BERKSHIRE HATHAWAY INC

Previous 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.

Current wording

After-tax earnings from insurance underwriting declined 42.9% in the third quarter and 15.7% in the first nine months of 2026 compared to 2025. Each of our three underwriting groups generated lower underwriting earnings in the third quarter of 2026 relative to 2025. GEICO produced lower underwriting earnings in the first nine months of 2026 compared to 2025, which was partially offset by increased earnings from the reinsurance and other primary insurance groups. We experienced no losses from significant catastrophe events in the first nine months of 2026. After-tax losses from significant events were approximately $850 million in the first nine months of 2025. After-tax earnings from insurance investment income declined $447 million (14.1%) in the third quarter and $969 million (10.3%) in the first nine 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 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.

Current wording

After-tax earnings of BNSF increased 19.3% in the third quarter and 13.0% in the first nine 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. After-tax earnings of BHE increased 8.3% in the third quarter and 10.0% in the first nine 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 and real estate brokerage businesses.

Previous 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.

Current wording

After-tax earnings from our manufacturing, service and retailing businesses increased 11.8% in the third quarter and 14.0% in the first nine months of 2026 compared to 2025. The increases were driven by earnings increases in our industrial products and service businesses.

Previous 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.

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 often 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

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).

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 pre-tax underwriting results follows (dollars in millions).

Previous 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.

Current wording

Premiums written declined $30 million (0.3%) in the third quarter and increased $259 million (0.8%) in the first nine months of 2026 compared to 2025, reflecting continued growth in policies-in-force, offset by lower average premiums per policy. Premiums earned increased $141 million (1.3%) in the third quarter and $802 million (2.4%) in the first nine months of 2026 compared to 2025.

Previous 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.

Current wording

Losses and LAE increased $686 million (8.5%) in the third quarter and $2.2 billion (9.6%) in the first nine months of 2026 compared to 2025. GEICO’s loss ratio (losses and LAE to premiums earned) was 76.6% in the third quarter and 75.7% in the first nine months of 2026, increases of 5.1 and 4.9 percentage points, respectively, compared to 2025. The loss ratio increases reflected the impact of higher claims frequencies and average severities, in addition to lower average earned premiums per policy.

Previous 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.

Current wording

Private passenger auto claims frequencies increased in the first nine months of 2026 for bodily injury coverage (four to six 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 nine months of 2026 increased for bodily injury coverages (nine to eleven percent range) and property damage and collision coverages (zero to three percent range) compared to 2025. Losses and LAE included reductions in the ultimate loss estimates for prior accident years’ claims of $628 million in the first nine months of 2026 compared to $495 million in 2025.

Previous 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.

Current wording

Underwriting expenses increased $246 million (17.0%) in the third quarter and $939 million (24.1%) in the first nine months of 2026 compared to 2025. The expense ratio (underwriting expense to premiums earned) was 14.3% in the first nine months of 2026, an increase of 2.5 percentage points compared to 2025 driven primarily by increases in commissions and advertising expenses. Earnings from GEICO’s insurance agency (third-party commissions, net of operating expenses) are included as a reduction of underwriting expenses.

Previous wording

BH Primary consists of numerous separately managed businesses that provide a wide variety of primarily commercial insurance solutions, including healthcare professional liability, workers’ compensation, automobile, general liability, property and specialty coverages. BH Primary’s insurers include Berkshire Hathaway Specialty Insurance Group (“BHSI”), RSUI, CapSpecialty, Berkshire Hathaway Homestate Group (“BHHC”), MedPro, GUARD Insurance Companies (“GUARD”), NICO Primary Group (“NICO Primary”), Berkshire Hathaway Direct (“BH Direct”) and U.S. Liability Insurance companies (“USLI”).

Current wording

BH Primary consists of numerous separately managed businesses that provide a wide variety of primarily commercial insurance solutions, including healthcare professional liability, workers’ compensation, automobile, general liability, property and specialty coverages. BH Primary insurers include Berkshire Hathaway Specialty Insurance Group (“BHSI”), RSUI, CapSpecialty, Berkshire Hathaway Homestate Group (“BHHC”), MedPro, GUARD Insurance Companies (“GUARD”), NICO Primary Group (“NICO Primary”), Berkshire Hathaway Direct (“BH Direct”) and U.S. Liability Insurance companies (“USLI”).

