BERKSHIRE HATHAWAY INC

Previous wording

Our periodic operating results may be affected in future periods by the impacts of ongoing macroeconomic and geopolitical conflicts and events, including wars, tensions from developing international trade policies and tariffs, as well as changes in industry or company-specific factors or events. Considerable uncertainty remains as to the ultimate outcome of these events. We are currently unable to reliably predict the ultimate impact on our businesses, whether through changes in the availability of products, supply chain costs and efficiency, and customer demand for our products and services. It is reasonably possible there could be adverse consequences on our operating businesses, as well as on our investments in equity securities, which could significantly affect our results.

Current wording

Our periodic operating results may be affected in future periods by the impacts of ongoing macroeconomic and geopolitical conflicts and events, including wars, developing international trade policies and tariffs, as well as changes in industry or company-specific factors or events. Considerable uncertainty remains as to the ultimate outcome of these events. We are currently unable to reliably predict the ultimate impact on our businesses, whether through changes in the availability of products, supply chain costs and efficiency, and customer demand for our products and services. It is reasonably possible there could be adverse consequences on our operating businesses, as well as on our investments in equity securities, which could significantly affect our earnings.

Previous wording

Insurance underwriting generated after-tax earnings in the first quarter of $1.7 billion in 2026 and $1.3 billion in 2025. We experienced no significant catastrophe events in the first quarter of 2026, while after-tax losses from significant events were $860 million in the first quarter of 2025. Before the impact of significant catastrophe losses, lower underwriting earnings were generated by GEICO and the reinsurance business, which were partially offset by increased earnings from other primary insurance business. After-tax earnings from insurance investment income in the first quarter declined $214 million (7.4%) in 2026 versus 2025, primarily attributable to lower interest income, reflecting lower interest rates.

Current wording

After-tax earnings from insurance underwriting declined 13.1% in the second quarter and increased 3.6% in the first six months of 2026 compared to 2025. We experienced no significant catastrophe events in the first six months of 2026, while after-tax losses from significant events were $850 million in the first six months of 2025. Otherwise, GEICO produced lower underwriting earnings in the first six months of 2026 compared to 2025, which were partially offset by increased earnings from reinsurance and other primary insurance business. After-tax earnings from insurance investment income declined $308 million (9.1%) in the second quarter and $522 million (8.3%) in the first six months of 2026 versus the same periods in 2025, attributable to lower interest income, reflecting lower interest rates.

Previous wording

After-tax earnings of BNSF increased 13.4% in the first quarter of 2026 compared to 2025, primarily attributable to higher revenues and improved operating efficiencies. After-tax earnings of BHE in the first quarter of 2026 increased 1.5% compared to 2025, which reflected higher earnings from the natural gas pipelines businesses and federal income tax credits recognized on a consolidated basis and lower earnings from the U.S. utilities and other energy businesses.

Current wording

After-tax earnings of BNSF increased 6.3% in the second quarter and 9.5% in the first six months of 2026 compared to 2025. Earnings in 2026 benefited from higher shipping volumes and improved operating efficiencies, partly offset by increases in fuel costs and the impact of higher effective income tax rates, primarily attributable to the impacts of reductions in enacted rates in certain states in the second quarter of 2025. After-tax earnings of BHE increased 26.9% in the second quarter and 11.5% in the first six months of 2026 compared to 2025, which reflected higher earnings from the U.S. utilities and natural gas pipelines businesses, partially offset by lower earnings from other energy businesses.

Previous wording

Earnings from our manufacturing, service and retailing businesses increased 4.5% in the first quarter of 2026 compared to 2025. Results among our numerous operations in 2026 were mixed, with overall earnings increases in our manufacturing and service businesses and lower earnings from the retailing businesses.

Current wording

After-tax earnings from our manufacturing, service and retailing businesses increased 24.1% in the second quarter and 15.1% in the first six months of 2026 compared to 2025. The increases were driven by earnings increases in our industrial products manufacturing and our services businesses.

Previous wording

Investment gains (losses) can include significant unrealized gains and losses from changes in market prices of our investments in equity securities and in foreign currency exchange rates applicable to certain of our investments. We believe that investment gains and losses, whether realized from dispositions or unrealized from changes in market prices and exchange rates, are generally meaningless in understanding our reported periodic results or evaluating our periodic economic performance. These gains and losses have caused and will continue to cause significant volatility in our periodic earnings.

Current wording

Investment gains (losses) regularly include significant unrealized gains and losses from changes in market prices of our investments in equity securities and in foreign currency exchange rates applicable to certain of our investments. We believe that investment gains and losses, whether realized from dispositions or unrealized from changes in market prices and exchange rates, are generally meaningless in understanding our reported periodic results or evaluating our periodic economic performance. These gains and losses have caused, and will continue to cause, significant volatility in our periodic earnings.

Previous wording

After-tax other earnings in the first quarter include investment income not allocated to operating businesses, earnings from equity method investments and foreign currency exchange rate gains and losses related to Berkshire and BHFC non-U.S. Dollar denominated debt. After-tax other earnings in the first quarter of 2026 increased $1.2 billion compared to 2025, reflecting after-tax foreign currency exchange rate gains of $249 million in 2026 compared to losses of $713 million in 2025 and increased investment income.

