Berkshire Hathaway Reports Decline in Q4 Operating Earnings Amid Leadership Transition

Berkshire Hathaway reported a 29% decline in operating earnings for the fourth quarter, marking the end of Warren Buffett's tenure as CEO. The company's operating earnings fell to $10.2 billion, down from $14.5 billion in the same period the previous year. This decrease was primarily due to a 54% drop in insurance underwriting profits, which fell to $1.56 billion from $3.41 billion a year earlier. Insurance investment income also declined nearly 25% to $3.1 billion from $4.088 billion in the prior-year quarter.

For the full year 2025, operating earnings stood at $44.49 billion, compared with $47.44 billion in 2024. Annual insurance underwriting profits came in at $7.26 billion, down from $9 billion in 2024. Insurance investment income for the year eased to $12.5 billion from $13.6 billion in the previous year.

The fourth quarter marked Buffett's last as chief executive. He had announced at the annual shareholders meeting in May that he would step down from the role. Greg Abel assumed the CEO position at the start of 2026, while Buffett remains chairman.

In his first annual letter to shareholders as CEO, released alongside the results on Saturday, Abel said he would continue the culture of financial strength and capital discipline established under Buffett.

Berkshire did not repurchase shares during the quarter. The company's cash holdings slipped to $373.3 billion at the end of the fourth quarter, down from a record $381.6 billion at the end of the third quarter.

Berkshire Hathaway Class A shares rose 10% in 2025, compared with a 16.4% advance in the S&P 500 over the same period.

Abel noted in the annual letter that since 1965, Berkshire has generated compounded annual gains of 19.7%, compared with the S&P 500's compounded increases over the same period. Overall gains for Berkshire exceed 6,000,000%, while the S&P 500 has gained 46,061%, including dividends, he wrote.