Earnings Performance - Net earnings attributable to Berkshire shareholders were $66.968 billion in 2025, down from $88.995 billion in 2024 and $96.223 billion in 2023[404]. - After-tax other earnings declined by $1.3 billion in 2025 compared to 2024, impacted by foreign currency exchange rate losses and increased goodwill impairment losses[413]. - Net earnings attributable to Berkshire shareholders for 2025 were $3,979 million, a decrease of 1.1% from $4,026 million in 2024[483]. - Investment gains decreased to $39.078 billion in 2025 from $52.799 billion in 2024, with net earnings dropping to $30.737 billion[553]. - Net earnings of natural gas pipelines declined by $81 million in 2025, attributed to higher interest expenses and operating costs[486]. - Net earnings of other energy businesses decreased by $159 million in 2025, primarily due to lower earnings at Northern Powergrid[487]. Insurance Operations - Insurance underwriting generated after-tax earnings of $7.258 billion in 2025, compared to $9.020 billion in 2024 and $5.428 billion in 2023, reflecting lower earnings from underwriting groups[406]. - After-tax earnings from insurance investment income declined by $1.2 billion (8.5%) in 2025 versus 2024, due to lower interest and dividend income[407]. - GEICO's loss ratio was 72.3% in 2025, up from 71.8% in 2024, reflecting higher average claims severities[421]. - Premiums written in 2025 were $18,713 million, slightly lower than $18,836 million in 2024, with significant increases at MedPro (9.0%) and BH Direct (15.8%) offset by declines at GUARD (32.6%) and RSUI (8.7%)[431]. - Losses and LAE decreased by $147 million (1.2%) in 2025 compared to 2024, with a loss ratio decline of 0.7 percentage points; catastrophe losses were approximately $305 million in 2025 compared to $350 million in 2024[432]. - The aggregate claim liabilities for property and casualty insurance were approximately $152 billion as of December 31, 2025[572]. Revenue and Growth - BNSF's after-tax earnings increased by 8.8% in 2025, primarily due to lower operating expenses and improved efficiencies[408]. - Manufacturing, service, and retailing businesses saw a 4.4% increase in earnings in 2025 compared to 2024, despite mixed results across operations[410]. - Energy operating revenues for 2025 reached $21,871 million, a slight increase from $21,566 million in 2024[479]. - Total revenues for 2025 were $26,297 million, compared to $26,348 million in 2024, reflecting a decrease of 0.2%[479]. - Manufacturing revenues for 2025 were $78,487 million, reflecting a 1.6% increase from $77,231 million in 2024[496]. - Service group revenues reached $22.982 billion in 2025, an increase of 11.0% compared to 2024, primarily due to higher revenues from aviation services (9.9%) and IPS (24.2%)[532]. Investment and Financial Position - Pre-tax net investment income decreased by 8.9% in 2025 to $15.261 billion compared to $16.748 billion in 2024, following a 44.6% increase from 2023[454]. - Float increased to approximately $176 billion at December 31, 2025, up from $171 billion in 2024 and $169 billion in 2023[457]. - Berkshire's shareholders' equity at December 31, 2025, was $717.4 billion, an increase of $68.1 billion from December 31, 2024[563]. - As of December 31, 2025, Berkshire's cash, cash equivalents, and U.S. Treasury Bills totaled $369.0 billion[565]. - Berkshire's outstanding debt increased to $22.7 billion as of December 31, 2025, up by $1.6 billion from the previous year[566]. Operational Challenges - Operating revenues from consumer products decreased by 2.8% in 2025 to $8.2 billion, despite a volume increase of 1.2%[465]. - Consumer products group revenues decreased to $14.4 billion in 2025, a decline of 3.0%, primarily due to lower sales volumes at Fruit of the Loom, Jazwares, and Duracell[524]. - Pilot's revenues declined by $4.7 billion (10.0%) in 2025 from 2024, primarily due to significant volume reductions from bulk fuel sales[548]. - Pilot's pre-tax earnings fell by $424 million (69.1%) in 2025 compared to 2024, impacted by lower wholesale fuel margins and higher selling expenses[549]. Claims and Liabilities - GEICO's gross claim liabilities were $27.5 billion as of December 31, 2025, with a net of $26.6 billion after reinsurance[578]. - Estimated liabilities for asbestos and environmental exposures were approximately $11.1 billion at December 31, 2025[600]. - The company expects that the aggregate remaining losses payable under its policies will not exceed $46 billion, with a potential decline of no more than 15% from the estimated gross claims liability[598]. - The company believes a 5% increase in casualty claim liabilities over time is reasonably possible, which could result in an increase of about $1.8 billion in casualty liabilities[596].
Berkshire Hathaway(BRK.A) - 2025 Q4 - Annual Report