BRK-B 10-Q: Smart Summary

• Scope of consolidation: The unaudited Consolidated Financial Statements consolidate all subsidiaries and affiliates in which Berkshire holds a controlling financial interest; significant accounting policies are unchanged from those in the most recently issued Annual Report on Form 10-K.
• Interim-period volatility: Management highlights that catastrophe loss timing and magnitude, changes in unrealized gains/losses on equity securities, foreign currency revaluation, and asset impairment charges may cause results for interim periods to differ materially from full-year results.
• Significant estimates: Key estimates include evaluations of long-lived assets, goodwill and indefinite-lived intangibles for impairment, expected credit losses, and insurance/reinsurance loss reserves; these may be subject to significant adjustments due to ongoing macroeconomic and geopolitical events.
• Pending accounting pronouncement: FASB ASU 2024-03 ('Disaggregation of Income Statement Expenses'), issued November 2024, requires note disclosure of specific categories underlying certain income statement expense captions; effective for annual periods beginning after December 15, 2026 (early adoption permitted), and Berkshire is currently evaluating its impact on disclosures.

• Berkshire acquired OxyChem (completed January 2, 2026): Berkshire completed the acquisition of Occidental Petroleum Corporation's (Occidental) chemicals business (OxyChem) pursuant to an agreement entered into on October 1, 2025; consideration paid to Occidental was approximately $9.5B, subject to adjustment per the terms of the agreement, with Occidental retaining OxyChem's legacy environmental liabilities; OxyChem is described as a global manufacturer of basic chemicals with applications in water treatment, pharmaceuticals, healthcare, construction and other industries; preliminary estimated assets as of the acquisition date are $10.8B, consisting primarily of property, plant and equipment (approximately $7B) plus receivables, inventories and intangible assets, and preliminary estimated liabilities are $1.3B.

• Portfolio composition (March 31, 2026): Fixed maturity securities totaled $17.5B amortized cost and $17.7B fair value, with gross unrealized gains of $269M and gross unrealized losses of ($61M); at December 31, 2025, amortized cost was $17.5B, fair value $17.8B, unrealized gains $304M, and unrealized losses ($13M).
• Classification and credit quality: Securities are generally classified as available-for-sale; as of March 31, 2026, approximately 95% of foreign government holdings were rated AA or higher by at least one of the major rating agencies.
• Maturity profile (March 31, 2026): By amortized cost, $12.8B is due in one year or less, $4.1B due after one year through five years, $369M due after five years through ten years, $88M due after ten years, and $99M in mortgage-backed securities; actual maturities may differ from contractual maturities due to prepayment rights held by issuers.

• Portfolio concentration: The 5 largest holdings at March 31, 2026 and December 31, 2025 represented 61% and 65%, respectively, of aggregate fair value; those holdings were American Express Company, Apple Inc., Bank of America Corporation, The Coca-Cola Company, and Chevron Corporation.
• Occidental preferred stock: The Occidental non-voting Cumulative Perpetual Preferred Stock accrues dividends at 8% per annum, is redeemable at Occidental's option commencing in 2029 at 105% of liquidation value, and had an aggregate liquidation value of approximately $8.5B as of March 31, 2026; associated common stock warrants allow purchase of up to 83.9 million shares at an exercise price of $59.59 per share, exercisable until one year after the preferred stock is fully redeemed.
• American Express ownership: As of March 31, 2026, 151.6 million shares of American Express common stock were held, representing 22.2% of outstanding common stock; the equity method is not applied because passivity commitments to the Board of Governors of the Federal Reserve System and a voting agreement in place since 1995 collectively restrict the ability to exercise significant influence, so the investment is recorded at fair value.

