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Berkshire Hathaway's Q4 Earnings and Revenues Rise Year Over Year
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Berkshire Hathaway Inc. (BRK.B - Free Report) delivered fourth-quarter 2024 operating earnings of $14.5 billion, which increased 71.3% year over year. The increase was driven by higher earnings in Insurance-underwriting, Insurance-investment income, Berkshire Hathaway Energy Company and non-controlled businesses.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Berkshire Hathaway Inc. Price, Consensus and EPS Surprise
Costs and expenses decreased 1.7% year over year to $315.7 billion, largely due to a decrease in expenses at Insurance and Other as well as Railroad, Utilities and Energy. Operating earnings from the Railroad business increased 0.7% year over year to $7.5 billion. The increase was due to volume growth and lower operating costs from improved productivity. It was partially offset by a $290 million charge related to a labor agreement that was finalized in the fourth quarter of 2024 and by increased litigation accruals.
Revenues rose 1.9% year over year to $371.4 billion, attributable to higher revenues at Insurance and Other, as well as Railroad, Utilities and Energy.
Berkshire Hathaway’s Insurance and Other segment revenues increased 2.2% year over year to $321.6 billion in the reported quarter on the back of higher insurance premiums earned, leasing revenues and interest, dividend and other investment income.
Insurance underwriting after-tax earnings were $9 billion in 2024, which increased 66.6% from the year-ago quarter. Earnings in 2024 benefited from significantly improved operating results at GEICO.
Railroad, Utilities and Energy operating revenues inched up 0.07% year over year to $49.7 billion, attributable to higher utility and energy operating revenues, service revenues and other income.
Pre-tax earnings of Railroad increased 0.5% year over year to $6.6 billion. Total revenues at Manufacturing, Service and Retailing decreased 1.7% year over year to $215.9 billion. Pre-tax earnings declined 4.2% year over year to $16.8 billion.
In 2024, net earnings from the Manufacturing, Service and Retailing businesses declined 2.1% year over year to $13.1 billion. The earnings decline in 2024 reflected lower earnings from service and retailing businesses, partially offset by earnings increases at several manufacturing businesses.
Financial Position
As of Dec. 31, 2024, consolidated shareholders’ equity was $651.6 billion, up 14.8% year over year. At quarter-end, cash and cash equivalents and restricted cash were $48.4 billion, up 25.2% from the level at the 2023-end.
Berkshire exited the fourth quarter of 2024 with a float of about $171 billion, up from $169 billion reported at the end of 2023.
Cash flow from operating activities totaled $30.6 billion in 2024, up 37.8% from the year-ago period.
Berkshire Hathaway bought back shares worth $2.9 billion in 2024.
Zacks Rank
Berkshire Hathaway currently carries a Zacks Rank #4 (Sell).
The Travelers Companies (TRV - Free Report) reported fourth-quarter 2024 core income of $9.15 per share, which beat the Zacks Consensus Estimate by 39.3% and improved 30.5% year over year. Travelers’ total revenues increased 10.4% from the year-ago quarter to $11.9 billion. The top-line figure beat the Zacks Consensus Estimate by 1%.
Net written premiums increased 7% year over year to a record $10.7 billion, driven by strong growth across all three segments. Our estimate was $10.8 billion. The Zacks Consensus Estimate was pegged at $926 million. TRV witnessed an underwriting gain of $1.4 billion, up 30.5% year over year. The consolidated underlying combined ratio of 84% improved 190 bps year over year.
RLI Corp. (RLI - Free Report) reported fourth-quarter 2024 operating earnings of 41 cents per share, which missed the Zacks Consensus Estimate by 14.5%. The bottom line decreased 46.8% from the prior-year quarter. Operating revenues for the reported quarter were $436 million, up 15.3% year over year, driven by higher net premiums earned and net investment income. The top line matched the Zacks Consensus Estimate.
Gross premiums written increased 9% year over year to $473.2 million. This uptick can be attributed to the solid performance of the Casualty segment (up 18.3%). Our estimate was $550 million. Underwriting income of $22.2 million decreased 62.8% year over year. The combined ratio deteriorated 1,170 bps year over year to 94.4%. The Zacks Consensus Estimate for the metric was pegged at 96%, while our estimate was 102%.
W.R. Berkley Corporation’s (WRB - Free Report) fourth-quarter 2024 operating income of $1.13 per share beat the Zacks Consensus Estimate by 20.2%. The bottom line improved 17.7% year over year. Operating revenues were $3.5 billion, up 9.2% year over year. The top line beat the consensus estimate by 4.2%.
W.R. Berkley’s net premiums written were $2.9 billion, up 8% year over year. The figure was lower than our estimate of $3 billion. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 180 bps year over year to 90.2%. The Zacks Consensus Estimate was 91%.