Previous wording

A summary of BH Primary’s underwriting results follows (dollars in millions).

Current wording

A summary of BH Primary’s pre-tax underwriting results follows (dollars in millions).

Previous wording

Losses and LAE declined $182 million (5.7%) in the second quarter and $842 million (12.7%) in the first six months of 2026 relative to 2025. The loss ratio declined 3.9 percentage points in the second quarter and 9.2 percentage points in the first six months compared to 2025. Losses incurred from significant catastrophe occurrences in the first six months of 2025 were approximately $300 million versus none in 2026. The losses in 2025 were from wildfires in Southern California, which occurred in the first quarter. We reduced ultimate loss estimates for prior accident years’ claims by $268 million in the second quarter and $444 million in the first six months of 2026. We increased ultimate loss estimates for prior accident years’ claims by $189 million in the second quarter and $401 million in the first six months of 2025. The reductions in 2026 were primarily attributable to lower-than-expected property losses and, to a lesser extent, casualty losses. The increases in 2025 were primarily due to increases in estimated losses for casualty exposures, partially offset by reductions in property loss estimates.

Current wording

We reduced ultimate loss estimates for prior accident years’ claims by $24 million in the third quarter and $468 million in the first nine months of 2026. Ultimate loss estimates for prior accident years’ claims were reduced by $190 million in the third quarter and increased by $211 million in the first nine months of 2025. The year-to-date reductions in 2026 were primarily attributable to lower-than-expected property losses and, to a lesser extent, automobile liability and other casualty losses. The year-to-date increases in 2025 were primarily due to increases in estimated losses for casualty exposures, partially offset by reductions in property and automobile liability loss estimates.

Previous wording

Underwriting expenses increased $22 million in the first six months of 2026 compared to 2025. The increase reflected generally higher expenses across our businesses, attributable to a combination of factors, including changes in business mix, and were partially offset by lower expenses at GUARD.

Current wording

Underwriting expenses increased $77 million (1.9%) in the first nine months of 2026 compared to 2025. The increase reflected generally higher expenses across our businesses, attributable to a combination of factors, including changes in business mix and personnel levels, and was partially offset by lower expenses at GUARD.

Previous wording

A summary of property/casualty reinsurance underwriting results follows (dollars in millions).

Current wording

A summary of property/casualty reinsurance pre-tax underwriting results follows (dollars in millions).

Previous 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.

Current wording

Premiums written increased $361 million (7.0%) in the third quarter and $422 million (2.6%) in the first nine months of 2026 compared to 2025. The increases were primarily attributable to new policies in the second and third quarters of 2026, including a 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. Premiums written to-date through September 30, 2026 under this agreement were approximately $700 million, reflecting our current estimates. Otherwise, premium volumes in 2026 were constrained by increased price competition in U.S. property markets.

Previous 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.

Current wording

Losses and LAE increased $173 million (6.4%) in the third quarter and declined $854 million (9.4%) in the first nine months of 2026 compared to 2025. The loss ratio in 2026 increased 5.1 percentage points in the third quarter and decreased 3.5 percentage points in the first nine months compared to 2025. There were no losses incurred from significant catastrophe event occurrences in the first nine months of 2026 compared to $760 million in 2025 from wildfires in Southern California, which occurred in the first quarter. Additionally, changes in prior accident years’ ultimate loss estimates reduced losses and LAE by $1.2 billion in the first nine months of 2026 compared to $898 million in 2025. The reductions in each period were primarily attributable to lower-than-expected property losses, partially offset by increases in casualty loss estimates.

Previous wording

Underwriting expenses in 2026 increased $140 million (10.7%) in the second quarter and decreased $37 million (1.3%) in the first six months of 2026 compared to 2025. The expense ratio increased 3.2 percentage points in the second quarter and 0.7 percentage points in the first six months of 2026 compared to 2025. Underwriting expenses in 2026 reflected changes in business mix, increases in general and administrative expenses and reduced foreign currency exchange losses related to certain intercompany reinsurance contracts.

