01—Abstract
Summary
Summary of the 10-K filed February 24, 2025. Cited figures are marked; the original filing is the authoritative source.
Berkshire Hathaway Inc. (BRK-B) reported a strong financial performance for the year ending December 31, 2024, with net earnings attributable to shareholders reaching $88.995 billiona, a slight decrease from $96.223 billion in 2023.
This was largely driven by significant investment gains in 2024, which offset softer performance in some operating segments. The insurance businesses demonstrated robust underwriting results, particularly GEICO, which significantly improved its profitability compared to the prior year, although overall insurance underwriting benefited from favorable prior accident year developments. BNSF and Berkshire Hathaway Energy (BHE) reported slight decreases in after-tax earnings year-over-year, impacted by specific charges and market conditions.
The manufacturing, service, and retailing segments experienced a modest decline in earnings, impacted by varied performance across its diverse portfolio, with some areas showing strength and others facing headwinds. Berkshire Hathaway ended the year with substantial liquidity, holding $318 billionb in cash, cash equivalents, and U.S. Treasury Bills.
The company continued its share repurchase program, demonstrating a commitment to returning capital to shareholders when shares are deemed undervalued. Management remains focused on financial strength, prudent capital allocation, and the long-term intrinsic value of its businesses.
02—Key points
Key Highlights
- Net earnings attributable to Berkshire shareholders were $88.995 billion for 2024.
- Insurance underwriting generated $9.020 billion in net earnings, a significant improvement driven by GEICO's performance.
- BNSF reported after-tax earnings of $5.031 billion, a slight decrease from 2023.
- Berkshire Hathaway Energy (BHE) reported after-tax earnings of $3.730 billion, reflecting improved results partly due to lower wildfire loss accruals.
- Manufacturing, service, and retailing segments collectively earned $13.072 billion before taxes, a slight decrease from the previous year.
- The company maintained strong liquidity, with $318 billion in cash, cash equivalents, and U.S. Treasury Bills at year-end.
- Berkshire Hathaway continued its common stock repurchase program, buying back shares at attractive valuations.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 24, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $371.43B$364.48B | +1.9% |
| Operating Expenses | $315.70B$321.14B | −1.7% |
| Interest Expense | $5.20B$5.00B | +3.9% |
| Net Income | $89.56B$97.15B | −7.8% |
05—Questions
Frequently Asked Questions
What was Berkshire Hathaway's overall financial performance in 2024?
Berkshire Hathaway reported net earnings attributable to shareholders of $88.995 billion for the year ended December 31, 2024. While this represents a slight decrease from $96.223 billion in 2023, the performance was bolstered by substantial investment gains and strong underwriting results from its insurance operations, particularly GEICO.
How did Berkshire's major business segments perform?
The insurance segment showed strong underwriting profits, with GEICO significantly improving its results. BNSF and BHE saw slight declines in after-tax earnings due to specific charges and market factors. The manufacturing, service, and retailing segments experienced a modest decrease in earnings, reflecting a mixed performance across a diverse portfolio. Investment gains were a significant contributor to the overall net earnings.
What is Berkshire Hathaway's liquidity position?
Berkshire Hathaway maintained a very strong liquidity position at the end of 2024, holding $318 billion in cash, cash equivalents, and U.S. Treasury Bills. This reflects the company's commitment to financial strength and flexibility.
Is Berkshire Hathaway continuing its share repurchase program?
Yes, Berkshire Hathaway continues to repurchase its common stock when Warren Buffett believes the price is below the company's intrinsic value. The program allows for repurchases at any time, provided that consolidated cash, cash equivalents, and U.S. Treasury Bills do not fall below $30 billion.
06—Continue