Berkshire Hathaway Inc. (BRK-B) Narrative

Berkshire Hathaway Inc., CIK 0001067983. Fiscal year ends December 31; the quarter discussed here ended March 31, 2026.

Sources: Annual Report on Form 10-K for the year ended December 31, 2025 (accession 0001193125-26-083899, filed March 2, 2026); Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 (accession 0001193125-26-202243, filed May 4, 2026); and Current Reports on Form 8-K cited where relevant.

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Business

From the FY2025 10-K, accession 0001193125-26-083899.

Berkshire is a Delaware holding company headquartered in Omaha, Nebraska, owning subsidiaries engaged in numerous diverse business activities. The most important are insurance conducted on both a primary and a reinsurance basis, a freight rail transportation business, and a group of utility and energy generation and distribution businesses. Berkshire also owns numerous manufacturing, service and retailing businesses. Berkshire and its subsidiaries employed approximately 387,800 people worldwide at the end of 2025, roughly 80% of them in the U.S. and 19% represented by unions.

Operating subsidiaries are managed on an unusually decentralized basis, with few centralized or integrated business functions. The Chief Executive Officer is ultimately responsible for significant capital allocation decisions and investment activities and for evaluating the operating performance of the operating businesses. The Board of Directors is responsible for selecting a successor to the CEO.

Insurance

Berkshire's insurance subsidiaries provide insurance and reinsurance of property and casualty risks as well as life and health risks worldwide, and employed approximately 42,600 people at the end of 2025. Except for retroactive reinsurance and periodic payment annuity products, which generate large up-front premiums against claims expected to be paid over decades, and are expected to produce underwriting losses offset by investment economics, Berkshire expects to achieve an underwriting profit over time.

Capital strength is described as the differentiating feature: the combined statutory surplus of Berkshire's U.S.-based insurers was approximately $333 billion at December 31, 2025, and the major insurance subsidiaries are rated AA+ by Standard & Poor's and A++ (superior) by A.M. Best. Berkshire's insurance group is supervised by a college of regulators from the U.S. (Nebraska, Delaware and Connecticut), Germany, Ireland and the U.K., with the Nebraska Department of Insurance as lead supervisor. Under the federal terrorism reinsurance program (extended through December 31, 2027), Berkshire's aggregate group deductible is expected to be approximately $2.5 billion in 2026.

The underwriting operations are organized in three groups:

• GEICO. Headquartered in Maryland; principal business is private passenger automobile insurance sold to individuals in all 50 states and the District of Columbia, primarily through direct response methods (internet and telephone). GEICO also writes motorcycle, ATV, RV, boat and commercial vehicle coverage, and operates an insurance agency placing third-party products (homeowners, renters, life, identity protection). It competes with State Farm, Progressive, Allstate and USAA; per A.M. Best data for 2024, the five largest private passenger auto insurers held roughly 63.6% combined share, with GEICO third at approximately 11.6%.
• Berkshire Hathaway Primary Group (BH Primary). A collection of independently managed commercial insurers. Nearly 90% of 2025 net premiums written were in the U.S., of which about 40% was written on a non-admitted (excess and surplus) basis. Members include NICO Primary (commercial auto and general liability), Berkshire Hathaway Homestate Group (workers' compensation, commercial auto, commercial property), Berkshire Hathaway Specialty Insurance (commercial property/casualty, executive and professional lines, with international offices across Asia, Europe, Australia, Canada and New Zealand), RSUI and CapSpecialty (specialty property, umbrella/excess, professional and D&O liability), MedPro Group and MLMIC (healthcare and medical professional liability), U.S. Liability Insurance companies, and BH Direct and GUARD (small and medium-sized commercial business, the former through the biBERK and Three internet platforms).
• Berkshire Hathaway Reinsurance Group (BHRG). Global reinsurance across property, casualty, life and health, conducted in 23 countries through the NICO Group, the General Re Group and the TransRe Group. A significant portion of the NICO Group's annual reinsurance premium derives from a 20% quota-share agreement with Insurance Australia Group that expires December 31, 2029. General Re writes globally on a direct basis (including General Reinsurance AG in Cologne and Lloyd's Syndicate 435 via Faraday) and also conducts a global life and health reinsurance business. TransRe writes quota-share and excess-of-loss business primarily through brokers.

Two run-off books sit inside BHRG and BHLN: retroactive reinsurance, which indemnifies ceding companies for adverse development on loss events that already occurred (significant asbestos, environmental and latent-injury exposure; no contracts of significance written in recent years), and periodic payment annuities, structured-settlement-type obligations under which BHLN received upfront consideration and pays for decades; no new policies have been written since 2022.

Float. Invested assets derive from shareholder capital and from net policyholder funds held for investment. Float grew from approximately $138 billion at the end of 2020 to approximately $176 billion at the end of 2025. Insurance portfolios have historically held a much greater proportion of equity securities than is customary in the industry, and those equities are unusually concentrated in relatively few companies.

Burlington Northern Santa Fe (BNSF)

BNSF, based in Fort Worth, operates one of the largest freight rail systems in North America, over 32,500 route miles of track in 28 states plus three Canadian provinces, and over 50,000 operated miles of track including multiple main tracks, yards and sidings. It owns or leases approximately 6,700 locomotives and 70,700 freight cars and operates roughly 27 intermodal hubs. BNSF Railway had approximately 35,000 employees at the end of 2025, of whom about 30,000 were union members. Freight revenues are classified as consumer products, industrial products, agricultural and energy products, and coal.

BNSF is regulated by the Surface Transportation Board, the Federal Railroad Administration, OSHA, the EPA and state and Canadian agencies, and as a common carrier is required to transport hazardous materials. Under CERCLA and state statutes BNSF may be held jointly and severally liable for cleanup without regard to fault. Diesel consumption accounted for roughly 80% of BNSF Railway's greenhouse gas emissions in its 2018 baseline year; management has committed to a 30% reduction by 2030. Its primary rail competitor in the western U.S. is Union Pacific; trucks, barges, ships and pipelines also compete. BNSF recorded approximately $2.4 billion of repairs and maintenance expense in 2025.

Berkshire Hathaway Energy (BHE)

BHE is an Iowa-headquartered holding company employing approximately 24,000 people. Its domestic regulated energy interests comprise four regulated U.S. utilities serving approximately 5.4 million retail customers and five interstate natural gas pipeline companies with approximately 20,900 miles of operated pipeline and roughly 21.6 Bcf/day of design capacity.

