Financial Performance - Net earnings attributable to Berkshire shareholders for Q3 2025 reached $30.8 billion, a 17.5% increase from $26.3 billion in Q3 2024[177]. - After-tax corporate investment income increased by $533 million in Q3 2025, totaling $904 million, compared to $371 million in Q3 2024[282]. - Net earnings attributable to Berkshire shareholders were $47.8 billion for the first nine months of 2025[286]. - Consolidated capital expenditures for the first nine months of 2025 were $14.7 billion, including $10.1 billion from BNSF and BHE[292]. - Berkshire's shareholders' equity reached $698.2 billion as of September 30, 2025, an increase of $48.8 billion since December 31, 2024[286]. Insurance Operations - After-tax insurance underwriting earnings increased by $1.6 billion in Q3 2025, primarily due to lower incurred losses from significant catastrophe events[179]. - Losses and loss adjustment expenses declined by $1.2 billion (30.1%) in Q3 2025 and $484 million (4.9%) in the first nine months of 2025 compared to 2024[197]. - Premiums written decreased by $263 million (4.8%) in Q3 2025 and $1.1 billion (6.4%) in the first nine months of 2025 compared to 2024, primarily due to volume reductions in property business[203]. - GEICO's premiums written increased by $563 million (5.0%) in Q3 2025, reflecting an increase in policies-in-force[190]. - Losses and loss adjustment expenses for GEICO rose by $413 million (5.4%) in Q3 2025 compared to Q3 2024, with a loss ratio of 71.5%[191]. Energy Sector - Berkshire Hathaway Energy (BHE) reported a decline in after-tax earnings of $140 million (8.6%) in Q3 2025, attributed to lower earnings in U.S. utilities and natural gas pipelines[180]. - BHE's net earnings attributable to Berkshire shareholders for Q3 2025 were $1,489 million, a decrease of 16.3% from $1,629 million in Q3 2024[232]. - The U.S. utilities' electric utility margin was $2.6 billion in Q3 2025, a 6.8% increase from 2024, and $6.6 billion for the first nine months, up 9.9%[237]. - BHE's effective income tax rate for Q3 2025 was (66.4)%, compared to (64.3)% in Q3 2024, reflecting significant production tax credits from wind-powered electricity generation[232]. - The One Big Beautiful Bill Act (OBBBA) enacted on July 4, 2025, may impact BHE's financial results and capital expenditures related to renewable energy projects, though the exact implications are currently uncertain[233]. Transportation Sector - BNSF's after-tax earnings rose by $66 million (4.8%) in Q3 2025 compared to Q3 2024, driven by core pricing gains and improved operating efficiencies[180]. - BNSF's railroad operating revenues for Q3 2025 were $5,988 million, a slight increase from $5,881 million in Q3 2024[221]. - Pre-tax earnings for BNSF increased by 3.6% in Q3 2025 to $1,912 million, and by 6.8% year-to-date to $5,324 million compared to the same periods in 2024[223]. - BNSF's total car/unit volumes increased by 0.8% in Q3 2025 and 2.1% in the first nine months compared to 2024[222]. - Operating revenues from agricultural and energy products increased by 6.3% in Q3 2025 to $1,600 million compared to 2024[226]. Manufacturing and Retail - Manufacturing, service, and retailing businesses saw after-tax earnings increase by $274 million (8.2%) in Q3 2025 compared to Q3 2024[181]. - Manufacturing revenues reached $20.0 billion in Q3 2025, a 1.9% increase from 2024[244]. - Pre-tax earnings in manufacturing increased by 14.3% in Q3 2025 compared to 2024[244]. - Financial services revenues increased 12.0% in Q3 2025 and 13.6% in the first nine months of 2025, driven by higher average loan balances and interest rates[257]. - Retailing group aggregate revenues increased 2.7% in Q3 2025 and 3.5% in the first nine months of 2025 compared to 2024[271]. Investment Gains - Investment gains for Q3 2025 were $21.9 billion, up from $20.5 billion in Q3 2024, with net earnings of $17.3 billion[277]. - Pre-tax investment gains included unrealized gains of $20.6 billion in Q3 2025, compared to $18.6 billion in Q3 2024[278]. - Taxable investment gains were $10.4 billion in Q3 2025, down from $23.4 billion in Q3 2024[278]. Debt and Cash Management - Consolidated borrowings were $127.2 billion as of September 30, 2025, with Berkshire's outstanding debt at $22.5 billion[289]. - Cash, cash equivalents, and U.S. Treasury Bills held by insurance and other businesses totaled $354.3 billion[288]. - Berkshire's consolidated cash, cash equivalents, and U.S. Treasury Bills holdings must remain above $30 billion to allow for stock repurchases[312]. Shareholder Actions - Berkshire's common stock repurchase program allows for repurchases when the price is below intrinsic value, with no shares repurchased in Q3 2025[311]. - The repurchase program does not specify a maximum number of shares or obligate Berkshire to repurchase any specific dollar amount, and there is no expiration date[312]. - The company has not repurchased any Class A or Class B shares in July, August, or September 2025[312]. Legal and Regulatory Matters - Berkshire believes that ongoing legal actions will not have a material effect on its financial condition or results of operations[309]. - Significant business risks are outlined in Item 1A of Form 10-K for the year ended December 31, 2024, indicating potential impacts on business operations[310]. - No defaults upon senior securities have been reported[313]. - Information regarding mine safety violations is disclosed in accordance with the Dodd-Frank Reform Act[314].
Berkshire Hathaway(BRK.B) - 2025 Q3 - Quarterly Report