BERKSHIRE HATHAWAY INC (BRK-B)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 operating earnings rose 71% year over year to $14,527 million, driven primarily by a 302% surge in insurance underwriting ($3,409 million) and a ~48% increase in insurance investment income ($4,088 million). Berkshire reiterated that GAAP net earnings are materially impacted by unrealized investment gains/losses and are “usually meaningless” for quarterly performance assessment .
• GAAP net earnings were $19,694 million vs. $37,574 million in Q4 2023, reflecting lower investment gains ($5,167 million vs. $29,093 million YoY), while operating performance strengthened across insurance and remained resilient at BNSF and BHE .
• Capital allocation remained conservative: 2024 share repurchases totaled ~$2.9 billion; year-end insurance float reached ~$171 billion. Management highlighted elevated cash/T-bill positioning alongside a preference to focus investor attention on operating earnings rather than volatile GAAP marks .
• Key near-term catalysts: strong insurance underwriting momentum (notably GEICO), higher investment income from elevated T‑bill yields, and continued discipline in buybacks; Berkshire does not provide formal guidance nor hold quarterly earnings calls, limiting forward-looking commentary and typical “call” catalysts .

What Went Well and What Went Wrong

• What Went Well

  • Insurance underwriting delivered a major increase: Q4 underwriting earnings surged to $3,409 million from $848 million in Q4 2023; Buffett’s letter explicitly called out GEICO’s performance as a key driver .
  • Insurance investment income climbed sharply to $4,088 million in Q4 (from $2,759 million YoY), consistent with larger T-bill holdings and higher short-term rates, which Buffett described as “predictable” tailwinds .
  • Operating earnings expanded broadly: Q4 operating earnings reached $14,527 million (vs. $8,481 million in Q4 2023), with stable contributions from BNSF ($1,278 million) and BHE ($729 million) .

• What Went Wrong

  • GAAP net earnings fell YoY to $19,694 million (from $37,574 million) due to a steep decline in investment gains ($5,167 million vs. $29,093 million in Q4 2023), underscoring volatility from unrealized marks in the equity portfolio .
  • FX volatility impacted results in “Other”: Q4 included ~$1.2 billion of foreign currency exchange gains tied to non‑USD debt—noise that management treats separately from core operating performance .
  • Some non-controlled/other businesses were mixed; non-controlled businesses contributed $695 million in Q4 2024 vs. $421 million in Q4 2023, while “Other controlled businesses” were essentially flat ($3,262 million vs. $3,270 million YoY), suggesting uneven performance outside insurance .

Financial Results

Key metrics (USD Millions unless noted):

Operating earnings detail by segment (USD Millions):

Selected KPIs:

Note on margins and revenue: Berkshire’s press releases and 8‑K 2.02 focus on operating/net earnings and segment contributions; quarterly revenue and margin ratios are not provided in the Q4 press release or 8‑K. Berkshire cautions GAAP net earnings are materially impacted by unrealized investment marks and “usually meaningless” for quarterly performance assessment .

Guidance Changes

Berkshire does not issue quarterly or annual financial guidance.

Earnings Call Themes & Trends

Berkshire does not hold quarterly earnings calls; themes reflect press releases and the 2024 Annual Report letter.

Management Commentary

• “In 2024, Berkshire did better than I expected though 53% of our 189 operating businesses reported a decline in earnings. We were aided by a predictable large gain in investment income as Treasury Bill yields improved and we substantially increased our holdings of these highly‑liquid short‑term securities.” — Warren Buffett, 2024 Annual Letter .
• “Our insurance business also delivered a major increase in earnings, led by the performance of GEICO.” — Warren Buffett, 2024 Annual Letter .
• “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 Q4 Earnings Release .

Q&A Highlights

• Berkshire does not hold quarterly earnings conference calls; no Q&A was conducted for Q4 2024 .
• Forward-looking clarifications and narrative are provided via the Annual Report and letter; the company emphasizes operating earnings over GAAP net income for assessing performance .

Estimates Context

• Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable due to data access limits; therefore, no formal “vs. estimates” comparison is provided in the tables. Values retrieved from S&P Global were unavailable at time of request (daily limit exceeded).

Key Takeaways for Investors

• Insurance momentum is the core driver: underwriting strength and higher investment income lifted Q4 operating earnings meaningfully; expect insurance to remain the biggest lever of near‑term operating performance .
• Focus on operating results: management reiterates GAAP volatility from equity marks; use operating earnings and segment detail to track fundamentals, not headline net income .
• Capital deployment remains conservative: modest buybacks (~$2.9B in 2024) and sizable cash/T‑bill positioning support optionality; repurchases are opportunistic, not programmatic .
• BNSF and BHE steady but mixed: rail operating earnings are stable; energy’s quarterly cadence reflects normalization and discrete items; monitor productivity at BNSF and loss accrual dynamics at BHE .
• FX and catastrophe losses are transitory items: they swing “Other” and consolidated GAAP; management treats these as non-core to quarterly operating trends .
• With no guidance or earnings calls, narrative catalysts come from the Annual Report/letter and underlying segment performance; traders should watch press releases and filings for insurance trends and any buyback pacing changes .
• Medium-term thesis: durable insurance economics plus disciplined capital allocation underpin earnings power; upside optionality from large cash/T‑bill balance if deployment opportunities arise .

Sources: Q4 2024 8‑K and press release , Q4 press release (Business Wire) , Annual report release info , Q3 2024 8‑K , Q2 2024 8‑K , Berkshire’s 2024 Annual Report and Letter , Berkshire news page , Barron’s and WSJ on no calls/no guidance , CNBC and Investopedia coverage for context .