Berkshire Operating Earnings Slump 30% While Railroad Profits Rise 8%
Berkshire Hathaway reported fourth-quarter operating earnings of $10.2 billion, down nearly 30% year-over-year due to non-cash writedowns at Craft and Occidental. Excluding those charges, railroad profits rose 8%, manufacturing services earnings climbed 4–5%, and the company ended 2025 with over $370 billion in cash.
1. Fourth-Quarter Earnings Decline
Berkshire Hathaway reported operating earnings of $10.2 billion for the fourth quarter, a 30% decrease from the prior year. Non-cash writedowns at Craft and Occidental contributed significantly to the decline, though these charges did not affect underlying cash flows.
2. Underlying Segment Performance
Excluding writedowns, the railroad’s adjusted profits increased 8% driven by higher volumes and improved pricing. Manufacturing services earnings rose approximately 4–5%, and energy segment results also improved compared to last year.
3. Cash Position and Strategic Outlook
Berkshire ended 2025 with a $370 billion cash balance earning minimal yields at current rates. New CEO Greg Abel is expected to focus on operational efficiencies and improved returns on this cash, leveraging ongoing improvements at core businesses.