Current wording

Underwriting expenses decreased $42 million (3.0%) in the third quarter and $79 million (1.8%) in the first nine months of 2026 compared to 2025. Expense ratios were substantially unchanged in the third quarter and first nine months of 2026 compared to 2025. Underwriting expenses in 2026 reflected changes in business mix, increases in general and administrative expenses and reduced foreign currency exchange losses from the remeasurement of certain non-functional currency denominated liabilities related to reinsurance contracts.

Previous wording

A summary of our life/health reinsurance underwriting results follows (dollars in millions).

Current wording

A summary of our life/health reinsurance pre-tax underwriting results follows (dollars in millions).

Previous wording

Premiums earned increased $136 million (10.1%) in the second quarter and $212 million (8.2%) in the first six months of 2026 compared to 2025, primarily due to favorable foreign currency translation effects and increased premiums in the U.S., primarily from U.S. life and Medicare supplement business. Pre-tax underwriting earnings were substantially unchanged in the second quarter and increased $55 million in the first six months of 2026 compared to 2025. The year-to-date increase in earnings was primarily attributable to lower mortality, partly offset by increased foreign currency exchange losses.

Current wording

Premiums earned increased $305 million (7.9%) in the first nine months of 2026 compared to 2025, primarily due to favorable foreign currency translation effects and increased premiums in U.S. and international markets. Pre-tax underwriting earnings increased $85 million in the first nine months of 2026 compared to 2025. The earnings increase reflected lower mortality, partially offset by higher underwriting expenses, including foreign currency transaction losses.

Previous 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.

Current wording

Pre-tax underwriting losses, before foreign currency exchange gains and losses, were $590 million in the first nine months of 2026 versus $508 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 nine 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 the first nine months of 2026 compared to losses of $110 million in the first nine months of 2025.

Previous 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.

Current wording

Unpaid losses and LAE for retroactive reinsurance contracts were $28.1 billion at September 30, 2026, a decline of $2.9 billion from December 31, 2025, primarily due to loss payments, including $1.12 billion associated with a contract commutation in the third quarter. Deferred charge assets on retroactive reinsurance were $7.2 billion and $8.1 billion at September 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 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.

Current wording

Pre-tax underwriting losses, before foreign currency impacts, were $163 million in the third quarter and $467 million in the first nine months of 2026 versus $152 million in the third quarter and $428 million in the first nine months of 2025. These losses derived primarily from the accretion of discounted annuity liabilities. Pre-tax foreign currency exchange gains and losses on non-functional currency denominated contracts of U.S. subsidiaries were relatively insignificant in the 2026 periods, compared to gains of $26 million in the third quarter and losses of $110 million in the first nine months of 2025. Annuity liabilities were $13.4 billion at September 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 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.

Current wording

Pre-tax investment income in the third quarter and first nine months of 2026 declined 10.7% and 8.6%, 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

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.

Current wording

Float was approximately $178.5 billion at September 30, 2026, an increase of $2.1 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 nine 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 $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.

Current wording

*Includes unsettled purchases of U.S. Treasury Bills of $15.4 billion at September 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

Fixed maturity investments as of June 30, 2026 follows (in millions).

Current wording

A summary of fixed maturity investments as of September 30, 2026 follows (in millions).

Previous wording

Railroad operating revenues increased in the second quarter and the first six months of 2026 by 14.6% and 9.8%, respectively, compared to 2025. Car/unit volume increased 6.5% and 4.3%, respectively, in the second quarter and the first six months of 2026 relative to the same periods in 2025. Average revenue per car/unit increased 7.6% in the second quarter and 5.3% in the first six months of 2026, primarily from higher fuel surcharge revenue and higher yield. Pre-tax earnings increased 13.9% in the second quarter and 13.7% in the first six months of 2026 versus 2025.

Current wording

Railroad operating revenues increased 14.7% in the third quarter and 11.5% in the first nine months of 2026 compared to 2025. Car/unit volumes increased 3.9% and 4.2% in the third quarter and the first nine months of 2026, respectively, relative to the same periods in 2025. Average revenue per car/unit increased 10.5% in the third quarter and 7.1% in the first nine months of 2026, primarily from higher fuel surcharge revenue and higher yield. Pre-tax earnings increased 18.5% in the third quarter and 15.5% in the first nine months of 2026 compared to 2025.