• U.S. utilities: PacifiCorp (Utah, Oregon, Wyoming, Washington, Idaho, California), MidAmerican Energy (Iowa, Illinois, South Dakota, Nebraska) and NV Energy's Nevada Power and Sierra Pacific. As vertically integrated utilities they collectively own approximately 32,400 net megawatts of generation in operation and under construction. Total BHE owned generating capacity at December 31, 2025 was 36,866 MW net owned (wind 13,642; natural gas 12,430; coal 6,856; solar 2,122; hydro 984; nuclear 455; geothermal 377), with a further 1,949 MW under construction plus battery storage of 320 MW in operation and 543 MW under construction. PacifiCorp, MEC and NV Energy own approximately 28,200 miles of transmission line, roughly 1,650 substations and about 29,000 miles of gas mains and service lines.
• Natural gas pipelines: BHE GT&S (approximately 5,400 miles plus 17 underground storage fields, and a 75% limited partnership interest in an LNG export/import and storage facility in Maryland), Northern Natural (approximately 14,100 miles, the largest U.S. interstate system by pipeline miles) and Kern River (approximately 1,400 miles).
• Other energy: Northern Powergrid's two U.K. distribution networks serving about 4.0 million end-users across roughly 10,000 square miles (current price control runs April 1, 2023 through March 31, 2028); AltaLink, a regulated transmission-only utility serving approximately 85% of Alberta's population across an 87,000 square mile territory; and interests in independent power projects of approximately 6,400 net MW in service and under construction, plus roughly $7.1 billion invested in third-party-sponsored wind tax equity projects.
• HomeServices of America, a residential real estate brokerage and brokerage franchise business.

Rates are largely cost-of-service based and subject to regulatory approval; costs not allowed in approved rates adversely affect results. BHE has invested $38.0 billion cumulatively in owned renewable generation and storage through December 31, 2025 and has ceased coal operations at 22 generating units, reducing annual GHG emissions 30% versus 2005 levels. Regulatory backdrop is in flux: the U.S. finalized its second departure from the Paris Agreement in January 2026; the EPA finalized the Endangerment Finding Rescission on February 11, 2026 (expected to be litigated for several years); and the EPA in June 2025 proposed to rescind its April 2024 power-sector GHG rules, with finalization expected in spring 2026.

Manufacturing

Industrial products. Precision Castparts (Lake Oswego, Oregon) makes investment castings, forgings, fasteners/fastener systems and aerostructures for aerospace and power/energy, with Boeing, Airbus, GE Aerospace, Rolls Royce and Pratt & Whitney among significant customers; several of its input metals (nickel, titanium, cobalt, tantalum, hafnium, vanadium, rhenium, molybdenum) are found in only a few parts of the world. Lubrizol (Wickliffe, Ohio) is a specialty chemical company operating Lubrizol Additives and Lubrizol Advanced Materials across more than 100 sites on six continents. IMC (ISCAR, TaeguTec, Ingersoll, Tungaloy, NTK and others) is one of the three largest multinational makers of consumable carbide metal cutting tools, with primary manufacturing in Israel, the U.S., South Korea, Japan, Germany, Italy, Switzerland, India, China, Mexico and Hungary. Marmon (Chicago) comprises eleven business groups and more than 120 autonomous businesses across approximately 630 facilities, including Union Tank Car (a fleet of approximately 118,000 railcars with Canadian affiliate Procor), EXSIF (approximately 76,000 intermodal tank containers), Crane Services (about 1,000 cranes), Plumbing & Refrigeration, Electrical, Water Technologies, Foodservice Technologies, Transportation Products, Retail Solutions, Metal Services and Medical. Other industrial members include CTB International, LiquidPower Specialty Products, W&W|AFCO Steel (19 fabrication plants) and Bell Laboratories (rodenticides), acquired July 31, 2025.

OxyChem. Berkshire completed the acquisition of Occidental Petroleum's chemicals business on January 2, 2026 under an agreement dated October 1, 2025; Occidental retained OxyChem's legacy environmental liabilities. OxyChem is a top-three North American producer of PVC, chlor-alkali products and chlorinated organics, headquartered in Dallas with 21 U.S. plants in ten states and two international sites in Canada and Chile, and approximately 4,000 employees and contractors. Primary feedstocks are ethylene, ethane, natural gas and salt.

Building products. Clayton Homes shipped approximately 49,400 off-site built homes in 2025 (over 83% built to the Department of Energy Zero Energy Ready Home standard) plus approximately 10,000 site-built homes; off-site backlog was approximately $285 million at year-end 2025, and Clayton Properties Group controlled approximately 67,300 homesites with a home order backlog of approximately $1.2 billion. Clayton also originates and services home loans, regulated by the CFPB, state agencies, HUD, Ginnie Mae and the GSEs. Other building products businesses are Shaw (carpet, carpet tile and hard surface flooring; over 3,800 styles; sold to more than 42,000 retailers), Johns Manville (insulation, commercial roofing, reinforcement fiberglass and nonwovens; over 40 plants), Acme Brick, Benjamin Moore (sold through more than 8,000 independent retailers including roughly 4,000 Ace Hardware stores) and MiTek.

Consumer products. Forest River (RVs, cargo trailers, commercial trucks, buses and pontoon boats; approximately 36% RV market share at December 2025), Fruit of the Loom, Garan, Fechheimer, BH Shoe Holdings and Brooks Sports, Duracell (estimated 32% share of the global alkaline battery market in 2025), Jazwares (Squishmallows, Pokémon, Hello Kitty, Star Wars, Disney and other brands; sold in more than 100 countries), Richline and Larson-Juhl.

Service and retailing

Service businesses (approximately 31,200 employees excluding McLane) include NetJets, the leader in private aviation shared-ownership services; FlightSafety, a professional aviation training provider and simulator manufacturer; TTI, a global specialty distributor of electronic components operating from more than 180 locations, with its Mouser internet subsidiary and XTG specialty semiconductor division; International Dairy Queen (approximately 7,800 franchised restaurants); Business Wire; CORT; XTRA (approximately 90,000 transportation equipment units at 47 facilities); IPS-Integrated Project Services; Charter Brokerage; and WPLG.

McLane provides wholesale distribution in all 50 states through retail, restaurant and beverage units, 27 retail distribution facilities serving approximately 43,100 locations, 46 restaurant facilities serving approximately 35,300 restaurants, and Empire Distributors' 14 beverage centers. Customer concentration is high: Walmart approximately 17.2% of 2025 revenues, 7-Eleven approximately 13.3% and Yum! Brands approximately 13.3%. McLane had approximately 24,900 employees at the end of 2025.