Current wording

After-tax other earnings increased $1.2 billion in the second quarter and $2.5 billion in the first six months of 2026 compared to 2025. The increases were primarily attributable to the impact of foreign currency exchange rate gains and losses on Berkshire and BHFC non-U.S. Dollar denominated borrowings. The after-tax foreign currency exchange gains were $326 million in the second quarter and $575 million in the first six months of 2026 compared to losses of $877 million in the second quarter and $1.6 billion in the first six months of 2025.

Previous wording

We write primary insurance and reinsurance policies covering property and casualty risks, as well as life and health risks. Our insurance and reinsurance businesses are GEICO, Berkshire Hathaway Primary Group (“BH Primary”) and Berkshire Hathaway Reinsurance Group (“BHRG”). We strive to generate pre-tax underwriting earnings (defined as premiums earned less insurance losses/benefits incurred and underwriting expenses) over the long term in all business categories, except in our retroactive reinsurance and periodic payment annuity businesses. Time-value-of-money concepts are important considerations in establishing premiums received at the inception of our retroactive reinsurance and periodic payment annuity contracts. While no new retroactive reinsurance or periodic payment annuity contracts have been written in recent years, we will continue to record charges to earnings related to the run-off of pre-existing contracts over the remaining claim settlement periods.

Current wording

We write primary insurance and reinsurance policies covering property and casualty risks, as well as life and health risks. Our insurance and reinsurance businesses are GEICO, Berkshire Hathaway Primary Group (“BH Primary”) and Berkshire Hathaway Reinsurance Group (“BHRG”). We strive to generate pre-tax underwriting earnings (defined as premiums earned less insurance losses/benefits incurred and underwriting expenses) over the long term in all business categories, except in our retroactive reinsurance and periodic payment annuity businesses. We continue to instruct our underwriting managers to decline writing insurance business when the premiums are deemed inadequate to the risks underwritten, without regard to the impact on premium volume. Time-value-of-money concepts are important considerations in establishing premiums received at the inception of our retroactive reinsurance and periodic payment annuity contracts. While no new retroactive reinsurance or periodic payment annuity contracts have been written in recent years, we will continue to record charges to earnings related to the run-off of pre-existing contracts over the remaining claim settlement periods.

Previous wording

GEICO writes property and casualty insurance policies, primarily private passenger auto insurance, in all 50 states and the District of Columbia. Additionally, GEICO writes insurance policies for certain commercial auto risks, which currently represents less than 5% of premiums written. GEICO offers its policies mainly by direct response methods where most customers apply for insurance coverage directly to the company, and, to a lesser extent, through insurance agencies. GEICO also operates an insurance agency that offers insurance policies written by third parties, such as homeowners, renters, condominium, life and identity protection insurance. A summary of GEICO’s underwriting results follows (dollars in millions).

Current wording

GEICO writes property and casualty insurance policies, primarily private passenger auto insurance, in all 50 states and the District of Columbia. Additionally, GEICO writes insurance for certain commercial auto risks, which currently represents less than 5% of premiums written. GEICO offers its policies mainly by direct response methods where most customers apply for insurance coverage directly to the company, and, to a lesser extent, through insurance agencies. GEICO also operates an insurance agency that offers insurance policies written by third parties for individuals desiring coverages that are generally not offered by GEICO, such as homeowners, renters, condominium, life and identity protection insurance. A summary of GEICO’s underwriting results follows (dollars in millions).

Previous wording

Premiums written increased $168 million (1.5%) in the first quarter of 2026 to $11.7 billion, reflecting an increase in commercial auto business, partially offset by lower average premiums per policy for private passenger auto insurance. Premiums earned increased $434 million (4.0%) in the first quarter of 2026 compared to 2025.

Current wording

Premiums written increased $121 million (1.1%) in the second quarter and $289 million (1.3%) in the first six months of 2026 compared to 2025, reflecting an increase in commercial auto business, partially offset by lower average premiums per policy for private passenger auto insurance. Premiums earned increased $227 million (2.1%) in the second quarter and $661 million (3.0%) in the first six months of 2026 compared to 2025.

Previous wording

Losses and loss adjustment expenses increased $853 million (11.5%) in the first quarter of 2026 compared to 2025. GEICO’s loss ratio (losses and loss adjustment expenses to premiums earned) was 73.9% in the first quarter of 2026, an increase of 4.9 percentage points compared to 2025. The loss ratio increase reflected the impact of higher claims frequencies and average severities.

Current wording

Losses and LAE increased $699 million (8.8%) in the second quarter and $1.6 billion (10.1%) in the first six months of 2026 compared to 2025. GEICO’s loss ratio (losses and LAE to premiums earned) was 76.6% in the second quarter and 75.3% in the first six months of 2026, increases of 4.8 percentage points and 4.9 percentage points, respectively, compared to 2025. The loss ratio increases reflected the impact of higher claims frequencies and average severities.

Previous wording

Private passenger auto claims frequencies increased in the first quarter of 2026 for bodily injury coverage (five to seven percent range) and property damage and collision coverages (two to four percent range) compared to 2025. Private passenger auto average claims severities in the first quarter of 2026 increased for bodily injury coverages (12 to 14 percent range) and for property damage and collision coverages (two to four percent range) compared to 2025. Changes in ultimate loss estimates for prior accident years’ claims in the first quarter of 2026 and 2025 were relatively insignificant.

