Berkshire Hathaway — Financial Results
Operating Earnings Were Solid, But Headline Net Income Fell Sharply Due to Investment Swings
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Net earnings attributable to Berkshire shareholders | $67.0B | $89.0B | $96.2B |
| Investment gains (after tax) | $30.7B | $41.6B | $58.9B |
| Impairment losses on Kraft Heinz & Occidental | ($8.3B) | $0 | $0 |
Berkshire's reported net income dropped from $89B to $67B, but most of that swing comes from investment gains — unrealized changes in the stock portfolio — which Berkshire's own management says are "meaningless" for judging the business. Strip those out, and the underlying operating businesses actually performed well. The $8.3B write-down on Kraft Heinz and Occidental (meaning Berkshire formally acknowledged these equity-method investments are worth less than previously carried) is a notable one-time hit.
GEICO's Underwriting Profit Remains Strong but Expenses Are Rising Fast
| Metric | 2025 | 2024 |
|---|---|---|
| Premiums earned | $44.5B | $42.3B |
| Loss ratio | 72.3% | 71.8% |
| Expense ratio | 12.4% | 9.7% |
| Pre-tax underwriting profit | $6.8B | $7.8B |
GEICO grew premiums 5.3% by adding more policyholders, and its loss ratio (claims as a share of premiums) stayed low. However, advertising and sales costs jumped sharply — the expense ratio rose 2.7 percentage points — dragging total profit down $1B versus 2024. Bodily injury claim costs were particularly troublesome, rising 12–14% per claim on average.
BNSF Railroad Cut Costs and Boosted Profits Without Growing Revenue
| Metric | 2025 | 2024 |
|---|---|---|
| Operating revenues | $23.35B | $23.36B |
| Operating expenses | $15.30B | $15.89B |
| Operating ratio (expenses ÷ revenue) | 65.5% | 68.0% |
| Net earnings | $5.48B | $5.03B |
Revenue was essentially flat, but BNSF improved its operating ratio (lower is better — it shows what fraction of revenue goes to costs) by 2.5 percentage points, largely by running the railroad more efficiently and avoiding a repeat of a $290M one-time labor payment made in 2024. Net earnings rose 8.8%.
Berkshire Is Sitting on an Enormous Cash Pile — and Not Buying Back Stock
Berkshire held $369B in cash, equivalents, and U.S. Treasury Bills at year-end, a fortress-level liquidity position. Despite this, the company made zero share repurchases in 2025. The cash mountain grew partly because Berkshire sold more equity securities ($30.7B) than it bought ($16.9B) during the year. Management reaffirmed that financial strength and liquidity come first, always.
BHE's Wildfire Liability Is Shrinking but Energy Tax Credit Future Is Uncertain
Berkshire Hathaway Energy (BHE) earned $3.98B for Berkshire in 2025, up from $3.73B. The improvement was driven mainly by PacifiCorp's wildfire loss accruals dropping from $346M in 2024 to $100M in 2025. However, a new U.S. law (the "One Big Beautiful Bill Act") accelerates the phase-out of clean energy tax credits. BHE currently does not expect a near-term impact, but future renewable energy investments could become less economically attractive.
Pilot Travel Centers Had a Rough Year — and Its Goodwill Is Under Pressure
Pilot's pre-tax earnings collapsed 69% from $614M to $190M, hurt by lower wholesale fuel margins, higher costs, and accounting adjustments on fuel-related accounts. Revenues fell $4.7B (10%). Berkshire's annual goodwill review flagged Pilot as a business where estimated fair value ($20.2B) only modestly exceeds carrying value ($18.7B) — meaning further earnings deterioration could eventually force a write-down of the $6.5B of goodwill (the premium Berkshire paid above book value when it acquired Pilot) recorded on the balance sheet.