Retailing (approximately 25,400 employees excluding Pilot) includes Berkshire Hathaway Automotive, one of the largest U.S. auto retailers with 108 new vehicle franchises across 83 dealerships and 31 collision centers, heavily concentrated in Arizona and Texas, which account for approximately 75% of dealership revenues, with Toyota/Lexus, GM, Ford/Lincoln, Nissan/Infiniti and Honda/Acura supplying about 90% of dealership revenue. Home furnishings comprises Nebraska Furniture Mart, R.C. Willey, Star Furniture and Jordan's. Other retailing includes Borsheims, Helzberg (161 stores), Ben Bridge, See's Candies (approximately 250 stores plus roughly 100 seasonal locations, with about half of annual revenue in the fourth quarter), Pampered Chef, Oriental Trading and Detlev Louis Motorrad.

Pilot (wholly owned since January 16, 2024) operates 675 travel centers and 82 fuel-only locations in the U.S. and five Canadian provinces, plus 94 joint-venture locations, and sold approximately 10.9 billion gallons of fuel in 2025 through retail, third-party and wholesale channels. Pilot's top 10 diesel customers were approximately 10% of diesel gallons sold; its top 10 fuel suppliers were approximately 45% of gallons purchased. Pilot had approximately 29,300 employees at year-end 2025.

Investment portfolio

Equity investments are the most significant portion of the consolidated investment portfolio and are deliberately concentrated. At December 31, 2025 the five largest holdings represented 65% of the aggregate fair value of equity securities (71% at December 31, 2024); at both dates the five largest were American Express, Apple, Bank of America, Coca-Cola and Chevron. Berkshire owned 151.6 million American Express shares, or 22.1% of that company, but has agreed since 1995 to vote a significant portion in line with the American Express board's recommendations and to passivity commitments requested by the Federal Reserve, so the holding is carried at fair value rather than equity-method. Berkshire also holds Occidental common stock under the equity method, plus Occidental 8% Cumulative Perpetual Preferred with an aggregate liquidation value of approximately $8.5 billion at December 31, 2025 (approximately $1.5 billion redeemed to date) and warrants for up to 83.9 million Occidental shares at $59.59.

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Risk factors

From the FY2025 10-K, accession 0001193125-26-083899.

Key-person and management depth

In May 2025 the Board appointed Gregory E. Abel to succeed Warren E. Buffett as Chief Executive Officer effective January 1, 2026; major capital allocation and investment decisions are Mr. Abel's responsibility. Ajit Jain is Vice Chairman of insurance operations and Adam Johnson is President of Consumer Products, Service and Retailing operations, each reporting directly to Mr. Abel. If the services of key personnel became unavailable there could be a material adverse effect on operations. Separately, the decentralized model depends on recruiting, training and retaining competent managers at the subsidiary level; labor disruptions or strikes at subsidiaries, customers or within supply chains could reduce sales and increase costs.

Investment concentration

Berkshire concentrates a high percentage of its insurance subsidiaries' equity investments in a relatively small number of issuers. A significant decline in the fair values of the larger holdings may produce a material decline in consolidated shareholders' equity and consolidated earnings. Because most equities are held by insurance subsidiaries, significant declines would also reduce statutory surplus, a stated competitive advantage, potentially affecting claims-paying ratings and the ability to write new business.

Underwriting risk tolerance and reserve adequacy

When properly paid for the risk assumed, Berkshire has been and will continue to be willing to assume more risk from a single event than any other insurer has knowingly assumed, and could therefore incur a significant loss from a single natural or man-made catastrophe. Underwriting practices attempt to avoid writing groups of policies from which pre-tax losses from a single catastrophe event might aggregate in excess of $15 billion, but losses could manifest in unanticipated ways, and policy limitations or exclusions may be nullified by courts, regulators or legislation.

Claims are the principal cost of the property and casualty business: premiums are received today against covered losses that take decades to settle, and the sufficiency of reserves and pricing is not known until well after the balance sheet date. Estimated unpaid losses under property and casualty contracts were $151.8 billion at December 31, 2025, and a small percentage increase can materially reduce reported earnings. Evolving legal and social conditions, new or expanded theories of liability, increased litigation driven in part by third-party litigation funding, and juries awarding increasingly larger verdicts, may extend coverage beyond underwriting intent, sometimes only becoming apparent years after contracts are issued.

Regulation of the regulated businesses

Insurance businesses are regulated as to lines written, rates, capital levels, permitted investments and the timing and amount of dividends to Berkshire; regulators are actively developing group capital, liquidity, governance and risk management frameworks for large internationally active insurance groups.

BNSF is subject to extensive rate, practice, tax, operating, safety, labor and environmental regulation, and legislative or regulatory changes may impose significant operating, implementation and capital costs without recourse. BNSF derives significant revenue from energy commodities including coal, and policies limiting or displacing coal could hurt revenues and earnings; as a common carrier it must transport toxic inhalation hazard and other hazardous materials, whose release could expose it to significant claims, penalties and remediation. Because U.S. freight infrastructure is integrated, prolonged service disruptions at ports, passenger railroads or connecting carriers, or consolidation and merger activity among major rail carriers, could disrupt BNSF's network and results.

BHE's businesses are highly regulated in every material respect, including asset acquisition and retirement, generation and system operations, pipeline safety and environmental compliance, rate-setting, capital structure, debt issuance, affiliate transactions and distributions. Regulated energy subsidiaries are exposed to losses arising from wildfires and related litigation and judicial outcomes. Because rates are cost-based, costs not recoverable through approved rates can negatively affect results, perhaps materially.

Both BNSF and BHE require large ongoing capital investment in long-lived assets that must remain operational for long periods to justify the outlay; the operational or financial failure of capital projects may not be recoverable through rates, and a significant portion of the funding is debt. Restricted access to debt capital markets by BNSF or BHE could adversely affect their results, liquidity and capital resources.

Catastrophe, climate and other general risks

Climate and weather-related events, hurricanes, floods, wildfires and other extreme weather, increase physical risks to non-insurance operations and produce losses in the insurance operations. Additional GHG and climate policy could raise compliance costs, particularly at BNSF and BHE, which together represent the vast majority of Berkshire's direct emissions.

Other stated risks: terrorist acts (nuclear, biological, chemical or armed incursions); cybersecurity, where certain information systems have already been subject to cyber threats and attacks are expected to continue and to grow more sophisticated, with potential loss of assets, remediation cost, reputational damage and impaired ability to raise capital; rising geopolitical risk from armed and diplomatic conflicts, government policies and international trade policies including tariffs and other barriers; competition and technological change eroding business franchises; unfavorable general economic conditions, including significant inflation over prolonged periods, and restricted or costlier access to capital markets for the utilities, energy and railroad businesses; epidemics and pandemics; and regulatory change generally, including data privacy and artificial intelligence laws under development in the U.S. and abroad, where non-compliance could bring reputational damage and significant economic penalties.