• Ownership stakes: As of March 31, 2026, Berkshire owned 27.5% of Kraft Heinz common stock and 26.9% of Occidental common stock (excluding the potential effect of Occidental's outstanding common stock warrants), plus a 50% interest in Berkadia Commercial Mortgage LLC (Berkadia), with Jefferies Financial Group Inc. owning the other 50%.
• Carrying vs. fair value: Combined carrying value of the three investments was $20B as of March 31, 2026 vs. $20B as of December 31, 2025; Kraft Heinz carrying value of $8.7B exceeded its fair value of $7.3B by $1.4B (or 15.7% of carrying value) as of March 31, 2026, while Occidental's carrying value of $10.8B was well below its fair value of $17.2B; both Kraft Heinz and Occidental carrying values include reductions for other-than-temporary impairment losses recorded in the second and fourth quarters of 2025, respectively.
• Kraft Heinz impairment assessment: Despite the fair value shortfall, Berkshire concluded no impairment charge was required as of March 31, 2026 after considering ability and intent to hold, magnitude and duration of the decline, and Kraft Heinz's operating results; Berkshire's carrying value in Kraft Heinz exceeded its share of Kraft Heinz common shareholders' equity as of December 27, 2025 by approximately $2.8B.
• Equity in earnings and distributions: Total equity in earnings across all three investments was $176M in Q1 2026 vs. $126M in Q1 2025; Occidental reported a loss of ($18M) (vs. ($82M) in Q1 2025), Kraft Heinz contributed $180M (vs. $195M), and Berkadia contributed $14M (vs. $13M); both Kraft Heinz and Occidental earnings are reported on a one-quarter lag (Kraft Heinz beginning with Q2 2025), and total distributions received were $203M in Q1 2026 vs. $195M in Q1 2025.

• Equity securities — unrealized losses: Change in unrealized investment gains (losses) on securities held at period-end was ($3.3B) in Q1 2026, compared to ($6.8B) in Q1 2025; gains (losses) on securities sold were $1.7B vs. $371M, yielding a net equity securities loss of ($1.6B) vs. ($6.4B).
• Fixed maturity securities: Gross realized gains were $47M in Q1 2026 (vs. $8M in Q1 2025), gross realized losses were $— million (vs. ($47M)), and other was ($13M) (vs. $8M).
• Total investment gains (losses): Net investment loss was ($1.6B) in Q1 2026 vs. ($6.4B) in Q1 2025.
• Equity securities sales activity: Proceeds from sales of equity securities were approximately $24.1B in the first three months of 2026 vs. $4.7B in 2025; taxable gains on equity securities sold were $7.2B in Q1 2026 vs. $3.1B in Q1 2025.

• Portfolio composition: Loans and finance receivables are principally manufactured home installment loans, with commercial loans and site-built home loans comprising a lesser portion; gross balance (before allowances and discounts) was $32.3B at March 31, 2026, up from $32B at December 31, 2025, yielding a net carrying value of $30.1B versus $29.8B.
• Allowance for credit losses: The allowance increased from $1.3B at January 1, 2026 to $1.4B at March 31, 2026, reflecting a $52M provision for credit losses and ($45M) in net charge-offs; the comparable prior-year period saw a $183M provision and ($41M) in net charge-offs, with the allowance rising from $1.1B to $1.3B.
• Credit quality: As of March 31, 2026, approximately 97% of manufactured and site-built home loans (evaluated collectively for impairment) were considered current as to payment status; non-performing home loans totaled $176M out of $31.6B gross home loans, with the largest non-performing concentration in the 'Prior' (pre-2022) vintage at $81M.

• Insurance and other segment: Receivables totaled $47.5B as of March 31, 2026, up from $44.3B at December 31, 2025, composed of insurance premiums receivable ($19.9B vs. $18.7B), reinsurance recoverables ($4.8B vs. $5B), trade receivables ($18.2B vs. $16.1B), other ($5.2B vs. $5.3B), net of allowances for credit losses of ($737M) vs. ($705M).
• Railroad, utilities and energy segment: Receivables totaled $4.3B as of March 31, 2026, down from $4.4B at December 31, 2025, composed of trade receivables ($3.7B vs. $3.8B), other ($634M vs. $698M), net of allowances for credit losses of ($92M) vs. ($93M).
• Credit loss provisions: Provisions for credit losses were $153M in the first quarter of 2026, up from $124M in 2025; charge-offs net of recoveries were $110M in the first quarter of 2026, down from $124M in 2025.

Railroad, utilities and energy inventories: Inventories, materials and supplies of the railroad, utilities and energy businesses are included in other assets and were approximately $3.2B as of both March 31, 2026 and December 31, 2025.