Current wording

Private passenger auto claims frequencies increased in the first six months of 2026 for bodily injury coverage (five to seven percent range) and property damage and collision coverages (three to five percent range) compared to 2025. Private passenger auto average claims severities in the first six months of 2026 increased for bodily injury coverages (ten to twelve percent range) and property damage and collision coverages (zero to three percent range) compared to 2025. The change in reductions in ultimate loss estimates for prior accident years’ claims in the first six months of 2026 compared to 2025 was relatively insignificant.

Previous wording

Underwriting expenses increased $338 million (29.3%) in the first quarter of 2026 compared to 2025. The expense ratio (underwriting expense to premiums earned) was 13.4% in the first quarter of 2026, an increase of 2.6 percentage points compared to 2025. These increases were primarily driven by increased policy acquisition-related expenses. The earnings from GEICO’s insurance agency (third-party commissions, net of operating expenses) are included as a reduction of underwriting expenses.

Current wording

Underwriting expenses increased $355 million (27.3%) in the second quarter and $693 million (28.3%) in the first six months of 2026 compared to 2025. The expense ratio (underwriting expense to premiums earned) was 14.0% in the first six months of 2026, an increase of 2.7 percentage points compared to 2025. These increases were primarily driven by increases in commissions and advertising expenses. The earnings from GEICO’s insurance agency (third-party commissions, net of operating expenses) are included as a reduction of underwriting expenses.

Previous wording

Premiums written in the first quarter of 2026 declined $143 million (2.3%) and premiums earned declined $323 million (6.2%) compared to 2025. These declines were primarily attributable to volume reductions in property business, partly offset by increased casualty business and favorable foreign currency translation effects from a weaker U.S. Dollar. The property volume decline was attributable to the impacts of increased competition and lower rates. On March 23, 2026, NICO entered into a whole account reinsurance agreement with certain wholly-owned insurance subsidiaries of Tokio Marine Holdings, Inc. (“Tokio Marine”). NICO will assume on a quota-share basis a portion of the net non-life premiums written and related losses and expenses of Tokio Marine on risks attaching over a ten-year term commencing April 1, 2026. This contract is expected to generate meaningful premium volumes over its term.

Current wording

Premiums written increased $204 million (4.1%) in the second quarter and were relatively unchanged in the first six months of 2026 compared to 2025. We recorded premiums written in the second quarter and first six months of $483 million from a new whole account reinsurance agreement with certain wholly-owned insurance subsidiaries of Tokio Marine Holdings, Inc. (“Tokio Marine”), which commenced on April 1, 2026. Under the agreement, NICO assumes on a quota-share basis a portion of the non-life premiums written and related losses and expenses of Tokio Marine on risks attaching over a ten-year term. Otherwise, premiums written in the second quarter and first six months of 2026 declined 5.6% and 3.8%, respectively, relative to 2025, primarily due to lower property volumes.

Previous wording

Losses and LAE declined $715 million (19.9%) in the first quarter of 2026 compared to 2025, and the loss ratio in 2026 declined 10.0 percentage points compared to 2025. There were no losses incurred from significant catastrophe event occurrences in the first quarter of 2026 compared to $770 million in 2025. Additionally, changes in prior accident years’ ultimate loss estimates in the first quarter reduced incurred losses by $260 million in 2026 and $330 million in 2025. The reductions were mostly attributable to lower-than-expected property losses.

Current wording

Losses and LAE decreased $312 million (11.3%) in the second quarter and $1.0 billion (16.2%) in the first six months of 2026 compared to 2025. The loss ratio in 2026 declined 5.3 percentage points in the second quarter and 7.8 percentage points in the first six months compared to 2025. There were no losses incurred from significant catastrophe event occurrences in the first six months of 2026 compared to $760 million in 2025 from estimated wildfire losses, which occurred in the first quarter. Additionally, changes in prior accident years’ ultimate loss estimates reduced losses and LAE by $609 million in the second quarter and $869 million in the first six months of 2026 compared to $176 million and $506 million, respectively, in the corresponding 2025 periods. The reductions in each period were mostly attributable to lower-than-expected property losses.

Previous wording

Pre-tax underwriting losses, before foreign currency exchange gains and losses, were $251 million in the first quarter of 2026 versus $169 million in 2025. Losses reflected changes in estimated ultimate liabilities and related deferred charges during each period. Foreign currency exchange gains and losses derive from the remeasurement of liabilities of non-functional currency denominated contracts of U.S. subsidiaries. Pre-tax foreign currency exchange gains were $5 million in the first quarter of 2026 compared to losses of $40 million in 2025.

Current wording

Pre-tax underwriting losses, before foreign currency exchange gains and losses, were $427 million in the first six months of 2026 versus $349 million in 2025. Losses reflected changes in estimated ultimate liabilities and related deferred charges during each period. There were no significant changes in the estimated ultimate liabilities during the first six months of 2026 and 2025. Foreign currency exchange gains and losses derive from the remeasurement of liabilities of non-functional currency denominated contracts of U.S. subsidiaries. Pre-tax foreign currency exchange gains and losses were insignificant in 2026, while in 2025, foreign currency exchange losses were $88 million in the second quarter and $128 million in the first six months.

Previous wording

Unpaid losses and LAE for retroactive reinsurance contracts were $30.4 billion at March 31, 2026, a decline of $680 million from December 31, 2025, due primarily to loss payments. Deferred charge assets on retroactive reinsurance were $7.9 billion and $8.1 billion at March 31, 2026 and December 31, 2025, respectively. Deferred charge balances will be charged to earnings over the expected remaining claims settlement periods.

