10-QPeriod: Q3 FY2024

BERKSHIRE HATHAWAY INC Quarterly Report for Q3 Ended Sep 30, 2024

Filed November 4, 2024For Securities:BRK-BBRK-A

Summary

Berkshire Hathaway Inc. (BRK-B) reported strong financial results for the nine months ending September 30, 2024, with net earnings attributable to shareholders reaching $69.3 billion, a significant increase from $58.6 billion in the prior year period. This growth was largely driven by substantial investment gains, totaling $46.2 billion for the nine months, compared to $38.0 billion in the same period of 2023. The company maintained a robust balance sheet, with shareholders' equity growing to $629.1 billion from $567.5 billion at year-end 2023. Despite ongoing macroeconomic uncertainties, Berkshire Hathaway demonstrated operational resilience across its diverse business segments, including insurance, railroads, utilities, energy, and manufacturing. The insurance segment's underwriting results showed a mixed performance, with improved profitability at GEICO and the Primary Group in the first nine months of 2024, though the Reinsurance Group experienced a pre-tax underwriting loss. Investment income from the insurance operations saw a notable increase, largely due to higher yields on U.S. Treasury Bills. The railroad, utilities, and energy segments, including BNSF and Berkshire Hathaway Energy, reported solid earnings, reflecting improved operational efficiencies and favorable pricing in certain areas. Manufacturing, service, and retailing businesses also contributed positively, with notable growth in industrial products and consumer segments, although certain areas like retail faced headwinds from increased competition and reduced consumer spending.

Financial Highlights

29 data points
Beta

Revenue

$93.00B

Net Income

$26.48B

28.5% Net Margin

Total Assets

$1.15T

Cash & Equivalents

$37.99B

Free Cash Flow

-$2.90B

Financial Statements
Beta
Revenue$93.00B
Operating Expenses$81.22B
Interest Expense$1.21B
Net Income$26.48B

Key Highlights

  • 1Net earnings attributable to Berkshire Hathaway shareholders for the first nine months of 2024 were $69.3 billion, up from $58.6 billion in the prior year period.
  • 2Total revenues for the first nine months of 2024 reached $276.5 billion, an increase from $271.1 billion in the same period of 2023.
  • 3The company reported substantial investment gains of $46.2 billion for the first nine months of 2024, compared to $38.0 billion in the prior year.
  • 4Shareholders' equity increased to $629.1 billion as of September 30, 2024, from $567.5 billion at December 31, 2023.
  • 5GEICO's pre-tax underwriting earnings significantly improved, reaching $5.7 billion for the first nine months of 2024, up from $2.3 billion in the prior year.
  • 6Berkshire Hathaway Energy (BHE) saw a substantial increase in net earnings, with $3.3 billion for the first nine months of 2024, compared to $1.9 billion in the prior year, driven by improved U.S. utility operations.
  • 7Cash, cash equivalents, and U.S. Treasury Bills held by insurance businesses amounted to $271.8 billion as of September 30, 2024, indicating strong liquidity.

Frequently Asked Questions

Berkshire Hathaway reported strong financial performance for the first nine months of 2024. Net earnings attributable to shareholders increased to $69.3 billion from $58.6 billion in the same period of 2023. This growth was significantly boosted by investment gains, which totaled $46.2 billion for the period. Total revenues also saw a modest increase, reaching $276.5 billion.

The insurance segment showed mixed results. GEICO's pre-tax underwriting earnings significantly improved, reaching $5.7 billion for the first nine months of 2024, compared to $2.3 billion in the prior year, driven by higher premiums and improved claims frequency. However, the Berkshire Hathaway Reinsurance Group reported a pre-tax underwriting loss of $1.4 billion for the first nine months, impacted by catastrophe losses and a settlement agreement related to non-insurance affiliates. Insurance investment income increased substantially due to higher interest income from U.S. Treasury Bills.

Berkshire Hathaway maintains a strong liquidity position. As of September 30, 2024, cash, cash equivalents, and U.S. Treasury Bills held by its insurance businesses alone amounted to $271.8 billion. The company's repurchase program allows for share repurchases when management believes the price is below intrinsic value, with a commitment not to reduce cash, cash equivalents, and Treasury Bill holdings below $30 billion.

BHE's net earnings attributable to Berkshire Hathaway shareholders increased to $3.0 billion for the first nine months of 2024, up from $1.7 billion in the prior year. This improvement was driven by significantly better results from its U.S. utility operations, which benefited from lower wildfire loss accruals compared to the prior year, increased electric utility margins, and higher recognized wind production tax credits. Natural gas pipelines and other energy businesses also contributed positively.