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Management's discussion and analysis, fiscal year 2025

From the FY2025 10-K, accession 0001193125-26-083899.

Net earnings attributable to Berkshire shareholders, after tax and excluding noncontrolling interests (in millions):

Management notes that results may be affected by ongoing macroeconomic and geopolitical events, including international trade policies and tariffs, and that it cannot reliably predict the ultimate impact on product availability, supply chain costs and efficiency, or customer demand.

Insurance underwriting

Pre-tax underwriting earnings were $9.46 billion in 2025 versus $11.41 billion in 2024 and $6.91 billion in 2023 (GEICO $6,824 / $7,813 / $3,635; BH Primary $785 / $855 / $1,374; BHRG $1,851 / $2,737 / $1,904). Each underwriting group earned less in 2025. Management describes results over the past three years as exceptional compared with longer periods and warns earnings may decline from industry competition and rising claim cost trends. After-tax losses from significant catastrophe events (defined as consolidated pre-tax losses above $150 million from a current-year event) were approximately $850 million in 2025 (Southern California wildfires), $1.2 billion in 2024 (Hurricanes Helene and Milton) and $725 million in 2023.

• GEICO: premiums written rose $2.3 billion (5.3%) in 2025 on policy-in-force growth; premiums earned rose $2.2 billion (5.3%). Losses and LAE rose $1.8 billion (6.0%) and the loss ratio rose to 72.3% from 71.8%, reflecting higher average claim severities partly offset by higher average earned premium, lower catastrophe losses and greater favorable prior-year development ($957 million in 2025 versus $550 million in 2024). Property damage and collision frequencies fell one to three percent while bodily injury frequency rose four to six percent; severities rose two to four percent for property damage and collision and twelve to fourteen percent for bodily injury. Underwriting expenses rose 34.2% and the expense ratio rose 2.7 points to 12.4%, driven by higher advertising and policy acquisition expense.
• BH Primary: premiums written were slightly lower. Increases at MedPro (9.0%), BHHC (7.4%), NICO Primary (13.0%), BH Direct (15.8%) and USLI (4.9%) were substantially offset by declines at GUARD (32.6%, from exiting unprofitable lines and tightening underwriting) and RSUI (8.7%, reduced property volumes). Losses and LAE fell $147 million (1.2%) and the loss ratio fell 0.7 points; prior-year ultimate loss estimates increased approximately $190 million in 2025 against reductions of $52 million in 2024, with liability claim costs pressured by social inflation, jury awards and litigation costs. Significant catastrophe losses were approximately $305 million (2025) versus $350 million (2024). Underwriting expenses rose $197 million (3.8%) and the expense ratio rose 1.1 points on business mix.
• BHRG property/casualty: premiums written fell $1.7 billion and premiums earned fell $1.8 billion on property volume reductions caused by increased competition and lower rates. Losses and LAE fell $555 million (4.5%) but the loss ratio rose 2.1 points; significant catastrophe losses were approximately $765 million (2025) versus $800 million (2024), and favorable prior-year development was $1.1 billion versus $1.7 billion, mostly lower-than-expected property losses. Underwriting expenses fell $615 million (9.9%), including foreign currency remeasurement losses of $217 million in 2025 against gains of $121 million in 2024; 2024 also carried a $490 million charge from a bankruptcy-related settlement agreement.
• BHRG life/health: premiums earned rose $271 million (5.4%), mostly non-U.S., and pre-tax underwriting earnings rose $151 million on international and U.S. life and health business, reduced U.S. long-term care losses and higher currency gains.
• Run-off books: retroactive reinsurance produced pre-tax underwriting losses before currency of $950 million in 2025 ($898 million in 2024, $1.5 billion in 2023); prior-year ultimate liabilities rose $261 million in 2025, primarily for asbestos, environmental and other casualty exposures. Unpaid losses and LAE for retroactive contracts were $31.0 billion and deferred charge assets $8.1 billion at December 31, 2025, with deferred charges expected to decline approximately $800 million in 2026 as a charge to pre-tax earnings. Periodic payment annuities produced pre-tax losses before currency of $603 million, with annuity liabilities of $14.4 billion. Variable annuity guarantee reinsurance, in run-off for years, earned $88 million pre-tax.

Management flags that upward revisions are more likely for casualty claims given long resolution periods and evolving inflation, legal, judicial and mass tort risks, and that a five percent increase in BHRG's casualty claim liabilities, described as reasonably possible and not a worst case, would add about $1.8 billion to gross casualty liabilities with a corresponding pre-tax earnings reduction. Retroactive contracts are subject to maximum indemnification limits; aggregate remaining losses payable are currently expected not to exceed $46 billion, with asbestos and environmental liabilities of approximately $11.1 billion at December 31, 2025.

Insurance investment income

Pre-tax net investment income was $15.26 billion in 2025 (interest and other $10.18 billion, dividends $5.09 billion), down 8.9% from $16.75 billion in 2024, which had risen 44.6% from 2023. The 2025 decline reflected lower short-term interest rates, reduced dividend income and the effect of large capital distributions from the insurance group to Berkshire at the end of 2024. Cash, cash equivalents and U.S. Treasury Bills held in the insurance businesses were $212.7 billion at December 31, 2025 (essentially flat versus $212.6 billion a year earlier), equity securities $294.1 billion (up from $263.4 billion) and fixed maturities $17.5 billion. Float was approximately $176 billion at year-end 2025 versus $171 billion and $169 billion at the prior two year-ends, with a negative average cost of float in each of the three years.

BNSF

Railroad operating revenues were $23.35 billion in 2025, essentially flat versus 2024, with average revenue per car/unit down 0.5% on lower fuel surcharge revenue and unfavorable mix. Operating expenses fell $591 million (3.7%) to $15.30 billion and the operating ratio improved 2.5 points to 65.5%; pre-tax earnings were $7.2 billion, up 7.9%. Drivers: compensation and benefits down $338 million (5.8%) on the non-recurrence of a $290 million December 2024 SMART-TD labor agreement charge and improved productivity, partly offset by wage inflation; fuel down $256 million (7.8%) on lower prices and better efficiency; purchased services, equipment rents and materials down $99 million (2.4%) on cost management and lower litigation accruals; depreciation up $102 million (3.9%) on a larger asset base. By group: consumer products revenue fell 2.8% to $8.2 billion (volumes up 1.2% on West Coast imports, a new intermodal customer and automotive); industrial products fell 1.5% to $5.0 billion (volumes down 4.6% on construction products, plastics and petroleum); agricultural and energy rose 3.2% to $6.6 billion (volumes up 1.6% on grain exports and petroleum fuels); coal rose 2.5% to $3.0 billion (volumes up 1.1% on higher natural gas prices).

