Berkshire Hathaway Inc. News Release

Key Terms

generally accepted accounting principles financial

Generally accepted accounting principles (GAAP) are a standardized set of rules and practices companies use to record and report their financial results, like a common recipe so dishes from different cooks can be fairly compared. Investors rely on GAAP because it makes company earnings, assets and liabilities consistent and transparent across businesses, helping them compare performance, spot risks, and make informed decisions about buying or selling stock.

gaap financial

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

non-gaap financial measures financial

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

equity security investments financial

Equity security investments are ownership stakes in a company, typically bought as shares of stock that represent a piece of the business and may carry voting rights. They matter to investors because their value rises or falls with the company’s performance and market sentiment, offering the potential for price gains and periodic payouts, and they help determine a portfolio’s mix of risk and reward—like owning a piece of a rental property that can appreciate and sometimes pay income.

goodwill financial

Goodwill is the extra value a buyer pays for a company above the measurable worth of its buildings, inventory and other tangible items, reflecting things like brand reputation, customer loyalty and expected future profits. Think of paying more for a café because of its famous name and regulars rather than its furniture alone. It matters to investors because changes in goodwill — for example a write-down if expected benefits don’t materialize — can reduce reported earnings and signal that past acquisitions aren’t delivering as hoped.

intangible assets financial

Non-physical resources a company owns that help it earn money, such as brand names, patents, customer lists, proprietary software, or trade secrets — think of them as a company’s reputation, recipes, or secret formulas that aren’t bricks and mortar. Investors care because these assets can create long-term income, protect market share, and boost the value of a business even if they don’t appear as cash; strong intangible assets can mean higher future profits and lower risk of competitors copying a company’s advantages.

OMAHA, Neb.--(BUSINESS WIRE)-- (BRK.A; BRK.B) –

Berkshire’s operating results for the fourth quarter and full year of 2025 and 2024 are summarized in the following paragraphs. However, we urge investors and reporters to read our 2025 Annual Report, which has been posted at www.berkshirehathaway.com. The limited information that follows in this press release is not adequate for making an informed investment judgment.

Earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for the fourth quarter and full year of 2025 and 2024 are summarized below. Earnings are stated on an after-tax basis. (Dollar amounts are in millions, except for per share amounts).

	Fourth Quarter							Full Year
	2025				2024			2025				2024
Net earnings attributable to Berkshire shareholders	$	19,199			$	19,694		$	66,968			$	88,995
Net earnings includes:
Investment gains (losses)		13,494				5,167			30,737				41,558
Other-than-temporary impairment of investments in Kraft Heinz and in Occidental		(4,495	)			—			(8,255	)			—
Operating earnings		10,200				14,527			44,486				47,437
Net earnings attributable to Berkshire shareholders	$	19,199			$	19,694		$	66,968			$	88,995
Net earnings per average equivalent Class A Share	$	13,349			$	13,695		$	46,563			$	61,900
Net earnings per average equivalent Class B Share	$	8.90			$	9.13		$	31.04			$	41.27
Average equivalent Class A shares outstanding		1,438,223				1,438,022			1,438,223				1,437,720
Average equivalent Class B shares outstanding		2,157,335,139				2,157,034,121			2,157,335,139				2,156,580,296
Note: Per share amounts for the Class B shares are 1/1,500th of those shown for the Class A.

Generally Accepted Accounting Principles (“GAAP”) require that we include the changes in unrealized gains (losses) of our equity security investments as a component of investment gains (losses) in our earnings statements. In the table above, investment gains (losses) in 2025 include gains of $9.6 billion in the fourth quarter and $12.9 billion in the full year and in 2024 include gains of $2.1 billion in the fourth quarter and losses of $38.1 billion in the full year due to changes during the fourth quarter and the full year in the unrealized gains that existed in our equity security investment holdings. Investment gains (losses) in 2025 also include after-tax realized gains on sales of investments of $3.9 billion in the fourth quarter and $17.8 billion in the full year and in 2024 include gains of $3.1 billion in the fourth quarter and $79.6 billion in the full year.

The amount of investment gains (losses) in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules.

An analysis of Berkshire’s operating earnings follows (dollar amounts are in millions).

		Fourth Quarter						Full Year
		2025			2024			2025			2024
	Insurance-underwriting	$	1,561		$	3,409		$	7,258		$	9,020
	Insurance-investment income		3,072			4,088			12,513			13,670
	BNSF		1,347			1,278			5,476			5,031
	Berkshire Hathaway Energy Company		691			729			3,979			3,730
	Manufacturing, service and retailing		3,370			3,262			13,647			13,072
	Other*		159			1,761			1,613			2,914
	Operating earnings	$	10,200		$	14,527		$	44,486		$	47,437
*	(1) Includes foreign currency exchange gains related to non-U.S. Dollar denominated debt in 2025 of approximately $617 million in the fourth quarter and losses of $642 million in the full year and in 2024 includes foreign currency exchange gains related to non-U.S. Dollar denominated debt of approximately $1.2 billion in the fourth quarter and $1.1 billion in the full year.
	(2) Includes after-tax interest, dividend and other investment income of Berkshire Hathaway (parent company) and certain other related entities in 2025 of $927 million in the fourth quarter and $3.6 billion in the full year and in 2024 includes $450 million in the fourth quarter and $1.4 billion in the full year.

On December 31, 2025 there were 1,438,223 Class A equivalent shares outstanding. At December 31, 2025, insurance float (the net liabilities we assume under insurance contracts) was approximately $176 billion, an increase of $5 billion since yearend 2024.

Use of Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures. The reconciliations of such measures to the most comparable GAAP figures in accordance with Regulation G are included herein.

Berkshire presents its results in the way it believes will be most meaningful and useful, as well as most transparent, to the investing public and others who use Berkshire’s financial information. That presentation includes the use of certain non-GAAP financial measures. In addition to the GAAP presentations of net earnings, Berkshire shows operating earnings defined as net earnings exclusive of investment gains (losses), impairments of goodwill and intangible assets and other-than-temporary impairments of equity method investments.

Although the investment of insurance and reinsurance premiums to generate investment income and investment gains or losses is an integral part of Berkshire’s operations, the generation of investment gains or losses is independent of the insurance underwriting process. Moreover, as previously described, under applicable GAAP accounting requirements, we are required to include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our periodic earnings statements. In sum, investment gains/losses for any particular period are not indicative of quarterly business performance.

About Berkshire

Berkshire Hathaway and its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, services and retailing. Common stock of the company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.

Cautionary Statement

Certain statements contained in this press release are “forward looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guaranties of future performance and actual results may differ materially from those forecasted.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260228505745/en/

Marc D. Hamburg

402-346-1400

Source: Berkshire Hathaway Inc.