Current wording

Unpaid losses and LAE for retroactive reinsurance contracts were $30.0 billion at June 30, 2026, a decline of $1.1 billion from December 31, 2025, primarily due to loss payments. Deferred charge assets on retroactive reinsurance were $7.7 billion and $8.1 billion at June 30, 2026 and December 31, 2025, respectively. Deferred charge balances will be charged to earnings over the expected remaining claims settlement periods.

Previous wording

Pre-tax losses, before foreign currency exchange gains and losses, were $152 million in the first quarter of 2026 versus $150 million in 2025 and derived primarily from the accretion of discounted annuity liabilities. Pre-tax foreign currency exchange rate gains on non-functional currency denominated contracts of U.S. subsidiaries were $16 million in the first quarter of 2026 compared to losses of $49 million in 2025. Annuity liabilities were $14.1 billion at March 31, 2026, including the effects of discount rate changes recorded in accumulated other comprehensive income, as well as liabilities of $4.0 billion on contracts without life contingencies.

Current wording

Pre-tax underwriting losses, before foreign currency impacts, were $152 million in the second quarter and $304 million in the first six months of 2026 versus $126 million in the second quarter and $276 million in the first six months of 2025. These losses derived primarily from the accretion of discounted annuity liabilities. Pre-tax foreign currency exchange gains on non-functional currency denominated contracts of U.S. subsidiaries were $4 million in the second quarter and $20 million in the first six months of 2026 compared to losses of $87 million in the second quarter and $136 million in the first six months of 2025. Annuity liabilities were $14.3 billion at June 30, 2026, which includes the effects of discount rate changes recorded in accumulated other comprehensive income, as well as liabilities of $4.0 billion on contracts without life contingencies.

Previous wording

Pre-tax investment income in the first quarter declined 7.2% in 2026 compared to 2025, primarily attributable to lower interest income, reflecting lower interest rates. Dividend income varies from period to period due to changes in the investment portfolio and the amount, frequency and timing of dividends from investees. We continue to believe that maintaining ample liquidity is paramount and insist on safety over yield with respect to short-term investments.

Current wording

Pre-tax investment income in the second quarter and first six months of 2026 declined 7.9% and 7.6%, respectively, compared to 2025, primarily attributable to lower interest income, reflecting lower short-term interest rates. Dividend income varies from period to period due to changes in the investment portfolio and the amount, frequency and timing of dividends from investees. We continue to believe that maintaining ample liquidity is paramount and insist on safety over yield with respect to short-term investments.

Previous wording

Invested assets of our insurance businesses derive from shareholder capital and net liabilities assumed under insurance contracts or “float.” The major components of float are unpaid losses and loss adjustment expenses, including liabilities under retroactive reinsurance contracts, life, annuity and health benefit liabilities, unearned premiums and certain other liabilities, which are reduced by insurance premiums receivable, reinsurance receivables, deferred charges assumed under retroactive reinsurance contracts and deferred policy acquisition costs. The effect of discount rate changes on long-duration insurance contracts, which are recorded in accumulated other comprehensive income, are excluded from float, as such amounts are not included in earnings in the Consolidated Statements of Earnings.

Current wording

Invested assets of our insurance businesses derive from shareholder capital and net liabilities assumed under insurance contracts or “float.” The major components of float are unpaid losses and LAE, including liabilities under retroactive reinsurance contracts, life, annuity and health benefit liabilities, unearned premiums and certain other liabilities, which are reduced by insurance premiums receivable, reinsurance receivables, deferred charges on retroactive reinsurance contracts and deferred policy acquisition costs. The effect of discount rate changes on long-duration insurance contracts, which are recorded in accumulated other comprehensive income, are excluded from float, as such amounts are not included in earnings in the Consolidated Statements of Earnings.

Previous wording

Float was approximately $176.9 billion at March 31, 2026, an increase of approximately $500 million from December 31, 2025. The cost of float is measured as the ratio of pre-tax underwriting earnings to float balances. Our combined insurance operations generated pre-tax underwriting earnings in the first quarter of 2026 and 2025, and the average cost of float was negative in each period.

Current wording

Float was approximately $177.5 billion at June 30, 2026, an increase of approximately $1.1 billion from December 31, 2025. The cost of float is measured as the ratio of pre-tax underwriting earnings to float balances. Our combined insurance operations generated pre-tax underwriting earnings in the first six months of 2026 and 2025, and the average cost of float was negative in each period.

Previous wording

*Includes unsettled purchases of U.S. Treasury Bills of $11.3 billion at March 31, 2026. Such amounts were also included in liabilities, which were paid shortly after March 31.

Current wording

*Includes unsettled purchases of U.S. Treasury Bills of $771 million at June 30, 2026 and $167 million at December 31, 2025. Such amounts were also included in liabilities and were paid shortly after the respective balance sheet date.

Previous wording

The U.S. utilities operate independently in several states, including Utah, Oregon, Wyoming and other Western states (PacifiCorp), Iowa and Illinois (MEC) and Nevada (NV Energy). Net earnings decreased $69 million in the first quarter of 2026 compared to 2025, reflecting comparative increases in energy operating expenses and interest expense and lower income tax benefits from recognized production tax credits, partially offset by increases in electric utility margin and other income.

