Biglari (US:BH)2026-03-02 11:32Financial Performance - Net earnings attributable to Biglari Holdings Inc. shareholders for 2025 were $(37,488) thousand, a decrease from $(3,759) thousand in 2024, compared to $54,948 thousand in 2023[101]. - The total operating businesses reported a net loss of $(37,488) thousand in 2025, compared to a net loss of $(3,759) thousand in 2024, and a profit of $54,948 thousand in 2023[101]. - Consolidated shareholders' equity decreased to $523,429 as of December 31, 2025, down $49,532 from 2024, primarily due to a net loss of $37,488[150]. Revenue and Sales - Net sales for the restaurant segment in 2025 were $181,884 thousand, representing an increase of $22,671 thousand, or 14.2%, compared to 2024, driven by a 10.5% increase in same-store sales for company-operated units[109]. - The total revenue for the restaurant segment in 2025 was $280,870 thousand, compared to $251,447 thousand in 2024[108]. - Franchise partner fees increased to $77,001 thousand in 2025 from $70,616 thousand in 2024, with a 10.1% increase in same-store sales for franchise partners[111]. Costs and Expenses - The cost of food at company-operated units was $56,205 thousand, or 30.9% of net sales in 2025, up from $47,891 thousand, or 30.1% in 2024, primarily due to inflation[114]. - Labor costs at company-operated restaurants were $56,175 thousand, or 30.9% of net sales in 2025, compared to $50,431 thousand, or 31.7% in 2024, reflecting improved sales efficiency[115]. - General and administrative expenses were $48,969 thousand, or 17.4% of total revenue in 2025, an increase from $47,130 thousand, or 18.7% in 2024[116]. - Marketing expenses rose to $17,951 thousand, or 6.4% of total revenue in 2025, compared to $12,584 thousand, or 5.0% in 2024, due to new product promotions[117]. Insurance and Underwriting - The net underwriting gain from insurance operations was $5,696 thousand in 2025, up from $3,506 thousand in 2024, with a pre-tax underwriting gain of $7,210 thousand[123]. - Premiums written increased to $71,041 million in 2025, up from $68,394 million in 2024, representing a growth of 2.4%[124]. - First Guard's underwriting gain in 2025 was $6,015 million, an increase of $1,977 million or 49.0% compared to 2024[127]. - Southern Pioneer's premiums earned rose by $5,355 million, or 19.0%, in 2025 compared to 2024, primarily due to higher average earned premium per policy[129]. Investment Income and Losses - Total investment income and other income and expenses increased to $5,506 million in 2025 from $4,652 million in 2024[131]. - Investment partnership losses were $67,001 million in 2025 compared to losses of $41,058 million in 2024, reflecting significant volatility in earnings[143]. - The consolidated income tax benefit was $10,203 million in 2025, up from $4,395 million in 2024, due to taxes on income generated by investment partnerships[148]. Cash Flow and Liquidity - Total cash and investments increased to $1,110,417 in 2025, up from $789,950 in 2024, with cash and cash equivalents rising significantly to $268,782[152]. - Net cash provided by operating activities rose to $106,959 in 2025, an increase of $57,299 compared to 2024, largely due to $56,000 in distributions from investment partnerships[154]. - Cash used in investing activities decreased by $21,918 in 2025, primarily due to a $33,411 increase in sales of investments and redemptions of fixed maturity securities[155]. - The company intends to meet working capital needs primarily through cash flows generated from operations and cash on hand[156]. - The company maintains significant liquidity, with an increase in cash, cash equivalents, and restricted cash of $238,061 in 2025[154]. Specific Business Operations - Oil and gas revenue decreased to $30,211 million in 2025, down $6,734 million or 14.6% from $36,945 million in 2024[133]. - Abraxas Petroleum's revenue decreased by $5,592 million, or 24.8%, during 2025 compared to 2024, primarily due to lower crude oil prices[135]. - Southern Oil's revenue decreased by $1,142 million, or 8.0%, during 2025 compared to 2024, attributed to lower sales prices of crude oil[138]. - Maxim's licensing and media revenue increased to $7,717 million in 2025 from $1,029 million in 2024, driven by a new venture in the digital contest business[140]. Debt and Financing - Steak n Shake obtained a loan of $225,000 on September 30, 2025, with a fixed interest rate of 8.8% and a term of five years[159]. - Biglari Holdings' line of credit balance was $27,250 as of December 31, 2025, down from $35,000 in 2024, with an interest rate of 6.7%[157]. - The carrying value of cash and investments on the balance sheet was $492,107 as of December 31, 2025, compared to $335,411 in 2024[152].