• Insurance and other — net PP&E: Net property, plant and equipment for insurance and other businesses was $39B at March 31, 2026, up from $31.9B at December 31, 2025, driven by gross asset growth to $70.8B from $63B against accumulated depreciation of $31.8B.
• Railroad net PP&E: Railroad net PP&E was $72.5B at March 31, 2026 (vs. $72.4B at December 31, 2025), with gross assets of $95.2B and accumulated depreciation of $22.8B; construction in progress was $2.2B.
• Utilities and energy net PP&E: Utilities and energy net PP&E was $111.6B at March 31, 2026 (vs. $112.4B at December 31, 2025), with gross assets of $156.7B — including $108.5B in utility generation, transmission and distribution systems and $11.1B in construction in progress — against accumulated depreciation of $45.2B.
• Depreciation expense: Total first-quarter depreciation was $2.7B in 2026 vs. $2.4B in 2025; insurance and other contributed $922M (vs. $784M) and railroad, utilities and energy contributed $1.8B (vs. $1.7B).

• Depreciation expense: Equipment held for lease depreciation expense in the first quarter was $374M in 2026 and $372M in 2025.
• Lease revenue growth: Total operating lease revenues rose from $2.4B in Q1 2025 to $2.7B in Q1 2026, with fixed revenues of $1.8B (vs. $1.7B) and variable revenues of $862M (vs. $748M).
• Net book value: Net equipment held for lease was $18.7B at March 31, 2026 (gross $32.2B less accumulated depreciation of $13.6B), up from $18.5B at December 31, 2025 (gross $31.9B less $13.4B).

• Goodwill movement: Goodwill rose from $83.1B at January 1, 2026 to $83.2B at March 31, 2026, driven by $260M of business acquisitions partly offset by ($154M) of other items including impairments and foreign currency translation; both period-end balances are net of accumulated goodwill impairments of $13B.
• Other intangibles — Insurance and other: Net carrying value increased to $34.3B at March 31, 2026 (from $33.8B at December 31, 2025), with customer relationships the largest component at $21.9B net, followed by trademarks and trade names at $8B net and other at $3.3B net.
• Other intangibles — Railroad, utilities and energy: Net carrying value was $1B at March 31, 2026 (down from $1B at December 31, 2025), composed of customer relationships and contracts ($708M net) and other ($304M net); these are included in other assets.
• Indefinite-lived intangibles and amortization: Intangible assets with indefinite lives were $19B as of March 31, 2026 ($18.9B as of December 31, 2025), primarily certain customer relationships, trademarks and trade names; amortization expense in the first quarter was $446M in 2026 and $444M in 2025.

• Gross liabilities roll-forward: Gross claim liabilities rose from $120.7B at January 1, 2026 to $121.6B at March 31, 2026 (2025: $115.2B to $117.1B); net liabilities (after reinsurance recoverable) moved from $116.3B to $117.3B in 2026 and from $110.6B to $112.3B in 2025.
• Current accident year activity: No significant catastrophe events (defined as losses exceeding $150M per event) occurred in Q1 2026; current accident year incurred losses in Q1 2025 included $1.1B from the Southern California wildfires.
• Prior accident year development: Reductions of estimated ultimate claim liabilities for prior accident years were $499M in Q1 2026 versus $163M in Q1 2025, both described as relatively insignificant as percentages of beginning net liabilities; primary insurance businesses reduced prior-year estimates by $239M in Q1 2026 (attributable to lower property and casualty estimates) versus an increase of $167M in Q1 2025 (attributable to casualty increases partly offset by lower property estimates).
• Reinsurance segment development: Reinsurance businesses recorded net reductions in prior accident year ultimate claim liabilities of $260M in Q1 2026 and $330M in Q1 2025, primarily attributable to lower estimates for property coverages.

Liability roll-forward: The estimated liability for retroactive reinsurance unpaid losses and LAE declined from $31B at the beginning of 2026 to $30.4B at March 31, 2026, driven by losses and LAE paid of ($674M), losses and LAE incurred of ($1M), and a foreign currency effect of ($5M); the comparable March 31, 2025 balance was $32B (beginning balance $32.4B).