BHE

Total revenues were $26.30 billion in 2025, essentially flat. Net earnings attributable to Berkshire rose $249 million (6.7%). U.S. utilities net earnings rose $136 million (6.9%), with pre-tax PacifiCorp wildfire loss accruals of $100 million in 2025 versus $346 million in 2024; electric utility margin was $8.4 billion, up $651 million (8.4%), on higher retail rates, higher retail volumes (up 2.2% overall, MEC up 9.6%, PacifiCorp up 1.3%, NV Energy down 2.2%) and higher wholesale prices and volumes, partly offset by higher purchased power and thermal generation cost of sales; operating expenses rose on depreciation, insurance and maintenance. Natural gas pipelines earnings fell $81 million on higher interest and operating expense and lower gas sales margin, partly offset by higher transportation and storage revenues. Other energy businesses fell $159 million, mainly Northern Powergrid (lower distribution tariffs from inflation adjustments beginning in Q2 2025, higher interest expense), partly offset by renewables. Real estate brokerage earnings rose $131 million against 2024 litigation charges, but the business remains hurt by limited home inventory and high prices.

BHE's tax benefit includes significant wind production tax credits. The One Big Beautiful Bill Act, enacted July 4, 2025, accelerates the phase-out of clean electricity production and investment tax credits and adds sourcing requirements for facilities beginning construction after December 31, 2025. It did not materially affect 2025 results; management says future results and renewable, storage and technology-neutral capital spending may be affected but does not currently expect a significant near-term impact. All remaining BHE common noncontrolling interests were acquired in 2024 and the preferred stock was redeemed in 2025.

Manufacturing, service and retailing

Revenues were $214.3 billion in 2025 (manufacturing $78.5 billion, service and retailing $135.8 billion), down 0.7%; pre-tax earnings were $17.48 billion (manufacturing $12.57 billion, service and retailing $4.91 billion), up 3.8%, and after-tax earnings were $13.65 billion, up 4.4%.

• Industrial products: revenues up $1.5 billion (4.1%), pre-tax earnings up $791 million (13.1%), margin up 1.5 points to 18.3%. PCC revenues $10.8 billion (+4.6%), aerospace up 7.5%, with pre-tax earnings up 34.2% on aerospace volume, manufacturing efficiency, mix and insurance recoveries related to a Q1 2025 fasteners facility fire. Lubrizol revenues $6.2 billion (−3.0%) with earnings down 20.6% on lower prices and volumes, higher manufacturing costs, restructuring and litigation expense. Marmon revenues $12.8 billion (+4.7%) with earnings up 8.5%; gains in Plumbing & Refrigeration (+11.7%), Water Technologies (+9.9%), Rail & Leasing (+7.8%), Electrical (+7.0%) and Transportation Products (+5.8%) offset declines in Crane Services (−12.6%) and Metal Services (−7.5%). IMC revenues approximately $4.1 billion (+3.9%) with earnings essentially flat as raw material costs rose. Management warns of increased costs and reduced availability of certain raw materials that could hurt 2026 earnings.
• Building products: revenues up $239 million (0.9%); pre-tax earnings down $163 million (3.9%) on slowing demand and pricing pressure. Clayton Homes revenues $12.9 billion (+4.3%) with pre-tax earnings approximately $1.9 billion, unchanged, as financial services gains offset weaker home building; Q4 2025 new home unit sales fell 5.9% year over year. Clayton loan balances net of allowances were approximately $29.5 billion at December 31, 2025, up 8.6%, largely funded by borrowings from Berkshire finance affiliates on which interest expense rose $291 million. Other building products revenues approximately $13.8 billion (−2.1%) with pre-tax earnings down $178 million (8.1%) on lower volumes, lower gross margin rates and international trade tensions.
• Consumer products: revenues $14.4 billion (−3.0%) on lower volumes at Fruit of the Loom, Jazwares and Duracell, partly offset by Brooks Sports, Forest River and Richline. Pre-tax earnings rose 2.8%, but only because Duracell recorded refundable advanced manufacturing production tax credits for 2023, 2024 and 2025 in the third quarter of 2025 (recognized in pre-tax earnings under GAAP, not as a tax benefit). Before those credits, group pre-tax earnings declined significantly, with weakness at Jazwares (volumes and supply chain costs), Forest River (mix-driven gross margin) and Duracell and Garan.
• Service: revenues $23.0 billion (+11.0%) on aviation services (+9.9%, with shared-ownership aircraft up 6.9% and NetJets in-flight hours up 11.3%), IPS (+24.2%, life sciences and data center work) and TTI (+12.3%). Pre-tax earnings up 17.2% to an 11.8% margin.
• McLane: revenues down $909 million (1.8%) on one less fiscal week and lower volumes; pre-tax earnings up $42 million (6.6%) to $676 million on a 1.3% margin.
• Retailing: revenues up 2.5% to $19.7 billion; pre-tax earnings down $58 million (4.2%). BHA revenues up 4.2% but pre-tax earnings down 0.6% on lower gross margin and higher SG&A. Other retailing revenues down 1.1% on competition, economic uncertainty and consumer confidence.
• Pilot: revenues down $4.7 billion (10.0%) to $42.2 billion on reduced bulk fuel sales and trading, lower average fuel prices and lower wholesale volumes; pre-tax earnings down $424 million (69.1%) to $190 million on lower wholesale fuel and in-store margins, higher SG&A and charges from adjustments to certain fuel-related balance sheet accounts. Pilot's borrowings, all from Berkshire insurance subsidiaries, were $3.7 billion at December 31, 2025.

Investment gains, impairments and other

Pre-tax investment gains were $39.1 billion in 2025 ($30.7 billion after tax and noncontrolling interests), including net unrealized gains of $40.0 billion on securities held at year-end. Taxable gains on equity securities sold were $23.7 billion in 2025 versus $101.1 billion in 2024. Management repeats that these gains and losses are "often meaningless" for understanding reported earnings and have little analytical or predictive value.

Berkshire recorded other-than-temporary impairment losses in 2025 on its equity-method investments in Kraft Heinz ($3.76 billion) and Occidental ($4.50 billion). After-tax "other" earnings fell $1.3 billion to $1.61 billion, reflecting foreign currency losses of $642 million on non-U.S. Dollar senior notes (versus $1.15 billion of gains in 2024), lower equity method earnings and goodwill impairment losses of $1,555 million (2024: $399 million) relating to certain building products, consumer products and retailing businesses, partly offset by $3.57 billion of corporate investment income.

