Berkshire Hathaway Profit After Tax: Insurance, BNSF, Retail, etc.

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This page presents Berkshire Hathaway Inc’s profit after tax (net earnings attributable to shareholders) by several sources.

The analysis highlights Berkshire Hathaway’s diverse portfolio, consisting of segments such as insurance, railroads, energy, travel centers, manufacturing, service, and retailing, and investment gains or losses.

For a complete definition of these business categories, you may visit this section: Berkshire Hathaway business segments.

Let’s take a look!

For other key statistics of Berkshire Hathaway, you may find more information on this page: Berkshire key statistics.

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Definitions

To help readers understand the content better, the following terms and glossaries have been provided.

Insurance: Berkshire Hathaway’s insurance business is a major component of its diversified portfolio and includes several key divisions:

1. GEICO: A well-known auto insurance company that provides coverage for millions of drivers.
2. Reinsurance: This division takes on large, complex risks that other companies may be unwilling or unable to write. Berkshire Hathaway has a strong reputation for handling long-tail reinsurance agreements, which involve taking on significant liabilities over an extended period.
3. General Insurance: This segment covers a wide range of insurance products, including property and casualty insurance.

The success of Berkshire Hathaway’s insurance business lies in its ability to accurately price policies and manage risks effectively. The company’s substantial capital reserves and conservative approach to underwriting allow it to take on risks that others avoid, contributing significantly to its overall profitability.

Railroad (“BNSF”): Berkshire Hathaway’s railroad business is primarily represented by Burlington Northern Santa Fe, LLC or BNSF Railway Company (BNSF), one of the largest freight railroad networks in North America.

BNSF provides a vital link for the transportation of goods and commodities across the United States, covering approximately 32,500 miles of track in 28 states and three Canadian provinces. Here are some key aspects of BNSF:

• Services: BNSF transports a wide variety of goods, including agricultural products, consumer goods, coal, industrial products, and petroleum.
• Network: The extensive network connects major markets and ports, facilitating the efficient movement of goods across long distances.
• Efficiency: Known for its operational efficiency and reliability, BNSF plays a crucial role in the supply chain for many industries.
• Ownership: Berkshire Hathaway acquired full ownership of BNSF in 2010, making it a wholly-owned subsidiary.

BNSF’s operations are a significant component of Berkshire Hathaway’s overall revenue and profitability, contributing to the conglomerate’s diversified business portfolio.

Berkshire Hathaway Energy (“BHE”): Berkshire Hathaway Energy (BHE) is a diversified energy company and wholly-owned subsidiary of Berkshire Hathaway Inc. BHE generates, transmits, stores, distributes, and supplies energy across the United States, Great Britain, and Alberta, Canada. Here are some key aspects of BHE:

• Business Portfolio: BHE owns and operates several utilities, including MidAmerican Energy Company, PacifiCorp, NV Energy, and Northern Powergrid.
• Renewable Energy: BHE has made significant investments in renewable energy projects, including wind, solar, and geothermal power.
• Natural Gas: The company owns several interstate natural gas pipeline companies and has a substantial natural gas transportation capacity.
• Sustainability: BHE is committed to environmental stewardship and aims to achieve net-zero greenhouse gas emissions.
• Customer Base: BHE serves over 13 million customers and end-users, providing reliable and low-cost energy solutions.

BHE’s vision is to be the best energy company in serving its customers while delivering sustainable energy solutions.

Pilot Travel Centers (“PTC”): Pilot Travel Centers, now fully owned by Berkshire Hathaway, is the largest operator of travel centers in North America. Founded in 1958 by James A. Haslam II as a single gas station, it has grown into a major network with over 750 locations across the U.S. and Canada.

Under the Pilot Flying J and Mr. Fuel brands, it provides services such as gas pumps, fast-food restaurants, parking, laundry, and showers to truck drivers and other motorists. Pilot Travel Centers sells about 14 billion gallons of fuel and $3 billion worth of food and merchandise annually.