• Deferred charge adjustments: Losses and LAE incurred on a reported basis were ($1M) in 2026 and $2M in 2025, but including deferred charge adjustments of $252M (2026) and $169M (2025), the net incurred figures were $251M and $171M, respectively.
• Deferred charge assets: Deferred charge assets on retroactive reinsurance contracts were $7.9B at March 31, 2026 and $8.1B at December 31, 2025; substantially all losses and LAE incurred and paid related to contracts with inception dates prior to 2020, covering exposures that may include significant asbestos, environmental, and other mass tort claims.

• Aggregate liability balances: Total long-duration insurance liabilities were $17.5B at March 31, 2026, down from $17.7B at March 31, 2025, composed of Annuities ($10.1B), Life and health ($4.5B), and Other ($2.9B).
• Discount rate impact: The effect of changes in discount rate assumptions reduced Annuities expected future policy benefits by ($1.8B) at March 31, 2026 (vs. ($1.4B) at March 31, 2025), and reduced Life and health expected future policy benefits by ($13.9B) (vs. ($12.1B)), reflecting meaningful mark-to-market sensitivity in the liability base.
• Life and health net premiums: Expected future net premiums for Life and health stood at $42.6B at March 31, 2026 vs. $38.8B at March 31, 2025 (at-original-discount-rate balance of $55.1B vs. $49.6B), with cash flow assumption changes of ($87M) and actual-vs-expected experience of ($187M) in Q1 2026.
• Gross premiums and interest expense: Q1 2026 gross premiums earned were $1B for Life and health (vs. $951M in Q1 2025); Annuities carry no gross premiums but generated interest expense of $140M (vs. $138M), while Life and health interest expense was $33M in both periods. Weighted average discount rates at March 31, 2026 were 6.0% for Annuities and 5.2% for Life and health, with weighted average durations of 15 years and 14 years, respectively.

• Insurance/other segment total: Borrowings declined to $42.8B at March 31, 2026 from $45.8B at December 31, 2025, with the largest components being Berkshire Japanese Yen-denominated debt ($14.7B at 1.2%) and BHFC U.S. Dollar-denominated notes ($14.5B at 3.6%); the decline was driven primarily by repayment of approximately $2.5B of maturing U.S. Dollar-denominated Berkshire debt in the first quarter of 2025.
• Post-quarter Berkshire activity: In April 2026, Berkshire issued ¥272.3 billion ($1.7B) of senior notes with maturity dates ranging from 2029 to 2056 at a weighted average interest rate of 2.4%, and repaid ¥133.9 billion ($844M) of maturing senior notes.
• FX impact on non-U.S. Dollar debt: The carrying values of non-U.S. Dollar senior notes (€4.85 billion, £1.75 billion, and ¥2,343 billion par at March 31, 2026) are remeasured at spot rates each period through earnings (SG&A); changes produced pre-tax gains of $325M in the first quarter of 2026 versus pre-tax losses of $936M in the first quarter of 2025.
• Railroad, utilities and energy segment: Total borrowings rose to $86.1B at March 31, 2026 from $83.3B at December 31, 2025, driven by BHE subsidiaries issuing $4.6B of term debt in Q1 2026 at a weighted average interest rate of 5.8% with maturities from 2029 to 2056, partially offset by BHE term debt repayments of $210M, short-term borrowing reductions of $992M, and BNSF repaying $503M of term debt; unused and available lines of credit and commercial paper capacity were approximately $11.7B at March 31, 2026, of which approximately $10.2B related to BHE and its subsidiaries.

• Level 3 equity securities rollforward: Level 3 investments in equity securities began 2026 at $9.5B, recorded gains in earnings of $1.2B, and ended March 31, 2026 at $10.7B; the comparable 2025 figures were $9.7B beginning balance, $117M gains, and $9.8B ending balance.
• Level 3 valuation inputs — preferred stock: Preferred stock (fair value $8.8B as of March 31, 2026) is valued using discounted cash flow with an expected duration of 4 years and discounts for liquidity and subordination of 325 bps; these are private placements not traded in securities markets.
• Level 3 valuation inputs — common stock warrants: Common stock warrants (fair value $1.9B) are valued using a warrant pricing model with assumed expected duration of 5 years and volatility of 43%.
• Notable fair value vs. carrying value gaps: As of March 31, 2026, Investments in Kraft Heinz & Occidental common stock had a carrying value of $19.5B versus a Level 1 fair value of $24.5B; Notes payable for Insurance and other carried $42.8B versus a Level 2/3 fair value of $37.4B, and Railroad, utilities and energy debt carried $86.1B versus a Level 2 fair value of $78.1B.

