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Berkshire Hathaway Inc. (BRK.B) 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.
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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.