Previous wording

Consumer products operating revenues were $2.4 billion in the second quarter and $4.4 billion in the first six months of 2026, increases of 20.5% and 10.3%, respectively, from 2025. The revenue increases were attributable to higher average revenue per car/unit primarily from higher fuel surcharge revenue and increases in international and domestic volumes. Volumes in the second quarter and the first six months of 2026 increased 9.3% and 5.3%, respectively, in relation to 2025, primarily due to higher intermodal shipments resulting from higher west coast imports, market share gains and tightening truck capacity.

Current wording

Consumer products operating revenues were $2.5 billion in the third quarter and $6.9 billion in the first nine months of 2026, increases of 16.5% and 12.5%, respectively, from 2025. The revenue increases were attributable to higher average revenue per car/unit, primarily from higher fuel surcharge revenue, and volume increases. Volumes in the third quarter and the first nine months of 2026 increased 5.6% and 5.4%, respectively, in relation to 2025, primarily due to higher intermodal shipments resulting from higher West Coast imports and tightening truck capacity.

Previous wording

Agricultural and energy products operating revenues were $1.9 billion in the second quarter and $3.7 billion in the first six months of 2026, increases of 17.9% and 16.4%, respectively, from 2025. The revenue increases in 2026 were attributable to higher average revenue per car/unit, arising from higher fuel surcharge revenue, higher yield and volume increases of 11.5% in both the second quarter and first six months relative to 2025. The volume increases were primarily due to higher grain exports, petroleum fuels and oilseeds and meals.

Current wording

Agricultural and energy products operating revenues were $1.9 billion in the third quarter and $5.6 billion in the first nine months of 2026, increases of 18.9% and 17.2%, respectively, from 2025. The revenue increases in 2026 were attributable to higher average revenue per car/unit, arising from higher fuel surcharge revenue, higher yield and volume increases of 8.3% in the third quarter and 10.5% in the first nine months of 2026 relative to 2025. The volume increases were primarily due to higher grain, petroleum fuels, and oilseeds and meals shipments.

Previous wording

Industrial products operating revenues were $1.4 billion in the second quarter and $2.6 billion in the first six months of 2026, increases of 9.1% and 5.9%, respectively, from 2025. The revenue increases were attributable to higher average revenue per car/unit from higher fuel surcharge revenue and higher yield, along with higher volumes (3.1% in the second quarter and 1.3% in the first six months). The volume increases were primarily due to higher steel, aggregates and cement shipments.

Current wording

Industrial products operating revenues were $1.5 billion in the third quarter and $4.1 billion in the first nine months of 2026, increases of 15.2% and 9.1%, respectively, from 2025. The revenue increases were attributable to higher average revenue per car/unit from increases in fuel surcharge revenue and yield, along with increased volumes of 3.9% in the third quarter and 2.2% in the first nine months. The volume increases were primarily due to higher steel, aggregates, minerals, and cement shipments.

Previous wording

Coal operating revenues were $722 million in the second quarter and $1.5 billion in the first six months of 2026, slight increases from the same periods in 2025. The revenue increases were attributable to higher average revenue per car/unit from higher fuel surcharge revenue and higher yield, partially offset by lower volumes. The volume declines were primarily due to plant retirements and lower demand, attributable to lower natural gas prices.

Current wording

Coal operating revenues were $0.8 billion in the third quarter and $2.3 billion in the first nine months of 2026, slight increases from the same periods in 2025. The revenue increases were attributable to higher average revenue per car/unit from increases in fuel surcharge revenue and yield, partially offset by a decline in volumes of 8.4% in the third quarter and 6.3% in the first nine months of 2026. The volume declines were primarily due to plant retirements and lower demand, attributable to lower natural gas prices.