• Share structure: Class A common stock ($5 par value, 1.65 million shares authorized) carries 1 vote per share and is convertible at the holder's option into 1,500 shares of Class B; Class B ($0.0033 par value, 3.225 billion shares authorized) is not convertible into Class A, carries 1/10,000 of a Class A vote per share, and has dividend/distribution rights equal to 1/1,500 of a Class A share. On an equivalent Class A basis, shares outstanding were 1,437,903 as of March 31, 2026 vs. 1,438,223 as of December 31, 2025.
• Share count changes (Q1 2026): Class A outstanding declined from 515,835 to 505,951 (net of 9,851 conversions to Class B and 33 treasury shares acquired); Class B outstanding rose from 1,383,582,639 to 1,397,927,677 (reflecting 14,776,500 shares issued from Class A conversions, offset by 431,462 treasury shares acquired).
• Repurchase program: The program permits open-market or privately negotiated repurchases any time the CEO — after consulting the Board Chairman — believes the repurchase price is below intrinsic value, conservatively determined; it has no expiration date, no specified maximum share count, and imposes no obligation to repurchase any specific amount, but repurchases are prohibited if they would reduce consolidated cash, cash equivalents, and U.S. Treasury Bill holdings below $30B.
• Preferred stock: One million shares of preferred stock are authorized; none are issued.

• Effective tax rate: Consolidated effective income tax rate was 17.4% in the first quarter of 2026, up from 9.2% in the first quarter of 2025; the rate normally reflects benefits from dividends-received deductions on certain equity securities investments and production tax credits related to wind-powered electricity generation placed in service in the U.S.
• Rate variability drivers: The periodic effective rate varies with changes in the mix of pre-tax earnings (including realized and unrealized investment gains or losses on equity securities), non-deductible goodwill impairment charges and other expenses, and applicable tax rates across jurisdictions.
• OECD Pillar Two: The OECD previously issued Pillar Two model rules introducing a global minimum tax of 15%; the U.S. has not adopted these rules, though various countries have enacted legislation to do so, and in January 2026 the OECD issued additional guidance including a safe harbor framework for certain U.S.-parented multinational groups — management does not currently expect these rules will have a material effect on consolidated income taxes.

AOCI balance: Total accumulated other comprehensive income (loss) attributable to Berkshire shareholders was ($2.5B) at March 31, 2026, compared to ($2.4B) at the beginning of 2026 and ($3.1B) at March 31, 2025.

Period activity (2026): Other comprehensive loss of ($63M) in Q1 2026 was driven by foreign currency translation losses of ($260M) and unrealized investment losses of ($58M), partly offset by long-duration insurance contract gains of $286M and defined benefit pension gains of $3M.

Period activity (2025): Other comprehensive income of $500M in Q1 2025 reflected foreign currency translation gains of $474M, unrealized investment gains of $30M, and long-duration insurance contract gains of $28M, partially offset by defined benefit pension losses of ($38M).

Long-duration insurance contracts: This component improved from $2.2B at the start of 2026 to $2.5B at March 31, 2026, remaining the largest positive component of AOCI, while foreign currency translation at ($5.8B) remained the largest drag.

Commitments

• PacifiCorp Washington asset sale ($1.9B, signed February 15, 2026): PacifiCorp agreed to sell assets and liabilities associated with its Washington operations to Portland General Electric Company and an affiliate for a base cash price of $1.9B; close expected first half of 2027, subject to regulatory approvals.
• HomeServices Burnett settlement ($250M over four years): Final settlement signed April 25, 2024 covers all claims against HomeServices and certain subsidiaries; $130M paid into escrow to date; appeals pending before U.S. Court of Appeals for the Eighth Circuit.