According to the 2023 annual report, Berkshire acquired control of PTC on January 31, 2023 and PTC is considered a reportable segment beginning February 1, 2023. As a result, the revenue data of the PTC segment for fiscal year 2023 are for the eleven months ending December 31, 2023. Previously, the earnings from PTC were determined under the equity method and included in earnings from non-controlled businesses.

Manufacturing: Berkshire Hathaway’s manufacturing business encompasses a diverse range of industries and products, making it a significant part of the company’s overall operations. Here are some key components of this segment:

Precision Castparts Corp. (PCC)

• Products: Manufactures complex metal components and products primarily for aerospace, power, and industrial markets.
• Specialization: Known for its precision manufacturing capabilities and high-quality standards.

Marmon Holdings, Inc.

• Products: Operates a group of diverse businesses including engineered products, transportation equipment, and construction products.
• Specialization: Focuses on providing solutions across various industries through its wide range of subsidiary companies.

IMC International Metalworking Companies

• Products: Produces metal cutting tools and tooling systems for a variety of industrial applications.
• Specialization: Renowned for innovation and advanced manufacturing technologies.

Forest River, Inc.

• Products: Manufactures recreational vehicles (RVs), cargo trailers, buses, and commercial vehicles.
• Specialization: Offers a broad range of products designed for leisure, commercial, and personal use.

Johns Manville

• Products: Produces insulation, roofing materials, and engineered products for commercial and residential buildings.
• Specialization: Committed to sustainability and energy efficiency in its product offerings.

The Lubrizol Corporation

• Products: Provides specialty chemicals, including additives for transportation and industrial lubricants.
• Specialization: Focuses on enhancing the performance and efficiency of various fluids and materials.

These businesses contribute to Berkshire Hathaway’s robust manufacturing segment by delivering a wide array of products and solutions across multiple industries.

McLane Company (“McLane”): McLane Company is a wholly-owned subsidiary of Berkshire Hathaway Inc. Founded in 1894, McLane is one of the largest supply chain services leaders in the United States.

The company provides grocery and foodservice supply chain solutions to convenience stores, mass merchants, drug stores, and chain restaurants. McLane operates over 80 distribution centers across the U.S. and one in Brazil, delivering more than 50,000 different consumer products to nearly 90,000 locations.

Service And Retailing: Berkshire Hathaway’s service and retailing businesses encompass a wide array of companies, each catering to different markets and consumer needs. Here’s a snapshot of some of the key players in this segment:

Service Businesses

1. NetJets: A leader in fractional jet ownership, providing private aviation services for individuals and businesses.
2. Berkshire Hathaway Automotive: One of the largest dealership groups in the United States, offering a broad range of new and used vehicles along with related services.
3. FlightSafety International: Provides professional aviation training for pilots, maintenance technicians, and other aviation professionals.

Retailing Businesses

1. Borsheims Fine Jewelry: A high-end jewelry store known for its extensive selection of fine jewelry, watches, and gift items.
2. Nebraska Furniture Mart: One of the largest home furnishing stores in North America, offering furniture, appliances, electronics, and flooring.
3. See’s Candies: A manufacturer and retailer of premium chocolates and other confectionery products.
4. Brooks Sports: Specializes in high-performance running shoes, apparel, and accessories.
5. Dairy Queen: Operates and franchises a chain of quick-service restaurants known for their ice cream and fast food.

These businesses contribute significantly to Berkshire Hathaway’s diverse portfolio, providing a steady stream of revenue across various industries. Each company within this segment operates independently but benefits from the overall stability and resources of Berkshire Hathaway.

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Insight & Summary of Berkshire Hathaway’s Profit After Tax By Source

The following analysis consolidates the trends observed across Berkshire Hathaway’s profit after tax by stream for the 2016–2025 period.

• Investment Gains: The Distorting Force That Should Be Ignored for Analytical Purposes Before any segment-by-segment analysis, the investment gains line must be contextualised. Since FY2018, GAAP accounting has required Berkshire to mark its enormous equity portfolio (principally Apple, Bank of America, Coca-Cola, American Express, and others) to market value each period, with unrealised gains and losses flowing directly through the income statement.

