Berkshire's Q3 Earnings Jump 17% on Strong Operating Performance

TL;DR

**Berkshire's Q3 is a win, but don't get too excited about the full year; the cash pile is the real story.**

AI Summary

Berkshire Hathaway Inc. reported a robust third quarter for 2025, with net earnings attributable to shareholders increasing by 17.3% to $30.796 billion, up from $26.251 billion in Q3 2024. Total revenues also saw a healthy rise of 2.1% to $94.972 billion, compared to $92.995 billion in the prior year's quarter. This growth was primarily driven by increased insurance premiums earned, which rose to $22.445 billion from $22.055 billion, and higher sales and service revenues, reaching $51.011 billion from $49.453 billion. However, for the first nine months of 2025, net earnings attributable to Berkshire shareholders significantly decreased by 31.1% to $47.769 billion, down from $69.301 billion in the same period of 2024, largely due to a substantial reduction in investment gains from $46.247 billion in 2024 to $21.868 billion in 2025. The company's cash and cash equivalents in the Insurance and Other segment surged to $72.156 billion as of September 30, 2025, from $44.333 billion at December 31, 2024, indicating strong liquidity. Total assets grew to $1.225 trillion from $1.153 trillion over the same period, reflecting overall business expansion.

Why It Matters

Berkshire Hathaway's Q3 2025 results demonstrate the resilience of its diverse operating businesses, particularly in insurance and other services, which are driving current profitability. While the nine-month earnings decline due to lower investment gains highlights the volatility of its investment portfolio, the significant increase in cash and cash equivalents provides Warren Buffett and his team substantial dry powder for future acquisitions or share repurchases, potentially impacting competitors and market valuations. Investors should note the underlying strength of its core businesses, which could offer stability amidst broader market uncertainties, and the company's ability to generate substantial cash flow.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant volatility in investment gains, which caused a 31.1% decrease in net earnings for the first nine months of 2025 compared to 2024 ($47.769 billion vs. $69.301 billion). While Q3 operating results were strong, the overall financial performance remains susceptible to market fluctuations in its vast equity portfolio, as noted in the filing: "Changes in market prices of our investments in equity securities and the related changes in unrealized gains and losses will produce significant volatility in our interim and annual earnings."

Analyst Insight

Investors should focus on Berkshire's robust operating cash flow and growing cash reserves, which provide a strong foundation for future strategic moves. Given the volatility in investment gains, long-term investors should evaluate the performance of its underlying businesses rather than short-term swings in net earnings. Consider this a stable, cash-rich holding with potential for opportunistic growth.

Financial Highlights

revenue

$94.972B

total Assets

$1.225T

net Income

$30.796B

cash Position

$72.156B

revenue Growth

+2.1%

Revenue Breakdown

Key Numbers

• $30.796B — Net earnings attributable to Berkshire shareholders (Increased 17.3% in Q3 2025 compared to Q3 2024)
• $94.972B — Total revenues (Increased 2.1% in Q3 2025 compared to Q3 2024)
• $47.769B — Net earnings attributable to Berkshire shareholders (YTD) (Decreased 31.1% for the first nine months of 2025 compared to 2024)
• $21.868B — Investment gains (YTD) (Significantly lower than $46.247 billion in the first nine months of 2024)
• $72.156B — Cash and cash equivalents (Insurance and Other) (Increased from $44.333 billion at December 31, 2024, indicating strong liquidity)
• $1.225T — Total assets (Increased from $1.153 trillion at December 31, 2024)
• 17.3% — Q3 Net Earnings Growth (Percentage increase in net earnings attributable to Berkshire shareholders from Q3 2024 to Q3 2025)
• 31.1% — YTD Net Earnings Decline (Percentage decrease in net earnings attributable to Berkshire shareholders for the first nine months of 2025 compared to 2024)

