Berkshire Hathaway Operating Earnings Drop Nearly 30% as Greg Abel Takes Helm
Full-year net earnings fell to $66.97 billion from $88.99 billion, while operating earnings eased to $44.49 billion and Q4 operating income slid to $10.2 billion. New CEO Greg Abel’s first letter highlights plans to deploy over $300 billion in cash via acquisitions or shareholder returns.
1. Decline in Net and Operating Earnings
Berkshire’s 2025 net earnings dropped to $66.97 billion from $88.99 billion in 2024, with Q4 net of $19.2 billion versus $19.7 billion a year earlier. Operating earnings for the full year fell to $44.49 billion from $47.44 billion, and Q4 operating income plunged to $10.2 billion from $14.53 billion.
2. Transition in Leadership
Greg Abel has officially succeeded Warren Buffett as CEO, marking the first Berkshire shareholder letter without Buffett’s signature in decades. Abel’s inaugural letter underscores a focus on how to leverage the company’s vast liquidity, hinting at potential strategic shifts in capital allocation.
3. Cash Deployment and Portfolio Moves
The company sits on more than $300 billion in cash and investments and has signaled intentions to reduce its stake in Kraft Heinz and trim Apple holdings. New positions in UnitedHealth, Alphabet and other names raise questions about long-term portfolio anchors, while shareholders await clarity on potential dividends or large-scale acquisitions.