Berkshire Hathaway reported a 5.8% drop in third-quarter operating earnings as weaker insurance results weighed on the conglomerate, even as its cash pile climbed to a record $377.4 billion and it stepped up share repurchases, according to a company regulatory filing.
Operating Profit Falls as Insurance Underwriting Tumbles
Yahoo noted that Berkshire’s operating profit dropped from $13.48 billion a year ago to $12.7 billion, a figure Warren Buffett views as a more accurate gauge of core business strength than net income because it leaves out fluctuations in unrealized investments. Berkshire posted operating earnings of $12.705 billion—a 5.8% decrease compared to the $13.485 billion recorded in the same period last year—according to data highlighted by CNBC.
Total underwriting profit tumbled 43% over the prior-year period to $1.352 billion, while insurance investment income declined 14% to $2.734 billion, according to CNBC. At the auto insurance subsidiary Geico, margins suffered as rising replacement expenses and more severe claims drove a 17% increase in underwriting costs alongside an 8.5% jump in claims losses. The Detroit News reported that Geico’s profit decline also reflected the insurer’s willingness to charge less for policies as it seeks to regain customers lost during an effort to improve underwriting quality and reduce overhead, driving its loss ratio up to 76.6% from 71.5% a year earlier.
The company’s overall earnings, which include its sprawling stock market portfolio, dropped 28% in the third quarter to $22.112 billion from $30.796 billion a year prior, CNBC noted. Net income fell 28% to $22.11 billion, reflecting unrealized gains and losses on stocks that Berkshire still owns, The Detroit News added.
Revenue increased 11% to $105.65 billion, marking the second straight quarter of double-digit percentage growth despite declines in consumer businesses such as Fruit of the Loom underwear and Forest River RVs.
Greg Abel Accelerates Buybacks and Cash Pile Reaches Record $377.4 Billion
Chief executive Greg Abel demonstrated an active readiness to utilize Berkshire’s vast financial reserves, marking a departure from his predecessor’s hesitation to make major acquisitions during periods of inflated corporate pricing. Berkshire stepped up its share repurchase program during the third quarter by allocating roughly $9.6 billion to buy back its stock, as reported by Yahoo and CNBC.
The conglomerate’s cash, cash equivalents, and short-term U.S. Treasury bill holdings rose to $377.4 billion as of Sept. 30, up from $365.5 billion at the end of June, Yahoo reported. Total cash reserves for the conglomerate stood at $352.3 billion—representing a 1.9% sequential decline from the previous quarter—when excluding utility and railroad cash as well as obligations tied to T-bills, CNBC reported.
Buffett, who stepped down as CEO at the end of 2025 and remains chairman emeritus at age 96, had difficulty finding things to buy toward the end of his 60 years at the helm, The Detroit News noted.
Subsidiary Gains Contrast With Economic Uncertainty
BNSF generated $1.73 billion in profit, marking a 19% increase driven by stronger agricultural, energy, and consumer freight volumes alongside fuel surcharges, according to The Detroit News. Berkshire Hathaway Energy saw profit rise 8% to $1.61 billion, and Precision Castparts boosted pretax profit by 30% on aerospace and industrial gas turbine sales.
Berkshire maintained that considerable uncertainty
remains about the outcomes of economic and geopolitical events, including tariffs and wars, The Detroit News reported.
Abel’s capital deployment this year has included billions of dollars of Alphabet shares to help expand in artificial intelligence, a $6.8 billion purchase of home builder Taylor Morrison in July, and a 4% stake in Italian software technology company Bending Spoons.