Berkshire Hathaway (NYSE:BRK.B) reported fourth-quarter net income of $19.2 billion, or $8.90 per share, as the Omaha-based conglomerate navigated a challenging transition period marked by insurance headwinds and significant investment writedowns.
While the headline figure remained substantial, adjusted operating earnings of $4.73 per share missed the $5.19 consensus estimate from analysts surveyed by Zacks Investment Research.
The quarterly decline was largely driven by a 54% plunge in insurance underwriting profits, which fell to $1.56 billion from $3.41 billion in the prior-year period.
The company also recorded a $4.5 billion non-temporary impairment charge related to its 26.9% stake in Occidental Petroleum, reflecting a sustained decline in the oil giant's market value.
These factors contributed to a 29% year-over-year drop in total operating earnings, which reached $10.2 billion for the quarter.
Despite the pressure on the insurance segment, Berkshire’s diverse "brick-and-mortar" businesses showed resilience.
The BNSF Railway reported a 6% increase in quarterly profit, while the manufacturing, service, and retailing group—which includes brands like Duracell and Fruit of the Loom—posted a 3% gain.