Key Players & Entities

• BERKSHIRE HATHAWAY INC. (company) — Registrant and parent company
• Warren Buffett (person) — CEO and Chairman of Berkshire Hathaway (implied leader)
• New York Stock Exchange (regulator) — Exchange where BRK.A and BRK.B are traded
• $30.796 billion (dollar_amount) — Net earnings attributable to Berkshire shareholders for Q3 2025
• $26.251 billion (dollar_amount) — Net earnings attributable to Berkshire shareholders for Q3 2024
• $94.972 billion (dollar_amount) — Total revenues for Q3 2025
• $92.995 billion (dollar_amount) — Total revenues for Q3 2024
• $72.156 billion (dollar_amount) — Cash and cash equivalents for Insurance and Other segment as of September 30, 2025
• $44.333 billion (dollar_amount) — Cash and cash equivalents for Insurance and Other segment as of December 31, 2024
• $1.225 trillion (dollar_amount) — Total assets as of September 30, 2025

FAQ

Risk Factors

• Volatility of Investment Values [high — market]: Changes in market prices of equity securities and related unrealized gains/losses can cause significant volatility in interim and annual earnings. The fair value of equity securities was $283.241 billion as of September 30, 2025.
• Insurance Catastrophe Losses [medium — operational]: The timing and magnitude of catastrophe losses incurred by insurance subsidiaries can significantly impact interim results. Estimation error in liabilities for unpaid losses also adds to this risk.
• Foreign Currency Fluctuations [medium — financial]: Revaluation of assets and liabilities denominated in foreign currencies can cause significant variations in periodic net earnings.
• Macroeconomic and Geopolitical Events [high — market]: Changes in macroeconomic conditions and geopolitical events, including trade policies, may negatively affect operating results and investment values.
• Regulatory Scrutiny on Investments [low — regulatory]: Agreements with regulators, such as the Federal Reserve System's passivity commitments related to American Express, can restrict the ability to exercise significant influence over investee companies.

Industry Context

Berkshire Hathaway operates a highly diversified conglomerate with significant presence in insurance, energy, railroads, manufacturing, and services. The insurance sector, a core component, faces ongoing challenges from increasing catastrophe risks and evolving regulatory landscapes. The broader economic environment, influenced by macroeconomic shifts and geopolitical events, impacts investment valuations across its vast portfolio and the performance of its diverse operating businesses.

Regulatory Implications

Berkshire's operations are subject to a wide array of regulations across its numerous business segments and jurisdictions. Specific risks include potential changes in insurance regulations, environmental compliance, and antitrust scrutiny. Agreements with financial regulators, such as those concerning its investment in American Express, can also impose operational constraints.

What Investors Should Do

1. Monitor investment portfolio performance closely.
2. Analyze the growth drivers of insurance and service revenues.
3. Assess the strategic deployment of increased cash reserves.

Key Dates

• 2025-09-30: Quarter End — Reporting date for Q3 2025 financial statements, showing $30.796B net earnings and $94.972B total revenues.
• 2024-12-31: Year End — Prior period balance sheet date, used for comparison of assets and cash positions.
• 2025-01-01: Start of Fiscal Year — Beginning of the nine-month period for year-to-date financial comparisons.

Glossary

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in the United States. (Berkshire's financial statements are prepared in accordance with GAAP, ensuring comparability and adherence to accounting standards.)

Amortized Cost

The cost of a bond or other debt instrument adjusted over time to reflect the amortization of any premium or discount. (Used to value fixed maturity securities, showing the adjusted historical cost rather than current market value.)

Unrealized Gains/Losses

The increase or decrease in the value of an asset that has not yet been sold. These are not recognized in net income until the asset is sold. (Significant for Berkshire due to its large investment portfolio, impacting reported earnings volatility.)

Equity Method

An accounting method where an investment in another company is initially recorded at cost and then adjusted to reflect the investor's share of the investee's net income or loss. (Used for investments where Berkshire has significant influence but not control, such as its investment in Occidental Petroleum (excluding preferred stock and warrants).)

Catastrophe Losses

Losses incurred by insurance companies resulting from large-scale, infrequent events such as hurricanes, earthquakes, or terrorist attacks. (A key source of volatility in Berkshire's insurance segment's quarterly earnings.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, Berkshire Hathaway reported a strong Q3 2025 with a 17.3% increase in net earnings and a 2.1% rise in total revenues, driven by insurance and service businesses. However, the first nine months of 2025 show a significant 31.1% decline in net earnings, primarily due to a substantial reduction in investment gains from $46.247 billion to $21.868 billion. Total assets have grown to $1.225 trillion, and the company's cash position has strengthened considerably, indicating robust liquidity despite the year-to-date earnings dip.

