	2,893
BNSF	1,383	1,278	1,214
Berkshire Hathaway Energy	1,629	729	1,097
Manufacturing, service & retailing / Other controlled businesses	3,342	3,262	3,060
Non-controlled businesses	199	695	n/a (not presented)
Other (incl. FX)	(877)	1,066	41

Notes: FX impact in “Other” was approximately +$1.2B in Q4’24, -$1.1B in Q3’24, and -$713M in Q1’25 .

Estimates vs Actuals – Q1 2025 (S&P Global)

Metric	Consensus	Actual	Surprise
Primary EPS	7,149	6,703	Miss (-6.2%)
Revenue ($MM)	81,590	89,725	Beat (+9.9%)

Values retrieved from S&P Global.

KPIs

KPI	Q3 2024	Q4 2024	Q1 2025
Insurance float ($B)	174	171	173
Class A equivalent shares outstanding (period-end)	1,437,608	1,438,223	1,438,223

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated revenue	FY/Q1	None issued	None issued	Maintained (no guidance)
Operating margin/earnings	FY/Q1	None issued	None issued	Maintained (no guidance)
Segment guidance (Insurance, BNSF, BHE, MSR)	FY/Q1	None issued	None issued	Maintained (no guidance)
Tax rate / OI&E	FY/Q1	None issued	None issued	Maintained (no guidance)
Dividend	FY/Q1	None issued	None issued	Maintained (no dividend policy change disclosed)

Berkshire does not provide formal quarterly or annual guidance in press releases/8-Ks; management directs investors to the 10-Q/annual report for detailed context .

Earnings Call Themes & Trends

Berkshire does not host a traditional quarterly earnings call; Q&A occurred at the Annual Meeting and was broadcast by CNBC per the Q1 information release .

Topic	Previous Mentions (Q3’24 and Q4’24)	Current Period (Q1’25)	Trend
Unrealized investment gains/losses volatility	Emphasized as not indicative of quarterly performance	Reiterated caution that quarterly investment gains/losses are “usually meaningless”	Unchanged; continued emphasis
FX impacts on debt	Q3’24: ~-$1.1B; Q4’24: ~+$1.2B	Q1’25: ~-$713M	Headwind in Q1 after tailwind in Q4
Insurance investment income	3.66B (Q3’24), 4.09B (Q4’24)	2.89B (Q1’25)	Elevated vs prior year; sequential normalization
BNSF performance	1.38B (Q3’24), 1.28B (Q4’24)	1.21B (Q1’25)	YoY improvement; sequential decline
Berkshire Hathaway Energy (BHE)	1.63B (Q3’24), 0.73B (Q4’24)	1.10B (Q1’25)	Recovery from Q4
Succession planning	Noted historically; no formal change in Q3/Q4 releases	Greg Abel named President & CEO effective Jan 1, 2026; Buffett remains Chairman	Major governance milestone

Management Commentary

“The amount of investment gains (losses) in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading…” .
Berkshire presents operating earnings “defined as net earnings exclusive of investment gains (losses)” to provide more useful transparency to investors .
Insurance float increased to approximately $173B at March 31, 2025 (+$2B since yearend 2024) .
Governance: “On May 4, 2025, Berkshire’s Board of Directors voted unanimously to appoint Greg Abel to become Berkshire’s President and CEO effective on January 1, 2026. Warren Buffett will remain the Chairman…” .

Q&A Highlights

No formal earnings call or posted transcript for Q1 2025 was found. The company held a widely broadcast Q&A at the Annual Meeting (CNBC webcast) per the information release . Key governance outcome: the Board’s decision to appoint Greg Abel as CEO effective Jan 1, 2026, with Warren Buffett remaining Chairman, clarifying succession and continuity .

Estimates Context

Q1 2025 Primary EPS missed S&P Global consensus (6,703 vs 7,149; -6.2% surprise), while Revenue beat (89.73B vs 81.59B; +9.9% surprise). Coverage was limited (EPS n=2; Revenue n=1). Values retrieved from S&P Global.
Note: Berkshire’s press release reports net earnings per average equivalent Class A share of $3,200 (GAAP), and emphasizes the non-informative nature of quarterly investment gains/losses on GAAP EPS .
Implication: Street models may need to lower EPS assumptions tied to underwriting normalization and FX headwinds while maintaining higher run-rate for insurance investment income; segment improvements (BNSF, BHE) support medium-term stability.

Key Takeaways for Investors

Focus on operating earnings quality: despite GAAP volatility from unrealized equity marks, Q1 operating earnings remained robust at $9.64B, with continued strength in insurance investment income .
Underwriting normalization and FX losses weighed on results; monitor FX exposure in “Other” as a swing factor quarter to quarter .
Rail and energy showed YoY improvement; watch sequential trends for BNSF and recovery trajectory at BHE into 2H as macro/utility fundamentals evolve .
Succession is de-risked: Greg Abel’s appointment as CEO effective Jan 1, 2026 solidifies leadership continuity; Buffett remains Chairman, anchoring capital allocation philosophy .
Sparse sell-side coverage means estimate beats/misses can be noisy; anchor on operating earnings and segment trends rather than quarterly GAAP EPS noise. Values retrieved from S&P Global.
Insurance float rose to ~$173B (+$2B vs YE’24), supporting long-term compounding of investment income as T-bill yields remain elevated .
Tactical angle: headlines around succession and segment improvements are positives; short-term moves may be driven by equity market volatility affecting reported GAAP earnings, not fundamentals—a setup for mean reversion when marks reverse .

BERKSHIRE HATHAWAY INC (BRK-B)·Q1 2025 Earnings Summary