Current wording

The U.S. utilities operate independently in several states, including Utah, Oregon, Wyoming and other Western states (PacifiCorp), Iowa and Illinois (MEC) and Nevada (NV Energy). Net earnings increased $163 million (37.6%) in the second quarter and $94 million (10.9%) in the first six months of 2026 compared to 2025, reflecting increases in electric utility margin and other income combined with higher income tax benefits from recognized production tax credits, partially offset by increases in interest expense and energy operating expenses.

Previous wording

The U.S. utilities’ electric utility margin was $2.0 billion in the first quarter of 2026, an increase of $47 million (2.4%) compared to 2025. The increase reflected higher retail customer rates in certain territories, lower thermal generation cost of sales and higher wholesale prices, partially offset by higher purchased electricity cost of sales. Retail customer volumes increased 1.7% overall (up 4.4% at MEC and 4.3% at NV Energy and down 1.2% at PacifiCorp) in the first quarter of 2026 compared to 2025, primarily due to an increase in the average number of customers and higher customer usage, partially offset by an overall unfavorable impact of weather. The increase in energy operating expenses was primarily due to vegetation management and other wildfire prevention costs, general and plant maintenance costs, insurance expenses and technology costs.

Current wording

The U.S. utilities’ electric utility margin was $2.3 billion in the second quarter and $4.3 billion in the first six months of 2026, increases of $171 million (8.1%) and $218 million (5.4%), respectively, compared to 2025. The second quarter increase reflected higher retail customer volumes and lower thermal generation and purchased electricity cost of sales. The first six months increase reflected higher retail customer rates in certain territories, lower thermal generation cost of sales, higher retail customer volumes and higher wholesale volumes and prices, partially offset by higher purchased electricity cost of sales. Retail customer volumes increased 3.1% overall (up 6.0% at MEC, 4.3% at NV Energy and 0.8% at PacifiCorp) in the first six months of 2026 compared to 2025, primarily due to higher customer usage and an increase in the average number of customers, partially offset by an overall unfavorable impact of weather. The increase in energy operating expenses was primarily due to vegetation management and other wildfire prevention costs, as well as general and plant maintenance costs.

Previous wording

Net earnings of natural gas pipelines increased $118 million in the first quarter of 2026 compared to 2025. The increase reflected higher transportation and storage revenues from a general rate case and higher variable liquefied natural gas revenues from cold weather in the first quarter of 2026.

Current wording

Net earnings of natural gas pipelines increased $59 million in the second quarter and $177 million in the first six months of 2026 compared to 2025. The increases reflected higher transportation and storage revenues from a general rate case and higher variable liquefied natural gas revenues from colder weather, mainly in the first quarter of 2026.

Previous wording

Net earnings of other energy businesses decreased $92 million in the first quarter of 2026 compared to 2025. The decrease was primarily due to lower earnings at Northern Powergrid from lower distribution revenues due to lower tariffs from inflation adjustments beginning in the second quarter of 2025 and higher interest expense.

Current wording

Net earnings of other energy businesses decreased $12 million in the second quarter and $104 million in the first six months of 2026 compared to 2025. The decreases were primarily due to lower earnings at Northern Powergrid from lower distribution revenues due to lower tariffs from inflation adjustments beginning in the second quarter of 2025 and higher interest expense.

Previous wording

Net losses of real estate brokerage businesses decreased by $3 million in the first quarter of 2026 compared to 2025. The real estate brokerage business continues to be negatively impacted by the limited availability of homes for sale and high home prices. Corporate interest and other net earnings include BHE corporate interest expense and unallocated general and administrative expenses and income taxes, including tax credits recognized on a consolidated basis.

Current wording

Net earnings of real estate brokerage businesses decreased $25 million in the second quarter and $22 million in the first six months of 2026 compared to 2025, primarily due to charges in the second quarter of 2026 associated with a settlement reached in the ongoing real estate industry litigation matters. The real estate brokerage business continues to be negatively impacted by the limited availability of homes for sale and high home prices.

Previous wording

Excludes certain acquisition accounting expenses, which primarily relate to the amortization of intangible assets recorded in connection with certain of our business acquisitions. The after-tax acquisition accounting expenses excluded from earnings were $114 million in the first quarter of 2026 and $124 million in the first quarter of 2025. These expenses are included in “Other” in the summary of earnings on page 29 and in the “Other” earnings table on page 43.

Current wording

Excludes certain acquisition accounting expenses, primarily related to amortization of intangible assets recorded in connection with certain of our business acquisitions. The after-tax acquisition accounting expenses excluded from earnings were $113 million in the second quarter and $227 million in the first six months of 2026 and $124 million in the second quarter and $248 million in the first six months of 2025. These expenses are included in “Other” in the summary of earnings on page 33 and in the “Other” earnings table on page 47.

Previous wording

The industrial products group includes complex metal components and products for aerospace, power and general industrial markets (Precision Castparts Corp. (PCC)), specialty chemicals (The Lubrizol Corporation (Lubrizol)), metal cutting tools/systems (IMC International Metalworking Companies (IMC)), and Marmon Holdings, Inc. (Marmon) which consists of numerous autonomous manufacturing, service and leasing businesses, currently aggregated in twelve groups. Other industrial products members also produce equipment and systems for the livestock and agricultural industries (CTB International), drag reducing agents for pipelines (LiquidPower Specialty Products), structural steel fabrication products (W&W|AFCO) and beginning in August 2025, rodent control products (Bell Laboratories). On January 2, 2026, Berkshire acquired a chemicals business (OxyChem) from Occidental Petroleum Corporation. OxyChem produces basic chemicals and its results are included in Berkshire’s consolidated results beginning as of the acquisition date.

