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Berkshire Hathaway(BRK_B) - 2024 Q3 - Quarterly Results
BRK_BBerkshire Hathaway(BRK_B)2024-11-02 12:27

Financial Performance - Total revenues for the third quarter of 2024 were 92.995billion,aslightdecreasefrom92.995 billion, a slight decrease from 93.210 billion in the same quarter of 2023[7]. - The company reported a net income of 29.5billionforthefirstninemonthsof2024,comparedto29.5 billion for the first nine months of 2024, compared to 25.5 billion for the same period in 2023, indicating a year-over-year increase of 15.7%[7]. - Net earnings for Q3 2024 were 26,480million,comparedtoalossof26,480 million, compared to a loss of 12,567 million in Q3 2023, representing a significant turnaround[9]. - Comprehensive income for Q3 2024 was 26,674million,comparedtoalossof26,674 million, compared to a loss of 12,619 million in Q3 2023[9]. - Net earnings for the first nine months of 2024 reached 69,810million,upfrom69,810 million, up from 59,389 million in 2023, representing a growth of approximately 17.5%[11]. Assets and Liabilities - Total assets as of September 30, 2024, reached 1,147.251billion,upfrom1,147.251 billion, up from 1,069.978 billion at the end of 2023, reflecting a growth of 7.3%[6]. - The total liabilities as of September 30, 2024, were 515.445billion,upfrom515.445 billion, up from 499.208 billion at the end of 2023, an increase of 3.5%[6]. - Shareholders' equity increased to 631.806billionasofSeptember30,2024,comparedto631.806 billion as of September 30, 2024, compared to 567.509 billion at the end of 2023, marking an increase of 11.3%[6]. - The company’s retained earnings rose to 676.524billionasofSeptember30,2024,comparedto676.524 billion as of September 30, 2024, compared to 607.350 billion at the end of 2023, reflecting an increase of 11.4%[6]. Investment Gains and Securities - Investment gains for the third quarter of 2024 were 20.514billion,asignificantrecoveryfromalossof20.514 billion, a significant recovery from a loss of 29.778 billion in Q3 2023[7]. - The company reported unrealized gains on investments of 134millioninQ32024,upfrom134 million in Q3 2024, up from 11 million in Q3 2023[9]. - The total fair value of equity securities as of September 30, 2024, was 271,650million,withacostbasisof271,650 million, with a cost basis of 78,112 million, resulting in net unrealized gains of 193,538million[21].−InvestmentgainsonequitysecuritiessoldinQ32024were193,538 million[21]. - Investment gains on equity securities sold in Q3 2024 were 23.4 billion, a significant increase from 759millioninQ32023[29].InsuranceOperations−Totalinsurancerevenuesforthefirstninemonthsof2024were759 million in Q3 2023[29]. Insurance Operations - Total insurance revenues for the first nine months of 2024 were 77.3 billion, compared to 70.0billionin2023[83].−GEICO′srevenuesforthethirdquarterof2024were70.0 billion in 2023[83]. - GEICO's revenues for the third quarter of 2024 were 10.7 billion, up from 9.8billionin2023,whileyear−to−daterevenuesincreasedto9.8 billion in 2023, while year-to-date revenues increased to 31.4 billion from 29.2billion[83].−PremiumswrittenbyGEICOincreasedby29.2 billion[83]. - Premiums written by GEICO increased by 2.5 billion (8.4%) in the first nine months of 2024 compared to 2023, driven by a 10.1% increase in average written premiums per auto policy[90]. - Losses and loss adjustment expenses for GEICO declined by 1.3billion(5.21.3 billion (5.2%) in the first nine months of 2024 compared to 2023, with a loss ratio of 72.6%, down 9.9 percentage points[90]. Cash Flow and Capital Management - Cash and cash equivalents at the end of Q3 2024 were 37,992 million, compared to 31,604millionattheendofQ32023,reflectinganincreaseofapproximately20.331,604 million at the end of Q3 2023, reflecting an increase of approximately 20.3%[11]. - Net cash flows from operating activities decreased to 25,971 million in 2024 from 34,796millionin2023,adeclineofabout25.534,796 million in 2023, a decline of about 25.5%[11]. - Berkshire repaid approximately 1.9 billion of maturing senior notes in the first nine months of 2024, demonstrating active debt management[59]. - The total borrowings of Berkshire as of September 30, 2024, amounted to 43,651million,anincreasefrom43,651 million, an increase from 42,692 million at the end of 2023[58]. Legal and Regulatory Matters - The company anticipates that liabilities from pending legal actions will not materially affect its consolidated financial condition[76]. - National Indemnity Company recorded a pre-tax charge of 490millionrelatedtoasettlementagreementconcerningbankruptcyfilings[76].−HomeServicesofAmerica,Inc.isfacingantitrustclaimswithpotentialdamagestotalingapproximately490 million related to a settlement agreement concerning bankruptcy filings[76]. - HomeServices of America, Inc. is facing antitrust claims with potential damages totaling approximately 9 billion, as indicated by plaintiffs in Texas[75]. Operational Highlights - Revenues from manufactured products totaled 62,048millionforQ32024,withsignificantcontributionsfromindustrialandcommercialsectorsat62,048 million for Q3 2024, with significant contributions from industrial and commercial sectors at 18,347 million[78]. - The electricity, natural gas, and fuel segment generated 49,655millioninrevenuefortheninemonthsendingSeptember30,2024[79].−BNSF′srailroadoperatingrevenuesforQ32024were49,655 million in revenue for the nine months ending September 30, 2024[79]. - BNSF's railroad operating revenues for Q3 2024 were 5,881 million, a 2.8% increase from 5,719millioninQ32023[108].−BHE′stotalrevenueforQ32024was5,719 million in Q3 2023[108]. - BHE's total revenue for Q3 2024 was 7,335 million, slightly up from 7,281millioninQ32023[111].ShareholderReturns−Thecompanyrepurchased5.857,281 million in Q3 2023[111]. Shareholder Returns - The company repurchased 5.85% of Berkshire Hathaway Energy Company's outstanding common stock for 2,400 million and a promissory note for 600million[14].−Inthefirstninemonthsof2024,Berkshirerepurchased600 million[14]. - In the first nine months of 2024, Berkshire repurchased 2.9 billion of its common stock and held cash and equivalents of $305.5 billion[132]. - The company’s common stock repurchase program allows for repurchases when the price is below intrinsic value, with no specified maximum number of shares[66].