Goodwill was $83.1 billion and indefinite-lived other intangibles $18.9 billion at December 31, 2025. In the fourth-quarter 2025 impairment review, four reporting units did not exceed carrying value by at least 20%; the largest was Pilot, with estimated fair value of approximately $20.2 billion against carrying value of $18.7 billion including $6.5 billion of goodwill, with the other three units aggregating approximately $7.5 billion of fair value against approximately equal carrying value including $2.7 billion of goodwill.

Financial condition at December 31, 2025

Shareholders' equity was $717.4 billion, up $68.1 billion during the year. Insurance and other businesses held cash, cash equivalents and U.S. Treasury Bills (net of payables for unsettled purchases) of $369.0 billion, and equity and fixed maturity securities excluding equity-method investments of $315.6 billion. During 2025 Berkshire paid $16.9 billion to acquire equity securities and received $30.7 billion from sales.

There were no share repurchases in 2025. The buyback policy permits repurchases below intrinsic value as conservatively determined by the CEO after consultation with the Chairman, with a hard floor: no repurchases that would reduce consolidated cash, cash equivalents and U.S. Treasury Bills below $30 billion.

Borrowings excluding BHE and BNSF were $45.8 billion; Berkshire parent debt was $22.7 billion (2025 issuance of approximately ¥451.6 billion, roughly $3.0 billion, at 1.35%–3.12% maturing 2028–2055; $1.9 billion repaid), BHFC $18.3 billion, BNSF $24.1 billion (issued $1.85 billion of 2056 debentures at a 5.65% weighted average rate; repaid $1.3 billion) and BHE approximately $59.3 billion (issued $4.3 billion at a 6.2% weighted average rate maturing 2035–2056; repaid $2.7 billion). Berkshire does not guarantee BNSF or BHE debt.

Operating cash flow was $46.0 billion and capital expenditures $20.9 billion, including $14.4 billion at BNSF and BHE, which together forecast approximately $15 billion of 2026 capital spending. Property and casualty claim liabilities including retroactive reinsurance were approximately $152 billion; 2025 payments on pre-2025 occurrences were approximately $30 billion and 2026 payments on pre-2026 occurrences are expected to exceed $30 billion. Long-term purchase and capital commitments over the next five years are estimated at approximately $25 billion, including $10 billion in 2026.

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Current quarter, three months ended March 31, 2026

From the Q1 2026 10-Q, accession 0001193125-26-202243.

Net earnings attributable to Berkshire shareholders were $10.1 billion, versus $4.6 billion in the first quarter of 2025. After-tax segment detail (in millions):

Most of the year-over-year swing is non-operating: investment losses narrowed to $1.2 billion after tax from $5.0 billion, and "other" earnings rose $1.2 billion largely on after-tax foreign currency gains of $249 million on non-U.S. Dollar senior notes versus $713 million of losses a year earlier. The consolidated effective income tax rate was 17.4%, versus 9.2% a year earlier.

Insurance underwriting. Pre-tax underwriting earnings were $2,265 million versus $1,722 million. There were no significant catastrophe events in the quarter, against $860 million of after-tax losses from significant events in Q1 2025. The mix shifted sharply:

• GEICO pre-tax underwriting earnings fell to $1,416 million from $2,173 million. Premiums written rose $168 million (1.5%) to $11.7 billion, with growth in commercial auto offset by lower average premiums per private passenger auto policy; premiums earned rose $434 million (4.0%). Losses and LAE rose $853 million (11.5%) and the loss ratio rose 4.9 points to 73.9% on higher frequencies and severities, bodily injury frequency up five to seven percent, property damage and collision up two to four percent; bodily injury severity up 12 to 14 percent. Underwriting expenses rose $338 million (29.3%) and the expense ratio rose 2.6 points to 13.4%, driven by policy acquisition expense. Prior-year development was insignificant in both periods.
• BH Primary swung to pre-tax underwriting earnings of $476 million from a $144 million loss. Losses and LAE fell $660 million (19.1%) and the loss ratio fell 14.6 points; there were no significant catastrophe losses versus approximately $300 million a year earlier, and prior-year development reduced losses by $176 million versus increasing them by $212 million. Premiums written fell at RSUI (14%, property) and NICO Primary (7%, commercial auto), offset by MedPro (+7%), BHSI (+3%) and BH Direct (+9%).
• BHRG swung to pre-tax underwriting earnings of $373 million from a $307 million loss. Property/casualty earned $637 million versus $68 million: premiums written fell $143 million (2.3%) and premiums earned fell $323 million (6.2%) on property volume declines from competition and lower rates, while losses and LAE fell $715 million (19.9%) with no significant catastrophe losses versus $770 million a year earlier. Life/health earned $126 million versus $70 million. Retroactive reinsurance produced pre-tax losses before currency of $251 million (2025: $169 million), with unpaid losses of $30.4 billion and deferred charges of $7.9 billion at March 31, 2026. Periodic payment annuities produced pre-tax losses before currency of $152 million, with annuity liabilities of $14.1 billion.

A material new reinsurance commitment was disclosed: on March 23, 2026, National Indemnity Company entered into a whole account reinsurance agreement with certain wholly-owned insurance subsidiaries of Tokio Marine Holdings, Inc., under which NICO will assume on a quota-share basis a portion of Tokio Marine's net non-life premiums written and related losses and expenses on risks attaching over a ten-year term commencing April 1, 2026. Management expects the contract to generate meaningful premium volumes over its term.

Insurance investment income. Pre-tax investment income fell 7.2% on lower interest rates; after-tax investment income fell $214 million (7.4%). Float was approximately $176.9 billion at March 31, 2026, about $500 million higher than at December 31, 2025, and the average cost of float was again negative.

BNSF. Railroad operating revenues rose 5.0% to $5,959 million on a 2.2% increase in car/unit volume and a 2.8% increase in average revenue per car/unit from mix, core pricing gains and higher fuel surcharge revenue. Pre-tax earnings rose 13.5% and after-tax earnings rose 13.4%. Operating expenses rose only $56 million (1.5%) and the operating ratio improved 2.3 points to 65.6%; fuel expense was roughly unchanged as efficiency offset higher volumes and prices, and compensation was flat as productivity offset wage inflation. By group: agricultural and energy $1.8 billion (+14.8%, volume +11.6% on grains, petroleum fuels and oilseeds), industrial products $1.2 billion (+2.3%, volume −0.6% on plastics and building products amid housing softness), consumer products $2.0 billion (slightly higher, volume +1.4% on international intermodal), coal $742 million (+1.1%, volume −2.3% on utility coal plant retirements partly offset by higher natural gas prices).

