10-QPeriod: Q1 FY2025

BERKSHIRE HATHAWAY INC Quarterly Report for Q1 Ended Mar 31, 2025

Filed May 5, 2025For Securities:BRK-BBRK-A

Summary

Berkshire Hathaway Inc. reported its first quarter 2025 results, showcasing resilience despite a significant drop in net earnings primarily due to investment fluctuations. Net earnings attributable to Berkshire shareholders were $4.6 billion, a sharp decrease from $12.7 billion in the prior year quarter. This decline was largely driven by a substantial unrealized investment loss of $6.8 billion on equity securities held at the end of the period, a reversal from the prior year's gain. However, operating earnings remained robust, with significant contributions from its insurance, railroad, utilities, energy, and manufacturing segments. The company maintained a strong liquidity position, with cash, cash equivalents, and U.S. Treasury Bills totaling $42.9 billion at the end of the quarter. Shareholder equity also saw an increase, reflecting the ongoing strength of its diversified operations. The insurance underwriting segment experienced a notable impact from wildfire losses in Southern California, contributing to a decrease in pre-tax underwriting earnings. Conversely, GEICO showed strong underwriting profit growth, driven by increased premiums and a lower loss ratio. The railroad, utilities, and energy segments demonstrated consistent performance, with BNSF benefiting from increased volumes and BHE showing improved earnings due to stronger utility and energy operations, partially offset by a reduction in real estate brokerage losses from prior year charges. The manufacturing, service, and retailing segments showed a slight decrease in earnings, with mixed performance across individual businesses.

Financial Highlights

28 data points
Beta

Revenue

$89.72B

Net Income

$4.67B

5.2% Net Margin

Total Assets

$1.16T

Cash & Equivalents

$42.85B

Free Cash Flow

$6.62B

Financial Statements
Beta
Revenue$89.72B
Operating Expenses$78.27B
Interest Expense$1.26B
Net Income$4.67B

Key Highlights

  • 1Net earnings attributable to Berkshire shareholders decreased to $4.6 billion in Q1 2025 from $12.7 billion in Q1 2024, primarily due to significant unrealized investment losses on equity securities.
  • 2Insurance underwriting experienced a significant impact from Southern California wildfires, resulting in substantial losses, while GEICO's underwriting profit increased.
  • 3Berkshire Hathaway Energy (BHE) saw a substantial increase in net earnings, driven by higher utility and energy operations and reduced real estate losses, though natural gas pipeline earnings saw a slight decrease.
  • 4Burlington Northern Santa Fe (BNSF) reported an increase in pre-tax earnings, benefiting from higher volumes and pricing in its consumer products segment, despite challenges in industrial products and coal.
  • 5The company maintained a strong financial position with $42.9 billion in cash, cash equivalents, and U.S. Treasury Bills, and total shareholders' equity of $656.7 billion at the end of the quarter.
  • 6There were no share repurchases in the first quarter of 2025, consistent with the company's policy of repurchasing shares when they are believed to be below intrinsic value.
  • 7Investments in equity securities continue to be a major driver of earnings volatility, with a large portion of the portfolio concentrated in a few key companies like Apple and Bank of America.

Frequently Asked Questions

The primary driver for the significant decrease in net earnings was a substantial unrealized investment loss of $6.8 billion on equity securities held at the end of the period, compared to an unrealized gain of $4.0 billion in the prior year's comparable quarter. This highlights the volatility associated with Berkshire's large equity investment portfolio.

The insurance segments showed mixed performance. The Berkshire Hathaway Primary Group and Reinsurance Group experienced losses, notably impacted by significant wildfire losses in Southern California. However, GEICO delivered strong underwriting profit growth, driven by increased premiums and a lower loss ratio, contributing positively to the overall insurance results.

Berkshire Hathaway maintained a very strong liquidity position, with cash, cash equivalents, and U.S. Treasury Bills totaling $42.9 billion at March 31, 2025. This robust liquidity is a core tenet of Berkshire's financial strategy.

Yes, there are significant ongoing legal matters. PacifiCorp is facing substantial claims related to wildfires, with estimated probable losses of $2.75 billion recorded through March 31, 2025. HomeServices of America is involved in antitrust litigation, with a recent settlement of $250 million. While Berkshire believes most routine litigation will not have a material effect, these specific large-scale legal matters present considerable potential financial exposure and are being closely monitored.