Legal Proceedings

• PacifiCorp 2020 Wildfires and 2022 McKinney Fire (cumulative accrual ~$2.9B through March 31, 2026): James class action Phase I verdict reversed and remanded by Oregon Court of Appeals on April 8, 2026; total James jury verdicts awarded ~$1.3B net to 201 plaintiffs; PacifiCorp paid ~$2.3B in settlements to date including $584M in Q1 2026; unpaid liabilities $577M at March 31, 2026; material additional losses beyond amounts accrued are reasonably possible.
• James et al. v. PacifiCorp (Phase II stayed April 9, 2026): Multnomah County Circuit Court Oregon ordered stay of Phase II trials and mandatory mediation; hearing set May 22, 2026; PacifiCorp posted bonds totaling $719M for 129 plaintiffs; bonds could be discharged based on April 2026 appellate opinion.
• HomeServices antitrust cases (Texas damages asserted ~$9B): Multiple federal antitrust cases allege conspiracy to inflate real estate commissions via Cooperative Compensation Rule; two Texas cases assert ~$9B in damages by written notice; Burnett jury found $1.8B in damages subject to trebling; HomeServices settlement appeals fully briefed, oral arguments January 14, 2026, ruling pending.
• NICO Chapter 11 settlement ($535M, Court approval pending): In September 2024, NICO agreed to pay $535M to bankruptcy estate of non-insurance affiliates in exchange for release of all estate causes of action; Court approval over creditor objections pending.
• NICO Consent Decree and Environmental Settlement Agreement (filed April 3, 2026): NICO and affiliates filed proposed CDESA with the Court to resolve environmental liabilities from sites owned or operated by debtor non-insurance affiliates; subject to Court approval.

Other revenues: Revenues not considered contracts with customers under GAAP — primarily insurance premiums earned, interest, dividend and other investment income, and leasing revenues — totaled $30.5B in First quarter 2026 vs. $30.4B in First quarter 2025, with the Insurance, Corporate and other segment accounting for $26.5B and $26.4B, respectively.

Unsatisfied performance obligations: As of March 31, 2026, significant unsatisfied remaining performance obligations on contracts with expected durations exceeding one year totaled $22.2B for electricity and natural gas ($3.4B expected within 12 months; $18.8B beyond 12 months) and $14.5B for other sales and service contracts ($4B within 12 months; $10.5B beyond 12 months).

• Segment structure: Berkshire reports 8 reportable segments — Insurance (subdivided into GEICO, BH Primary (Berkshire Hathaway Primary Group), and BHRG (Berkshire Hathaway Reinsurance Group) for underwriting, plus a separate Insurance Investment Income activity), BNSF, BHE, Manufacturing, Service and retailing, McLane, and Pilot. Businesses are managed on a decentralized basis and aggregated based on similar products, marketing strategies, and selling and distribution characteristics.
• Intersegment and corporate reconciling items: Intersegment transactions are not eliminated from segment results when considered in assessing segment performance. Investment gains/losses, goodwill and indefinite-lived intangible asset impairments, amortization of certain acquisition accounting adjustments, and certain other corporate income/expense items are excluded from segment operating results and included in 'Corporate, eliminations and other' to reconcile segment totals to consolidated amounts.
• Reconciliation to consolidated earnings before income taxes: Total operating businesses earned $12.4B in First Quarter 2026 vs. $11.6B in First Quarter 2025; after investment losses of ($1.6B (2026) and ($6.4B (2025), equity method earnings of $176M (2026) and $126M (2025), and corporate/eliminations/other of $1.4B (2026) and ($158M (2025), consolidated earnings before income taxes were $12.3B and $5.1B respectively.
• Balance sheet scale: Consolidated identifiable assets totaled $1252.3B as of March 31, 2026, vs. $1222.2B as of December 31, 2025; the Insurance segment alone held $588B in identifiable assets as of March 31, 2026.

