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.
Total revenue for the quarter reached $94.23 billion.
For the full year 2025, Berkshire reported a total profit of $66.97 billion, or $31.04 per share, on revenue of $371.44 billion.
The annual results represent a 25% decrease in net income compared to 2024, a year that benefited from significantly higher investment realizations.
This report marks a historic milestone for the company as the final fiscal year under the leadership of Warren Buffett as CEO.
Greg Abel, who assumed the chief executive role at the start of 2026, noted in his inaugural annual letter that the company ended the year with a cash hoard of $373.3 billion.