Current wording

The industrial products group includes complex metal components and products for aerospace, power and general industrial markets (Precision Castparts Corp. (PCC)), specialty chemicals (The Lubrizol Corporation (Lubrizol)), metal cutting tools/systems (IMC International Metalworking Companies (IMC)), and Marmon Holdings, Inc. (Marmon) which consists of numerous autonomous manufacturing, service and leasing businesses aggregated into twelve groups. Other industrial products members also produce equipment and systems for the livestock and agricultural industries (CTB International), drag reducing agents for pipelines (LiquidPower Specialty Products), structural steel fabrication products (W&W|AFCO) and beginning in August 2025, rodent control products (Bell Laboratories). On January 2, 2026, Berkshire acquired a chemicals business (OxyChem) from Occidental Petroleum Corporation. OxyChem produces basic chemicals and its results are included in Berkshire’s consolidated results beginning as of the acquisition date.

Previous wording

Revenues of the industrial products group were $11.2 billion in the first quarter of 2026, an increase of $2.1 billion (23.6%) over 2025, primarily attributable to business acquisitions, as well as increases at several of our pre-existing businesses. Pre-tax earnings in the first quarter of 2026 increased $350 million (22.1%) compared to 2025. Pre-tax earnings as a percentage of revenues for the group were 17.2% for the first quarter of 2026, a decrease of 0.3 percentage points compared to 2025.

Current wording

Revenues of the industrial products group were $12.2 billion in the second quarter and $23.3 billion in the first six months of 2026, increases of $2.6 billion (27.3%) and $4.7 billion (25.5%), respectively, compared to the same periods in 2025, primarily attributable to business acquisitions and increases at several of our pre-existing business units. Pre-tax earnings increased $749 million (41.0%) in the second quarter and $1.1 billion (32.2%) in the first six months of 2026 compared to 2025. Pre-tax earnings as a percentage of revenues for the group were 19.3% for the first six months of 2026, an increase of 1.0 percentage points compared to 2025.

Previous wording

PCC’s revenues were $2.9 billion in the first quarter of 2026, an increase of 8.2% compared to 2025. Revenues from aerospace and industrial gas turbine power products in the first quarter of 2026 increased 9.4% and 18.9%, respectively, over 2025, primarily attributable to strong customer demand and higher prices, due in part to rising costs of certain raw materials. Revenues from other products in the first quarter of 2026 declined 7.5% compared to 2025. PCC’s pre-tax earnings increased 32.9% in the first quarter of 2026 compared to 2025, which included costs and expenses associated with a fire at a fasteners facility in the first quarter of 2025. Additionally, the earnings increase in 2026 reflected aerospace and industrial gas turbine sales growth, improved manufacturing and operating efficiencies and favorable changes in business mix. Future sales and earnings growth will depend on successfully increasing production and expanding capacity, as necessary, to meet customer demand.

Current wording

PCC’s revenues were $3.1 billion in the second quarter and $6.0 billion in the first six months of 2026, increases of 14.4% in the second quarter and 11.4% in the first six months compared to 2025. The increases were driven by increased sales of aerospace and industrial gas turbine power products, primarily attributable to strong customer demand and higher prices, due in part to rising costs of certain raw materials. PCC’s pre-tax earnings increased 34.2% in the second quarter and 33.6% in the first six months of 2026 relative to 2025. The earnings increases in 2026 reflected aerospace and industrial gas turbine sales growth, improved manufacturing and operating efficiencies and favorable changes in business mix. Earnings in 2025 and 2026 were impacted by a fire at a fasteners facility that occurred in the first quarter of 2025. Future sales and earnings growth will depend on successfully increasing production and expanding capacity, as necessary, to meet customer demand.

Previous wording

Lubrizol’s revenues were $1.6 billion in the first quarter of 2026, an increase of 2.7% compared to 2025. The increase was primarily attributable to higher volumes and favorable foreign currency translation effects, partially offset by lower selling prices and unfavorable product mix. Lubrizol’s pre-tax earnings increased 8.1% in the first quarter of 2026 compared to 2025. The increase reflected the effects of increased sales volumes in 2026 and the non-recurrence of restructuring charges incurred in 2025, partially offset by lower selling prices, higher manufacturing costs and unfavorable product mix. The significant increases in raw material, energy and supply chain costs during the latter part of the first quarter of 2026 are expected to increase production costs in the second quarter and will necessitate selling price increases.

Current wording

Lubrizol’s revenues were $1.8 billion in the second quarter and $3.4 billion in the first six months of 2026, increases of 11.1% and 7.0%, respectively, compared to 2025. The increases were primarily attributable to higher volumes and selling prices and favorable foreign currency translation effects, partially offset by unfavorable product mix. The increases in selling prices were necessitated by significant increases in raw materials, energy and supply chain costs that began in the latter part of the first quarter and continued through the second quarter of 2026, resulting in increased production costs. Lubrizol’s pre-tax earnings increased 23.4% in the second quarter and 16.5% in the first six months of 2026 compared to 2025. The increases were primarily attributable to the impacts of higher sales volumes and selling prices, partially offset by higher raw materials and manufacturing costs and unfavorable product mix.