  The result is headline net earnings that are analytically meaningless as a performance indicator: $81.4B profit in FY2019, -$22.8B loss in FY2022, $96.2B profit in FY2023 — none of these figures reflect Berkshire’s actual operating performance. Warren Buffett explicitly and repeatedly directs investors to focus on operating earnings (excluding investment gains), which is the analytically correct approach. With that framing, the investment gains line averages $43,723M in FY2023–FY2025 at 51.3% of reported mix — but the relevant performance narrative lives in the six operating segments below.

• Insurance Underwriting: A Structural Transformation Into a Major Profit Centre Insurance underwriting — the profit from Berkshire’s direct insurance operations (GEICO, General Re, Berkshire Hathaway Reinsurance) after claims, expenses, and policyholder reserves — has undergone the most dramatic structural improvement in the dataset. From a FY2022 near-zero profit of -$30M (GEICO absorbed heavy pandemic-era claim severity and frequency increases) through a FY2016–FY2020 range of $325M–$1,566M, underwriting profit surged to $5,428M (FY2023), $9,020M (FY2024), and $7,258M (FY2025).

  The FY2024 result of $9.0B is the highest single-year underwriting profit in Berkshire’s history and reflects GEICO’s fundamental remediation under new management: disciplined risk selection, rate increases that outpaced loss inflation, reduced telematics adverse selection, and a hard reinsurance pricing cycle that benefited Berkshire’s commercial reinsurance books. The FY2025 moderation to $7.3B (-19.5% growth) is likely normalisation from the extreme FY2024 outperformance rather than structural reversal. The FY2023–FY2025 average of $7,235M at 8.8% mix — up from effectively zero in 2022 — represents a permanent step-change in Berkshire’s operating earnings capacity.

• Insurance Investment Income: The Interest Rate Tailwind at Massive Scale Insurance investment income — earnings from the float (policyholder premiums collected ahead of claim payments, invested by Berkshire at no cost of capital) — has been the most reliable compounding stream in the dataset and has accelerated dramatically in the high-rate environment. From $3,636M (FY2016), investment income grew at a 14.7% CAGR to $13,670M (FY2024) — with the majority of this acceleration occurring in FY2022–FY2024 as the Federal Reserve’s rate cycle transformed Berkshire’s $300B+ fixed-income and cash holdings from a near-zero-yield asset into a significant earnings contributor.

  The FY2024 peak of $13,670M is approximately four times the FY2016 base in absolute dollars, generating earnings greater than most Fortune 500 operating companies from capital that costs Berkshire nothing. The FY2025 moderation to $12,513M (-8.5%) reflects maturing fixed-income maturities reinvesting at slightly lower rates as the Fed cycle peaks. The FY2023–FY2025 average of $11,917M at 14.7% mix is now the second-largest operating profit contributor in the dataset, surpassing BNSF and approaching Manufacturing/Service/Retailing.

• Manufacturing, Service and Retailing: The Steady Compounder This segment — encompassing a diverse collection of industrial manufacturers (Precision Castparts, Marmon, Lubrizol, IMC), retail businesses (Nebraska Furniture Mart, See’s Candies, Borsheims), and service operations — is the most consistent earnings contributor across the full ten-year period. From $6,803M (FY2016), segment earnings grew to $13,647M (FY2025) with only one year of meaningful decline (FY2020: -11.4%, COVID disruption).

  The FY2023–FY2025 average of $13,360M at 16.3% mix is the highest operating segment average, reflecting the breadth and diversification of Berkshire’s owned businesses. The FY2023–FY2025 growth average of 3.0% is modest — consistent with a mature industrial and retail portfolio growing at approximately nominal GDP — but the absolute earnings base at $13–14B annually provides the foundation of predictable, non-financial operating cash flow.

• BNSF: Mature Railroad, Modest Headwinds BNSF — Burlington Northern Santa Fe, Berkshire’s wholly-owned railroad — generated earnings in the $5.0–5.5B range throughout the analysis period with limited secular growth. After a 2017–2019 growth phase ($3.6B → $5.5B), BNSF has operated largely flat at $5.0–6.0B annually. The FY2023 earnings of $5,087M represented a -14.4% decline from FY2022’s $5,946M, attributable to labour cost inflation (new union contracts), lower freight volumes tracking with general industrial production, and operational efficiency investments.