Previous wording

Railroad operating expenses increased $579 million (15.6%) in the second quarter and $635 million (8.4%) in the first six months of 2026 compared to 2025. Compensation and benefits expenses increased $26 million (1.9%) in the second quarter and less than 1% in the first six months of 2026 compared to 2025. The increases were primarily due to wage inflation, offset by improved employee productivity. Fuel expenses increased $475 million (68.1%) in the second quarter and $473 million (32.2%) in the first six months of 2026 compared to 2025, reflecting higher average fuel prices in the second quarter and higher volume, partially offset by increased fuel efficiency. Equipment rents, materials and other expenses increased $38 million (8.3%) in the second quarter and $69 million (7.2%) in the first six months of 2026 compared to 2025. The increases were primarily related to higher litigation and casualty related expenses. There were no significant changes in purchased services or depreciation and amortization expense.

Current wording

Railroad operating expenses increased $547 million (14.2%) in the third quarter and $1.2 billion (10.4%) in the first nine months of 2026 compared to 2025. Compensation and benefits expenses rose less than 1% in the third quarter and in the first nine months of 2026 compared to 2025, reflecting increases from wage inflation, substantially offset by improved employee productivity. Fuel expenses increased $468 million (60.6%) in the third quarter and $941 million (42.0%) in the first nine months of 2026 compared to 2025, reflecting higher average fuel prices and higher volume, partially offset by increased fuel efficiency. Equipment rents, materials and other expenses increased $27 million (6.0%) in the third quarter and $97 million (6.9%) in the first nine months of 2026 compared to 2025. The increases were primarily related to higher volume and increased litigation and casualty related expenses.

Previous wording

The effective income tax rate increased 5.4 percentage points in the second quarter and 2.9 percentage points in the first six months of 2026 compared to the same periods in 2025, primarily due to the impact of lower enacted state income tax rates in the second quarter of 2025.

Current wording

Income tax expense increased $74 million (16.0%) in the third quarter and $288 million (24.1%) in the first nine months of 2026 compared to the same periods in 2025, primarily due to higher pre-tax earnings, as well as the impacts of changes in enacted state income tax rates.

Previous wording

The discussion of BHE’s operating results that follows is based on after-tax earnings, reflecting how the energy businesses are managed and evaluated. A summary of net earnings attributable to BHE follows (dollars in millions).

Current wording

The discussion of BHE’s operating results that follows is based on after-tax earnings, reflecting how the energy businesses are managed and evaluated. A summary of net earnings attributable to Berkshire shareholders follows (dollars in millions).

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 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.

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 $194 million (22.8%) in the third quarter and $288 million (16.8%) in the first nine 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 and the impact of wildfire loss accruals at PacifiCorp of $100 million in the third quarter of 2025, partially offset by increases in interest expense and other energy operating expenses.

Previous 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.

Current wording

The U.S. utilities’ electric utility margin was $2.9 billion in the third quarter and $7.1 billion in the first nine months of 2026, increases of $325 million (12.7%) and $542 million (8.2%), respectively, compared to 2025. The increases reflected higher retail customer and wholesale volumes and higher retail customer rates in certain territories, partially offset by higher energy cost of sales. Retail customer volumes increased 5.5% (up 7.2% at MEC, 6.3% at NV Energy and 4.0% at PacifiCorp) in the first nine months of 2026 compared to 2025, primarily due to higher customer usage and an increase in the average number of customers. The increase in energy operating expenses was primarily due to higher depreciation and amortization expense and higher operations and maintenance costs, including vegetation management and other wildfire prevention costs.

Previous 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.

Current wording

Net earnings of natural gas pipelines increased $32 million in the third quarter and $209 million in the first nine 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.

Previous 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.

Current wording

Net earnings of other energy businesses decreased $5 million in the third quarter and $109 million in the first nine months of 2026 compared to 2025. The year-to-date decline 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.

Previous 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.

Current wording

Net earnings of real estate brokerage businesses decreased $12 million in the third quarter and $34 million in the first nine months of 2026 compared to 2025, primarily due to lower revenues, as well as charges in the second quarter of 2026 associated with a litigation settlement. The real estate brokerage business continues to be negatively impacted by the limited availability of homes for sale, attributable in part to elevated interest rates, and high home prices.

Previous 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.

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 net earnings were $111 million in the third quarter and $338 million in the first nine months of 2026 and $123 million in the third quarter and $371 million in the first nine months of 2025. These expenses are included in “Other” in the summary of net earnings on page 33 and in the “Other” earnings table on page 48.