Previous wording

Marmon’s revenues were $3.3 billion in the first quarter of 2026, an increase of 6.0% compared to the first quarter of 2025, which was primarily attributable to the transition of Acme Brick from our building products group to Marmon beginning January 1, 2026. Otherwise, revenue increases in 2026 were generated by the Plumbing & Refrigeration (18.3%) and Electrical (10.4%) groups, primarily attributable to higher metals prices, and from the Transportation Products group (4.4%). These increases were partially offset by lower revenues from the Retail Solutions (9.8%), Rail & Leasing (8.9%), Foodservice Technologies (4.7%) and Industrial Products (2.5%) groups due to a combination of lower sales volumes and the impacts of sales mix changes and business divestitures, partially offset by favorable foreign currency translation effects.

Current wording

Marmon’s revenues were $3.5 billion in the second quarter and $6.9 billion in the first six months of 2026, increases of 4.9% and 5.4%, respectively, compared to the same periods in 2025. The increases were primarily attributable to the transition of Acme Brick from our building products group to Marmon beginning January 1, 2026. Otherwise, revenues were up marginally in each period. In the first six months of 2026, revenue increases were produced by the Plumbing & Refrigeration (19.2%) and Electrical (11.9%) groups, primarily attributable to higher metals prices and increased volumes in the Plumbing & Refrigeration group. These increases were substantially offset by lower revenues from the Retail Solutions (18.3%), Rail & Leasing (7.9%), Industrial Products (4.6%) and Water Technologies (3.3%) groups, primarily due to combinations of lower sales volumes and business divestitures.

Previous wording

IMC’s revenues were approximately $1.2 billion in the first quarter of 2026, an increase of 20.6% compared to 2025. IMC has experienced significant raw material price increases, which began in 2025 and continued through the first quarter of 2026. Customer demand and product sales increased in the first quarter of 2026, primarily attributable to customers accelerating purchases. IMC’s pre-tax earnings in the first quarter of 2026 increased 41.9% compared to 2025, reflecting the increases in sales and gross margins, as well as favorable fixed manufacturing cost absorption and product sales mix, partially offset by higher raw materials costs and selling expenses. The significant increase in earnings in the first quarter is not expected to continue throughout 2026. IMC operates globally, and a large portion of its products are manufactured in Israel. IMC’s operations in Israel have not been significantly impacted by the conflicts in the region.

Current wording

IMC’s revenues were approximately $1.3 billion in the second quarter and $2.5 billion in the first six months of 2026, increases of 26.5% and 23.6%, respectively, compared to 2025. IMC has experienced significant raw materials price increases, which began in 2025 and continued through the first six months of 2026. Customer demand and product sales also increased over the first six months of 2026, primarily attributable to customers accelerating purchases. IMC’s pre-tax earnings in the second quarter and first six months of 2026 increased 71.0% and 56.6%, respectively, relative to 2025, reflecting increases in sales and gross margin rates, including favorable fixed manufacturing cost absorption and product sales mix, partially offset by higher raw materials costs and selling expenses. IMC’s earnings over the second half of 2026 are expected to be negatively impacted by the rise in raw materials costs. IMC operates globally, and a large portion of its products are manufactured in Israel. IMC’s operations in Israel have not been significantly impacted by the conflicts in the region.

Previous wording

OxyChem’s revenues were $1.2 billion in the first quarter of 2026. OxyChem generated a small pre-tax loss in the first quarter of 2026, reflecting the impacts of acquisition accounting amortization, as well as increased plant maintenance, utilities and property tax expenses and materials costs. Revenues and earnings increases were also generated in the first quarter of 2026 by each of the other smaller businesses within the industrial products group.

Current wording

OxyChem’s revenues were $1.4 billion in the second quarter and $2.6 billion in the first six months of 2026. OxyChem generated pre-tax earnings of $149 million in the second quarter and $121 million in the first six months of 2026, which included the impacts of incremental acquisition accounting depreciation and amortization, as well as other transition costs associated with the acquisition. In addition, revenues and earnings increases were also generated in the first six months of 2026 by each of the other industrial products businesses.

Previous wording

The building products group includes manufactured (factory-built) and site-built home construction and related lending and financial services (Clayton Homes). Other building products businesses currently include flooring (Shaw), insulation, roofing and engineered products (Johns Manville), paint and coatings (Benjamin Moore) and residential and commercial construction and engineering products and systems (MiTek).

Current wording

The building products group includes manufactured (factory-built) and site-built home construction and related lending and financial services (Clayton Homes). Other building products businesses currently include flooring (Shaw), insulation, roofing and engineered products (Johns Manville), paint and coatings (Benjamin Moore) and residential and commercial construction and engineering products and systems (MiTek). Berkshire acquired Taylor Morrison Home Corporation, a homebuilder, on July 24, 2026, which will be included in our building products group beginning as of that date. See Note 2 to the accompanying Consolidated Financial Statements.

Previous wording

Revenues of the building products group declined $179 million (2.9%) and pre-tax earnings declined $81 million (9.2%) in the first quarter of 2026 compared to 2025. Certain of our building products businesses experienced lower customer demand, attributable to prevailing general economic conditions and the adverse weather in parts of the U.S. in the first quarter of 2026.

Current wording

Revenues of the building products group increased $61 million (0.9%) in the second quarter and declined $118 million (0.9%) in the first six months of 2026 compared to 2025. Pre-tax earnings increased $75 million (7.2%) in the second quarter and were relatively unchanged in the first six months of 2026 compared to 2025. Certain of our building products businesses experienced lower customer demand, attributable to relatively low home construction activity in the first six months of 2026.