BHE. After-tax earnings rose 1.5%. U.S. utilities net earnings fell $69 million on higher energy operating expense (vegetation management and wildfire prevention, maintenance, insurance and technology), higher interest expense and lower production tax credits, partly offset by electric utility margin of $2.0 billion (+$47 million, 2.4%) on higher retail rates, lower thermal generation cost of sales and higher wholesale prices; retail volumes rose 1.7% overall (MEC +4.4%, NV Energy +4.3%, PacifiCorp −1.2%). Natural gas pipelines earnings rose $118 million on a general rate case and higher variable LNG revenues from cold weather. Other energy businesses fell $92 million, principally Northern Powergrid tariff resets and higher interest expense. Real estate brokerage losses narrowed by $3 million.

Manufacturing, service and retailing. Manufacturing revenues rose 10.2% to $20,672 million with pre-tax earnings up 12.6% to $3,059 million; service and retailing revenues rose 4.4% to $34,170 million but pre-tax earnings fell 8.9% to $1,175 million.

• Industrial products revenues rose $2.1 billion (23.6%) to $11.2 billion, primarily from acquisitions; pre-tax earnings rose $350 million (22.1%), with margin down 0.3 points to 17.2%. PCC revenues $2.9 billion (+8.2%; aerospace +9.4%, industrial gas turbine +18.9%) and pre-tax earnings +32.9%, helped by the non-recurrence of the Q1 2025 fasteners facility fire costs. Lubrizol revenues $1.6 billion (+2.7%) and earnings +8.1%; management warns that significant increases in raw material, energy and supply chain costs late in the quarter are expected to raise second-quarter production costs and will necessitate price increases. Marmon revenues $3.3 billion (+6.0%), mainly from the transfer of Acme Brick into Marmon effective January 1, 2026, with earnings +1.3%. IMC revenues approximately $1.2 billion (+20.6%) and earnings +41.9%, but management states the first-quarter earnings increase is not expected to continue through 2026 and attributes part of the demand to customers accelerating purchases ahead of raw material price increases. OxyChem contributed revenues of $1.2 billion and a small pre-tax loss, reflecting acquisition accounting amortization plus higher plant maintenance, utilities, property tax and materials costs.
• Building products revenues fell $179 million (2.9%) and pre-tax earnings fell $81 million (9.2%) on weaker demand and adverse U.S. weather. Clayton Homes revenues $2.9 billion (−1.2%) with new home unit sales down 9.7%; pre-tax earnings $393 million (−8.7%). Clayton loan balances net of allowances were approximately $29.8 billion, up 7.8% year over year.
• Consumer products revenues fell 1.5% to $3.5 billion but pre-tax earnings rose 29.6%, led by Forest River (lower SG&A), Duracell (advanced manufacturing production tax credits recorded in pre-tax earnings) and Brooks Sports, partly offset by Garan and Jazwares.
• Service revenues rose $941 million (17.1%) on TTI (+26.2%), aviation services (+11.8%) and IPS (+23.7%); pre-tax earnings rose $137 million (21.1%). Management notes TTI's demand increase was partly customers responding to potential further price increases and supply chain concerns including extended lead times, and that inventory cost and supply chain uncertainty could pressure gross margins as the year progresses.
• McLane revenues fell 2.0% (retail sales −8.0% on net customer losses) and pre-tax earnings fell $37 million (20.4%).
• Retailing revenues fell 1.9%; pre-tax earnings rose $3 million (1.0%). BHA, about 70% of group revenues, saw revenues fall 3.2% on fewer new and used unit sales but pre-tax earnings rise 3.7%.
• Pilot revenues rose $815 million (7.8%) on higher fuel prices despite lower volumes, but pre-tax earnings fell $218 million (129.8%) into a loss, from the non-repeat of Q1 2025 asset disposition gains, lower gross fuel margin rates, and hedging losses recognized in earnings while related inventory and product value gains are deferred until sold, plus higher depreciation, store and administrative costs.

Financial condition at March 31, 2026. Shareholders' equity was $727.2 billion, up $9.8 billion in the quarter. Insurance and other businesses held cash, cash equivalents and U.S. Treasury Bills (net of payables for unsettled purchases) of $373.5 billion and equity and fixed maturity securities excluding equity-method investments of $305.7 billion. Operating cash flow was $10.4 billion and capital expenditures $5.0 billion, of which $3.2 billion was BNSF and BHE; those two forecast approximately $12.4 billion of further capital spending over the remainder of 2026. Property and casualty unpaid losses and LAE were $151.9 billion; goodwill was $83.2 billion and indefinite-lived intangibles $19.0 billion, with no impairment concluded as of March 31, 2026.

Borrowings excluding BHE and BNSF fell to $42.8 billion; Berkshire parent debt fell $2.8 billion to $19.9 billion after $2.5 billion of maturities and currency effects. BNSF debt was $23.6 billion (down approximately $500 million; $503 million of term debt repaid) and BHE borrowings were $62.5 billion (up $3.2 billion; BHE subsidiaries issued $4.6 billion of term debt at a 5.8% weighted average rate maturing 2029–2056, repaid $210 million of term debt and reduced short-term borrowings by $992 million). Unused and available lines of credit and commercial paper capacity were approximately $11.7 billion, of which roughly $10.2 billion related to BHE.

Buybacks resumed. After no repurchases in 2025, Berkshire acquired treasury stock in March 2026, 33 Class A shares at an average price of $729,701.17 and 431,462 Class B shares at an average price of $486.92, describing the amounts as relatively minor. Berkshire had separately disclosed (Form 8-K, accession 0001193125-26-092557) that, in the interest of transparency around its leadership transition, it commenced repurchasing shares under the long-standing policy on Wednesday, March 4, 2026. Class A shares outstanding were 505,951 and Class B 1,397,927,677 at March 31, 2026; on an equivalent Class A basis, 1,437,903 shares were outstanding versus 1,438,223 at December 31, 2025.

PacifiCorp wildfire litigation. PacifiCorp had recorded cumulative estimated probable losses associated with the 2020 Wildfires and the 2022 McKinney Fire of approximately $2.9 billion through March 31, 2026, had paid approximately $2.3 billion of settlements (including $584 million in the first quarter of 2026), and carried estimated unpaid liabilities of $577 million at March 31, 2026 versus approximately $1.2 billion at December 31, 2025. All expected insurance recoveries had been received as of March 31, 2025; none beyond those are expected. Berkshire states it is reasonably possible PacifiCorp will incur material additional losses beyond amounts accrued that could have a material adverse effect on PacifiCorp's financial condition, and that it cannot reasonably estimate a range of possible additional losses. In the James class action, verdicts to date had awarded total net damages of approximately $1.25 billion to 201 plaintiffs ($133 million doubled economic damages, $910 million noneconomic, $244 million punitive, partly reduced by estimated insurance offsets), and PacifiCorp had posted bonds totaling $719 million for limited judgments covering 129 plaintiffs. From April 2024 through January 2026, 1,760 James class members filed nine mass damages complaints each seeking $5 million of economic and $25 million of noneconomic damages per class member plus punitive damages.