Filing Documents

• brka-20250930.htm (10-Q) — 6318KB
• brka-ex31_1.htm (EX-31.1) — 14KB
• brka-ex31_2.htm (EX-31.2) — 14KB
• brka-ex32_1.htm (EX-32.1) — 7KB
• brka-ex32_2.htm (EX-32.2) — 7KB
• brka-ex95.htm (EX-95) — 169KB
• 0001193125-25-261548.txt ( ) — 27337KB
• brka-20250930.xsd (EX-101.SCH) — 2209KB
• brka-20250930_htm.xml (XML) — 7609KB

– Financial Information

Part I – Financial Information 2

Financial Statements

Item 1. Financial Statements 2 Consolidated Balance Sheets—September 30, 2025 and December 31, 2024 2 Consolidated Statements of Earnings—Third Quarter and First Nine Months 2025 and 2024 4 Consolidated Statements of Comprehensive Income—Third Quarter and First Nine Months 2025 and 2024 5 Consolidated Statements of Changes in Shareholders' Equity—Third Quarter and First Nine Months 2025 and 2024 6 Consolidated Statements of Cash Flows—First Nine Months 2025 and 2024 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 34 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 53 Item 4.

Controls and Procedures

Controls and Procedures 53

– Other Information

Part II – Other Information 53 Item 1.

Legal Proceedings

Legal Proceedings 53 Item 1A.

Risk Factors

Risk Factors 53 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities 53 Item 3. Defaults Upon Senior Securities 53 Item 4. Mine Safety Disclosures 54 Item 5. Other Information 54 Item 6. Exhibits 54 Signature 54 1

Financia l Information

Part I Financia l Information

Financi al Statements

Item 1. Financi al Statements BERKSHIRE HATHAWAY INC. and Subsidiaries CONSOLIDATED BA LANCE SHEETS (dollars in millions) September 30, 2025 December 31, 2024 (Unaudited) Assets: Insurance and Other: Cash and cash equivalents* $ 72,156 $ 44,333 Short-term investments in U.S. Treasury Bills** 305,367 286,472 Investments in fixed maturity securities 17,943 15,364 Investments in equity securities 283,241 271,588 Equity method investments 25,524 31,134 Loans and finance receivables 29,327 27,798 Other receivables 48,938 43,887 Inventories 25,319 24,008 Property, plant and equipment 30,736 30,071 Equipment held for lease 18,250 17,828 Goodwill 57,418 56,860 Other intangible assets 34,055 34,638 Deferred charges - retroactive reinsurance 8,298 8,797 Other 26,133 24,994 982,705 917,772 Railroad, Utilities and Energy: Cash and cash equivalents* 4,150 3,396 Receivables 4,522 4,503 Property, plant and equipment 181,579 175,030 Goodwill 27,107 27,020 Regulatory assets 5,203 5,349 Other 20,697 20,811 243,258 236,109 Total assets $ 1,225,963 $ 1,153,881 —————— * Includes U.S. Treasury Bills with maturities of three months or less when purchased of $ 38.4 billion at September 30, 2025 and $ 14.4 billion at December 31, 2024. ** Includes unsettled purchases of U.S. Treasury Bills of $ 23.2 billion at September 30, 2025 and $ 12.8 billion at December 31, 2024. Such amounts were also included in liabilities and were paid shortly after the respective balance sheet date. See accompanying Notes to Consolidated Financial Statements 2 BERKSHIRE HATHAWAY INC. and Subsidiaries CON SOLIDATED BALANCE SHEETS (dollars in millions) September 30, 2025 December 31, 2024 (Unaudited) Liabilities: Insurance and Other: Unpaid losses and loss adjustment expenses $ 119,837 $ 115,151 Unpaid losses and los