• Railroad operating revenues: Increased 5.0% in Q1 2026 vs. Q1 2025 to $6B, driven by car/unit volume growth of 2.2% and average revenue per car/unit improvement of 2.8% from business mix, core pricing gains, and higher fuel surcharge revenue from higher fuel prices; pre-tax earnings rose 13.5% to $1.8B.
• Operating expense ratio: Railroad operating expenses increased $56M (1.5%) to $3.9B, with the operating ratio improving 2.3 percentage points to 65.6%; fuel expense was substantially unchanged as efficiency gains offset higher volumes and higher average fuel prices, and compensation and benefits was flat as wage inflation was offset by improved employee productivity, while equipment rents, materials and other expenses increased $31M (6.2%) primarily due to higher casualty related costs.
• Business group revenue drivers: Agricultural and energy products led growth at +14.8% to $1.8B (volume +11.6% on higher demand for grains, petroleum fuels, oilseeds and meals); industrial products rose 2.3% to $1.2B despite volume declining 0.6% due to lower plastics and building products shipments from housing market softness; coal revenues rose 1.1% to $742M with volume down 2.3% from utility plant retirements partially offset by higher natural gas prices; consumer products were approximately $2B with volume up 1.4% on higher international intermodal shipments.
• Net earnings and taxes: Net earnings were $1.4B vs. $1.2B in Q1 2025; the effective income tax rate was 24.3% in both periods.

• Revenue drivers: Total revenues rose to $6.7B in Q1 2026 from $6.4B in Q1 2025, with energy operating revenues up to $5.8B from $5.5B and real estate operating revenues essentially flat at $862M vs. $860M.
• Cost pressures: Energy cost of sales increased to $1.7B from $1.5B and interest expense rose to $700M from $646M, driving total costs and expenses to $5.9B from $5.6B.
• Tax benefit: An income tax benefit of ($430M) in Q1 2026 vs. ($422M) in Q1 2025 — driven significantly by production tax credits from wind-powered electricity generation — resulted in an effective income tax rate of (57.8)% vs. (58.4)%.
• Net earnings: Net earnings attributable to Berkshire shareholders were $1.1B in Q1 2026 vs. $1.1B in Q1 2025; preferred stock dividends were $— in Q1 2026 vs. $3M in Q1 2025.

• Overall BHE earnings: Total net earnings attributable to BHE were $1.1B in the first quarter of 2026 versus $1.1B in the first quarter of 2025, a 1.3% increase, with gains in natural gas pipelines and reduced corporate losses partially offsetting declines in U.S. utilities and other energy businesses.
• U.S. utilities: Net earnings decreased $69M (16.1%) to $359M in the first quarter of 2026, driven by higher energy operating expenses (vegetation management, wildfire prevention, maintenance, insurance, technology), higher interest expense, and lower production tax credit benefits, partially offset by a $47M (2.4%) increase in electric utility margin to $2B and higher other income; retail customer volumes rose 1.7% overall (up 4.4% at MEC and 4.3% at NV Energy, down 1.2% at PacifiCorp).
• Natural gas pipelines: Net earnings increased $118M (24.2%) to $606M in the first quarter of 2026, driven by higher transportation and storage revenues from a general rate case and higher variable liquefied natural gas revenues from cold weather.
• Other energy businesses and real estate: Net earnings of other energy businesses fell $92M (26.5%) to $255M, primarily due to lower Northern Powergrid distribution revenues from lower tariffs following inflation adjustments beginning in the second quarter of 2025 and higher interest expense; real estate brokerage net losses narrowed by $3M (20.0%) to ($12M), though the business continues to be negatively impacted by limited home inventory and high home prices.

• Industrial products revenue: Rose to $11.2B in First Quarter 2026 from $9.1B in First Quarter 2025, though pre-tax margin narrowed slightly to 17.2% from 17.5%.
• Building products revenue: Declined to $6B from $6.2B, with pre-tax margin contracting to 13.4% from 14.3%.
• Consumer products: Revenue fell modestly to $3.5B from $3.5B, while pre-tax margin improved to 9.3% from 7.1%.
• Segment totals: Aggregate manufacturing revenues grew to $20.7B from $18.8B, with total pre-tax earnings rising to $3.1B from $2.7B.