Other litigation. HomeServices continues to defend antitrust cases; its April 25, 2024 nationwide class settlement in the Burnett case provides for scheduled payments totaling $250 million over four years, of which $130 million has been paid into escrow. All defendants' settlements were appealed to the Eighth Circuit; appeals were fully briefed by December 19, 2025, oral argument occurred January 14, 2026 and a ruling is pending. Two related cases assert Texas deceptive trade practices claims with damages of approximately $9 billion asserted by written notice. National Indemnity's September 2024 settlement to pay $535 million to a bankruptcy estate remains pending court approval.

PacifiCorp Washington divestiture. On February 15, 2026, PacifiCorp and Portland General Electric Company and an affiliate entered into an Asset Purchase and Service Area Transfer Agreement under which PacifiCorp will sell certain assets and liabilities associated with its Washington operations for a base sales price of $1.9 billion in cash. The transaction is subject to regulatory approvals and customary closing conditions and is expected to close in the first half of 2027.

Management outlook language. Berkshire repeats that results may be affected by ongoing macroeconomic and geopolitical conflicts and events, including wars, trade policy tensions and tariffs, that considerable uncertainty remains, and that it is unable to reliably predict the ultimate impact on product availability, supply chain costs and efficiency, or customer demand. Berkshire does not provide financial guidance.

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Subsequent events

Events occurring after March 31, 2026 and disclosed in the Q1 2026 10-Q (accession 0001193125-26-202243) and in Current Reports on Form 8-K:

• PacifiCorp James Phase I verdict reversed on appeal. On April 8, 2026, the Oregon Court of Appeals reversed and remanded the June 2023 Phase I liability verdict, holding that the trial court erred in instructing the jury that it could "assume that the evidence at the trial applies to all class members" and that the instruction "was prejudicial to PacifiCorp." Because it reversed on the instructional error, the court did not address most of PacifiCorp's other appealed issues, but emphasized that the trial court has authority on remand to reconsider its class certification decision and whether a single class is appropriate. PacifiCorp was determined to be the prevailing party and awarded costs. Either party may petition the Oregon Supreme Court for review within 35 days, subject to extension. Berkshire states that, based on the opinion, the $719 million of existing bonds could eventually be discharged and future bonding requirements eliminated. On April 9, 2026, the Multnomah County Circuit Court ordered a stay of scheduled James Phase II trials (other than a trial that began April 6, 2026 and concluded April 13, 2026) and mandatory mediation, with briefing on the merits, scope and duration of the stay ahead of a May 22, 2026 hearing.
• Berkshire senior note issuance and repayment. In April 2026, Berkshire issued ¥272.3 billion ($1.7 billion) of senior notes with maturities ranging from 2029 to 2056 and a weighted average interest rate of 2.4%, and repaid ¥133.9 billion ($844 million) of maturing senior notes. The April 16, 2026 offering (Form 8-K, accession 0001193125-26-159326) comprised 2.077% Senior Notes due 2029, 2.465% Senior Notes due 2031, 2.739% Senior Notes due 2033, 3.084% Senior Notes due 2036, 3.452% Senior Notes due 2041 and 4.037% Senior Notes due 2056, sold under an April 10, 2026 underwriting agreement with Mizuho Securities USA LLC and Merrill Lynch International and issued under the January 31, 2025 indenture among Berkshire, Berkshire Hathaway Finance Corporation and The Bank of New York Mellon Trust Company, N.A.
• National Indemnity environmental consent decree. On April 3, 2026, National Indemnity and its affiliates filed a proposed Consent Decree and Environmental Settlement Agreement with the bankruptcy court, the U.S. Environmental Protection Agency and various state environmental agencies to resolve certain environmental liabilities arising from sites owned or operated by the debtor non-insurance affiliates. The agreement remains subject to court approval.
• Tokio Marine quota-share incepts. The whole account reinsurance agreement entered into on March 23, 2026 between National Indemnity Company and certain wholly-owned insurance subsidiaries of Tokio Marine Holdings, Inc. attaches to risks over a ten-year term commencing April 1, 2026, and is expected to generate meaningful premium volumes over its term.
• Annual meeting and by-laws. At the May 2, 2026 annual meeting all thirteen director nominees were elected (Gregory E. Abel, Howard G. Buffett, Susan A. Buffett, Warren E. Buffett, Stephen B. Burke, Kenneth I. Chenault, Christopher C. Davis, Susan L. Decker, Charlotte Guyman, Ajit Jain, Thomas S. Murphy, Jr., Wallace R. Weitz and Meryl B. Witmer). The advisory vote on executive compensation passed; a shareholder proposal requesting a report on the Board's workforce and human-capital management oversight framework was defeated (65,023 for, 367,387 against). On May 3, 2026, the Board amended and restated the By-Laws effective immediately, primarily to update officer roles and responsibilities to conform to Berkshire's current operating structure, with changes to Sections 4 (Officers and Agents), 6 (Capital Stock) and 10 (Execution of Papers). (Form 8-K, accession 0001193125-26-212148.)
• Chief Financial Officer transition. As previously announced on December 8, 2025 (Form 8-K, accession 0001193125-25-314935), Marc D. Hamburg resigns as Chief Financial Officer on June 1, 2026 and retires June 1, 2027, working with his successor in the interim. Charles C. Chang, age 57, previously Senior Vice President and Chief Financial Officer of Berkshire Hathaway Energy since October 1, 2024 and before that a partner at PricewaterhouseCoopers since 2002, succeeds him on June 1, 2026 at an annual cash salary of $8,000,000. In recognition of Mr. Hamburg's service, Berkshire will provide him (or his spouse) up to 30 flight hours per year on a mid-sized NetJets aircraft from June 1, 2026 through no later than May 31, 2037, with tax gross-up payments; Berkshire estimates the cost at approximately $490,000 per year. (Form 8-K, accession 0001193125-26-212148.)
• First quarter earnings release. Berkshire issued its first quarter 2026 earnings press release on May 2, 2026 (Form 8-K, accession 0001193125-26-212148).

No other post-period acquisitions, divestitures, financings or litigation outcomes were disclosed in the Q1 2026 10-Q. The PacifiCorp Washington asset sale to Portland General Electric ($1.9 billion base price, expected to close in the first half of 2027) and the OxyChem acquisition (completed January 2, 2026 for approximately $9.5 billion) both occurred within the reporting periods rather than after March 31, 2026, and remain open items pending regulatory approval and purchase price adjustment respectively.