  The FY2024 (-1.1%) and FY2025 (+8.8%) trajectory shows modest recovery. The FY2023–FY2025 average of $5,198M is approximately the same as FY2021 ($5,990M) — confirming that BNSF is in a flat-to-modest-growth mode rather than an expansion phase. Rail earnings are structurally linked to US industrial production and commodity volumes, and the competitive landscape (Union Pacific, CSX, Norfolk Southern) limits pricing power.

• Berkshire Hathaway Energy: Wildfire Overhang and Recovery BHE — Berkshire’s majority-owned utility and energy conglomerate — grew earnings from $2,230M (FY2016) to $3,904M (FY2022) before the FY2023 shock: wildfire liability provisions related to PacifiCorp’s exposure to Oregon and Pacific Northwest wildfire litigation reduced BHE earnings to $2,331M (-40.3%), the sharpest operating segment decline in the dataset.

  The FY2024 recovery to $3,730M (+60.0%) and FY2025 continuation at $3,979M (+6.7%) reflect the resolution of the most acute liability uncertainty and the normalisation of BHE’s underlying utility earnings. The FY2023–FY2025 average of $3,347M at 4.2% mix is below BHE’s FY2021–FY2022 peak performance, with the remaining uncertainty centred on the ultimate scale of wildfire-related legal exposure across multiple jurisdictions.

• Structural Takeaway: Berkshire Hathaway’s profit profile from FY2016 to FY2025 tells a story of three interlocking transitions: the GAAP-distorted volatility of investment gains (which investors should systematically exclude), the structural improvement of insurance underwriting from chronic underperformance to best-in-class results, and the unexpected windfall of insurance investment income from the 2022–2024 rate cycle. Strip out investment gains, and Berkshire’s underlying operating earnings have grown from approximately $16B (FY2016) to approximately $35–38B (FY2023–FY2025) — a 7–8% annualised operating earnings CAGR that is structurally superior to most large industrial conglomerates.

  The FY2023–FY2025 operating profit composition tells the post-transition story clearly: insurance (underwriting + investment income combined ~$19B average) has surpassed Manufacturing/Service/Retailing (~$13B) as the primary earnings engine, BNSF (~$5B) and BHE (~$3B) provide stable infrastructure earnings, and the “Others” segment represents residual and increasingly negative noise from diverse operations. The most strategically significant question for Berkshire’s forward earnings trajectory is whether insurance investment income can be sustained near the $12–14B level as the interest rate environment evolves, and whether GEICO’s structural remediation can hold underwriting profitability above $5–7B annually through a full underwriting cycle.

The table below combines all key Berkshire’s profit after tax by cateogry metrics into a single view for the latest three fiscal years.

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Profit After Tax Numbers

You may find the definitions of Berkshire’s insurance, manufacturing, and McLane businesses here: insurance, manufacturing, and McLane.

The definitions of Berkshire’s BNSF, BHE, PTC, and service and retail businesses are available here: BNSF, BHE, PTC, and service and retail.

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Profit After Tax Mix

You may find the definitions of Berkshire’s insurance, manufacturing, and McLane businesses here: insurance, manufacturing, and McLane.

The definitions of Berkshire’s BNSF, BHE, PTC, and service and retail businesses are available here: BNSF, BHE, PTC, and service and retail.

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Profit After Tax Growth

You may find the definitions of Berkshire’s insurance, manufacturing, and McLane businesses here: insurance, manufacturing, and McLane.

The definitions of Berkshire’s BNSF, BHE, PTC, and service and retail businesses are available here: BNSF, BHE, PTC, and service and retail.

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Credits And References

1. All financial data presented in this article was obtained and referenced from Berkshire Hathaway’s annual reports published in the company’s investor relation page: Berkshire’s Reports.

2. Pexels Images.

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Disclosure

We may use artificial intelligence (AI) tools to assist us in writing some of the text in this article. However, the data is directly obtained from original sources (usually the quarterly and annual reports) and meticulously cross-checked by our editors multiple times to ensure its accuracy and reliability.

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