• Industrial products revenue: Revenues grew to $11.2B in the first quarter of 2026, up $2.1B (23.6%) over 2025, driven primarily by business acquisitions including OxyChem (acquired from Occidental Petroleum Corporation on January 2, 2026) and Bell Laboratories (added August 2025), with pre-tax earnings up $350M (22.1%) and pre-tax margin of 17.2%, down 0.3 percentage points vs. 2025. PCC revenues rose 8.2% to $2.9B with aerospace up 9.4%, industrial gas turbine up 18.9%, and pre-tax earnings up 32.9% aided by the non-recurrence of a 2025 fasteners facility fire. IMC revenues rose 20.6% to approximately $1.2B with pre-tax earnings up 41.9%, driven by customer demand acceleration ahead of anticipated price increases, though management stated this earnings rate is not expected to continue throughout 2026.
• Building products pressure: Group revenues declined $179M (2.9%) and pre-tax earnings declined $81M (9.2%) in the first quarter of 2026 vs. 2025, with Clayton Homes revenues down 1.2% to $2.9B reflecting a 9.7% decline in new home unit sales and pre-tax earnings of $393M (down 8.7%); Clayton's net loan balances were approximately $29.8B as of March 31, 2026, up 7.8% since March 31, 2025.
• Consumer products earnings rebound: Group revenues declined 1.5% to $3.5B in the first quarter of 2026, but pre-tax earnings increased 29.6% vs. 2025, led by Forest River (lower SG&A), Duracell (advanced manufacturing production tax credits), and Brooks Sports (higher sales and gross margins), partially offset by declines at Garan and Jazwares.
• Pilot earnings collapse: Pilot revenues increased $815M (7.8%) to $11.2B on higher fuel prices, but pre-tax earnings swung to a loss of $50M from earnings of $168M in 2025 (a decline of $218M, or 129.8%), driven by non-recurrence of 2025 asset disposition gains, losses on hedging contracts from significant fuel price increases (with related inventory gains deferred until sold), and higher depreciation, amortization, store, and G&A expenses (up 8.2%).

• Shareholders' equity and earnings: Berkshire's shareholders' equity was $727.2B at March 31, 2026, an increase of $9.8B since December 31, 2025; net earnings attributable to Berkshire shareholders were $10.1B for the first quarter of 2026 and included after-tax investment losses of approximately $1.2B.
• Liquidity and cash position: Insurance and other businesses held cash, cash equivalents and U.S. Treasury Bills (net of payables for unsettled purchases) of $373.5B at March 31, 2026; investments in equity and fixed maturity securities, excluding equity method investments, were $305.7B; Berkshire will not repurchase stock if it reduces consolidated cash, cash equivalents and U.S. Treasury Bills holdings below $30B.
• Debt levels and activity: Excluding BNSF and BHE borrowings, Berkshire's borrowings were $42.8B at March 31, 2026; Berkshire's outstanding debt declined $2.8B to $19.9B primarily due to $2.5B of maturing debt repayments; in April 2026, Berkshire issued ¥272.3 billion ($1.7B) of senior notes (weighted average interest rate 2.4%, maturities 2029–2056) and repaid ¥133.9 billion ($844M) of maturing senior notes; BHE's aggregate borrowings were $62.5B (up $3.2B from December 31, 2025) after issuing $4.6B of term debt at a weighted average interest rate of 5.8% in Q1 2026; BNSF's outstanding debt was $23.6B (down approximately $500M from December 31, 2025); Berkshire does not guarantee debt issued by BNSF, BHE, or their subsidiaries.
• Capital expenditures and cash flow: Businesses generated net operating cash flows of $10.4B in Q1 2026; consolidated capital expenditures for property, plant and equipment and equipment held for lease were $5B, of which $3.2B came from BNSF and BHE; BHE and BNSF forecast capital expenditures of approximately $12.4B over the remainder of 2026.
• Balance sheet estimates: Estimated liabilities for unpaid losses and loss adjustment expenses were $151.9B at March 31, 2026; goodwill of acquired businesses was $83.2B and indefinite-lived intangible assets were $19B; 4 reporting units whose estimated aggregate fair value of approximately $27.7B exceeded aggregate carrying value of approximately $26.2B (goodwill of these units totaled approximately $9.2B) were identified in the Q4 2025 annual impairment review as having fair values not exceeding carrying values by at least 20%, and management concluded as of March 31, 2026 that impairment was more likely than not absent.