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BERKSHIRE HATHAWAY INC (BRK-B)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 operating earnings rose to $13.49B from $10.09B YoY, led by stronger insurance underwriting, BNSF, and Manufacturing; GAAP net earnings were $30.80B (boosted by $21.94B of investment gains), and revenue was $94.97B .
  • Versus S&P Global consensus, Primary EPS beat while revenue was slightly below: Primary EPS $9,376 vs $8,684 consensus (beat); revenue $94.97B vs $96.98B consensus (miss).
  • Insurance float reached ~$176B (+$5B YTD), liquidity remained ample (Insurance cash+UST bills $246.9B), and no share repurchases YTD .
  • Stock narrative: positive on core operating momentum (GEICO, BNSF, Manufacturing) but tempered by lower insurance investment income YoY, mixed BHE quarter (lower Q3 earnings), Pilot’s Q3 loss, and ongoing PacifiCorp wildfire litigation risk that could carry additional losses .

What Went Well and What Went Wrong

  • What Went Well

    • Insurance underwriting earnings improved: after-tax $2.37B vs $0.75B YoY; BHRG property/casualty loss ratio improved YoY and GEICO remained solid despite higher expenses .
    • BNSF net rose to $1.45B (from $1.38B), with volume growth and cost discipline (lower fuel expense YoY), supporting margin resilience .
    • Manufacturing net rose to $3.62B (from $3.34B), with PCC, Marmon and Industrial products driving higher profitability on efficiency gains and mix .
    • Management reiterated long-standing discipline on investment gains presentation and liquidity: “The amount of investment gains (losses)…is usually meaningless…” and they “insist on safety over yield” in short-term investments .

  • What Went Wrong

    • Insurance investment income fell YoY to $3.18B from $3.66B, reflecting lower short‑term rates and capital distributions to the parent in 4Q24; BHE Q3 net fell to $1.49B from $1.63B .
    • Pilot posted a small pre-tax loss (−$17M) on lower wholesale fuel/in-store margins and higher OpEx; earnings down sharply YoY .
    • PacifiCorp wildfire litigation remains a material overhang; cumulative probable losses ~$2.85B with additional losses reasonably possible, and multiple appeals/ trial schedules in 2026–2028 .

Financial Results

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD Billions)$93.00 $92.52 $94.97
Net Earnings Attributable to BRK ($USD Billions)$26.25 $12.37 $30.80
Operating Earnings ($USD Billions)$10.09 $11.16 $13.49
Net EPS – Class B ($)$12.18 $5.73 $14.28
Investment Gains (Losses) ($USD Billions)$20.51 $6.36 $21.94

Segment after-tax operating earnings (selected)

Segment ($USD Billions)Q3 2024Q3 2025
Insurance – Underwriting$0.75 $2.37
Insurance – Investment Income$3.66 $3.18
BNSF$1.38 $1.45
Berkshire Hathaway Energy (BHE)$1.63 $1.49
Manufacturing, Service & Retailing$3.34 $3.62
Other$(0.68) $1.38

Key KPIs

KPIQ3 2024Q3 2025
Insurance Float ($USD Billions)—~$176 (+$5 YTD)
Insurance Cash + UST Bills ($USD Billions)—$246.90
Capex ($USD Billions)$4.70 (Q3) $5.59 (Q3)
BNSF Volume (cars/units, K)2,487 2,508
GEICO Loss Ratio (%)71.4% 71.5%
GEICO Expense Ratio (%)9.6% 12.8%
Share Repurchases (YTD)—$0

Vs S&P Global consensus (Q3 2025)

MetricConsensusActualSurprise
Primary EPS$8,684*$9,376*Beat*
Revenue ($USD Billions)$96.98*$94.97 Miss*

Values marked with * retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
————Berkshire did not issue formal forward guidance in its press release/10-Q .

Earnings Call Themes & Trends

Berkshire did not host a Q3 earnings call; the company furnished a press release and 10-Q only . Themes below reflect Management’s Discussion & Analysis commentary across periods.

TopicQ1 2025 (Prev)Q2 2025 (Prev)Q3 2025 (Current)Trend
Insurance catastrophe exposureSoCal wildfires losses (~$7.4B unrealized equity loss drove GAAP; underwriting impacted in Q1) SoCal wildfire underwriting losses flowed through; underwriting still profitable overall Lower current-cat losses YoY; underwriting stronger; GEICO loss ratio stable, expenses higher Improving underwriting, mixed expense trend
Investment gains/volatilityReiterated GAAP investment gains volatility Same caution Strong Q3 equity gains; reiterated “usually meaningless” caution Persistent
BNSF volumes/marginsGradual improvement in operating efficiency Higher volumes, lower fuel costs, better margins Slight volume increase; continued cost discipline Gradual improvement
BHE regulation/tax—OBBBA enacted; evaluating effects on projects/tax Continuing evaluation of OBBBA implications Uncertain policy impact
PacifiCorp litigation—Loss accruals unchanged YTD; appeals and further trials scheduled Cumulative probable losses ~$2.85B; more trials, appeals; additional losses reasonably possible Ongoing legal overhang
Liquidity & cash policy—Emphasis on liquidity; high T-bill balances Insurance cash+UST $246.9B; liquidity “paramount” Strong, consistent
Portfolio/strategic——Signed to acquire OxyChem for $9.7B (expected 4Q25 close) Incremental M&A catalyst

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 to investors who have little or no knowledge of accounting rules.” — Berkshire news release (Q3) .
  • “We continue to believe that maintaining ample liquidity is paramount and insist on safety over yield with respect to short-term investments.” — Insurance investment income section (Q3 10-Q) .
  • “On July 4, 2025, the One Big Beautiful Bill Act… accelerates the phase-out of clean electricity production and investment tax credits… We are currently evaluating the potential implications of the OBBBA…” — BHE (Q3 10-Q) .

Q&A Highlights

Berkshire did not hold a Q3 earnings call; no Q&A disclosures were provided in connection with the quarter’s results .

Estimates Context

  • S&P Global consensus for Q3 2025: Primary EPS $8,684*, Revenue $96.98B*. Actuals: Primary EPS $9,376* (beat), Revenue $94.97B (miss) .
  • Limited street coverage (3 EPS estimates, 1 revenue estimate) suggests estimate dispersion/low visibility for Berkshire’s multi-segment model*.
    Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Core operations are strengthening: Operating earnings advanced to $13.49B, driven by underwriting, BNSF, and Manufacturing; this is the most relevant metric given GAAP volatility from investment gains .
  • Insurance remains a tailwind: underwriting solid across reinsurance and GEICO (stable loss ratio), though GEICO’s expense ratio rose; float expanded to ~$176B, enhancing investment leverage over time .
  • BNSF is executing: higher volumes and cost control support profitability despite fuel surcharge headwinds; watch core price/volume trajectory into 2026 .
  • BHE mixed near term: lower Q3 earnings and evolving tax policy (OBBBA) create uncertainty, but utility margin improved YTD and wildfire accruals were modest in Q3; litigation remains a medium-term overhang .
  • Pilot’s profitability compressed in Q3; monitor wholesale fuel margins, in-store mix, and cost control as 2026 setup .
  • Balance sheet safety is intact: exceptional liquidity (Insurance cash+UST $246.9B) and no buybacks YTD provide strategic flexibility for M&A (e.g., OxyChem) and opportunistic capital deployment .
  • Trading lens: positive bias on operating momentum and liquidity optionality; risks skewed to litigation outcomes, BHE policy/tariff changes, and macro-driven equity marks that can swing reported GAAP EPS quarter to quarter .

Notes: Values marked with * retrieved from S&P Global.