Warren Buffett, Image Source: Pixabay

Berkshire Hathaway (BRK-A, BRK-B) entered the final stretch of 2025 with record liquidity, robust operating earnings, and its largest-ever move in the energy sector. The company reported that its “diverse group of businesses generated net operating cash flows of $34.8 billion” in the first nine months of the year, while “capital expenditures for property, plant and equipment and equipment held for lease were $14.7 billion,” with BNSF and Berkshire Hathaway Energy (“BHE”) accounting for $10.1 billion.

In October, Berkshire announced a headline-grabbing deal: it “agreed to acquire the Occidental Petroleum Corporation’s chemicals business for $9.7 billion,” a transaction still “subject to regulatory approvals and customary closing conditions” but expected to close in Q4 2025.

The acquisition expands Berkshire’s long-standing investment relationship with Occidental (OXY), which already includes preferred stock paying an 8% dividend and warrants to buy 83.9 million shares.

Operating momentum remained strong across core subsidiaries. Insurance underwriting delivered $2.4 billion in quarterly earnings, up sharply from $750 million in Q3 2024, despite “after-tax losses of approximately $850 million from the Southern California wildfires” earlier in the year.

BNSF contributed $1.45 billion in after-tax profit, driven by “core pricing gains, improved operating efficiencies and lower effective income tax rates.” BHE earned $1.49 billion, with the company noting that results were “lower in the U.S. utilities, natural gas pipelines and other energy businesses, partially offset by lower earnings attributable to noncontrolling interests”.

Manufacturing, service, and retailing operations added $3.6 billion in quarterly after-tax earnings, reflecting solid consumer demand across its portfolio of industrial and retail holdings.

Berkshire’s massive investment portfolio again drove headline volatility, with “pre-tax investment gains and losses includ[ing] unrealized gains of $20.6 billion in the third quarter” as equity markets rallied. The company reiterated that such swings are “often meaningless in terms of understanding our reported consolidated earnings or evaluating our periodic economic performance”.

Overall, net earnings attributable to shareholders reached $30.8 billion, up 17% year over year. Management highlighted that “considerable uncertainty remains” due to ongoing macroeconomic and geopolitical tensions but affirmed that Berkshire’s diversified model and record cash holdings position it to act decisively when opportunities arise.

You can find the entire report here.

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