No. of Recommendations: 1
Berkshire Hathaway (BRK.A) announced its Q1 2026 financials on Saturday, indicating a rise in its operating earnings following a sharp drop in the preceding quarter as its insurance-underwriting business offset a decline in insurance-investment income.
In Q4 2025, Berkshire (BRK.B) posted $10.2B in operating earnings with a ~30% YoY drop as after-tax earnings from its insurance underwriting and insurance investment income fell ~54% YoY and 25% YoY, respectively.
However, the Omaha, Nebraska-based company reported $11.3B in operating earnings with ~18% YoY growth for the latest quarter, which was the first under Greg Abel, who succeeded billionaire investor Warren Buffett as CEO in January.
The rise in operating earnings reflected Berkshire’s (BRK.B) Insurance—underwriting business, which added $1.7B with a ~29% YoY growth, thanks mainly to a lack of significant catastrophe events during the quarter.
However, its insurance-investment income slipped ~7% YoY to $2.7B, primarily due to a decline in interest income attributed to lower interest rates.
Its railroad business, BNSF, which runs one of the largest railroad systems in North America, added $1.4B with a ~13% YoY rise driven by higher revenues and operational efficiencies. Despite a mixed performance, Berkshire's (BRK.B) manufacturing, service, and retailing operations added $3.2B with ~5% YoY growth.
Berkshire Hathaway Energy Company generated $1.1B with a ~2% YoY rise, benefiting from higher earnings from the natural gas pipeline businesses and federal income tax credits, which offset lower earnings from U.S. utilities and other energy units.
The conglomerate's financial position continued to strengthen as its cash, cash equivalents, and short-term securities stood at $397.4B as of March 31, implying a ~6% YoY growth amid nearly $8.1B in sales of equity securities on a net basis.