Previous wording

Clayton Homes’ revenues were $2.9 billion in the first quarter of 2026, a decline of 1.2% compared to 2025. Revenues from home sales declined $103 million (4.9%) in 2026 versus 2025, reflecting a 9.7% decline in new home unit sales, partially offset by higher average prices for factory-built homes and changes in sales mix. Financial services revenues increased 9.6% in the first quarter of 2026 compared to 2025, primarily due to increased interest income from higher average loan balances and average interest rates. Loan balances, net of allowances for credit losses, were approximately $29.8 billion as of March 31, 2026, an increase of 7.8% since March 31, 2025. Loan portfolios are largely funded by borrowings from Berkshire finance affiliates.

Current wording

Clayton Homes’ revenues were $3.4 billion in the second quarter and $6.3 billion in the first six months of 2026, increases of 2.8% and 0.9%, respectively, compared to 2025. Home sales revenues increased 1.7% in the second quarter and declined 1.3% in the first six months of 2026, relative to the corresponding 2025 periods. New home unit sales increased 2.3% in the second quarter and declined 3.3% in the first six months of 2026 relative to 2025. In the first six months of 2026, average prices for factory-built homes increased 3.3%, attributable to changes in sales mix, while average prices for site-built homes declined 2.3% versus 2025. Financial services revenues increased 9.5% in the first six months of 2026 compared to 2025, primarily due to increased interest income from higher average loan balances and average interest rates. Loan balances, net of discounts and allowances for credit losses, were approximately $30.4 billion as of June 30, 2026, an increase of 7.8% since June 30, 2025. Loan portfolios are largely funded by borrowings from Berkshire finance affiliates.

Previous wording

Clayton Homes’ pre-tax earnings were $393 million in the first quarter of 2026, a decrease of 8.7% from 2025. The decline reflected lower earnings from home building, partially offset by increased earnings from financial services. The decline in home building earnings was due to lower sales volume and slightly higher selling general and administrative expenses. The increase in financial services earnings was primarily due to higher interest income and lower insurance claims expense, partially offset by increased interest expense on increased borrowings from affiliates. The corresponding interest income from these borrowings is included in the “Other” earnings section on page 43.

Current wording

Clayton Homes’ pre-tax earnings were $468 million in the second quarter and $861 million in the first six months of 2026, declines of 3.5% and 5.9%, respectively, versus 2025. The declines reflected lower earnings from home building, partially offset by increased earnings from financial services. The decline in home building earnings was due to lower year-to-date sales volume and overall gross margin rates and slightly higher selling general and administrative expenses. The increase in financial services earnings was primarily due to higher interest income and lower insurance claims expense, partially offset by increased interest expense on increased borrowings from affiliates. The corresponding interest income from these borrowings is included in the “Other” earnings section on page 47.

Previous wording

Consumer products group revenues were $3.5 billion in the first quarter of 2026, a decline of 1.5% compared to 2025. The decline was driven by revenue reductions at Fruit of the Loom, Garan, Jazwares and Forest River, attributable to a combination of lower sales volumes, unfavorable changes in sales mix and the impacts of exiting unprofitable lines of business at Fruit of the Loom, partially offset by higher average selling prices. Revenue increases were generated by Brooks Sports and Duracell, attributable to combinations of higher volumes, changes in sales mix and/or favorable foreign currency translation effects.

Current wording

Consumer products group revenues were $3.4 billion in the second quarter and $6.9 billion in the first six months of 2026, declines of 2.0% and 1.8%, respectively, compared to 2025. The revenue declines were driven by reductions at Fruit of the Loom and Forest River, primarily attributable to lower sales volumes, unfavorable changes in sales mix and the impacts of exiting unprofitable lines of business at Fruit of the Loom, partially offset by higher average selling prices. These declines were partially offset by revenue increases at Brooks Sports, Duracell, Jazwares and Richline, attributable to combinations of higher volumes, changes in sales mix and/or favorable foreign currency translation effects.

Previous wording

Pre-tax earnings of our consumer products group increased 29.6% in the first quarter of 2026 compared to 2025. Earnings increases in the first quarter of 2026 were generated by Forest River, Brooks and Duracell. The increase at Forest River was primarily due to lower selling, general and administrative expenses, partly offset by lower gross margins. The increase at Duracell was largely due to increased advanced manufacturing production tax credits, which are included in pre-tax earnings, and the increase at Brooks Sports was primarily attributable to the increases in sales and gross margins. These earnings increases were partially offset by earnings declines at Garan and Jazwares.

Current wording

Pre-tax earnings of our consumer products group increased 12.2% in the second quarter and 19.1% in the first six months of 2026 versus 2025. The earnings increase in the first six months of 2026 was primarily attributable to earnings increases from Brooks Sports, Duracell and Jazwares, partially offset by lower earnings from Forest River. The increases at Brooks Sports and Jazwares were primarily attributable to the increases in sales and gross margin rates, as well as the impact of trade tariff refunds received in the second quarter of 2026. The increase at Duracell was largely due to increased advanced manufacturing production tax credits, which are included in pre-tax earnings, partially offset by increased selling, general and administrative expenses. The earnings decline from Forest River was primarily due to the reduction of gross margins from lower sales and unfavorable changes in sales mix, partially offset by lower selling, general and administrative expenses.