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Berkshire Hathaway's Q4 Earnings and Revenues Rise Year Over Year
Berkshire Hathaway Inc. (BRK.B - Free Report) delivered fourth-quarter 2024 operating earnings of $14.5 billion, which increased 71.3% year over year. The increase was driven by higher earnings in Insurance-underwriting, Insurance-investment income, Berkshire Hathaway Energy Company and non-controlled businesses.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Berkshire Hathaway Inc. Price, Consensus and EPS Surprise
Berkshire Hathaway Inc. price-consensus-eps-surprise-chart | Berkshire Hathaway Inc. Quote
Full-Year Highlights
Costs and expenses decreased 1.7% year over year to $315.7 billion, largely due to a decrease in expenses at Insurance and Other as well as Railroad, Utilities and Energy. Operating earnings from the Railroad business increased 0.7% year over year to $7.5 billion. The increase was due to volume growth and lower operating costs from improved productivity. It was partially offset by a $290 million charge related to a labor agreement that was finalized in the fourth quarter of 2024 and by increased litigation accruals.
Revenues rose 1.9% year over year to $371.4 billion, attributable to higher revenues at Insurance and Other, as well as Railroad, Utilities and Energy.
Berkshire Hathaway’s Insurance and Other segment revenues increased 2.2% year over year to $321.6 billion in the reported quarter on the back of higher insurance premiums earned, leasing revenues and interest, dividend and other investment income.
Insurance underwriting after-tax earnings were $9 billion in 2024, which increased 66.6% from the year-ago quarter. Earnings in 2024 benefited from significantly improved operating results at GEICO.
Railroad, Utilities and Energy operating revenues inched up 0.07% year over year to $49.7 billion, attributable to higher utility and energy operating revenues, service revenues and other income.
Pre-tax earnings of Railroad increased 0.5% year over year to $6.6 billion.
Total revenues at Manufacturing, Service and Retailing decreased 1.7% year over year to $215.9 billion. Pre-tax earnings declined 4.2% year over year to $16.8 billion.
In 2024, net earnings from the Manufacturing, Service and Retailing businesses declined 2.1% year over year to $13.1 billion. The earnings decline in 2024 reflected lower earnings from service and retailing businesses, partially offset by earnings increases at several manufacturing businesses.
Financial Position
As of Dec. 31, 2024, consolidated shareholders’ equity was $651.6 billion, up 14.8% year over year. At quarter-end, cash and cash equivalents and restricted cash were $48.4 billion, up 25.2% from the level at the 2023-end.
Berkshire exited the fourth quarter of 2024 with a float of about $171 billion, up from $169 billion reported at the end of 2023.
Cash flow from operating activities totaled $30.6 billion in 2024, up 37.8% from the year-ago period.
Berkshire Hathaway bought back shares worth $2.9 billion in 2024.
Zacks Rank
Berkshire Hathaway currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Property & Casualty Insurers
The Travelers Companies (TRV - Free Report) reported fourth-quarter 2024 core income of $9.15 per share, which beat the Zacks Consensus Estimate by 39.3% and improved 30.5% year over year. Travelers’ total revenues increased 10.4% from the year-ago quarter to $11.9 billion. The top-line figure beat the Zacks Consensus Estimate by 1%.
Net written premiums increased 7% year over year to a record $10.7 billion, driven by strong growth across all three segments. Our estimate was $10.8 billion. The Zacks Consensus Estimate was pegged at $926 million. TRV witnessed an underwriting gain of $1.4 billion, up 30.5% year over year. The consolidated underlying combined ratio of 84% improved 190 bps year over year.
RLI Corp. (RLI - Free Report) reported fourth-quarter 2024 operating earnings of 41 cents per share, which missed the Zacks Consensus Estimate by 14.5%. The bottom line decreased 46.8% from the prior-year quarter. Operating revenues for the reported quarter were $436 million, up 15.3% year over year, driven by higher net premiums earned and net investment income. The top line matched the Zacks Consensus Estimate.
Gross premiums written increased 9% year over year to $473.2 million. This uptick can be attributed to the solid performance of the Casualty segment (up 18.3%). Our estimate was $550 million. Underwriting income of $22.2 million decreased 62.8% year over year. The combined ratio deteriorated 1,170 bps year over year to 94.4%. The Zacks Consensus Estimate for the metric was pegged at 96%, while our estimate was 102%.
W.R. Berkley Corporation’s (WRB - Free Report) fourth-quarter 2024 operating income of $1.13 per share beat the Zacks Consensus Estimate by 20.2%. The bottom line improved 17.7% year over year. Operating revenues were $3.5 billion, up 9.2% year over year. The top line beat the consensus estimate by 4.2%.
W.R. Berkley’s net premiums written were $2.9 billion, up 8% year over year. The figure was lower than our estimate of $3 billion. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 180 bps year over year to 90.2%. The Zacks Consensus Estimate was 91%.