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2025 Note 1. General The accompanying unaudited Consolidated Financial Statements include the accounts of Berkshire Hathaway Inc. ("Berkshire" or "Company") consolidated with the accounts of all subsidiaries and affiliates in which Berkshire holds a controlling financial interest as of the financial statement date. In these notes, the terms "us," "we" or "our" refer to Berkshire and its consolidated subsidiaries. Reference is made to Berkshire's most recently issued Annual Report on Form 10-K ("Annual Report"), which includes information necessary or useful to understanding Berkshire's businesses and financial statement presentations. Our significant accounting policies and practices were presented as Note 1 to the Consolidated Financial Statements included in the Annual Report. Financial information in this Quarterly Report reflects all adjustments that are, in the opinion of management, necessary to a fair statement of results for the interim periods in accordance with accounting principles generally accepted in the United States ("GAAP"). For several reasons, our results for interim periods may not be indicative of results to be expected for the year. The timing and magnitude of catastrophe losses incurred by insurance subsidiaries and the estimation error inherent to the process of determining liabilities for unpaid losses of insurance subsidiaries can be more significant to results of interim periods than to results for a full year. Changes in market prices of our investments in equity securities and the related changes in unrealized gains and losses will produce significant volatility in our interim and annual earnings. In addition, gains and losses from the periodic revaluation of certain assets and liabilities denominated in foreign currencies and asset impairment charges may cause significant variations in periodic net earnings. Significant estimates are used in the preparation of our Consol

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Note 2. New accounting and financial reporting pronouncements In December 2023, the FASB issued Accounting Standards Update 2023-09, "Improvements to Income Tax Disclosures" ("ASU 2023-09"), which provides for additional income tax rate reconciliation and income taxes paid disclosures in annual financial statements. ASU 2023-09 may be adopted prospectively or retrospectively and is effective for annual reporting periods beginning after December 15, 2024. In November 2024, the FASB issued Accounting Standards Update 2024-03, "Disaggregation of Income Statement Expenses" ("ASU 2024-03"), which requires disclosure in the notes to the financial statements of specific categories underlying certain expense captions on the income statement. ASU 2024-03 may be adopted prospectively or retrospectively and is effective for annual reporting periods beginning after December 15, 2026, with early adoption permitted. We are evaluating the impacts these pronouncements will have on disclosures in our Consolidated Financial Statements. Note 3. Investments in fixed maturity securities Investments in fixed maturity securities are summarized as follows (in millions). Amortized Cost Unrealized Gains Unrealized Losses Fair Value September 30, 2025 U.S. Treasury, U.S. government corporations and agencies $ 4,613 $ 13 $ — $ 4,626 Foreign governments 11,822 39 ( 19 ) 11,842 Corporate and other 1,240 239 ( 4 ) 1,475 $ 17,675 $ 291 $ ( 23 ) $ 17,943 December 31, 2024 U.S. Treasury, U.S. government corporations and agencies $ 4,447 $ 16 $ ( 4 ) $ 4,459 Foreign governments 9,443 16 ( 97 ) 9,362 Corporate and other 1,324 225 ( 6 ) 1,543 $ 15,214 $ 257 $ ( 107 ) $ 15,364 As of September 30, 2025, approximately 95 % of our foreign government holdings were rated AA or higher by at least one of the major rating a

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Note 4. Investments in equity securities Our investments in equity securities over the years have been concentrated in relatively few companies. The fair value of our five largest holdings at September 30, 2025 and December 31, 2024 represented 66 % and 71 % , respectively, of the aggregate fair value of our equity securities shown in the preceding tables. The five largest holdings at each date were American Express Company, Apple Inc., Bank of America Corporation, The Coca-Cola Company and Chevron Corporation. Additionally, we own shares of Occidental Petroleum Corporation ("Occidental") common stock, which we account for under the equity method. See Note 5. Since 2019, we have also owned non-voting Cumulative Perpetual Preferred Stock of Occidental and Occidental common stock warrants. Our investments in the Occidental preferred stock and Occidental common stock warrants are recorded at fair value and included as equity securities in our Consolidated Balance Sheets, as such investments are not in-substance common stock under GAAP and are not eligible for the equity method. The Occidental preferred stock accrues dividends at 8 % per annum and is redeemable at the option of Occidental commencing in 2029 at a redemption price equal to 105 % of the liquidation value. As of September 30, 2025 , our investment in Occidental preferred stock had an aggregate liquidation value of approximately $ 8.5 billion. To date, Occidental has redeemed approximately $ 1.5 billion of the aggregate liquidation value due to excess distributions, as defined under the terms of the Occidental preferred stock certificate of designations, to its common stockholders. The Occidental common stock warrants currently allow us to purchase up to 83.9 million shares of Occidental common stock at an exercise price of $ 59.59 per share. The warrants are exercisable in whole or in part until one year after the date the preferred stock is fully redeeme

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