Financial Performance - Net earnings attributable to Berkshire shareholders for Q3 2025 were $30.8 billion, an increase of 17.5% compared to $26.3 billion in Q3 2024[177]. - After-tax insurance underwriting earnings increased by $1.6 billion (213.3%) in Q3 2025 compared to Q3 2024, primarily due to lower incurred losses from significant catastrophe events[179]. - After-tax earnings from BNSF increased by $66 million (4.8%) in Q3 2025 and $376 million (10.0%) in the first nine months of 2025 compared to the same periods in 2024[180]. - After-tax earnings from Berkshire Hathaway Energy (BHE) declined by $140 million (8.6%) in Q3 2025 but increased by $287 million (9.6%) in the first nine months of 2025 compared to 2024[180]. - 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]. - Net earnings attributable to shareholders were $47.8 billion for the first nine months of 2025, with significant volatility in earnings due to investment gains and losses[286]. Insurance Operations - GEICO's premiums written increased by $563 million (5.0%) in Q3 2025 and $1.8 billion (5.6%) in the first nine months of 2025 compared to 2024[190]. - GEICO's loss ratio was 71.5% in Q3 2025, reflecting a slight increase of 0.1 percentage points compared to Q3 2024, while the loss ratio for the first nine months decreased by 1.8 percentage points[191]. - 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]. - 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]. - The effective income tax rate for net underwriting earnings was 25.1% in Q3 2025, a decrease from 27.5% in Q3 2024[187]. Investment Income - After-tax corporate investment income increased by $533 million in Q3 2025 and $1.6 billion in the first nine months of 2025 compared to 2024[183]. - Pre-tax net investment income decreased by $878 million (19.1%) in Q3 2025 and $534 million (4.5%) in the first nine months of 2025 compared to 2024[213]. - Investment gains (losses) for the first nine months of 2025 included significant unrealized gains, contributing to volatility in periodic earnings[182]. - Pre-tax investment gains included unrealized gains of $20.6 billion in Q3 2025 and $23.6 billion in the first nine months of 2025, compared to $18.6 billion and $45.1 billion in the same periods of 2024[278]. - Taxable investment gains were $10.4 billion in Q3 2025 and $18.7 billion in the first nine months of 2025, down from $23.4 billion and $97.1 billion in 2024[278]. BNSF Operations - BNSF's railroad operating revenues for Q3 2025 were $5,988 million, a slight increase from $5,881 million in Q3 2024, while the first nine months of 2025 saw revenues of $17,390 million compared to $17,242 million in 2024[221]. - BNSF's total car/unit volumes increased by 0.8% in Q3 2025 and 2.1% in the first nine months compared to 2024, with consumer products volumes rising by 2.2% in Q3 and 3.7% year-to-date[222]. - BNSF's railroad operating expenses for Q3 2025 were $3,841 million, essentially unchanged from Q3 2024, while year-to-date expenses decreased by $237 million (2.0%) to $11,409 million compared to 2024[228]. Berkshire Hathaway Energy (BHE) - BHE's total revenues for Q3 2025 were $7,304 million, slightly down from $7,335 million in Q3 2024, while year-to-date revenues were $20,078 million compared to $20,104 million in 2024[232]. - BHE's net earnings attributable to Berkshire shareholders for Q3 2025 were $1,489 million, a decrease of 16.3% from $1,778 million in Q3 2024, while year-to-date net earnings were $3,291 million, a slight increase from $3,288 million[235]. - 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]. - BHE's U.S. utilities reported a net earnings decrease of $76 million (8.2%) in Q3 2025 compared to 2024, while showing an increase of $143 million (9.1%) in the first nine months[236]. Manufacturing and Other Revenues - Manufacturing revenues reached $20.0 billion in Q3 2025, a 1.9% increase from 2024, and $58.8 billion for the first nine months, a 1.3% increase[244]. - Pre-tax earnings for manufacturing increased by 14.3% in Q3 2025 and 4.0% in the first nine months compared to 2024[244]. - Financial services revenues rose 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]. - Consumer products group revenues declined $237 million (6.2%) in Q3 2025 and $442 million (4.0%) in the first nine months of 2025, primarily due to lower sales volumes[261]. Capital Expenditures and Shareholder Equity - Consolidated capital expenditures for the first nine months of 2025 were $14.7 billion, including $10.1 billion from BNSF and BHE[292]. - The company's shareholders' equity increased by $48.8 billion to $698.2 billion as of September 30, 2025[286]. - Consolidated borrowings were $127.2 billion as of September 30, 2025, with an increase of $1.4 billion since December 31, 2024[289]. 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]. - The company has not adopted a Rule 10b5-1 trading arrangement during Q3 2025[315]. - Significant business risks are outlined in Item 1A of Form 10-K for the year ended December 31, 2024, indicating potential impacts on business and investment value[310].
Berkshire Hathaway(BRK.A) - 2025 Q3 - Quarterly Report